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VISION 20.6 a blueprint for smarter healthcare

Annual Report 2010-2011 our 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 The difference between good and great is, at most times, a matter Vision 20.6 of perspective. It is the subtle variations in vision and focus that A vision to look beyond translates to the wide gulf between the two adjectives. Being the ordinary. To conquer great at what you do comes from determination, an inherent the unknown. The vision conviction and the discipline to see it through. to forge a new way. It all starts with a vision. A vision that empowers one to look A NEW WAVE OF ahead, to see things as they are. At Apollo we believe in Vision 20.6 - the rare ideal that defines perfection. It is rarely achievable. HEALTHCARE While most set their standards at the fairly common 20.20 mark, we understand that just isn't good enough.

20.6 vision is when you can see at 20 feet what others can discern only at 6 feet. It is the realm in which fascinating creatures like the eagle and the hawk operate. The mythical Jatayu, in the Ramayana, was said to possess spectacularly gifted sight. One can imagine it was 20.6 vision.

Our vision has been our talisman. Our ability to translate vision to reality has been our strength. We have done this by building in incredible focus in our way of working. Our culture of crystallizing vision into focus, execution and delivery has given life force to our revolutionary mission. In 27 years it has seen us become one of the leading integrated healthcare service providers in

20.6 vision demands we look ahead. And make no mistake, healthcare is changing. The signs are already evident. Changing lifestyles, global dynamics and rapidly evolving technology have combined to provide impetus to this new wave of healthcare. It is a brand of healthcare that we are ready to embrace, ready to take on. Hon’ble President of India, Smt. Pratibha Patil conferred Dr. Prathap C Reddy with the Padma Vibhushan, India’s second highest civilian award in recognition of his immense contribution to healthcare. Chairman’s Message

About three decades ago, Apollo was only a fledgling attracting and retaining clinicians has become the corner- stone of an idea. Born of a necessity to offer better healthcare to Indians, of our success. it has since become one of the leading healthcare service providers in India. The Apollo Hospitals Group has consistently We have received numerous accolades, which testify to our envisioned patients needs and introduced game changing achievements and reinforces our commitment to excellence in innovations. patient care. Our group hospitals have received several awards and quality certifications which bear testimony to our superior In the year gone by, we have broken new grounds - from providing standard of patient commitment. Eastern India’s first dedicated Bone Marrow Transplant unit, to providing a unique mobile healthcare solution in collaboration Further, your company launched one of India’s most visible with (m-health) to bringing South Asia’s first of it’s kind campaigns against Heart Disease the ‘Billion Hearts Beating full-field mammography system to India. Apollo remains true to Campaign’ which focused on raising heart health awareness its mission of bringing healthcare of international standards and encouraged citizens to take a pledge for a healthy heart. within the reach of every individual. Apollo Hospitals group has been able to successfully meet the As we forge ahead, healthcare will become even more inclusive. challenges of creating medical infrastructure, shortage of clinicians The inauguration of the first Dialysis centre in collaboration with and lack of penetration of health insurance; through its innovative the Central Government Health Scheme (CGHS) and our participation and robust business model by continuing to expand across the in state sponsored healthcare insurance schemes is a testament country through a mix of tertiary and secondary hospitals. The of Apollo’s collaborative spirit. expansion plans are in consonance with this thought process, based on our years of experience and prudent capital allocation This year, we have launched a new strategic initiative around process. our Centres of Excellence to build on our core philosophy of high quality of care in key areas of Cardiac Sciences, Neuro Sciences, The Apollo Hospitals brand has come to symbolize hope and Orthopaedics, Oncology, Emergency & Transplants. The objective relief to patients, not only in India but across the globe as witnessed is to deepen and strengthen our leadership position and reputation by the international patients being treated. The day is not far off in these critical areas by increasing our focus on clinical outcomes when India will become the preferred Healthcare destination of and patient care, simultaneously encouraging the development the world and we at Apollo will strive to be at the forefront of of sub-specializations. These also form a critical part of our the change. Vision 20.6 blueprint which is the rare ideal that defines perfection. Finally, I wish to thank the Board of Directors, doctors, employees, In the years to come, Apollo will continue to define benchmarks bankers & financial institutions and the Central and State Govern- in clinical care and service excellence. We always serve the ments for extending their support in the initiatives undertaken patients with Tender Loving Care, state of the art technology, by your company. systems and the best talent India has to offer - medical or managerial. Our constant focus on clinical excellence and in With warm personal regards to you and your families,

Dr. Prathap C Reddy Executive Chairman EXCELLENCE. At the heart of the Apollo story is the Group's unique prowess in clinical excellence, revolutionary expertise and the warm culture EXPERTISE. EMPATHY. of Tender Loving Care. This defines the philosophy that makes three words that define Apollo Hospitals a trusted healthcare provider. It is this philosophy our culture. one mission that has propelled our mission to touch lives, to heal and to continuously improve healthcare delivery in India. Apollo Hospitals that anchors our vision. is driven by a single thrust, to provide the best standards of patient care. It is this passion that has led to the development of our centers of excellence across medical disciplines.

Apollo's path breaking developments in clinical excellence, research and nurturing expertise stems from a simple goal to make the patient experience safer and better, and make our brand of healthcare more effective and efficient.

OUR VISION 20.6 Excellence at Apollo Hospitals is a continuous journey. Diverse as we may be in our locations, the zeal to excel is the common IS FORTIFIED BY thread that binds all hospitals in the group. We continuously strive OUR CULTURE OF towards improving the structures and processes at Apollo Hospitals EXCELLENCE to achieve the best outcomes for our patients. This drive to excel in the fast changing world of medicine leads us from one quality improvement initiative to another. We at Apollo Hospitals focus on Clinical, Academic and Research Excellence. Skilled doctors and minutely detailed protocols have ensured its place among the world’s best, in terms of outcomes and clinical excellence.

Today, Apollo Hospitals has seven JCI (Joint Commission International) accredited hospitals within the Group; , , Delhi, Kolkata, , Ludhiana and Dhaka. The Joint Commission International (JCI) is a U.S based accreditation body dedicated to improving healthcare quality and safety around the world.

Another endorsement of our superiority in high class healthcare delivery is the fact that every year thousands of patients from the world over come to our hospitals for treatment.

t The Apollo Hospitals Group performed more than 775 solid organ transplants for the year 2010, making it one of the world’s busiest Liver Transplant Centres.

t The Apollo Hospitals Group completed its 1,000th tissue transfer surgery in April, 2011

t ACE@25 (Apollo Clinical Excellence) is a clinical balanced scorecard that we have institutionalized within our hospitals to constantly measure and improve our performance across numerous parameters. ACE@25 incorporates 25 clinical quality parameters involving complication rates, mortality rates, one year survival rates and average length of stay after major procedures covering all major specialties. Also included are acquired infection rates, patient satisfaction and medication errors. Benchmarks have been chosen from the world’s best hospitals.

t The First-of-its-kind in South Asia - Full Field Digital Mammography with Tomosynthesis (3D) system was introduced at Apollo Specialty Hospital, Chennai.

VISION 20.6 IS NURTURED BY A DEEP WEALTH OF EXPERTISE

Apollo has been at the forefront of the march to nurture medical expertise and heighten efficiencies. Our focus has always been to provide the highest standard of medical treatment, enabled by attracting the best doctors, nurturing the best support staff and investing in tomorrow’s technology, today.

Each hospital of the Apollo Group has developed Clinical Practice Guidelines (CPGs) and Clinical Pathways (CPs) for treating various diagnoses in consultation with consultants in the respective specialty. Adherence to CPGs and CPs by our physicians is monitored on a continuous basis through closed file audits by the quality teams. Acute Myocardial Infarction, Fulminant Hepatic Failure, Seizure management, LSCS, Hysterectomy, Renal Trans- plants are a few diagnoses where CPGs are followed. CABG, GI Bleed, TURP, Lap Chole are examples of clinical pathways followed by Group hospitals. CPGs and CPs are reviewed on a periodic basis for incorporating newer developments.

A day at Apollo Hospitals t Over 700 Admissions t Over 6,000 Outpatient Volumes t 200 Critical Care Cases t 120 Key Cardiac Procedures t 50 Neuro Surgeries t 400 Dialysis t Over 40,000 laboratory tests

An eagle can have visual acuity of upto 20.2

VISION 20.6 COMES Tender loving care (TLC) is a silent revolution that sweeps the corridors of every Apollo Hospital, every single day. Its objective ALIVE WITH THE is simple and clear - ensure the best patient experience possible. WARMTH OF EMPATHY. It consists of a deck of best practices that encompasses the THE HEALING TOUCH universe of patient touch points. It is a wide range of systems that have been perfected to ensure that every process at Apollo OF OUR TENDER LOVING is patient-centric. This is at the heart of the Apollo Way. CARE (TLC) PHILOSOPHY The TLC philosophy comes alive with the commitment of the members of the Apollo family. The doctors, nurses and other members come together and weave the magic that transforms Apollo into a place which is warm, helpful and friendly for every patient who comes in.

t In the annual ranking of Best Hospitals in the country by ‘The Week’ Magazine, Apollo Hospitals, Chennai was ranked as the 2nd best hospital in the country while Indraprastha Apollo Hospitals, Delhi was ranked as the 5th best hospital in the country.

t Apollo Hospitals won the – “India’s Most Preferred Hospital” – Viewer’s choice award. The India Healthcare awards 2010 were based on a three phased research methodology commissioned by CNBC-TV18 and conducted by IMRB International – market research. Apollo Hospitals, Chennai also won the second runner up for India’s Best Multi Specialty hospitals.

An eagle has vision that enables it to spot things upto one and a half miles away BOARD OF DIRECTORS

Dr.Prathap C. Reddy Executive Chairman

Shri. Michael Fernandes Shri. T.K. Balaji Shri. Deepak Vaidya Shri. Habibullah Badsha Shri. Khairil Anuar Abdullah Alternate Director to Director Director Director Director Shri. Khairil Anuar Abdullah

Smt.Preetha Reddy Shri. Rafeeque Ahamed Shri. Raj Kumar Menon Shri, Sandeep Naik Smt.Sangita Reddy Managing Director Director Director Director Executive Director-Operations

Smt.Shobana Kamineni Smt.Suneeta Reddy Shri. N Vaghul Shri. G. Venkatraman Executive Director-Special Initiatives Joint Managing Director * Director Director

* Executive Director - Finance upto 31st May 2011. Redesignated as Joint Managing Director w.e.f 1st June 2011. CORPORATE INFORMATION

Shri. K. Padmanabhan Bankers Registered Office Group President No. 19, Bishop Garden, Andhra Bank Shri. S.K. Venkataraman Chief Strategy Officer Chennai - 600 028 Shri. Krishnan Akhileswaran Administrative Office Chief Financial Officer Citibank Ali Towers, III Floor IDBI Bank No. 55 Greams Road Shri. S.M. Krishnan HDFC Bank Chennai - 600 006 Company Secretary ICICI Bank Email:[email protected] State Bank of Travancore [email protected] Auditors www.apollohospitals.com Oriental Bank of Commerce M/s. S. Viswanathan, Chartered Accountants Standard Chartered Bank Chennai - 600 004 CONTENTS

Corporate Highlights Consolidated Financial Performance Medical Highlights Awards & Accolades Corporate Social Responsibility Notice to the Shareholders ...... 11 Directors’ Report ...... 21 Corporate Governance ...... 29 Management Discussion and Analysis ...... 52 Clinical Governance ...... 68 Auditors’ Report on Standalone Financial Statements ...... 70 Standalone Financial Statements ...... 76 Balance Sheet Abstract and Company’s General Business Profile ...... 114 Five Years Standalone Financial Performance at a glance ...... 115 Auditors’ Report on Consolidated Financial Statements ...... 117 Consolidated Financial Statements ...... 119 Statement pursuant to Section 212 of the Companies Act, 1956 ...... 183

Corporate Highlights 2010-2011

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Rupees Million, except per share data Fiscal 2011 Fiscal 2010 Growth

Revenue from operations 26,054 20,265 29% Other Income 186 322 Total Income 26,240 20,587 27%

Operating EBITDA (Earnings before Interest, Tax and Depreciation) 4,189 3,013 39%

Operating EBIT (Earnings before Interest and Tax) 3,241 2,256 44% Profit before Tax 2,613 1,976 32% Profit after Tax 1,839 1,376 34% Earnings per share (EPS)-Basic * 14.84 11.15 Earnings per share (EPS)-Diluted * 14.37 11.10 * Based on existing face value of Rs 5 each per share

CONSOLIDATED FINANCIAL POSITION

Rupees Million Fiscal 2011 Fiscal 2010

Goodwill 676 500 Fixed Assets 18,229 15,757 Investments 5,020 4,166 Net Current Assets 5,743 6,022 Deferred Tax Asset 256 240 Application of Funds 29,924 26,685 Shareholders Funds 18,989 16,535 Minority Interest 249 242 Loan Funds 9,585 9,132 Deferred Tax Liability 1,101 776 Sources of Funds 29,924 26,685 REVENUE EBITDA Rs in Millions Rs in Millions 26054 20265 4189 16142 3013 12164 2274 7597 9495 1839 6607 1192 1233 1548

2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011

EBIT PAT Rs in Millions Rs in Millions 3241 1839 2256 1376 1642 954 1025 1140 1341 772 881 855 384 520

2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011

EARNINGS PER SHARE EARNINGS PER SHARE (BASIC) 14.8 (DILUTED) 14.4 11.1 11.1 9.4 8.6 9.2 8.3 7.1 6.8 4.7 5.4 4.7 5.3

2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011

BED GROWTH MARKET CAPITALISATION Owned Rs in Millions 58938 Managed 45072 2800 2600 29859 25761 24465

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Corporate Social Responsibility

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It is estimated that over 200,000 children are born with heart The treatments include open and closed heart surgeries, diseases every year and less than 5% of them get optimal care inter- ventions, diagnostic procedures and follow up care for on time. Most of these children succumb to the disease without children suffering from heart diseases. The entire team of celebrating even their first birthday. SACH (Save a Child’s Heart) SACH including the specialists, nursing and paramedical is a community service initiative from the Apollo Hospitals with staff volunteer their services. This team, made up of the the aim of providing quality pediatric cardiac care and financial most eminent paediatric cardiologists and cardiac surgeons support to children from underprivileged sections of society from the Apollo group is one of the first and perhaps the only suffering from heart diseases. Save A Child’s Heart Foundation team in India that performs such rare and difficult paediatric was established in the year 2003 with an aim of providing quality cardiac surgeries. care and financial access to children belonging to lower socio- economic groups Many complicated cases involving even premature babies and infants are referred here. Even complex surgery Save A Child’s Heart enjoys access to the most accomplished techniques like Permembranous VSD, Device Closure, and distinguished cardiologists and cardiothoracic surgeons uni-focalization in children with VSD, Pulmonary atresia - from Apollo Hospitals who tirelessly work on transforming the single stage correction, Arterial switch operation in children lives of afflicted children by performing complex surgeries on with TGA (Transposition of Great Arteries) and Valvoplasties them. The expenditure for the surgeries is borne by the Apollo in the newborn are performed. Hospitals along with support from philanthropic organizations and individuals.

9 Technology Services and Solutions Global Projects Consultancy

Owned & Managed Health Hospitals Education

e-Learning Stand-alone Pharmacies

Primary Care Clinics Clinical Research & Site Management

Health Insurance and TPA

COMPLETE COVERAGE, COMPLETE PROTECTION, COMPLETE HEALTHCARE. Healthcare in this new millennium places a high premium THE APOLLO CIRCLE OF on collaboration, innovation, easy access, and is continuously LIFE. VISION 20.6 BELIEVES reinforced by technology. IN FIRST CLASS Apollo Hospitals has been doing just that for almost three INFRASTRUCTURE AT decades and it is a glowing testimony to our foresight EVERY TOUCHPOINT OF THE DELIVERY CHAIN The Apollo pillars of excellence, expertise and empathy, backed by cutting edge research will be the momentum we need to carry the baton forward. Our integrated healthcare model will ensure that we influence change at every touchpoint of healthcare delivery.

10 Notice to the Shareholders

Notice is hereby given that the Thirtieth Annual General Meeting of the Company will be held on Friday, the 22nd day of July 2011 at 10.15 a.m. at Kamaraj Arangam, No. 492 , , Chennai- 600 006 to transact the following business:

ORDINARY BUSINESS

 7RUHFHLYHFRQVLGHUDQGDGRSWWKH$XGLWHG3URÀWDQG/RVV$FFRXQWIRUWKH\HDUHQGHGVW0DUFK and the Balance Sheet as at that date, the Directors’ and Auditors’ Report thereon.

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 7RDSSRLQWD'LUHFWRULQSODFHRI6PW6XQHHWD5HGG\ZKRUHWLUHVE\URWDWLRQDQGEHLQJHOLJLEOHRIIHUV herself for re-appointment.

4. To appoint a Director in place of Smt. Sangita Reddy, who retires by rotation and being eligible, offers herself for re-appointment.

5. To appoint a Director in place of Shri. Deepak Vaidya, who retires by rotation and being eligible, offers himself for re-appointment.

6. To appoint a Director in place of Shri. Rafeeque Ahamed, who retires by rotation and being eligible, offers himself for re-appointment.

 7R DSSRLQW $XGLWRUV IRU WKH FXUUHQW \HDU DQG À[ WKHLU UHPXQHUDWLRQ 0V69LVZDQDWKDQ &KDUWHUHG Accountants, Chennai retire and are eligible for re-appointment.

SPECIAL BUSINESS Item No. 8

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Item No. 9

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Item No. 10

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S.M. Krishnan 3ODFH&KHQQDL     *HQHUDO0DQDJHU²3URMHFW)LQDQFH  'DWHWK0D\   &RPSDQ\6HFUHWDU\

Notes:

1. A member entitled to attend and vote at this Annual General Meeting may appoint a proxy to attend and vote on his / her behalf. A proxy need not be a member of the Company. The instrument DSSRLQWLQJWKHSUR[\DQGWKHSRZHURIDWWRUQH\RURWKHUDXWKRULW\LIDQ\XQGHUZKLFKLWLVVLJQHGRUD QRWDULDOO\FHUWLÀHGFRS\RIWKHSRZHURURWKHUDXWKRULW\VKDOOEHGHSRVLWHGHLWKHUDWWKH5HJLVWHUHG2IÀFH RIWKH&RPSDQ\DW1R%LVKRS*DUGHQV5DMD$QQDPDODLSXUDP&KHQQDL²RUDWWKH6HFUHWDULDO 'HSDUWPHQW$OL7RZHUV,,,ÁRRU1R*UHDPV5RDG&KHQQDL²QRWOHVVWKDQKRXUVEHIRUHWKH commencement of the meeting.

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 7KH5HJLVWHURI0HPEHUVDQG6KDUH7UDQVIHU%RRNVZLOOUHPDLQFORVHGIURPSaturday, 9th July 2011 to Friday, 22nd July 2011 (both days inclusive).

4. Dividend upon its declaration at the meeting will be paid on or before 5th August 2011 to those members whose names appear:

L $VPHPEHUVRQWKH5HJLVWHURI0HPEHUVRIWKH&RPSDQ\DVRQQG-XO\DIWHUJLYLQJHIIHFW to all valid share transfers in physical form which would be received by the Company up to the closing hours of business on 8th July 2011. LL  $V EHQHÀFLDO RZQHUV DV SHU WKH OLVW WR EH IXUQLVKHG E\ 16'/&'6/ DV DW WKH FORVLQJ KRXUV RI business on 8th July 2011.

  0HPEHUVGHVLULQJDQ\LQIRUPDWLRQDVUHJDUGVWKHDFFRXQWVDUHUHTXHVWHGWRZULWHWRWKH&RPSDQ\DWOHDVW seven days before the meeting so as to enable the management to keep the information available.

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Financial Year Ended Date of Declaration of Last date for claiming Dividend unpaid Dividend           ,QWHULP    )LQDO            

 0HPEHUVKROGLQJVKDUHVLQSK\VLFDOIRUPDUHUHTXHVWHGWRLQWLPDWHWKHIROORZLQJGLUHFWO\WRWKH&RPSDQ\·V 5HJLVWUDUDQG6KDUH7UDQVIHU$JHQWV,QWHJUDWHG(QWHUSULVHV , /LPLWHG.HQFHV7RZHUV,,)ORRU1R 5DPDNULVKQD6WUHHW1RUWK8VPDQ5RDG71DJDU&KHQQDL²

D  %DQN0DQGDWHZLWKIXOOSDUWLFXODUVIRUUHPLWWDQFHRIGLYLGHQGGLUHFWO\LQWRWKHLUEDQNDFFRXQWVLI declared at the meeting. E   &KDQJHVLIDQ\LQWKHLUDGGUHVVDWDQHDUO\GDWH F   $SSOLFDWLRQIRUFRQVROLGDWLRQRIIROLRVLIVKDUHKROGLQJVDUHXQGHUPXOWLSOHIROLRV G   'HVSDWFKRIVKDUHFHUWLÀFDWHVIRUFRQVROLGDWLRQ H   5HTXHVWIRUQRPLQDWLRQIRUPVIRUPDNLQJQRPLQDWLRQVDVSHUDPHQGHGSURYLVLRQVRIWKH&RPSDQLHV Act, 1956.

14  0HPEHUVDUHUHTXHVWHGWRTXRWHOHGJHUIROLRQXPEHUVLQDOOWKHLUFRUUHVSRQGHQFHV

 0HPEHUVKROGLQJVKDUHVLQGHPDWHULDOL]HGIRUP HOHFWURQLFIRUP DUHUHTXHVWHGWRLQWLPDWHDQ\FKDQJH in their address, bank mandate etc., directly to their respective Depository Participants.

 7KH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6(%, KDVPDQGDWHGWKHVXEPLVVLRQRI3HUPDQHQW$FFRXQW 1XPEHU 3$1 E\HYHU\SDUWLFLSDQWLQVHFXULWLHVPDUNHW0HPEHUVKROGLQJVKDUHVLQHOHFWURQLFIRUPDUH therefore, requested to submit the PAN details to their Depositary Participants with whom they are PDLQWDLQLQJWKHLUGHPDWDFFRXQWV0HPEHUVKROGLQJVKDUHVLQSK\VLFDOIRUPFDQVXEPLWWKHLU3$1GHWDLOV WRWKH&RPSDQ\5HJLVWUDUVDQG6KDUH7UDQVIHU$JHQWV0V,QWHJUDWHG(QWHUSULVHV ,QGLD /LPLWHG

13. Electronic Clearing Service (ECS) Facility:

With respect to payment of dividend, the Company provides the facility of ECS to shareholders residing at the following cities:

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Shareholders holding shares in physical form who now wish to avail ECS facility, are requested to forward their (&6PDQGDWHLQWKHSUHVFULEHGIRUPWRWKH&RPSDQ\·V5HJLVWUDUDQG6KDUH7UDQVIHU$JHQW,QWHJUDWHG(QWHUSULVHV , /LPLWHG

Explanatory Statement pursuant to Section 173(2) of the Companies Act,1956 Item No.8

7KHWHUPRIRIÀFHRI6PW3UHHWKD5HGG\DV0DQDJLQJ'LUHFWRUZDVGXHIRUUHQHZDORQQG)HEUXDU\ Considering the valuable contribution made by Smt. Preetha Reddy during her tenure, the Board of Directors DWLWVPHHWLQJKHOGRQWK1RYHPEHUUHDSSRLQWHG6PW3UHHWKD5HGG\DV0DQDJLQJ'LUHFWRUIRUDIXUWKHU SHULRGRI\HDUVZLWKHIIHFWIURPUG)HEUXDU\RQWKHUHPXQHUDWLRQUHFRPPHQGHGE\WKH5HPXQHUDWLRQ  1RPLQDWLRQ&RPPLWWHHVXEMHFWWRDSSURYDORIWKHPHPEHUVLQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ

The Committee recommended the same remuneration as was previously approved by the shareholders at the $QQXDO*HQHUDO0HHWLQJKHOGRQWK$XJXVWLHUHPXQHUDWLRQHTXLYDOHQWWRRIWKHQHWSURÀWVRIWKH &RPSDQ\GHWHUPLQHGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH&RPSDQLHV$FWIRUHDFKÀQDQFLDO\HDU

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Memorandum of Interest

Smt. Preetha Reddy may be deemed to be concerned or interested in the passing of this resolution. Further Dr. Prathap C Reddy, Smt. Suneeta Reddy, Smt.Shobana Kamineni and Smt. Sangita Reddy, who are relatives of Smt. Preetha Reddy may be deemed to be concerned or interested in the passing of this resolution.

7KLVVWDWHPHQWPD\DOVREHFRQVLGHUHGDVDQDEVWUDFWRIWKHQRWLFHXQGHU6HFWLRQRIWKH&RPSDQLHV$FW 1956 to the Shareholders.

Item No. 9

7KHWHUPRIRIÀFHRI6PW6XQHHWD5HGG\DV([HFXWLYH'LUHFWRU²)LQDQFHZDVGXHIRUUHQHZDORQQG)HEUXDU\ 2011. Considering the valuable contribution made by Smt. Suneeta Reddy during her tenure, the Board of Directors at its meeting held on 9th November 2010 re-appointed Smt. Suneeta Reddy as Whole-time Director GHVLJQDWHGDV([HFXWLYH'LUHFWRU²)LQDQFHIRUDSHULRGRIÀYH\HDUVZLWKHIIHFWIURPUG)HEUXDU\RQWKH H[LVWLQJUHPXQHUDWLRQHTXLYDOHQWWRRIWKHQHWSURÀWVRIWKHFRPSDQ\GHWHUPLQHGLQDFFRUGDQFHZLWK WKHSURYLVLRQVRIWKH&RPSDQLHV$FWEDVHGRQWKHUHFRPPHQGDWLRQRIWKH5HPXQHUDWLRQ 1RPLQDWLRQ &RPPLWWHHDQGVXEMHFWWRWKHDSSURYDORIWKHPHPEHUVLQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ

15 .HHSLQJ LQ YLHZ WKH UROH DQG UHVSRQVLELOLWLHV RI 6PW6XQHHWD 5HGG\ LQ WKH &RPSDQ\ WKH 5HPXQHUDWLRQ  1RPLQDWLRQ&RPPLWWHHDJDLQDWLWVPHHWLQJKHOGRQWK0D\UHFRPPHQGHGWRUHGHVLJQDWH6PW6XQHHWD 5HGG\DV-RLQW0DQDJLQJ'LUHFWRUZLWKHIIHFWIURPVW-XQHDWDHQKDQFHGUHPXQHUDWLRQHTXLYDOHQWWR RIWKHQHWSURÀWVRIWKH&RPSDQ\

7KH %RDUG RI 'LUHFWRUV DW LWV PHHWLQJ KHOG RQ WK 0D\  DSSURYHG WKH UHGHVLJQDWLRQ RI 6PW 6XQHHWD 5HGG\DV-RLQW0DQDJLQJ'LUHFWRURIWKH&RPSDQ\IRUWKHSHULRGIURPVW-XQHWRQG)HEUXDU\DWD UHPXQHUDWLRQHTXLYDOHQWWRRIWKHQHWSURÀWVRIWKH&RPSDQ\DVUHFRPPHQGHGE\WKH5HPXQHUDWLRQ  1RPLQDWLRQ&RPPLWWHHVXEMHFWWRDSSURYDORIWKHPHPEHUVLQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ

7KH%RDUGUHFRPPHQGVWKHUHVROXWLRQVHWRXWLQ,WHP1RRIWKHQRWLFHIRUDSSURYDORIWKHPHPEHUV

Memorandum of Interest

Smt. Suneeta Reddy may be deemed to be concerned or interested in passing of this resolution. Further Dr. Prathap C Reddy, Smt. Preetha Reddy, Smt. Shobana Kamineni and Smt. Sangita Reddy, who are relatives of Smt. Suneeta Reddy may deemed to be concerned or interested in the passing of this resolution.

7KLVVWDWHPHQWPD\DOVREHFRQVLGHUHGDVDQDEVWUDFWRIWKHQRWLFHXQGHU6HFWLRQRIWKH&RPSDQLHV$FW 1956 to the Shareholders.

Item No. 10

7KHWHUPRIRIÀFHRI6PW6DQJLWD5HGG\DV([HFXWLYH'LUHFWRU²2SHUDWLRQVZDVGXHIRUUHQHZDORQQG)HEUXDU\ 2011. Considering the valuable contribution made by Smt. Sangita Reddy during her tenure, the Board at its meeting held on 9th November 2010 approved the re-appointment of Sangita Reddy as Whole-time Director GHVLJQDWHGDV([HFXWLYH'LUHFWRU²2SHUDWLRQVIRUDIXUWKHUSHULRGRI\HDUVZLWKHIIHFWIURPUG)HEUXDU\ RQWKHUHPXQHUDWLRQUHFRPPHQGHGE\WKH5HPXQHUDWLRQ 1RPLQDWLRQ&RPPLWWHHVXEMHFWWRDSSURYDORIWKH PHPEHUVLQWKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJ

The Committee recommended the same remuneration as was previously approved by the shareholders at the $QQXDO*HQHUDO0HHWLQJKHOGRQWK$XJXVWLHUHPXQHUDWLRQHTXLYDOHQWWRRIWKHQHWSURÀWVRI WKH&RPSDQ\GHWHUPLQHGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH&RPSDQLHV$FWIRUHDFKÀQDQFLDO\HDU

0V 6DQJLWD 5HGG\ LV DOVR WKH 0DQDJLQJ 'LUHFWRU RI $SROOR +HDOWK 6WUHHW /LPLWHG $+6/  3XUVXDQW WR WKH SURYLVLRQVRI6FKHGXOH;,,,RIWKH&RPSDQLHV$FWLQWKHHYHQWRI6PW6DQJLWD5HGG\GUDZLQJUHPXQHUDWLRQ DVPDQDJHULDOSHUVRQIURPWZRFRPSDQLHVLH$+(/DQG$+6/WKHWRWDOUHPXQHUDWLRQGUDZQIURPERWKWKH FRPSDQLHVVKDOOQRWH[FHHGWKHKLJKHUPD[LPXPOLPLWDGPLVVLEOHIURPDQ\RQHRIWKHFRPSDQLHVRIZKLFKVKH is a managerial person.

Memorandum of Interest

Smt. Sangita Reddy may deemed to be concerned or interested in the passing of this resolution. Further Dr. Prathap C Reddy, Smt. Preetha Reddy, Smt. Suneeta Reddy and Smt. Shobana Kamineni, who are relatives of Smt. Sangita Reddy may deemed to be concerned or interested in the passing of this resolution

7KLVVWDWHPHQWPD\DOVREHFRQVLGHUHGDVDQDEVWUDFWRIWKHQRWLFHXQGHU6HFWLRQRIWKH&RPSDQLHV$FW 1956 to the Shareholders. By order of the Board ForAPOLLO HOSPITALS ENTERPRISE LIMITED

S.M. Krishnan 3ODFH&KHQQDL    *HQHUDO0DQDJHU²3URMHFW)LQDQFH 'DWHWK0D\  DQG&RPSDQ\6HFUHWDU\

16  - - 29th December 1979 Ahamed None   /HDWKHU 0DQXIDF WXULQJ DQG /HDWKHU ([SRUWV )RRWZHDU manufacturing and ([SRUWV )RRWZHDU Training. designing and *UDGXDWH IURP GUDV8QLYHUVLW\ 0D - None %XVLQHVV 0DQDJHPHQW and Financial consul- tancy services )HOORZ 0HPEHU RI ,Q stitute of Chartered $FFRXQWDQWV (QJODQG :DOHV  Bachelor's degree in Commerce from %RPED\8QLYHUVLW\ 9th January 1945 17th September 1947 VW-XO\  - 8th July 1962 Daughter of Dr.Prathap C Daughter of Dr.Prathap Chairman, Sister Reddy, Reddy, of Smt.Preetha 0DQDJLQJ 'LUHFWRU6PW Joint Suneeta Reddy, 0DQDJLQJ 'LUHFWRU DQG Smt. Shobana Kamineni, ([HFXWLYH'LUHFWRU6SH FLDO,QLWLDWLYHV ,72SHUDWLRQV5HVHDUFK ,QVXUDQFH Bachelor of Science degree from Womens Christian College, Chen- nai Graduate Courses in - Operations Research 5XWJHUV 8QLYHUVLW\ 1HZ Jersey 'LSORPD LQ0DQDJHPHQW FRQGXFWHG +RVSLWDO E\ +DUYDUG 8QLYHUVLW\ 86$ VW-XO\ $SULO Pursuant to Clause 49 of the Listing Agreement Pursuant to Clause 49 of the Listing UG Daughter of Dr.Prathap C Reddy, C Reddy, Daughter of Dr.Prathap Chairman, Sister of Smt.Preetha 5HGG\0DQDJLQJ'LUHFWRU6PW 6KREDQD .DPLQHQL ([HFXWLYH 'LUHFWRU6SHFLDO,QLWLDWLYHVDQG 6PW 6DQJLWD 5HGG\ ([HFXWLYH Director - Operations 6SHFLDOL]DWLRQLQ)LQDQFH +RVSLWDO 0DQDJHPHQW B.A in Public relations and B.A (FRQRPLFV8QLYHUVLW\ ZLWK IURPrank. D XQLYHUVLW\ 0DGUDV Diploma in Financial 0DQDJHPHQW VW0D\ 2ZQHU3UHVLGHQW 0DQDJHPHQW 3URJUDP DW +DUYDUG6FKRRO%RVWRQ86$ %XVLQHVV - UG)HEUXDU\ C Daughter of Dr.Prathap Chairman, Sister Reddy, of Smt.Suneeta Reddy, -RLQW 0DQDJLQJSmt. Shobana Kamineni, 'LUHFWRU ([HFXWLYH'LUHFWRU6SHFLDO ,QLWLDWLYHVDQG6PW6DQJLWD 5HGG\([HFXWLYH 'LUHFWRU  Operations Smt. Preetha Reddy Smt. Suneeta Reddy Smt. Sangita Reddy Shri. Deepak Vaidya Shri. Rafeeque ,QFKDUJHRIRYHUDOO0DQDJH ment and Operations of the Company Bachelor of Science degree IURP 6WHOOD 0DULV &ROOHJH Chennai Post Graduate Degree in Post Public Administration from 0DGUDV8QLYHUVLW\ - Details of Directors seeking appointment/re-appointment in the Annual General Meeting to be held on 22nd July 2011 Annual General Details of Directors seeking appointment/re-appointment in the 4XDOLÀFDWLRQ Relationship with Relationship other Directors Name of the Director ([SHUWLVH LQ 6SH FLÀFarea )XQFWLRQ Date of Appointment on the Board Date of Birth 28th October 1957

17 - - Ahamed   )DULGD 3ULPH 7DQ QHU\3YW/LPLWHG  $UFRW6ROHV3YW/LP ited  -DIUD ,QVROHV ,QGLD 3YW/LPLWHG  )DULGD&ODVVLF6KRHV 3YW/LPLWHG  ,QGLD6KRHV([SRUWV 3YW/LPLWHG   .HQPRUH 6KRHV 3YW /LPLWHG Chairman   'HOWD/LPLWHG 6KRHV 3YW Director   )DULGD 6KRHV/LPLWHG 3YW  )DULGD+ROGLQJV3YW /LPLWHG - - -   87, 7UXVWHH &RP SDQ\3YW/WG  3313RZHU*HQHUDW LQJ&R3YW/WG  6XQWHF%XVLQHVV6R OXWLRQV3YW/WG   $SROOR *OHQHDJOHV +RVSLWDO/WG  6WULGHV$UFRODE/WG Director  $SROOR+HDOWK6WUHHW /WG  2UFKLG&KHPLFDOV  3KDUPDFHXWLFDOV/WG Chairman - - 3&5,QYHVWPHQWV/LP  $SROOR &OLQLFDO ([FHO - OHQFH6ROXWLRQV/LPLWHG   $SROOR 5HDFK +RVSL - WDOV(QWHUSULVH/LPLWHG   ,PSHULDO +RVSLWDO  5HVHDUFK&HQWUH/LPLWHG   6DPXGUD +HDOWKFDUH (QWHUSULVHV/LPLWHG   )DPLO\ +HDOWK/LPLWHG 3ODQ Director 2) ited  $SROOR0XPEDL+RVSL WDO/LPLWHG Managing Director   $SROOR +HDOWK 6WUHHW /LPLWHG   $SROOR +HDOWK/LIHVW\OH/LPLWHG DQG   +HDOWKQHW/LPLWHG *OREDO   +HDOWK 6XSHUKLZD\ 3ULYDWH/LPLWHG   $SROOR3(7&73ULYDWH/LPLWHG *OHQHDJOHV   .$5 $XWR/LPLWHG 3ULYDWH Smt. Sangita Reddy Shri. Deepak Vaidya Shri. Rafeeque  ,PSHULDO+RVSLWDOV 5HVHDUFK &HQWUH/LPLWHG  &RUSRUDWLRQ/LPLWHG ,QGUDSUDVWKD  0HGLFDO   ,QGLDQ +RVSLWDOV &RUSRUDWLRQ /LPLWHG ,QVXUDQFH&RPSDQ\/LPLWHG   $SROOR *OHQHDJOHV +RVSLWDOV /LPLWHG   $SROOR/LPLWHG 6LQGRRUL +RWHOV Chair Person Chair Person  $LUFHO/LPLWHG Director  3&5,QYHVWPHQWV/LPLWHG )LQDQFH&R/LPLWHG   9DVXPDWKL 6SLQQLQJ/LPLWHG 0LOOV  ,QWHUQDWLRQDO/LPLWHG $SROOR  .DOSDWKDUX ,QIUDVWUXFWXUH 'HYHORSPHQW&R3YW/WG +RVSLWDOV  &RUSRUDWLRQ3YW/LPLWHG :HVWHUQ  'HFFDQ 'LJLWDO3ULYDWH/LPLWHG 1HWZRUNV +RVSLWDOV ------$SROOR,QIUDVWUXFWXUH3URMHFW - +RVSLWDOV,QWHUQD $SROOR   6DPGXUD +HDOWKFDUH (Q WHUSULVHV/LPLWHG   /LIHWLPH :HOOQHVV 5[ ,Q WHUQDWLRQDO/LPLWHG  $%0HGLFDO&HQWHUV/LP ited   ,PSHULDO +RVSLWDO  5H VHDUFK&HQWUH/LPLWHG  3LQDNLQL+RVSLWDOV/LPLWHG   $SROOR 0XQLFK +HDOWK  $SROOR *OHQHDJOHV +RVSL WDO/LPLWHG  3&5,QYHVWPHQWV/LPLWHG  'LVKQHW:LUHOHVV/LPLWHG   $SROOR 6LQGRRUL/LPLWHG +RWHOV WLRQDO/LPLWHG   $SROOR 0XPEDL +RVSLWDO /LPLWHG   ,QGLDQ +RVSLWDOV &RUSR UDWLRQ/LPLWHG   $SROOR 5HDFK +RVSLWDOV (QWHUSULVHV/LPLWHG   $SROOR &OLQLFDOOHQFH6ROXWLRQV/LPLWHG ([FHO   331 3RZHU *HQHUDWLQJ &RPSDQ\3YW/LPLWHG   331 +ROGLQJV/LPLWHG 3ULYDWH Smt. Preetha Reddy Smt. Suneeta Reddy Director 1) Board Membership of other companies as on March 31, 2011

18 Ahamed - 1RPL - ,QYHVWPHQW &RPPLW WHH0HPEHU nation Committee - 0HPEHU Audit Committee - Chairman 5HPXQHUDWLRQ  Smt. Sangita Reddy Shri. Deepak Vaidya Shri. Rafeeque 6LQG\D ,QIUDVWUXFWXUH Member  Committee ,QYHVWRUV *UHLYDQFH Development Company Private Development Company Private /LPLWHG  3ULYDWH/LPLWHG .DOSDWKDUX (QWHUSULVHV &RPSDQ\3ULYDWH/LPLWHG /LPLWHG  7KDUDQL(QHUJ\,QGLD3ULYDWH /LPLWHG  )DEHU6LQGRRUL0DQDJHPHQW 6HUYLFHV3YW/LPLWHG   +HDOWK 6XSHUKLZD\ 3ULYDWH /LPLWHG  4XLQWLOHV3KDVH2QH&OLQLFDO 7ULDOV,QGLD3YW/LPLWHG   6LQG\D/LPLWHG +ROGLQJV 3ULYDWH   *DUXGD/LPLWHG (QHUJ\ 3ULYDWH  6LUND]KL3RUW3ULYDWH/LPLWHG   - - - - ,QYHVWRUV*UHLYDQFH&RP   6KDUH 7UDQVIHU &RPPLW tee mittee  ,QYHVWPHQW&RPPLWWHH  ,QYHVWPHQW&RPPLWWHH Smt. Preetha Reddy Smt. Suneeta Reddy   331 3RZHU *HQHUDWLRQ 8QLW,, 3YW/LPLWHG  3'5,QYHVWPHQWV3YW/WG   6LQG\D 3RZHU *HQHUDWLQJ  75$&,QGLD3ULYDWH/WG   6LQG\D  %XLOGHUV $SROOR *OHQHDJOHV 3(7 3ULYDWH &73ULYDWH/LPLWHG  331+ROGLQJV $OID 3UL - YDWH/WG   :HVWHUQ +RVSLWDOV &RU SRUDWLRQ3YW/LPLWHG   6WHPF\WH ,QGLD 7KHUD SHXWLFV3YW/LPLWHG  3UHHWKD,QYHVWPHQWV3YW /LPLWHG Member 1) Chairman/Member of the Committee Board Directors Company as on March 31, 2011

19 - - - Ahamed 55,900  6WULGHV$UFRODE /WG  6WULGHV$UFRODE /WG Member +RVSLWDO/WG Member 6WULGHV$UFRODE/WG 2UFKLG&KHPLFDOV  3KDUPDFHXWLFDOV/WG 4. Suntec Business So- OXWLRQV3YW/WG Chairman Chairman 1. Apollo Gleneagles nil - 4,972,508  $SROOR +HDOWK 6WUHHW /LPLWHG Smt. Sangita Reddy Shri. Deepak Vaidya- Shri. Rafeeque Member 0XQLFK +HDOWK  $SROOR,QVXUDQFH&RPSDQ\/LPLWHG 0XQLFK&RUSRUDWLRQ/LPLWHG +HDOWK ,QGUDSUDVWKD 0HGLFDO Member $SROOR ,QVXUDQFH&R/LPLWHG Member  $SROOR *OHQHDJOHV +RVSLWDO /LPLWHG &RUSRUDWLRQ/LPLWHG ,QGUDSUDVWKD 0HGLFDO Chairperson   - Smt. Preetha Reddy Smt. Suneeta Reddy - - Shareholding in WKH &RPSDQ\ DV RQ Remuneration Remuneration Committee Shareholders' Shareholders' Grievance Com- mittee Chairman/Member of the Committee Directors other Companies in which person is a director as on March 31, 2011 Audit Committee

20 Directors’ Report to the Shareholders Your Directors are pleased to present the THIRTIETH ANNUAL REPORT and the audited statements of accounts IRUWKH\HDUHQGHGVW0DUFK

Financial Results (Standalone) (Rs.in million) For the year ended 31st March 2011 31st March 2010 7RWDO,QFRPH 23533 18587 3URÀWEHIRUH([WUDRUGLQDU\,WHPVDQG7D[DWLRQ 2693 2222 3URYLVLRQIRU7D[DWLRQ 876 702 1HW3URÀWEHIRUH([WUDRUGLQDU\,WHPDIWHU7D[DWLRQ 1817 1520 1HW3URÀWDIWHU([WUDRUGLQDU\,WHPDQG7D[DWLRQ 1817 1520 %DODQFHRI3URÀWEURXJKWIRUZDUG 1474 1209 3URÀW$YDLODEOHIRUDSSURSULDWLRQV 3291 2729 Appropriations 'LYLGHQG LQFOXVLYHRIGLYLGHQGWD[  544 504 Transfer to General Reserve 1000 750 Transfer to Debenture Redemption Reserve 100 - Balance carried forward to Balance sheet 1647 1475

Results of Operations

'XULQJWKH\HDUXQGHUUHYLHZWKHJURVVUHYHQXHRIWKH&RPSDQ\LQFUHDVHGWR5VPLOOLRQFRPSDUHGWR 5VPLOOLRQLQWKHSUHYLRXV\HDUUHJLVWHULQJDQLPSUHVVLYHJURZWKRI7KHSURÀWDIWHUWD[IRUWKH\HDU increased by 20% to Rs.1817 million compared to Rs. 1520 million in the previous year.

During the year under review, the consolidated gross revenue of the Company increased to Rs.26240 million FRPSDUHGWR5VPLOOLRQLQWKHSUHYLRXV\HDUUHJLVWHULQJDQLPSUHVVLYHJURZWKRI1HWSURÀWDIWHU PLQRULW\LQWHUHVWIRUWKHJURXSLQFUHDVHGWR5VPLOOLRQIURP5VPLOOLRQUHSUHVHQWLQJDJURZWKRI

Consolidated Financial Statements

,QDFFRUGDQFHZLWKWKHJHQHUDOFLUFXODU1R&/,,,GDWHGWK)HEUXDU\LVVXHGE\WKH0LQLVWU\RI &RUSRUDWH$IIDLUVWKH%DODQFH6KHHW3URÀWDQG/RVV$FFRXQWDQGRWKHUGRFXPHQWVRIWKHVXEVLGLDU\FRPSDQLHV DUHQRWEHLQJDWWDFKHGZLWKWKH$QQXDO5HSRUWRIWKH&RPSDQ\$VWDWHPHQWRIVXPPDUL]HGÀQDQFLDOVRIDOO VXEVLGLDULHVRI\RXU&RPSDQ\SXUVXDQWWR6HFWLRQ  RIWKH&RPSDQLHV$FWIRUPVSDUWRIWKLVUHSRUW $Q\IXUWKHULQIRUPDWLRQLQUHVSHFWRIWKHDQQXDOUHSRUWDQGWKHÀQDQFLDOVWDWHPHQWVRIWKHVXEVLGLDU\FRPSDQLHV RI\RXU&RPSDQ\ZLOOEHPDGHDYDLODEOHWRWKHPHPEHUVRQUHTXHVW,QDFFRUGDQFHZLWKWKH$FFRXQWLQJ6WDQGDUG $6LVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVSUHVHQWHGE\ \RXU&RPSDQ\LQFOXGHWKHÀQDQFLDOLQIRUPDWLRQRIDOOLWVVXEVLGLDULHV

Dividend

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21 GLYLGHQGZLOOEHSDLGRQWKHEDVLVRIEHQHÀFLDORZQHUVKLSIXUQLVKHGE\WKHGHSRVLWRULHVYL]16'/DQG&'6/IRU this purpose.

7KH5HJLVWHURI0HPEHUVDQG6KDUH7UDQVIHU%RRNVZLOOUHPDLQFORVHGIURPWK-XO\WRQG-XO\ ERWK GD\VLQFOXVLYH 

Transfer of Reserves

Your Company proposes to transfer Rs.1000 million to the general reserve out of the amount available for DSSURSULDWLRQV$QDPRXQWRI5VPLOOLRQLVSURSRVHGWREHUHWDLQHGLQWKH3URÀW /RVV$FFRXQW

Credit Rating

&5,6,/KDVXSJUDGHGWKHUDWLQJRQWKHFRPSDQ\·VGHEWLQVWUXPHQWVIURP$$WR$$

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Subsidiaries

Unique Home Health Care Limited (UHHCL)

8++&/DZKROO\RZQHGVXEVLGLDU\RIWKH&RPSDQ\SURYLGHVPHGLFDODQGSDUDPHGLFDOVHUYLFHVLQFOXGLQJGRFWRU·V consultation, physiotherapy direct to patient homes and also offers paramedical service in hospitals to critically LOOSDWLHQWV)RUWKH\HDUHQGHGVW0DUFK8++&/UHFRUGHGDUHYHQXHRI5VPLOOLRQDQGQHWSURÀW of Rs. 2.18 million.

AB Medical Centres Limited (ABMCL)

$%0&/DZKROO\RZQHGVXEVLGLDU\RIWKH&RPSDQ\GRHVQRWKDYHDQ\FRPPHUFLDORSHUDWLRQVDVLWKDVOHDVHGRXW LWVLQIUDVWUXFWXUHYL]ODQGEXLOGLQJDQGPHGLFDOHTXLSPHQWWRWKH&RPSDQ\IRUUXQQLQJWKHKRVSLWDO)RUWKH \HDUHQGHGVW0DUFK$%0&/UHFRUGHGDQLQFRPHRI5VPLOOLRQDQGDQHWSURÀWRI5VPLOOLRQ

Samudra Healthcare Enterprises Limited (SHEL)

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Apollo Hospital (UK) Limited (AHUKL)

$+8./LVDZKROO\RZQHGIRUHLJQVXEVLGLDU\RIWKH&RPSDQ\DQGLV\HWWRFRPPHQFHLWVRSHUDWLRQV

Apollo Health and Lifestyle Limited (AHLL)

$+//DVXEVLGLDU\RIWKH&RPSDQ\LVHQJDJHGLQWKHEXVLQHVVRISURYLGLQJSULPDU\KHDOWKFDUHIDFLOLWLHVWKURXJKD QHWZRUNRIIUDQFKLVHGFOLQLFVDFURVV,QGLDRIIHULQJVSHFLDOLVWFRQVXOWDWLRQGLDJQRVWLFVSUHYHQWLYHKHDOWKFKHFNV WHOHPHGLFLQHIDFLOLWLHVDQGDKRXUSKDUPDF\DOOXQGHURQHURRI)RUWKH\HDUHQGHGVW0DUFK$+// UHFRUGHGDFRQVROLGDWHGUHYHQXHRI5VPLOOLRQDQGDQHWSURÀWRI5VPLOOLRQ

22 Pinakini Hospitals Limited (PHL)

$VDSDUWRILWVVWUDWHJ\WRUHDFKRXWWRWKHWLHU,,WRZQVDQGFLWLHVWKH&RPSDQ\LQWHQGVWREXLOGDKRVSLWDOLQ 1HOORUHWKURXJKDVXEVLGLDU\FRPSDQ\3LQDNLQL+RVSLWDOV/LPLWHG

Apollo Cosmetic Surgical Centre Pvt Limited (ACSPL)

$&63/DVXEVLGLDU\RIWKHFRPSDQ\LVHQJDJHGLQWKHEXVLQHVVRIUXQQLQJFRVPHWLFVXUJLFDOFHQWUHV)RUWKH \HDUHQGHGVW0DUFK$&63/UHFRUGHGDUHYHQXHRI5VPLOOLRQDQGDQHWORVVRI5VPLOOLRQ

Imperial Hospital and Research Centre Limited (IHRCL)

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Alliance Medicorp India Limited (Alliance)

Alliance, a 51% subsidiary of the Company is engaged in the business of running dialysis clinics. For the year HQGHGVW0DUFK$OOLDQFHUHFRUGHGFRQVROLGDWHGUHYHQXHRI5VPLOOLRQDQGDQHWSURÀWRI5V million.

ISIS Health Care India Private Limited (ISIS)

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Mera Health Care India Private Limited (MERA)

0(5$DVXEVLGLDU\RI$SROOR+HDOWKDQG/LIHVW\OH/LPLWHGLVHQJDJHGLQWKHEXVLQHVVRIKHDOWKFDUH6HUYLFHV )RUWKH\HDUHQGHGVW0DUFK0(5$UHFRUGHGDUHYHQXHRI5VPLOOLRQDQGDQHWSURÀWRI5V million.

Alliance Dental Care Private Limited (Alliance Dental)

$OOLDQFH'HQWDODVXEVLGLDU\RI$OOLDQFH0HGLFRUS ,QGLD /LPLWHGLVHQJDJHGLQWKHEXVLQHVVRIUXQQLQJ GHQWDOFOLQLFV)RUWKH\HDUHQGHGVW0DUFK$QMDQDUHFRUGHGDUHYHQXHRI5VPLOOLRQDQGDQHW SURÀWRI5VPLOOLRQ

Subdivision of Equity Shares

As a step towards better liquidity and increased investor participation, the Company had undertaken subdivision RIRQH  HTXLW\VKDUHRIIDFHYDOXHRI5VHDFKLQWRWZR  HTXLW\VKDUHVRIIDFHYDOXHRI5VHDFK ZLWKHIIHFWIURPWKH5HFRUGGDWHLHUG6HSWHPEHU&RQVHTXHQWO\QHZHTXLW\VKDUHVRIIDFHYDOXHRI 5VHDFKZHUHFUHGLWHGWRWKHUHVSHFWLYHGHSRVLWRU\DFFRXQWVRIVKDUHKROGHUVKROGLQJVKDUHVLQGHPDWPRGH DQGWKHQHZVKDUHFHUWLÀFDWHVZHUHLVVXHGWRVKDUHKROGHUVKDYLQJSK\VLFDOVKDUHV3XUVXDQWWRWKHVXEGLYLVLRQ RIHTXLW\VKDUHVRIWKH&RPSDQ\D1HZ,6,1,1($KDVEHHQDOORWWHGE\WKH'HSRVLWRULHV

Increase in the Authorised Share Capital

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 Increase in the Paid-up Share Capital

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7KHVHVKDUHVKDYHEHHQOLVWHGDWWKH%RPED\6WRFN([FKDQJH/LPLWHG %6( DQGWKH1DWLRQDO6WRFN([FKDQJH ,QGLD/LPLWHG 16( 0XPEDL

Issue of warrants convertible into equity shares to Dr.Prathap C Reddy

L  'XULQJWKH\HDU\RXU&RPSDQ\DOORWWHGPLOOLRQ(TXLW\:DUUDQWVZLWKHDFKZDUUDQWFRQYHUWLEOHLQWR RQHHTXLW\VKDUHRIWKH&RPSDQ\RIQRPLQDOYDOXHRI5VHDFKDWDSULFHRI5VZKLFKLQFOXGHV a premium of Rs.761.76 per share to Dr. Prathap C Reddy, one of the Promoters of the Company. These ZDUUDQWVZHUHLVVXHGZLWKDFRQYHUWLEOHRSWLRQWREHH[HUFLVHGZLWKLQDSHULRGRIPRQWKVIURPWKH date of allotment i.e., on or before 11th December 2011.

7KH&RPSDQ\KDVXQGHUWDNHQVXEGLYLVLRQRIHDFKH[LVWLQJHTXLW\VKDUHRIIDFHYDOXHRI5VHDFKLQWR HTXLW\VKDUHVRIIDFHYDOXHRI5VHDFKZLWKHIIHFWIURPWKHUHFRUGGDWHLHUG6HSWHPEHU $FFRUGLQJO\WKHPLOOLRQZDUUDQWVDOORWWHGWR'U3UDWKDS&5HGG\VKDOOVWDQGDGMXVWHGWRPLOOLRQ ZDUUDQWVRIIDFHYDOXHRI5VHDFKDWDSULFHRI5VSHUVKDUH

LL  2QWK)HEUXDU\\RXU&RPSDQ\DOORWWHGPLOOLRQFRQYHUWLEOHVKDUHZDUUDQWVWR'U3UDWKDS& 5HGG\RQHRIWKHSURPRWHUVRIWKHFRPSDQ\RQDSUHIHUHQWLDOEDVLVXQGHUWKHDSSOLFDEOH6(%,JXLGHOLQHV

7KHVHZDUUDQWVKDYHEHHQLVVXHGZLWKDFRQYHUVLRQRSWLRQWREHH[HUFLVHGZLWKLQDSHULRGRIPRQWKV from the date of allotment. Each warrant issued is convertible into one equity share of the company of QRPLQDOYDOXHRI5VHDFKDWDSULFHRI5VZKLFKLQFOXGHVDSUHPLXPRI5VSHUVKDUH FDOFXODWHGLQDFFRUGDQFHZLWKWKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD ,VVXHRI&DSLWDODQG'LVFORVXUH 5HTXLUHPHQWV 5HJXODWLRQV

7KH REMHFWLYH RI WKLV SUHIHUHQWLDO LVVXH ZDV WR SDUW IXQG WKH H[SDQVLRQ DFWLYLWLHV ÀQDQFH DGGLWLRQDO working capital requirements and for general corporate purposes.

Corporate Governance 3XUVXDQWWR&ODXVH 9,, RIWKH/LVWLQJ$JUHHPHQWZLWKWKH6WRFN([FKDQJHVDVHSDUDWHUHSRUWRQ&RUSRUDWH Governance forms part of the Directors’ Report in the Annual Report. Your Company has been complying with WKH UHTXLUHPHQWV RI WKH /LVWLQJ$JUHHPHQW DQG QHFHVVDU\ GLVFORVXUHV KDYH EHHQ PDGH LQ WKLV UHJDUG LQ WKH Corporate Governance Report.

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Human Resources Development

At Apollo, the delivery of superior medical care to millions of patients looking for a cure is made possible only because of the dedication and diligent services of our employees, some of whom have a touch point with patients directly and others who work indirectly to support the delivery of superior health care. Thus all our employees are both individually and collectively key for the success of Apollo as a trusted medical care provider IRUDOORXUSDWLHQWV7KHSKLORVRSK\RI´7HQGHU/RYLQJ&DUHµLVQRWMXVWDPRWWREXWDZD\RIOLIHHPEUDFHGE\ every employee of the Apollo family, and is a testimony of the commitment from our employees towards Apollo’s vision to touch a billion lives. Thus Apollo warmly acknowledges the contribution by all its employees towards its VXFFHVVDVDKHDOWKFDUHJLDQWLQ,QGLDDQGVXSSRUWVHYHU\HIIRUWWRQRXULVKWKLVLQYDOXDEOHKXPDQFDSLWDO

24 $W$SROORZHDUHDZDUHWKDWFRPPLWPHQWDQGFRPSHWHQFHRIHPSOR\HHVDUHNH\GULYHUVRIRYHUDOORUJDQL]DWLRQDO SHUIRUPDQFHDQGWKXVZHHQGHDYRXUWRVWUHQJWKHQWKHRUJDQL]DWLRQDOFXOWXUHERWKWRDWWUDFWDQGUHWDLQWKHEHVW WDOHQW7KHKXPDQUHVRXUFHV\VWHPVSURFHGXUHVDQGWKHRUJDQL]DWLRQHQYLURQPHQWKDYHEHHQFUHDWHGWRHQVXUH FUHDWLYLW\LQQRYDWLRQDQGHIÀFLHQF\DPRQJVWWKHHPSOR\HHV7UDLQLQJLVDQLQWHJUDOSDUWRIWKH+5V\VWHPDQG HQDEOHVHPSOR\HHVWRDOLJQZLWKWKHRUJDQL]DWLRQ·VFXOWXUDOYDOXHVDQGGHYHORSSURIHVVLRQDOHWLTXHWWHVNLOODQG knowledge.

:HYDOXHSDWLHQWVDWLVIDFWLRQHQRUPRXVO\DQGUHDOL]HWKDWWKHVNLOODQGVHUYLFHRIWUDLQHGPDQSRZHUDUHNH\ for maintenance of the trust reposed in us as a quality healthcare provider by our patients. Attrition of trained human capital can pose a challenge in ensuring successful delivery to our patients and hence needs to be tackled systemically. We have devised an effective recruitment and human resources management process to prevent H[LVWLQJDWWULWLRQRIFOLQLFDOQRQFOLQLFDOPDQSRZHUIURPLPSDFWLQJ$SROOR·VVXSHULRUKHDOWKFDUHGHOLYHU\PRGHO 7KHUREXVWSURFHVVHQVXUHVDFRQWLQXRXVVXSSO\RIFOLQLFDOPDQSRZHUWRVXSSRUWWKHRUJDQL]DWLRQ·VSDWLHQWFDUH GHOLYHU\SURFHVV7RWDOQXPEHURIHPSOR\HHVIRUWKHJURXSLQFUHDVHGIURPDVRQVW0DUFKWR DVRQVW0DUFK

$W$SROOR ZH EHOLHYH LQ PDLQWDLQLQJ WKH ULJKW RUJDQL]DWLRQDO FOLPDWH FRQGXFLYH WR GHYHORSLQJ VDWLVÀHG DQG SURGXFWLYHHPSOR\HHV+HQFHZHFDUU\RXWRUJDQL]DWLRQDOFOLPDWHVXUYH\VRQDUHJXODUEDVLVWRXQGHUVWDQGWKH RYHUDOORUJDQL]DWLRQDOFOLPDWHDVSHUFHLYHGE\RXUHPSOR\HHV7KH2UJDQL]DWLRQ&OLPDWH6XUYH\HOLFLWHG UHVSRQVHVIURPHPSOR\HHVRQGLYHUVHRUJDQL]DWLRQDOWKHPHVVXFKDV6HQVHRIEHORQJLQJ5ROHRI+2'6XSHULRU &RPPXQLFDWLRQ'HFLVLRQ0DNLQJSURFHVV7UDLQLQJ7HDP%XLOGLQJ&RPSHQVDWLRQ &XVWRPHUVDWLVIDFWLRQDQG based on the feedback received, development action plans are evolved for improvement.

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Directors’ Responsibility Statement

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‡ ,QWKHSUHSDUDWLRQRIWKHDQQXDODFFRXQWVIRUWKH\HDUWKHDSSOLFDEOHDFFRXQWLQJVWDQGDUGVKDGEHHQ IROORZHGDORQJZLWKSURSHUH[SODQDWLRQVDQGWKHUHZHUHQRPDWHULDOGHSDUWXUHV

‡ 7KH'LUHFWRUVKDGVHOHFWHGVXFKDFFRXQWLQJSROLFLHVDQGDSSOLHGWKHPFRQVLVWHQWO\DQGPDGHMXGJPHQWV and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of WKH&RPSDQ\DWWKHHQGRIWKHÀQDQFLDO\HDUDQGRIWKHSURÀWRIWKH&RPSDQ\IRUWKDWSHULRG

‡ 7KH'LUHFWRUVKDGWDNHQSURSHUDQGVXIÀFLHQWFDUHIRUWKHPDLQWHQDQFHRIDGHTXDWHDFFRXQWLQJUHFRUGV in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company DQGIRUSUHYHQWLQJDQGGHWHFWLQJIUDXGDQGRWKHULUUHJXODULWLHV

‡ 7KH'LUHFWRUVKDGSUHSDUHGWKHDQQXDODFFRXQWVRQDJRLQJFRQFHUQEDVLV

25 Fixed Deposits

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Directors

$V SHU WKH SURYLVLRQV RI WKH $UWLFOHV RI $VVRFLDWLRQ RI WKH &RPSDQ\ IRXU GLUHFWRUV RI WKH FRPSDQ\ YL] Smt. Suneeta Reddy, Smt. Sangita Reddy, Shri. Deepak Vaidya and Shri. Rafeeque Ahamed retire by rotation at WKHHQVXLQJ$QQXDO*HQHUDO0HHWLQJDQGDUHHOLJLEOHIRUUHDSSRLQWPHQW

Shri. Steven Thompson had resigned from the position of Director of the Company with effect from 11th February 2011 due to his inability to continue in view of increased professional commitments.

The Board wishes to place on record its appreciation of the contributions made by Shri. Steven Thompson during his tenure as a Director of the Company.

Auditors

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Particulars of Employees as per Section 217(2A) of the Companies Act, 1956.

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Particulars regarding Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo.

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Acknowledgement

Your Directors wish to place on record their appreciation of the contribution made by the employees at all levels, to the continued growth and prosperity of your Company.

For and on behalf of the Board of Directors

Place : Chennai Dr. Prathap C Reddy 'DWHWK0D\ ([HFXWLYH&KDLUPDQ

26 Annexure – A to the Directors’ Report

Energy Conservation, Technology Absorption and Foreign Exchange Earnings and Outgo Conservation of Energy

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Your Company constantly evaluates and invests in new technology to make its infrastructure more energy HIÀFLHQW

$VHQHUJ\FRVWVFRPSULVHDYHU\VPDOOSDUWRI\RXU&RPSDQ\·VWRWDOH[SHQVHVWKHÀQDQFLDOLPSOLFDWLRQVRIWKHVH 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 WHFKQRORJ\,QLWVFRQWLQXRXVHQGHDYRUWRVHUYHWKHSDWLHQWVEHWWHUDQGWREULQJKHDOWKFDUHRILQWHUQDWLRQDO standards within the reach of every individual, your company has introduced the latest technology in its hospitals.

1. Digital Mammography system

7KH*URXSKDVDFTXLUHGDXQLTXH)XOO)LHOG'LJLWDO0DPPRJUDSK\ V\VWHPLQFOXGLQJGHGLFDWHG0DPPRJUDSK\ ZRUNVWDWLRQDQG)'$DSSURYHG´%UHDVW7RPRV\QWKHVLVµ&RPSDUHGWRFRQYHQWLRQDO'PDPPRJUDPVWKHQHZ system captures several low dose images of different views around the breast to form tomographic images RIPPOD\HUVIRU'YLHZLQJ7KLVZLOOHQDEOHPRUHHIÀFLHQWVFUHHQLQJDQGGLDJQRVLVRIEUHDVWFDQFHU7KH Amorphous Selenium direct capture detector eliminates light and resultant light diffusion to achieve better LPDJHVKDUSQHVVZLWKKLJKHVW0RGXODWLRQ7UDQVIHU)XQFWLRQ 07) DQG'HWHFWRU4XDQWXP(IÀFLHQF\ '4( LQWKH LQGXVWU\7KH GHWHFWRU DQG XQLTXH GHVLJQ RI JULG WHFKQRORJ\ HQDEOHV YLVXDOL]DWLRQ RI VPDOOHVW YLVLEOH PLFUR FDOFLÀFDWLRQVDQGKLJKHUFRQWUDVWLPDJHVZLWKRXWDQLQFUHDVHLQWKHUDGLDWLRQGRVH7KHWXQJVWHQ;UD\WXEHZLWK 5KRGLXPDQGVLOYHUÀOWHUVUHGXFHVUDGLDWLRQGRVHWRSDWLHQWVZKLOHPDLQWDLQLQJEHVWLPDJHTXDOLW\DQGFRQWUDVW The system enables best stereotactic breast biopsy services with patients in either upright or prone position for PD[LPXPSDWLHQWFRPIRUW7KHLQWHJUDWHG&RPSXWHU$LGHG'HWHFWLRQ L&$' IXQFWLRQDOLW\HQDEOHVTXLFNDQG HIÀFLHQWGLVSOD\RIDUHDVLQWKHEUHDVWWKDWPLJKWUHTXLUHIXUWKHUUHYLHZ

27 2. Cardiac and Vascular Angiography System

A new Cardiac and Vascular Angiography System has been installed to carry out advanced diagnostic and LQWHUYHQWLRQDO SURFHGXUHV ,W KDV D ODUJH ÀHOG RI YLHZ DQG ODWHVW JHQHUDWLRQ KLJK UHVROXWLRQ ÁDW GHWHFWRU HQDEOLQJ.LPDJHUHVROXWLRQ$GYDQFHG'LPDJHUHFRQVWUXFWLRQDQG'URDGPDSIHDWXUHVHQKDQFHYLVXDOL]DWLRQ RIFRPSOH[YDVFXODWXUHLQUHDOWLPHWRFRPSOHWHWKHSURFHGXUHVLQDVKRUWHUWLPH7KH;SHU&7IHDWXUHPDNHV it possible to get CT like images of soft tissue for pre and post procedure evaluation. The instant stent boost IHDWXUHYLVXDOL]HVVWHQWVLQWKHFRURQDU\DUWHU\LQUHODWLRQWRWKHYHVVHOOXPHQLQUHDOWLPHGXULQJDQJLRJUDSK\ ,QDGGLWLRQWKH;UD\WXEHGHVLJQDQGEHDPÀOWUDWLRQHQVXUHVKLJKUDGLDWLRQVDIHW\DQGORZUDGLDWLRQH[SRVXUHV to users.

3. Advanced Versacell Sample Management System

,QRUGHUWRHIÀFLHQWO\PDQDJHWKHODUJHDQGLQFUHDVLQJQXPEHURISDWLHQWVDPSOHVIRUFOLQLFDOFKHPLVWU\DQG immunoassay testing, an advanced Versacell sample management system has been installed to integrate two high HQGDQDO\]HUV7KHV\VWHPRIIHUVDQH[WHQVLYHPHQXODUJHRQERDUGUHDJHQWFDSDFLW\DQGKLJKHVWWKURXJKSXW WRUDGLFDOO\LPSURYHWKHODERUDWRU\ZRUNÁRZ6DPSOHVFDQEHORDGHGFRQWLQXRXVO\ZLWKSULRULWL]DWLRQRI67$7 samples. The robotic arm reduces time consuming and error prone pre-analytical sorting and coupled with LQWHOOLJHQWURXWLQJRIVDPSOHVWRDQDO\]HUVHQDEOHVIDVWWXUQDURXQGWLPH7KHPLFURYROXPHWHFKQRORJ\LQWKH FKHPLVWU\DQDO\]HUPDNHVLWLGHDOIRUSHGLDWULFDQGJHULDWULFSDWLHQWSRSXODWLRQ7RXFKVFUHHQLQWHUIDFHZLWK WKH9HUVDFHOOFRPSXWHULPSURYHVZRUNÁRZHIÀFLHQF\IRUPRQLWRULQJVWDWXVRIVDPSOHVGUDZHUVDQGURERWLFDUP

Foreign Exchange Earnings & Outgo

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28 Corporate Governance Report

The Company’s philosophy on code of governance

The basic objective of corporate governance policies adopted by the Company is to attain the highest OHYHOVRIWUDQVSDUHQF\DFFRXQWDELOLW\DQGLQWHJULW\7KLVREMHFWLYHH[WHQGVQRWPHUHO\WRFRPSO\ZLWKVWDWXWRU\ 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 WUXVWDQGFRQÀGHQFHRIDOOWKHVWDNHKROGHUV*RRGSUDFWLFHLQFRUSRUDWHEHKDYLRUKHOSVWRHQKDQFHDQGPDLQWDLQ public trust in companies and the stock markets.

The Company’s corporate governance policies and practices focus on the following principles:-

 7RUHFRJQL]HWKHUHVSHFWLYHUROHVDQGUHVSRQVLELOLWLHVRIWKH%RDUGDQGPDQDJHPHQW 2. To achieve the highest degree of transparency by maintaining a high degree of disclosure levels.  7RHQVXUHDQGPDLQWDLQKLJKHWKLFDOVWDQGDUGVLQLWVIXQFWLRQLQJ 4. To give 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  7RHQVXUHWKDWWKH&RPSDQ\IROORZVJOREDOO\UHFRJQL]HGFRUSRUDWHJRYHUQDQFHSUDFWLFHV

I. Board of Directors

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ompany.

(A) Composition of the Board of Directors and details of external directorships and memberships of boards/committees

Director Category Designation Share Number of Number of Whether holding Directorships Memberships Chairman / in the (out of which in Board Member Company as Chairman) Committees other than other than AHEL # AHEL ## Dr. Prathap C Reddy Promoter ([HFXWLYH    -- Chairman Smt. Preetha Reddy Promoter 0DQDJLQJ   -- Director

29 Smt. Suneeta Reddy1 Promoter Joint    1 Chairman 0DQDJLQJ 2 0HPEHU Director Smt. Sangita Reddy Promoter ([HFXWLYH 4,972,508 10 1 0HPEHU 'LUHFWRU² Operations Smt. Shobana Promoter ([HFXWLYH 2,189,952 11 2 0HPEHU Kamineni Director ²6SHFLDO ,QLWLDWLYHV Shri. Rajkumar ,QGHSHQ- Director -- - - 0HQRQ dent Shri. Rafeeque ,QGHSHQ- Director 55,900 - - - Ahamed dent 6KUL+DELEXOODK ,QGHSHQ- Director 10,806  ² ² Badsha dent Shri. Deepak Vaidya ,QGHSHQ- Director ²  2 Chairman dent  0HPEHU Shri. N. Vaghul ,QGHSHQ- Director ²  1 Chairman dent 1 0HPEHU Shri. T.K. Balaji ,QGHSHQ- Director ²   1 Chairman dent  0HPEHU Shri.Khairil Anuar ,QGHSHQ- Director ² --- Abdullah dent Shri.G.Venkatraman ,QGHSHQ- Director ² 75Chairman dent 2 0HPEHU Shri.Steven J ,QGHSHQ- Director ² --- Thompson2 dent Shri. Sandeep Naik Non Nominee ([HFXWLYH ²$SD[ ² --² 0DXULWLXV)', 2QH/WG 6KUL0LFKDHO Non Alternate Fernandes ([HFXWLYH Director to Shri. -- -- Khairil Anuar Abdullah

 $V([HFXWLYH'LUHFWRU)LQDQFHXSWRVW0D\DQGUHGHVLJQDWHGDV-RLQW0DQDJLQJ'LUHFWRUZLWK effect from 1st June 2011. 2. Ceased to be a director w.e.f 11th February 2011. ([FOXGLQJ'LUHFWRUVKLSVLQ)RUHLJQ&RPSDQLHV3ULYDWH&RPSDQLHVDQG6HFWLRQFRPSDQLHV  5HSUHVHQWV 0HPEHUVKLS&KDLUPDQVKLS RI $XGLW &RPPLWWHHV DQG 6KDUHKROGHUV·,QYHVWRUV· *ULHYDQFH Committee. 1RQHRIWKH'LUHFWRUVRQWKH%RDUGKROGWKHRIÀFHRI'LUHFWRULQPRUHWKDQ&RPSDQLHVRU0HPEHUVKLSRI Committees of the Board in more than 10 Committees and Chairmanship of more than 5 Committees, across all companies.

Pecuniary relationships or transactions of Non executive directors vis-à-vis the Company 7KH&RPSDQ\GRHVQRWKDYHDQ\GLUHFWSHFXQLDU\UHODWLRQVKLSWUDQVDFWLRQZLWKDQ\RILWV1RQ([HFXWLYH'LUHFWRUV

 (B) Remuneration policy for Directors

(a) Executive Directors 7KHUHPXQHUDWLRQSDLGWR([HFXWLYH'LUHFWRUVLVUHFRPPHQGHGE\WKH5HPXQHUDWLRQDQG1RPLQDWLRQ&RPPLWWHH DQGDSSURYHGE\WKH%RDUGRI'LUHFWRUVVXEMHFWWRWKHDSSURYDORIWKH6KDUHKROGHUVLQWKH*HQHUDO0HHWLQJ

(b) Non Executive Directors 1RQ([HFXWLYH'LUHFWRUVDUHSDLGVLWWLQJIHHVIRUWKHPHHWLQJVRIWKH%RDUGDQG&RPPLWWHHVLIDQ\DWWHQGHGE\ WKHP7KHFRPPLVVLRQSDLGWR1RQ([HFXWLYH'LUHFWRUVLVDSSURYHGE\WKH%RDUGRI'LUHFWRUVVXEMHFWWRDSSURYDO RIWKH6KDUHKROGHUVLQWKH*HQHUDO0HHWLQJ

(c) Details of remuneration paid to the Directors 7KHGHWDLOVRIWKHUHPXQHUDWLRQSDLGDFFUXHGWRWKH'LUHFWRUVIRUWKH\HDUHQGHGVW0DUFKDORQJZLWK their relationships and business interests is detailed below:- 5VLQPLOOLRQ 

Remuneration paid/payable for the year ended 31st March 2011 Name of the Director Relationship with other Directors Sitting Remunera- Commission Total Fee tion

Father of Smt.Preetha Reddy, Dr. Prathap C Reddy Smt.Suneeta Reddy, Smt. Sangita NA  ²  5HGG\ 6PW6KREDQD.DPLQHQL Daughter of Dr. Prathap C Reddy, Sister of Smt.Suneeta Smt. Preetha Reddy NA 54.84 ² 54.84 5 H G G \   6 P W  6 D Q J L W D  5 H G G \   Smt. Shobana Kamineni Daughter of Dr. Prathap C Reddy, Sister of Smt.Preetha Smt. Suneeta Reddy NA  ²  5HGG\6PW6DQJLWD5HGG\  Smt. Shobana Kamineni Daughter of Dr. Prathap C Reddy, Sister of Smt.Preetha Smt. Sangita Reddy NA  ²  5HGG\6PW6XQHHWD5HGG\  Smt. Shobana Kamineni Daughter of Dr. Prathap C Reddy, Sister of Smt.Preetha Smt. Shobana Kamineni NA  ²  5HGG\6PW6XQHHWD5HGG\  Smt. Sangita Reddy 6KUL5DMNXPDU0HQRQ ² 0.40 ² 0.85 1.25 Shri. Rafeeque Ahamed ² 0.12 ² 0.85 0.97 6KUL+DELEXOODK%DGVKD ² 0.18 ² 0.85  Shri. Deepak Vaidya ²²0.85 1.15 Shri. N. Vaghul ² 0.26 ² 0.85 1.11

 Shri. T.K. Balaji ² 0.14 ² 0.85 0.99 Shri.Khairil Anuar ² 0.10 ² 0.85 0.95 Abdullah Shri.G.Venkatraman ²²0.85 1.19 Shri.Steven J Thompson ² 0.04 ²0.77 Shri. Sandeep Naik ² 0.16 ² 0.85 1.01

Notes:

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

(d) Criteria for payment to Non-Executive Directors

&RPSHQVDWLRQWRWKHQRQH[HFXWLYHGLUHFWRUVWDNHVWKHIRUPRIFRPPLVVLRQRQSURÀWV7KHVKDUHKROGHUVDQGWKH 0LQLVWU\RI&RUSRUDWH$IIDLUVKDYHDSSURYHGSD\PHQWRIFRPPLVVLRQWR1RQ([HFXWLYHDQG,QGHSHQGHQW'LUHFWRUV ZLWKLQWKHRYHUDOOPD[LPXPFHLOLQJOLPLWRI RQHSHUFHQW RIQHWSURÀWVRIWKH&RPSDQ\IRUDSHULRGRIÀYH years with effect from 1st April 2009, in addition to the sitting fees being paid by the Company for attending the %RDUG&RPPLWWHH0HHWLQJVRIWKH&RPSDQ\

7KH%RDUGDSSURYHGWKHSD\PHQWRIFRPPLVVLRQRI5VPLOOLRQWRHDFK1RQ([HFXWLYHDQG,QGHSHQGHQW 'LUHFWRUIRUWKH\HDUHQGHGVW0DUFK7KHDJJUHJDWHFRPPLVVLRQSD\DEOHWRDOOQRQH[HFXWLYHGLUHFWRUV LVZHOOZLWKLQWKHOLPLWRIRIQHWSURÀWVRIWKH&RPSDQ\FDOFXODWHGLQDFFRUGDQFHZLWKWKHSURYLVLRQVRIWKH Companies Act, 1956.

The sum is reviewed periodically taking into consideration various factors such as performance of the Company, WLPH VSHQW E\ WKH GLUHFWRUV IRU DWWHQGLQJ WR WKH DIIDLUV DQG EXVLQHVV RI WKH &RPSDQ\ DQG WKH H[WHQW RI responsibilities cast on the directors under various laws and other relevant factors. Further, the aggregate FRPPLVVLRQSDLGWRDOOQRQH[HFXWLYHGLUHFWRUVLVZHOOZLWKLQWKHOLPLWRISHUFHQWRIQHWSURÀWDVDSSURYHGE\ WKHVKDUHKROGHUV7KHQRQH[HFXWLYHGLUHFWRUVDUHDOVRSDLGVLWWLQJIHHVDVSHUPLWWHGE\JRYHUQPHQWUHJXODWLRQV for all board and committee meetings attended by them.

(C) Board Procedures

(a) Number of Board Meetings held, dates on which held

(LJKWERDUGPHHWLQJVZHUHKHOGGXULQJWKHÀQDQFLDO\HDUIURPVW$SULOWRVW0DUFK7KHGDWHVRQ which the meetings were held are as follows:-

WK$SULOWK$SULOWK0D\WK$XJXVWWK1RYHPEHUWK'HFHPEHU WK)HEUXDU\DQGQG0DUFK

 (b) Attendance details of each director at the Board Meetings and at the last AGM are set out below:- Director Number of Board Number of Last AGM Meetings held Board Meetings attendance Attended (Yes/No) Dr. Prathap C Reddy 8 7 Yes Smt. Preetha Reddy 8 8 Yes Smt. Suneeta Reddy 8 8 Yes Smt. Sangita Reddy 8 6 Yes Smt. Shobana Kamineni 8 6 Yes 6KUL5DMNXPDU0HQRQ 88Yes Shri. Rafeeque Ahamed 8 2 No 6KUL+DELEXOODK%DGVKD 85Yes Shri. Deepak Vaidya 8 5 No Shri. N. Vaghul 8 8 Yes Shri. T.K. Balaji 8 5 Yes Shri. Khairil Anuar Abdullah 8 5 Yes Shri. G. Venkatraman 8 8 Yes Shri. Steven J Thompson 7* 2 No Shri. Sandeep Naik 8 6 No 6KUL0LFKDHO)HUQDQGHV$OWHUQDWH'LUHFWRUWR 8- ² Shri.Khairil Anuar Abdullah * Details provided till the date of resignation.

(c)The information made available to the Board includes the following

1. Annual Operating plans, budgets and any updates. 2. Capital budgets and any updates.  4XDUWHUO\UHVXOWVIRUWKH&RPSDQ\DQGLWVRSHUDWLQJGLYLVLRQVRUEXVLQHVVVHJPHQWV  0LQXWHVRIPHHWLQJVRIWKHDXGLWFRPPLWWHHDQGRWKHUFRPPLWWHHVRIWKH%RDUG  7KHLQIRUPDWLRQRUUHFUXLWPHQWDQGUHPXQHUDWLRQRIVHQLRURIÀFHUVMXVWEHORZWKHERDUGOHYHOLQFOXGLQJ DSSRLQWPHQWDQGUHPRYDORIWKH&KLHI)LQDQFLDO2IÀFHUDQGWKH&RPSDQ\6HFUHWDU\ 6. Show cause, demand, prosecution notices and penalty notices, which are materially important.  )DWDORUVHULRXVDFFLGHQWVGDQJHURXVRFFXUUHQFHVDQ\PDWHULDOHIÁXHQWRUSROOXWLRQSUREOHPV  $Q\PDWHULDOGHIDXOWLQÀQDQFLDOREOLJDWLRQVWRDQGE\WKH&RPSDQ\RUVXEVWDQWLDOQRQSD\PHQWIRUJRRGV sold by the Company. 9. Any issue which involves possible public or product liability, claims of substantial nature including judgment or order which, may have passed strictures on the code of conduct of the Company or taken an adverse view regarding another enterprise that can have negative implications on the Company. 10. Details of joint venture or collaboration agreements. 11. Transactions that involve substantial payment towards goodwill, brand equity or intellectual property.  6LJQLÀFDQWODERXUSUREOHPVDQGWKHLUUHVROXWLRQV$Q\VLJQLÀFDQWGHYHORSPHQWRQWKH+XPDQ5HVRXUFHV ,QGXVWULDO5HODWLRQVIURQWOLNHVLJQLQJRIZDJHDJUHHPHQWLPSOHPHQWDWLRQRI956VFKHPHHWF  6DOHRIPDWHULDOQDWXUHVXFKDVLQYHVWPHQWVVXEVLGLDULHVDVVHWVZKLFKLVQRWLQWKHQRUPDOFRXUVHRI business.  4XDUWHUO\GHWDLOVRIIRUHLJQH[FKDQJHH[SRVXUHVDQGWKHVWHSVWDNHQE\PDQDJHPHQWWROLPLWWKHULVNVRI DGYHUVHH[FKDQJHUDWHPRYHPHQWLIPDWHULDO 15. Non-compliance of any regulatory, statutory or listing requirements and shareholders service 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.

(D) Code of Conduct for Board Members and Senior Management Personnel

7KH%RDUGRI'LUHFWRUVKDGDGRSWHGD&RGHRI&RQGXFWIRUWKH%RDUG0HPEHUVDQG6HQLRU0DQDJHPHQW3HUVRQQHO This Code helps the Company to maintain the Standard of Business Ethics and ensure compliance with the legal UHTXLUHPHQWVVSHFLÀFDOO\XQGHU&ODXVHRIWKH6WRFN([FKDQJH/LVWLQJ$JUHHPHQWVRIWKH&RPSDQ\7KH&RGH LVDLPHGDWSUHYHQWLQJDQ\ZURQJGRLQJDQGSURPRWLQJHWKLFDOFRQGXFWDWWKH%RDUGDQG6HQLRU0DQDJHPHQW level.

7KH&RPSDQ\6HFUHWDU\KDVEHHQDSSRLQWHGDVWKH&RPSOLDQFH2IÀFHUDQGLVUHVSRQVLEOHWRHQVXUHDGKHUHQFH WRWKH&RGHE\DOOFRQFHUQHG$FRS\RIWKHFRGHRIFRQGXFWKDVEHHQSRVWHGDWWKH&RPSDQ\·VRIÀFLDOZHEVLWH www.apollohospitals.com

7KH GHFODUDWLRQ UHJDUGLQJ FRPSOLDQFH ZLWK WKH FRGH RI FRQGXFW DV UHTXLUHG XQGHU FODXVH  RI WKH /LVWLQJ $JUHHPHQWZLWKWKHVWRFNH[FKDQJHVLVDSSHQGHGWRWKLVUHSRUW

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 ([FKDQJH%RDUGRI,QGLD 3URKLELWLRQRI,QVLGHU7UDGLQJ 5HJXODWLRQV6KUL60.ULVKQDQ*HQHUDO0DQDJHU ² 3URMHFW )LQDQFH  &RPSDQ\ 6HFUHWDU\ LV WKH &RPSOLDQFH 2IÀFHU$OO WKH 'LUHFWRUV DQG 6HQLRU 0DQDJHPHQW 3HUVRQQHODQGVXFKRWKHUGHVLJQDWHGHPSOR\HHVRIWKH&RPSDQ\ZKRDUHH[SHFWHGWRKDYHDFFHVVWRXQSXEOLVKHG 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.

II. Composition of Board Committees

Audit Committee Investors Remuneration Investment Share Transfer Grievance & Nomination Committee Committee Committee Committee

Shri. Deepak Vaidya, Shri. Rajkumar Shri. N.Vaghul, Smt. Preetha Reddy, Dr. Prathap C Reddy, Chairman 0HQRQ&KDLUPDQ 0HPEHU 0HPEHU Chairman

Shri.G.Venkatraman, Smt. Preetha Shri. Deepak Vaidya, Smt.Suneeta Reddy, Smt. Preetha Reddy, 0HPEHU 5HGG\0HPEHU 0HPEHU 0HPEHU 0HPEHU

Shri.Rajkumar Smt.Suneeta Shri.G.Venkatraman Shri. N. Vaghul, 6KUL5DMNXPDU0HQRQ 0HQRQ0HPEHU 5HGG\0HPEHU 0HPEHU 0HPEHU 0HPEHU

Shri. Sandeep Naik, Shri. Deepak Vaidya, 0HPEHU 0HPEHU

Shri. Rafeeque Shri. T.K. Balaji, $KDPHG0HPEHU 0HPEHU

 1. AUDIT COMMITTEE (a) Composition of the Audit Committee 7KH &RPSDQ\ FRQWLQXHG WR GHULYH LPPHQVH EHQHÀW IURP WKH GHOLEHUDWLRQV RI WKH $XGLW &RPPLWWHH FRPSULVLQJRIWKHIROORZLQJ,QGHSHQGHQW'LUHFWRUV 1. Shri. Deepak Vaidya, Chairman 2. Shri. G. Venkatraman  6KUL5DMNXPDU0HQRQ  7KH FRPPLWWHH FRPSULVHV RI HPLQHQW SURIHVVLRQDOV ZLWK H[SHUW NQRZOHGJH LQ FRUSRUDWH ÀQDQFH 7KH 0LQXWHVRIHDFKDXGLWFRPPLWWHHPHHWLQJDUHSODFHGEHIRUHDQGGLVFXVVHGE\WKH%RDUGRI'LUHFWRUVRIWKH Company. (b) Meetings of Audit Committee 7KH$XGLW&RPPLWWHHPHWÀYHWLPHVGXULQJWKH\HDURQth April 2010, 28th 0D\th August 2010, 8th November 2010 and 10th February 2011. Number of Number of Meetings Sl.No Name of the Member Designation Meetings Held attended 1. Shri. Deepak Vaidya Chairman 5 5

2. Shri. G. Venkatraman 0HPEHU 55

 6KUL5DMNXPDU0HQRQ 0HPEHU 55

(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.  7RREWDLQRXWVLGHOHJDORURWKHUSURIHVVLRQDODGYLFH  7RVHFXUHDWWHQGDQFHRIRXWVLGHUVZLWKUHOHYDQWH[SHUWLVHLILWFRQVLGHUVQHFHVVDU\

(d) Functions of the Audit Committee

The role of the Audit Committee includes the following:

 2YHUVLJKWRIWKHFRPSDQ\·VÀQDQFLDOUHSRUWLQJSURFHVVDQGWKHGLVFORVXUHRILWVÀQDQFLDOLQIRUPDWLRQWR HQVXUHWKDWWKHÀQDQFLDOVWDWHPHQWVDUHFRUUHFWVXIÀFLHQWDQGFUHGLEOH 2. Recommending to the Board, the appointment, re-appointment and, if required, the replacement or UHPRYDORIWKHVWDWXWRU\DXGLWRUDQGWKHÀ[DWLRQRIDXGLWIHHV  $SSURYDORISD\PHQWWRWKHVWDWXWRU\DXGLWRUVIRUDQ\RWKHUVHUYLFHVUHQGHUHGE\WKHVWDWXWRU\DXGLWRUV  5HYLHZLQJZLWKWKHPDQDJHPHQWWKHDQQXDOÀQDQFLDOVWDWHPHQWVEHIRUHVXEPLVVLRQWRWKHERDUGIRU DSSURYDOZLWKSDUWLFXODUUHIHUHQFHWR

 D  0DWWHUVUHTXLUHGWREHLQFOXGHGLQWKH'LUHFWRU·V5HVSRQVLELOLW\6WDWHPHQWWREHLQFOXGHGLQ the Board’s report in terms of clause 2AA of Section 217 of the Companies Act, 1956.  E  &KDQJHVLIDQ\LQDFFRXQWLQJSROLFLHVDQGSUDFWLFHVDQGUHDVRQVIRUWKHVDPH  F  0DMRUDFFRXQWLQJHQWULHVLQYROYLQJHVWLPDWHVEDVHGRQWKHH[HUFLVHRIMXGJHPHQWE\  management.  G  6LJQLÀFDQWDGMXVWPHQWVPDGHLQWKHÀQDQFLDOVWDWHPHQWVDULVLQJRXWRIDXGLWÀQGLQJV  H  &RPSOLDQFHZLWKOLVWLQJDQGRWKHUOHJDOUHTXLUHPHQWVUHODWLQJWRÀQDQFLDOVWDWHPHQWV  I  'LVFORVXUHRIDQ\UHODWHGSDUW\WUDQVDFWLRQV  J  4XDOLÀFDWLRQVLQWKHGUDIWDXGLWUHSRUW

  5HYLHZLQJZLWKWKHPDQDJHPHQWWKHTXDUWHUO\ÀQDQFLDOVWDWHPHQWVEHIRUHVXEPLVVLRQWRWKHERDUGIRU approval. 6. Reviewing, with the management, performance of the statutory and internal auditors and adequacy of the internal control systems. 7. Reviewing the adequacy of internal audit function, if any including the structure of the internal audit GHSDUWPHQWVWDIÀQJDQGVHQLRULW\RIWKHRIÀFLDOVKHDGLQJWKHGHSDUWPHQWUHSRUWLQJVWUXFWXUHFRYHUDJH and frequency of internal audit.  'LVFXVVLQJZLWKLQWHUQDODXGLWRUVDQ\VLJQLÀFDQWÀQGLQJVDQGIROORZXSWKHUHRQ  5HYLHZLQJWKHÀQGLQJVRIDQ\LQWHUQDOLQYHVWLJDWLRQVE\WKHLQWHUQDODXGLWRUVLQWRPDWWHUVZKHUHWKHUHLV suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board. 10. Discussion with statutory auditors before the audit commences about nature and scope of audit as well as post-audit discussion to ascertain any area of concern. 11. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, VKDUHKROGHUV LQFDVHRIQRQSD\PHQWRIGHFODUHGGLYLGHQGV DQGFUHGLWRUV  7RUHYLHZWKHIXQFWLRQLQJRIWKH:KLVWOH%ORZHU0HFKDQLVPLQFDVHWKHVDPHLVH[LVWLQJ  &DUU\LQJRXWDQ\RWKHUIXQFWLRQDVLVPHQWLRQHGLQWKHWHUPVRIUHIHUHQFHRIWKH$XGLW&RPPLWWHH 14. The Audit Committee shall mandatorily review the following information.

L  0DQDJHPHQWGLVFXVVLRQDQGDQDO\VLVRIÀQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV LL  6WDWHPHQWRIVLJQLÀFDQWUHODWHGSDUW\WUDQVDFWLRQV DVGHÀQHGE\WKHDXGLWFRPPLWWHHDQG   VXEPLWWHGE\PDQDJHPHQW LLL  0DQDJHPHQWOHWWHUVOHWWHUVRILQWHUQDOFRQWUROZHDNQHVVHVLVVXHGE\WKHVWDWXWRU\DXGLWRUV LY  ,QWHUQDODXGLWUHSRUWVUHODWLQJWRLQWHUQDOFRQWUROZHDNQHVVHVDQG Y  7KHDSSRLQWPHQWUHPRYDODQGWHUPVRIUHPXQHUDWLRQRIWKH,QWHUQDO$XGLWRUVVKDOOEH  subject to review by the Audit Committee.

,QDGGLWLRQWRWKHDUHDVQRWHGDERYHWKHDXGLWFRPPLWWHHORRNVLQWRFRQWUROVDQGVHFXULW\RIWKH&RPSDQ\·V FULWLFDO,7DSSOLFDWLRQVWKHLQWHUQDODQGFRQWURODVVXUDQFHDXGLWUHSRUWVRIDOOPDMRUGLYLVLRQVDQGSURÀWFHQWHUV and deviations from the code of business principle, if any.

2. REMUNERATION & NOMINATION COMMITTEE

(a) Composition and Scope of the Remuneration & Nomination Committee

7KH5HPXQHUDWLRQ 1RPLQDWLRQ&RPPLWWHHFRPSULVHVRIWKHIROORZLQJ,QGHSHQGHQWDQG1RQ([HFXWLYH Directors.

1. Shri. N. Vaghul 2. Shri. Deepak Vaidya  6KUL*9HQNDWUDPDQ 4. Shri. Sandeep Naik 5. Shri. Rafeeque Ahamed

7KH6FRSHRIWKH5HPXQHUDWLRQ 1RPLQDWLRQ&RPPLWWHHLQFOXGHVWKHIROORZLQJ

 7RVXEPLWUHFRPPHQGDWLRQVWRWKH%RDUGZLWKUHJDUGWR²

D  )LOOLQJXSRIYDFDQFLHVLQWKH%RDUGWKDWPLJKWRFFXUIURPWLPHWRWLPHDQGDSSRLQWPHQWRI DGGLWLRQDO 1RQ([HFXWLYH 'LUHFWRUV ,Q PDNLQJ WKHVH UHFRPPHQGDWLRQV WKH &RPPLWWHH VKDOO WDNHLQWRDFFRXQWWKHVSHFLDOSURIHVVLRQDOVNLOOVUHTXLUHGIRUHIÀFLHQWGLVFKDUJHRIWKH%RDUG·V IXQFWLRQV E  5HWLUHPHQWRI'LUHFWRUVOLDEOHWRUHWLUHE\URWDWLRQDQG F  $SSRLQWPHQWRI([HFXWLYH'LUHFWRUV

 7RGHWHUPLQHDQGUHFRPPHQGWRWKH%RDUGIURPWLPHWRWLPH²

a. the amount of commission and fees payable to the Directors within the applicable provisions of the Companies Act, 1956.

 b. the amount of remuneration, including performance or achievement bonus and perquisites SD\DEOHWRWKH([HFXWLYH'LUHFWRUV

 7RIUDPHJXLGHOLQHVIRU5HZDUG0DQDJHPHQWDQGUHFRPPHQGVXLWDEOHVFKHPHVIRUWKH ([HFXWLYH'LUHFWRUVDQG6HQLRU0DQDJHPHQWDQG 4. To determine the need for key man insurance for any of the company’s personnel

(b) Meetings of the Remuneration & Nomination Committee

'XULQJWKH\HDUWKH5HPXQHUDWLRQ 1RPLQDWLRQ&RPPLWWHHPHWRQWK0D\DQGWK1RYHPEHU Sl. Number of Number of Meetings Name of the Member Designation No Meetings Held attended 1. Shri. N. Vaghul Chairman 2 2 2. Shri. Deepak Vaidya 0HPEHU 22  Shri. G. Venkatraman 0HPEHU 22 4. Shri. Sandeep Naik 0HPEHU 22 5. Shri. Rafeeque Ahamed 0HPEHU 21

3. INVESTMENT COMMITTEE (a) Composition and Scope of the Investment Committee

7KH,QYHVWPHQW&RPPLWWHHFRPSULVHVRIDPDMRULW\RI,QGHSHQGHQW'LUHFWRUV 1. Smt. Preetha Reddy 2. Smt. Suneeta Reddy  6KUL19DJKXO 4. Shri.T.K. Balaji and 5. Shri. Deepak Vaidya 7KHVFRSHRIWKH,QYHVWPHQW&RPPLWWHHLVWRUHYLHZDQGUHFRPPHQGLQYHVWPHQWVLQQHZDFWLYLWLHVSODQQHGE\ the Company.

(b) Meetings of the Investment Committee 'XULQJWKH\HDUWKH,QYHVWPHQW&RPPLWWHHPHWRQWK$SULOWK0D\DQGWK$XJXVW Sl. Number of Number of Meetings Name of the Member Designation No Meetings Held attended 1. Shri. N. Vaghul Chairman  2. Smt. Preetha Reddy 0HPEHU  2  Smt. Suneeta Reddy 0HPEHU   4. Shri. Deepak Vaidya 0HPEHU   5. Shri. T.K. Balaji 0HPEHU  2

4. INVESTORS’ GRIEVANCE COMMITTEE (a) Composition and Scope of the Investors’ Grievance Committee 7KH6KDUHKROGHU,QYHVWRUV·*ULHYDQFH&RPPLWWHHVSHFLÀFDOO\ORRNVLQWRLVVXHVVXFKDVUHGUHVVLQJRIVKDUHKROGHUV· and investors’ complaints such as transfer of shares, non-receipt of shares, non-receipt of declared dividends DQGHQVXULQJH[SHGLWLRXVVKDUHWUDQVIHUV

This Committee comprises of the following Directors:-  6KUL5DMNXPDU0HQRQ&KDLUPDQ 2. Smt. Preetha Reddy and  6PW6XQHHWD5HGG\

 (b)Meetings of the Investors Grievance Committee The Committee met four times during the year on 7th April 2010, 9th July 2010, 6th October 2010 and 5th January 2011. Sl. Number of Number of Meetings Name of the Member Designation No Meetings Held attended 1. 6KUL5DMNXPDU0HQRQ Chairman 4 4 2. Smt. Preetha Reddy 0HPEHU 44  Smt. Suneeta Reddy 0HPEHU 44 1DPHDQGGHVLJQDWLRQRIWKH&RPSOLDQFH2IÀFHU 6KUL60.ULVKQDQ*HQHUDO0DQDJHU²3URMHFW)LQDQFHDQG&RPSDQ\6HFUHWDU\

5. SHARE TRANSFER COMMITTEE Composition and Scope of the Share Transfer Committee The Share transfer committee comprises of the following directors 1. Dr. Prathap C Reddy 2. Smt. Preetha Reddy  6KUL5DMNXPDU0HQRQ

The Share Transfer Committee, constituted by the Board has been delegated powers to administer the following:-

‡ To effect transfer of shares ‡ To effect transmission of shares ‡ 7RLVVXHGXSOLFDWHVKDUHFHUWLÀFDWHVDVDQGZKHQUHTXLUHGDQG ‡ 7RFRQÀUPGHPDWUHPDWUHTXHVW The Committee, attends to the share transfer and other formalities once in a fortnight

III. SUBSIDIARIES $VSHUWKHUHYLVHG&ODXVHRIWKH6WRFN([FKDQJH/LVWLQJ$JUHHPHQW\RXU&RPSDQ\GRHVQRWKDYHDQ\0DWHULDO QRQOLVWHG6XEVLGLDU\&RPSDQ\ZKRVHWXUQRYHURUQHWZRUWKH[FHHGVRIWKHFRQVROLGDWHGWXUQRYHURUQHWZRUWK respectively of the Company and its subsidiaries in the immediately preceding accounting year.

IV. Disclosures (A) Related Party Transactions 7KHUHZHUHQRPDWHULDOO\VLJQLÀFDQWUHODWHGSDUW\WUDQVDFWLRQVSHFXQLDU\WUDQVDFWLRQVRUUHODWLRQVKLSVEHWZHHQ WKH&RPSDQ\DQGLWVGLUHFWRUVSURPRWHUVRUWKHPDQDJHPHQWWKDWPD\KDYHSRWHQWLDOFRQÁLFWZLWKWKHLQWHUHVWV RIWKH&RPSDQ\DWODUJHH[FHSWWKHGHWDLOVRIWUDQVDFWLRQVGLVFORVHGLQ6FKHGXOH-²1RWHVIRUPLQJSDUWRIWKH $FFRXQWVDVUHTXLUHGXQGHU$FFRXQWLQJ6WDQGDUGRIWKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDDQGDOO related party transactions are negotiated on an arms length basis.

'XULQJWKH\HDUWKH&RPSDQ\KDVDOORWWHGPLOOLRQZDUUDQWVFRQYHUWLEOHLQWRHTXLW\VKDUHVWR'U3UDWKDS& 5HGG\RQHRIWKHSURPRWHUVRIWKHFRPSDQ\DVGLVFORVHGLQ&ODXVH,9 ' RIWKHUHSRUW

$OOGHWDLOVUHODWLQJWRÀQDQFLDODQGFRPPHUFLDOWUDQVDFWLRQVZKHUHGLUHFWRUVPD\KDYHDSRWHQWLDOLQWHUHVWDUH provided to the Board and the interested Directors neither participate in the discussion, nor do they vote in such matters. The Audit Committee of the Company also reviews related party transactions periodically.

(B) Accounting Treatment 7KH&RPSDQ\IROORZV$FFRXQWLQJ6WDQGDUGVLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDDQGLQ SUHSDUDWLRQRIÀQDQFLDOVWDWHPHQWVWKH&RPSDQ\KDVQRWDGRSWHGDWUHDWPHQWGLIIHUHQWIURPWKDWSUHVFULEHG in any Accounting Standard.

 (C) Risk Management %XVLQHVV 5LVN (YDOXDWLRQ DQG PDQDJHPHQW RI VXFK ULVNV LV DQ RQJRLQJ SURFHVV ZLWKLQ WKH RUJDQL]DWLRQ 7KH %RDUG KDV FRQVWLWXWHG D 5LVN 0DQDJHPHQW &RPPLWWHH KHDGHG E\ WKH 0DQDJLQJ 'LUHFWRU ZKLFK ZRXOG UHYLHZ WKHSUREDELOLW\RIULVNHYHQWVWKDWDGYHUVHO\DIIHFWWKHRSHUDWLRQVDQGSURÀWDELOLW\RIWKH&RPSDQ\DQGVXJJHVW suitable measures to mitigate such risks.

$5LVN0DQDJHPHQW)UDPHZRUNLVDOUHDG\LQSODFHDQGWKH([HFXWLYH0DQDJHPHQWUHSRUWVWRWKH%RDUGSHULRGLFDOO\ RQWKHDVVHVVPHQWDQGPLQLPL]DWLRQRIULVNV

(D) Proceeds of Public, Rights and Preferential Issues During the year, the Company has allotted:-

  PLOOLRQZDUUDQWVFRQYHUWLEOHLQWRHTXLW\VKDUHVWR'U3UDWKDS&5HGG\ZLWKHDFKZDUUDQW FRQYHUWLEOHLQWRRQHHTXLW\VKDUHRIIDFHYDOXHRI5VHDFKDWDSULFHRI5VSHUVKDUH including a premium of Rs.761.76 per share on 12th June 2010. Consequent to the stock split of IDFHYDOXHRI5VWKHQXPEHURIZDUUDQWVVKDOOVWDQGDGMXVWHGWRPLOOLRQZDUUDQWVRIIDFH YDOXHRI5VHDFKDWDSULFHRI5VSHUVKDUH   PLOOLRQZDUUDQWVFRQYHUWLEOHLQWRHTXLW\VKDUHVWR'U3UDWKDS&5HGG\ZLWKHDFKZDUUDQW FRQYHUWLEOHLQWRRQHHTXLW\VKDUHRIIDFHYDOXHRI5VHDFKDWDSULFHRI5VSHUVKDUH including a premium of Rs.467.46 per share on 5th February 2011.    PLOOLRQ HTXLW\ VKDUHV WR ,QWHUQDWLRQDO )LQDQFH &RUSRUDWLRQ :DVKLQJWRQ RQ FRQYHUVLRQ RI )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGVWRWKHH[WHQWRI86PLOOLRQ7KHVHVKDUHVKDYHEHHQ LVVXHGDWDSULFHRI5VSHUVKDUHRI5VHDFKLQFOXGLQJSUHPLXPRI5VDWD SUHPLXPRIRYHUWKHÁRRUSULFHGHWHUPLQHGDVSHUWKH)&&%6FKHPHDQGLQDFFRUGDQFH ZLWKWKHWHUPVRIWKH)&&%/RDQ$JUHHPHQWGDWHGWK-XQH 7KH$XGLW&RPPLWWHHUHYLHZVWKHXWLOL]DWLRQRISURFHHGVRQDTXDUWHUO\EDVLV

(E) Management 7KH0DQDJHPHQW·V'LVFXVVLRQDQG$QDO\VLV5HSRUWLVDSSHQGHGWRWKLVUHSRUW

(F) Shareholders

(1) Disclosures regarding appointment or re-appointment of Directors As per the Companies Act, 1956, atleast two thirds of the Board should consist of retiring Directors , of these atleast one third are required to retire every year.

([FHSW WKH &KDLUPDQ DQG WKH 0DQDJLQJ 'LUHFWRUDOO RWKHU 'LUHFWRUV DUH OLDEOH WR UHWLUH E\ URWDWLRQ DV SHU the provisions of the Companies Act, 1956. During the year, Shri. Rafeeque Ahamed, Smt. Suneeta Reddy, Smt. Sangita Reddy and Shri. Deepak Vaidya will retire and are eligible for re-appointment at the ensuing Annual *HQHUDO0HHWLQJ

7KHGHWDLOHGUHVXPHVRIDOOWKHVHGLUHFWRUVDUHSURYLGHGDVSDUWRIWKH1RWLFHRIWKH$QQXDO*HQHUDO0HHWLQJ

(2) Communication to shareholders 7KHXQDXGLWHGTXDUWHUO\KDOI\HDUO\ÀQDQFLDOVWDWHPHQWVDUHDQQRXQFHGZLWKLQIRUW\ÀYHGD\VRIWKHHQGRIWKH TXDUWHU7KHDIRUHVDLGÀQDQFLDOVWDWHPHQWVDUHWDNHQRQUHFRUGE\WKH%RDUGRI'LUHFWRUVDQGDUHFRPPXQLFDWHG WR WKH 6WRFN ([FKDQJHV ZKHUH WKH &RPSDQ\·V VHFXULWLHV DUH OLVWHG  2QFH WKH 6WRFN ([FKDQJHV KDYH EHHQ LQWLPDWHGWKHVHUHVXOWVDUHJLYHQE\ZD\RID3UHVV5HOHDVHWRYDULRXVQHZDJHQFLHVDQDO\VWVDQGSXEOLVKHG ZLWKLQKRXUVLQWZROHDGLQJGDLO\QHZVSDSHUV²RQHLQ(QJOLVKDQGRQHLQ7DPLO

The audited annual results are announced within two months from the end of the last quarter as stipulated XQGHU WKH /LVWLQJ$JUHHPHQW ZLWK WKH 6WRFN ([FKDQJHV  )RU WKH ÀQDQFLDO \HDU HQGHG VW 0DUFK  WKH DXGLWHGDQQXDOUHVXOWVZHUHDQQRXQFHGRQWK0D\7KHDXGLWHGDQQXDOUHVXOWVDUHWDNHQRQUHFRUGE\

 WKH%RDUGRI'LUHFWRUVDQGDUHFRPPXQLFDWHGWRWKH6WRFN([FKDQJHVZKHUHWKHVHUHVXOWVDUHJLYHQE\ZD\RI D3UHVV5HOHDVHWRYDULRXVQHZVDJHQFLHVDQDO\VWVDQGDUHDOVRSXEOLVKHGZLWKLQKRXUVLQWZROHDGLQJGDLO\ QHZVSDSHUV²RQHLQ(QJOLVKDQGRQHLQ7DPLO7KHDXGLWHGÀQDQFLDOUHVXOWVIRUPDSDUWRIWKH$QQXDO5HSRUW ZKLFKLVVHQWWRWKH6KDUHKROGHUVSULRUWRWKH$QQXDO*HQHUDO0HHWLQJ

7KH&RPSDQ\DOVRLQIRUPVE\ZD\RILQWLPDWLRQWRWKH6WRFN([FKDQJHVDOOSULFHVHQVLWLYHPDWWHUVRUVXFKRWKHU matters which in its opinion are material and of relevance to the shareholders.

7KH TXDUWHUO\KDOI \HDUO\ DQG WKH DQQXDO UHVXOWV RI WKH FRPSDQ\ DUH SXW RQ WKH &RPSDQ\·V ZHEVLWH www.apollohospitals.com.

(3) Investors’ Grievances and Share Transfer $VPHQWLRQHGHDUOLHUWKH&RPSDQ\KDVD%RDUGOHYHO,QYHVWRUV*ULHYDQFH&RPPLWWHHWRH[DPLQHDQGUHGUHVV 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 the Additional information to shareholders section of the Annual Report.

)RUPDWWHUVUHJDUGLQJVKDUHVWUDQVIHUUHGLQSK\VLFDOIRUPVKDUHFHUWLÀFDWHVGLYLGHQGVFKDQJHRIDGGUHVVHWF VKDUHKROGHUVVKRXOGVHQGLQWKHLUFRPPXQLFDWLRQVWR,QWHJUDWHG(QWHUSULVHV ,QGLD /WGRXUUHJLVWUDUDQGVKDUH WUDQVIHUDJHQW7KHLUDGGUHVVLVJLYHQLQWKHVHFWLRQRQ6KDUHKROGHU,QIRUPDWLRQ

(4) Details of Non-Compliances There are no non-compliances by the Company and no penalties or strictures have imposed on the Company by WKH6WRFN([FKDQJHVRU6(%,RUDQ\VWDWXWRU\DXWKRULW\RQDQ\PDWWHUUHODWHGWRFDSLWDOPDUNHWVGXULQJWKHODVW three years.

(5) General Body Meetings 7KHORFDWLRQGDWHDQGWLPHRI$QQXDO*HQHUDO0HHWLQJVKHOGGXULQJWKHSUHFHGLQJWKUHH\HDUVDUHJLYHQ below:

Year Date Venue Time Special Resolutions Passed Kamaraj 10.00 2007-2008 Aug 28, 2008 Arangam, No special resolutions were passed $0 Chennai

™ ,VVXHRI)RUHLJQ&XUUHQF\&RQYHUWLEOH %RQGV )&&%V  RI IDFH YDOXH RI 86'  HDFK DJJUHJDWLQJ WR 86'  PLOOLRQ Kamaraj WR ,QWHUQDWLRQDO )LQDQFH &RUSRUDWLRQ 10.00 2008-2009 Aug 26, 2009 Arangam, Washington. $0 Chennai ™ 3D\PHQWRI&RPPLVVLRQWR1RQ([HFXWLYHDQG ,QGHSHQGHQW'LUHFWRUVZLWKLQWKHPD[LPXP OLPLWRIRIQHWSURÀWVRIWKHFRPSDQ\IRU DSHULRGRIÀYH\HDUVZHIst April 2009.

™ 6XEGLYLVLRQRIHDFKH[LVWLQJHTXLW\VKDUH RIIDFHYDOXHRI5VHDFKLQWRHTXLW\ Kamaraj 10.00 VKDUHVRIIDFHYDOXHRI5VHDFK 2009-2010 July 26, 2010 Arangam, $0 ™ Chennai  $OWHUDWLRQRI0HPRUDQGXPDQG$UWLFOHVRI Association to give effect to the subdivision of equity shares

40 (6) Postal Ballots

During the year there were no ordinary or special resolutions passed by the members through Postal Ballot.

9&(2&)2&HUWLÀFDWLRQ

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VI. Compliance with Corporate Governance Norms

(i) Mandatory Requirements The Company has complied with all the mandatory requirements of Corporate Governance norms as enumerated LQ&ODXVHRIWKH/LVWLQJ$JUHHPHQWZLWKWKH6WRFN([FKDQJHV

(ii) Non-Mandatory Requirements 7KHVWDWXVRIFRPSOLDQFHLQUHVSHFWRIQRQPDQGDWRU\UHTXLUHPHQWVRI&ODXVHRI/LVWLQJ$JUHHPHQWLVDV follows:-

7KH%RDUG D 7KHUHLVQR1RQ([HFXWLYH&KDLUPDQIRUWKH&RPSDQ\   E 1RVSHFLÀFWHQXUHKDVEHHQVSHFLÀHGIRUDQ\RIWKH,QGHSHQGHQW'LUHFWRUV

5HPXQHUDWLRQ&RPPLWWHH'HWDLOVDUHJLYHQXQGHUWKHKHDGLQJ¶5HPXQHUDWLRQ 1RPLQDWLRQ&RPPLWWHH·

6KDUHKROGHU5LJKWV'HWDLOVDUHJLYHQXQGHUWKHKHDGLQJ¶&RPPXQLFDWLRQWR6KDUHKROGHUV·

$XGLW4XDOLÀFDWLRQV'XULQJWKH\HDUXQGHUUHYLHZWKHUHZDVQRDXGLWTXDOLÀFDWLRQLQWKH&RPSDQ\·V ÀQDQFLDOVWDWHPHQWV

The Company has not adopted non-mandatory requirements such as training of board members, mechanism IRUHYDOXDWLQJWKHQRQH[HFXWLYHERDUGPHPEHUVDQGZKLVWOHEORZHUSROLF\+RZHYHUWKH&RPSDQ\KDVIXOO\ FRPSOLHGZLWK6(%,JXLGHOLQHVUHODWLQJWR&RUSRUDWH*RYHUQDQFHLQUHVSHFWRIFRPSOLDQFHRIPDQGDWRU\UHTXLUH- ments.

VII. Auditors Report on Corporate Governance

$VUHTXLUHGE\&ODXVHRIWKH/LVWLQJ$JUHHPHQWWKHDXGLWRUV·FHUWLÀFDWHLVJLYHQDVDQDQQH[XUHWRWKH Directors Report.

General Shareholders’ information

(i) AGM date, time and venue 22nd July 2011 at 10.15 a.m. at Kamaraj Arangam, No. 492 Anna Salai, Teynampet, &KHQQDL²

(ii) Financial Calendar

1st Quarter 1st$SULOWRth June 2nd Quarter 1st-XO\WRth September rd Quarter 1st2FWREHUWRst December 4th ODVW4XDUWHU 1st-DQXDU\WRst0DUFK

(iii) Date of Book Closure 9th July 2011 to 22nd July 2011 ERWKGD\VLQFOXVLYH 

41 (iv) Dividend Payment On or before 5th August 2011 (v) Listing of L %RPED\6WRFN([FKDQJH/WG %6(  (1) Equity Shares 3KLUR]H-KHHMKHHEKR\7RZHUV 'DODO6WUHHW0XPEDL² 7HO )D[ Website : www.bseindia.com

LL 1DWLRQDO6WRFN([FKDQJHRI,QGLD/WG 16( ([FKDQJH3OD]D%DQGUD.XUOD&RPSOH[%DQGUD (  0XPEDL² Tel : 91-22-2659 8100 - 8114 )D[ Website : www.nseindia.com

(2) GDRs (XUR07)RI/X[HPERXUJ6WRFN([FKDQJH %3//X[HPERXUJ Traded at : 1DVGDT²3RUWDO0DUNHW

(3) Non Convertible Debentures :KROHVDOH'HEW0DUNHW6HJPHQWRI 1DWLRQDO6WRFN([FKDQJHRI,QGLD ([FKDQJH3OD]D%DQGUD.XUOD &RPSOH[%DQGUD (  0XPEDL² Tel : 91-22-2659 8100 - 8114 )D[ Website : www.nseindia.com (4) Listing Fees 3DLGIRUDOOWKHDERYHVWRFNH[FKDQJHVIRU 2010-2011 and 2011-2012

YL $GGUHVVRIWKH5HJLVWHUHG2IÀFH No. 19 Bishop Gardens, Raja Annamalaipuram, &KHQQDL² (vii) a) Stock Exchange Security Code for

(1) Equity Shares L 7KH%RPED\6WRFN([FKDQJH/LPLWHG L  0XPEDL LL $32//2+263 LL 1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG 0XPEDL

(2) GDRs L  /X[HPERXUJ6WRFN([FKDQJH 86 LL  1DVGDT²3RUWDO0DUNHW $+(/<3

(3) Non Convertible Debentures L 1DWLRQDO6WRFN([FKDQJHRI,QGLD/LPLWHG $32/$32/ 0XPEDL

42 b) Demat ISIN Numbers in NSDL & CDSL ,1($ for Equity Shares c) ISIN Numbers of GDRs 5HJ6*'5V²86 5XOHD*'5V²86 d) ISIN Numbers of Debentures ,1($ ,1($ e) Overseas Depositary for GDRs 7KH%DQNRI1HZ

g) Trustee for Debenture Holders  $[LV7UXVWHH6HUYLFHV/LPLWHG          QGÁRRU$[LV%DQN%XLOGLQJ    %RPED\'\HLQJ 3DQGXUDQJ%KXGNDU0DUJ:RUOL   0XPEDL  7HO)D[

(viii) Monthly High and Low quotations along with the volume of shares traded in NSE & BSE during the year 2010-2011 National Stock Exchange (NSE) The , (BSE) Month High Low Volume High Low Volume (Rs.) Numbers (Rs.) Numbers Apr-10 820.00 694.60 1,111,796 819.20 700.00 414,168

0D\ 788.90 656.00  787.50 655.50 262,544

Jun-10   972,154   464,286

Jul-10 797.90   800.00  

Aug-10 849.95 770.00 1,009,094 858.80 769.20 

Sep-10* 492.00 408.00 1,614,498 461.25 406.00 451,615

Oct-10 599.70 446.00 4,958,824 599.00 445.00 

Nov-10 544.95 452.20 1,575,572 545.00  

Dec-10 518.50 450.00 1,027,278 519.50 451.55 

Jan-11 541.90 450.00  542.00 450.00 448,796

Feb-11 521.20  1,518,518 501.80 450.10 5,714,821

0DU 506.00 454.05 1,598,519 502.00  408,254

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 (ix) Apollo Price Vs Nifty Apollo Price Vs NSE Nifty

650 7000 Nifty 600 6500 550 6000 500 5500 5000 450 Apollo 4500 400 4000 350 3500 300 Nifty 3000 Apollo Price 250 2500 200 2000 150 1500 100 1000 50 500 0 0 -11 -11 -10 -10 -10 -10 Jan -11 Jul Feb Oct -10 Jun Apr Mar Nov -10 Nov Sep -10 Dec -10 Aug May -10 May Month 6KDUH3ULFHDGMXVWHGIRUVSOLWLQIDFHYDOXHRI5VHDFK

(x) Registrar & Share Transfer Agent ,QWHJUDWHG(QWHUSULVHV ,QGLD /LPLWHG ´.HQFHV7RZHUVµ,,)ORRU 1R5DPDNULVKQD6WUHHW1RUWK8VPDQ5RDG 71DJDU&KHQQDL² 7HO1R² )D[1R² (PDLOVXUHVKEDEX#LHSLQGLDFRP

(xi) 1. Share Transfer System Share transfer requests for shares held in physical form received by the Company are processed and the share FHUWLÀFDWHVDUHUHWXUQHGZLWKLQWKHVWLSXODWHGWLPHXQGHUWKH&RPSDQLHV$FWDQGWKHOLVWLQJDJUHHPHQW 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

2010-2011 2009-2010

IDFHYDOXHRI5V IDFHYDOXHRI5V

Shares Transferred 444,956 

7RWDO1RRI6KDUHVDVRQVW0DUFK 124,710,710 61,784,859

% on Share Capital  0.07

7KH&RPSDQ\REWDLQVIURPD&RPSDQ\6HFUHWDU\LQ3UDFWLFHDKDOI\HDUO\FHUWLÀFDWHRIFRPSOLDQFHZLWKWKH VKDUHWUDQVIHUIRUPDOLWLHVDVUHTXLUHGXQGHU&ODXVH F RIWKH/LVWLQJ$JUHHPHQWZLWK6WRFN([FKDQJHVDQGÀOHV DFRS\RIWKHFHUWLÀFDWHZLWKWKH6WRFN([FKDQJHV

 6KDUHKROGHUV·6HUYLFHV7KHVWDWXVRQWKHWRWDOQXPEHURIUHTXHVWVFRPSODLQWVUHFHLYHGGXULQJWKH\HDU were as follows:

S.No. Nature of Complaints/Requests Received Replied Pending

1. Change of Address 285 285 ²

2. Revalidation and issue of duplicate dividend warrants 261 261 ²

44  Share transfers 447 447 ²

4. Split of Shares   ²

5. &KDQJHRI%DQN0DQGDWH 149 149 ²

6. Correction of Name ²

7. 'HPDWHULDOLVDWLRQ&RQÀUPDWLRQ 1184 1184 ²

8. Rematerialisation of shares 22²

9. ,VVXHRIGXSOLFDWHVKDUHFHUWLÀFDWHV 11 11 ²

10. Transmission of shares 100 100 ²

11. General enquiry   ²

7KH&RPSDQ\XVXDOO\DWWHQGHGWRWKHLQYHVWRUJULHYDQFHVFRUUHVSRQGHQFHZLWKLQDSHULRGRIGD\VIURPWKH GDWHRIUHFHLSWRIWKHVDPHGXULQJWKHÀQDQFLDO\HDUH[FHSWLQFDVHVWKDWZHUHFRQVWUDLQHGE\GLVSXWHVDQG legal impediments.

3) Legal Proceedings 7KHUHDUHÀYHSHQGLQJFDVHVUHODWLQJWRGLVSXWHRYHUWKHWLWOHWRVKDUHVLQZKLFKWKH&RPSDQ\KDGEHHQPDGH DSDUW\+RZHYHUWKHVHFDVHVDUHQRWPDWHULDOLQQDWXUH

4) Change of Address, Bank Details, Nomination etc. All the members are requested to notify immediately any change in their address, E-mail id, bank mandate and QRPLQDWLRQGHWDLOVWRWKH&RPSDQ\·V5HJLVWUDUDQG6KDUH7UDQVIHU$JHQWV,QWHJUDWHG(QWHUSULVHV , /LPLWHG 0HPEHUVKROGLQJVKDUHVLQHOHFWURQLFVHJPHQWDUHUHTXHVWHGWRQRWLI\WKHFKDQJHRIDGGUHVV(PDLOLGEDQN GHWDLOVQRPLQDWLRQHWFWRWKHGHSRVLWRU\SDUWLFLSDQWV '3 ZLWKZKRPWKH\PDLQWDLQFOLHQWDFFRXQWVIRUHIIHFWLQJ necessary corrections. Any intimation made to the Registrar without effecting the necessary correction with the '3FDQQRWEHXSGDWHG,WLVWKHUHIRUHQHFHVVDU\RQWKHSDUWRIWKHVKDUHKROGHUVWRLQIRUPFKDQJHVWRWKHLU'3V with whom they have opened the accounts.

5) Transfer of unclaimed amounts to the Investor Education and Protection Fund 'XULQJWKH\HDUWKH&RPSDQ\KDVWUDQVIHUUHGDVXPRI5VPLOOLRQLQDJJUHJDWHZKLFKFRPSULVHV5V PLOOLRQDVXQFODLPHGGLYLGHQGDQG5VPLOOLRQDVXQFODLPHGGHSRVLWWRWKH,QYHVWRU(GXFDWLRQDQG3URWHFWLRQ )XQG SXUVXDQW WR 6HFWLRQ & RI WKH &RPSDQLHV$FW  DQG WKH ,QYHVWRU (GXFDWLRQ DQG 3URWHFWLRQ )XQG $ZDUHQHVVDQG3URWHFWLRQRI,QYHVWRU 5XOHV

(xii) 1) Distribution of Shareholdings as on 31st March 2011 Shares Holders Physical Electronic Physical Electronic No. of Equity Shares % to total % to total % to total % to total No. of No. of No. of No. of Nos. shares Nos. shares Nos. Holders Nos. Holders 1 - 500  1.07 1,994,776 1.60 8,828 26.68 20,586 62.19 501 - 1000 556,480 0.45 860,671 0.69  2.21 1,115  1001 - 2000  0.51 779,429 0.62  1.12  1.49    420,858   0.27 159 0.48  0.40       0.29 112  99  4001 - 5000  0.07  0.12 19 0.06  0.10 5001 - 10000  0.74  0.59 118    10001 - above    89.12 40 0.12  0.49 Total 8,357,131 6.70 116,353,579 93.30 10,377 31.35 22,724 68.65 Grand Total 124,710,710 33,101

45 2) Categories of shareholders as on March 31, 2011

Category Category of Shareholder Total number of Percentage to code shares total no. of shares

(A) Shareholding of Promoter & Promoter Group

1 ,QGLDQ D ,QGLYLGXDOV+LQGX8QGLYLGHG)DPLO\  18.88 E Bodies Corporate 17,905,124  Total Shareholding of Promoter and Promoter Group 41,451,438 33.24 (A)(1) (B) Public shareholding

1 ,QVWLWXWLRQV D 0XWXDO)XQGV87,   E )LQDQFLDO,QVWLWXWLRQV%DQNV  0.01 F &HQWUDO*RYHUQPHQW6WDWH*RYHUQPHQW V  0.26 G ,QVXUDQFH&RPSDQLHV  2.81 H )RUHLJQ,QVWLWXWLRQDO,QYHVWRUV   Sub-Total (B)(1) 40,945,356 32.83 B 2 Non-institutions D Bodies Corporate 1,774,469 1.42 E ,QGLYLGXDOV L,QGLYLGXDOVKDUHKROGHUVKROGLQJQRPLQDOVKDUHFDSLWDO 7,660,760 6.14 up to Rs 1 lakh LL,QGLYLGXDOVKDUHKROGHUVKROGLQJQRPLQDOVKDUHFDSLWDO 419,416  LQH[FHVVRI5VODNK (C) Any Other (Specify)

Trusts 118,170 0.09 Directors and their relatives 91,606 0.07 1RQ5HVLGHQW,QGLDQV 2,055,245 1.65 Overseas Corporate Bodies 16,199 0.01 &OHDULQJ0HPEHU 15,990 0.01 +LQGX8QGLYLGHG)DPLOLHV  0.11 Foreign Corporate Bodies  21.62 Sub-Total (B)(2) 39,251,116 31.47 (B) Total Public Shareholding (B)= (B)(1)+(B)(2) 80,196,472 64.31 TOTAL (A)+(B) 121,647,910 97.54 & *OREDO'HSRVLWRU\5HFHLSWV *'5V  2.46 GRAND TOTAL (A)+(B)+(C) 124,710,710 100.00

46 3) GDRs 7KHGHWDLOVRIKLJKORZPDUNHWSULFHRIWKH*'5VDW7KH/X[HPERXUJ6WRFN([FKDQJHDQG5XOH$ *'5VDW3RUWDO0DUNHWRI1$6'$4GXULQJWKHÀQDQFLDO\HDUDUHDVXQGHU Reg. S Rule 144 - A Month High ($) Low ($) Closing ($) High ($) Low ($) Closing ($) Apr-2010   17.64 17.68  17.68 0D\      16.49 Jun-2010  15.61 16.19 17.74 15.70 16.17 Jul-2010 16.92 15.84 16.89  15.72 16.90 Aug-2010  16.81 17.12 17.70  17.17 Sep-2010*  8.81  10.12  10.12 Oct-2010 12.88 10.18 11.75 12.87 10.20 11.75 Nov-2010 12.11 10.07  12.07 10.10 10.46 Dec-2010  10.16 10.16  10.18 10.18 Jan-2011 11.28 9.98 10.70 11.25 10.02 10.71 Feb-2011 10.80 9.94 10.24 10.76 9.96 10.27 0DU 10.85 10.24 10.58 10.88  10.60

Note :*'5 HTXLW\VKDUH $GMXVWHGIRUVSOLWLQIDFHYDOXHRI5VSHUVKDUHZHIUG6HSWHPEHU (xiii) 1) Dematerialization of Shares $VRQVW0DUFKRIWKH&RPSDQ\·VSDLGXSHTXLW\FDSLWDOZDVKHOGLQGHPDWHULDOL]HGIRUP7UDGLQJ LQHTXLW\VKDUHVRIWKH&RPSDQ\LVSHUPLWWHGRQO\LQGHPDWHULDOL]HGIRUPDVSHUDQRWLÀFDWLRQLVVXHGE\WKH 6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLD 6(%, 

2) Reconciliation of Share Capital Audit Report $VVWLSXODWHGE\WKH6HFXULWLHVDQG([FKDQJH%RDUGRI,QGLDDTXDOLÀHG3UDFWLFLQJ&RPSDQ\6HFUHWDU\FDUULHV RXWDQ$XGLWWRUHFRQFLOHWKHWRWDODGPLWWHGFDSLWDOZLWKWKH1DWLRQDO6HFXULWLHV'HSRVLWRU\/LPLWHG 16'/ DQG &HQWUDO'HSRVLWRU\6HUYLFHV ,QGLD /LPLWHG &'6/ DQGWKHWRWDOOLVWHGDQGSDLGXSFDSLWDO7KLVDXGLWLVFDUULHG RXW HYHU\ TXDUWHU DQG D UHSRUW WKHUHRQ LV VXEPLWWHG WR WKH 6WRFN ([FKDQJHV DQG LV DOVR SODFHG EHIRUH WKH %RDUGRI'LUHFWRUV7KHDXGLWLQWHUDOLDFRQÀUPVWKDWWKHWRWDOOLVWHGDQGSDLGXSFDSLWDORIWKH&RPSDQ\LVLQ DJUHHPHQWZLWKWKHDJJUHJDWHRIWKHWRWDOQXPEHURIVKDUHVLQGHPDWHULDOLVHGIRUP KHOGZLWK16'/DQG&'6/  and total number of shares held in physical form.

(xiv) Outstanding GDRs or Warrants or any convertible instrument, conversion dates and likely impact on equity L  3XUVXDQWWRWKHUHVROXWLRQSDVVHGE\WKHPHPEHUVLQDQ([WUDRUGLQDU\*HQHUDO0HHWLQJKHOGRQWK0D\ WKH&RPSDQ\KDGLVVXHGPLOOLRQ*OREDO'HSRVLWDU\5HFHLSWV *'5V DQGWKHGHWDLOVRI*'5VLVVXHGDQGFRQYHUWHG DQGRXWVWDQGLQJ DIWHUDGMXVWLQJWKHVSOLWRIIDFHYDOXHRISHUVKDUH DVRQVW0DUFKDUHJLYHQEHORZ

Particulars Nos. Total GDRs issued 18,000,000

GDRs converted into underlying equity shares 2005-2006 4,415,068  2007-2008 1,515,600  2009-2010 49,600   2XWVWDQGLQJ*'5VDVRQVW0DUFK 

There is no change in the equity on conversion of GDRs into equity shares

47 L  3XUVXDQWWRWKHUHVROXWLRQSDVVHGE\WKHPHPEHUVLQDQ([WUDRUGLQDU\*HQHUDO0HHWLQJKHOGRQWK0D\ 2010, 1.54 million Equity Warrants with each warrant convertible into one equity share of the Company RIQRPLQDOYDOXHRI5VHDFKDWDSULFHRI5VZKLFKLQFOXGHVDSUHPLXPRI5VSHUVKDUH was allotted to Dr. Prathap C Reddy, one of the Promoters of the Company on 12th June 2010. These war- UDQWVZHUHLVVXHGZLWKDFRQYHUWLEOHRSWLRQWREHH[HUFLVHGZLWKLQDSHULRGRIPRQWKVIURPWKHGDWH of allotment i.e., on or before 11th December 2011.

 7KH&RPSDQ\KDVXQGHUWDNHQVXEGLYLVLRQRIHDFKH[LVWLQJHTXLW\VKDUHRIIDFHYDOXHRI5VHDFKLQWR HTXLW\VKDUHVRIIDFHYDOXHRI5VHDFKZLWKHIIHFWIURPWKHUHFRUGGDWHLHUG6HSWHPEHU $FFRUGLQJO\WKHPLOOLRQZDUUDQWVDOORWWHGWR'U3UDWKDS&5HGG\VKDOOVWDQGDGMXVWHGWRPLOOLRQ ZDUUDQWVRIIDFHYDOXHRI5VHDFKDWDSULFHRI5VSHUVKDUH

LL  3XUVXDQWWRWKHUHVROXWLRQSDVVHGE\WKHPHPEHUVLQDQ([WUDRUGLQDU\*HQHUDO0HHWLQJKHOGRQQG -DQXDU\PLOOLRQ(TXLW\:DUUDQWVZLWKHDFKZDUUDQWFRQYHUWLEOHLQWRRQHHTXLW\VKDUHRIWKH &RPSDQ\ RI WKH QRPLQDO YDOXH RI 5V HDFK DW D SULFH RI 5V ZKLFK LQFOXGHV D SUHPLXP RI Rs.467.46 per share was allotted to Dr. Prathap C Reddy, one of the Promoters of the Company on 5th )HEUXDU\7KHVHZDUUDQWVZHUHLVVXHGZLWKDFRQYHUWLEOHRSWLRQWREHH[HUFLVHGZLWKLQDSHULRGRI 18 months from the date of allotment i.e., on or before 4th August 2012.

(xv) Investors Correspondence

1) For queries relating to shares 6KUL6XUHVK%DEX$VVW9LFH3UHVLGHQW,QWHJUDWHG(QWHUSULVHV ,QGLD /LPLWHG ´.HQFHV7RZHUVµ,,)ORRU1R5DPDNULVKQD6WUHHW1RUWK8VPDQ5RDG71DJDU&KHQQDL² 7HO1R²)D[1R²(PDLOVXUHVKEDEX#LHSLQGLDFRP

2) For queries relating to dividend 6KUL//DNVKPL1DUD\DQD5HGG\*HQHUDO0DQDJHU6HFUHWDULDO $SROOR+RVSLWDOV(QWHUSULVH/LPLWHG$OL7RZHUV,,,)ORRU1R*UHDPV5RDG&KHQQDL 7HO1R)D[1R(PDLODSROORVKDUHV#YVQOQHW ODNVKPLQDUD\DQDBU#DSROORKRVSLWDOVFRP

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xvi) Hospital Complexes Apollo Hospitals 1R *UHDPV/DQH2II*UHDPV5RDG Chennai &KHQQDL²7HO

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48 $SROOR/RJD+RVSLWDO1R$OOZ\Q1DJDU Karur .RYDL5RDG.DUXU²7HO

Karaikudi 0DQDJLUL6XNNDQHQWKDO9LOODJH7KDODNNDYXU3DQFKD\DW .DOODO3DQFKD\DW8QLRQ.DUDLNXGL Aragonda 7KDYDQDPSDOOHH0DQGDO&KLWWRRU'LVWULFW $QGKUD3UDGHVK²7HO +\GHUDEDG -XELOHH+LOOV+\GHUDEDG²7HO 2OG0/$4XDUWHUV+\GHUJXGD+\GHUDEDG² 7HO 5DMLY*DQGKL0DUJ9LNUDPSXUL&RORQ\ 6HFXQGHUDEDG²7HO $SROOR+RVSLWDOV²'5'2'05/¶;·5RDGV.DQFKDQEDJK +\GHUDEDG²7HO² %KDJ\DQDJDU&RORQ\2SS.XNDWSDOO\+RXVLQJ%RDUG +\GHUDEDG²7HO² 3(7&76FDQ&HQWUH$SROOR+RVSLWDOV&RPSOH[ -XELOHH+LOOV+\GHUDEDG²7HO 6W-RKQV5RDG1HDU.H\V+LJK6FKRRO6HFXQGHUDEDG Tel : 040-2771 8888 Karim Nagar $SROOR5HDFK+RVSLWDO+1R*31R7KHHJDODJXWWD Pally, G.P., Arepally Rev. Village, Karimnagar. Tel: 087-8220 0000 Visakapatnam 1R:DOWDLU0DLQ5RDG9LVKDNDSDWQDP² 7HO² Kakinada 0DLQ5RDG.DNLQDGD² 7HO² 0\VRUH $SROOR%*6+RVSLWDOV$GLFKXQFKDQDJLUL5RDG.XYHPSX 1DJDU0\VRUH²7HO² Bilaspur /LQJL\DGL9LOODJH%LODVSXU²&KDWWLVJDUK 7HO² Bhubaneswar 6DLQLN6FKRRO5RDG8QLW %KXEDQHVZDU²7HO Ahmedabad 3ORW1R$*,'&(VWDWH%KDW9LOODJH*DQGKL1DJDU *XMDUDW²7HO

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49 7UG$YHQXH$QQD1DJDU&KHQQDL² 7HO &LW\&HQWUH0LQW6WUHHW&KHQQDL 7HO 1R&35DPDVZDP\5RDG$OZDUSHW&KHQQDL² 7HO $&(IRU:RPHQ*DQGKL0DQGDSDP5RDG .RWWXUSXUDP&KHQQDL²7HO $SROOR+HDUW&HQWUH*UHDPV5RDG &KHQQDL²7HO Apollo Clinic, 1HZ1R 2OG1R$ 9HODFKHU\5RDG *XLQG\&KHQQDL² 7HO Apollo Cosmetic Surgical Centre No. 14, Jayammal Street, Teynampet, Chennai - 600 018 7HO $SROOR(PHUJHQF\&HQWUH1HDU6DQWL)LUH:RUNV0DODNSHW +\GHUDEDG²7HO $SROOR(PHUJHQF\&HQWUH0HKGLSDWQDP¶;·5RDGV 0HKGLSDWQDP+\GHUDEDG² 7HO $SROOR(PHUJHQF\&HQWUH5DMLY*DQGKL,QWHUQDWLRQDO $LUSRUW6DPVKDEDG+\GHUDEDG7HO $SROOR*OHQHDJOHV&OLQLF)/HHOD5R\6DUDQL *KDULDKDW.RONDWD²7HO &LW\&HQWHU7XOVLEDXJ6RFLHW\2SS'RFWRU+RXVH (OOLVEULGJH$KPHGDEDG² 7HO $SROOR&OLQLF.59,35RDG3RUW%ODLU Andaman - 744 101. 7HO

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50 Auditors’ Report on Corporate Governance

To

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51 Management Discussion and Analysis General Overview of Healthcare Services Industry in India

$FFRUGLQJWRWKH:+2KHDOWKFDUHH[SHQGLWXUHFRQVWLWXWHGDSSUR[LPDWHO\RI,QGLD·VJURVVGRPHVWLFSURGXFW ´*'3µ LQ,QGLD·VSHUFDSLWDVSHQGRQKHDOWKFDUHVLJQLÀFDQWO\WUDLOVEHKLQGGHYHORSHGFRXQWULHV$FFRUGLQJ WRWKH:+2,QGLD·VSHUFDSLWDKHDOWKH[SHQGLWXUHVWRRGDWDSSUR[LPDWHO\86FRPSDUHGWRDSSUR[LPDWHO\ 86LQWKH8QLWHG6WDWHV86LQ*HUPDQ\DQGLQ&KLQD7KHJOREDODYHUDJHSHUFDSLWDKHDOWK H[SHQGLWXUHZDV86

Healthcare spends (as % of GDP) (2008)

India is an under-penetrated healthcare market

15.2%

8.7% 8.5% 8.4%

4.3% 4.2%

US UK Global Brazil China India

7KH,QGLDQKHDOWKFDUHPDUNHWLVFRPSULVHGRIERWKWKHSXEOLFDQGSULYDWHVHFWRUV$FFRUGLQJWRWKH:RUOG%DQN WKH ,QGLDQ SXEOLF KHDOWKFDUH VHFWRU LV XQGHUIXQGHG DQG WRR VPDOO WR PHHW WKH FXUUHQW KHDOWK QHHGV RI WKH country. Over the last two decades, a majority of tertiary care institutions in the public sector have been facing a resource crunch resulting in their inability to maintain and upgrade their equipment, pay for consumables and XSJUDGHWKHLULQIUDVWUXFWXUHWRPHHWWKHJURZLQJGHPDQGIRUFRPSOH[GLDJQRVWLFDQGWKHUDSHXWLFWUHDWPHQWV As a result, there is an increasing preference for private hospitals.

Current and Projected Healthcare Services Landscape

$FFRUGLQJWR&5,6,/WKHSULYDWHVHFWRUDFFRXQWHGIRUDURXQGRIWRWDOKHDOWKFDUHH[SHQGLWXUHLQ,QGLDZKLFK LVDPRQJWKHKLJKHVWSURSRUWLRQVRISUYLDWHKHDOWKFDUHVSHQGLQJWKH:RUOG7KHSULYDWHVHFWRULQ,QGLDFRPSULVHV RIDVVRUWHGSURYLGHUVVXFKDVQRWIRUSURÀWDQGYROXQWDU\RUJDQL]DWLRQVDQGWUXVWVFRPPHUFLDOO\GULYHQSURYLGHUV LQFOXGLQJ FRUSRUDWH KRXVHV VWDQGDORQH VSHFLDOLVW VHUYLFHV GLDJQRVWLF ODERUDWRULHV DQG SKDUPDFLHV &5,6,/ research estimates suggest that the private health sector accounts for 50-55% of in-patient care and 70-75% of out-patient care.

7KHKHDOWKFDUHGHOLYHU\PDUNHWLVH[SHFWHGWRJURZDWDFRPSRXQGHGUDWHRIDSSUR[LPDWHO\DQGUHDFKDVL]H of Rs 4,950 billion by 2018. The growth will be driven by a number of factors including a shift in demographics, increasing health awareness and improving health insurance coverage.

,QGLD ODJV EHKLQG VHYHUDO JOREDO SDUDPHWHUV LQ WHUPV RI KRVSLWDO LQIUDVWUXFWXUH DQG PDQSRZHU,QGLD UDQNV EHORZVHYHUDOGHYHORSLQJFRXQWULHVLQFOXGLQJ&KLQD7KDLODQG6UL/DQNDDQG9LHWQDPLQWHUPVRIERWKEHGVWR SRSXODWLRQDQGSK\VLFLDQVWRSRSXODWLRQUDWLRV$FFRUGLQJWRWKH:+25HSRUWRQ+HDOWK6WDWLVWLFV,QGLD·V bed-to-population ratio is 9 for every 10,000 people, as compared to the global average of 29 per every 10,000 SHRSOH$OVRZKLOH,QGLDKDVRQHRIWKHODUJHVWPHGLFDOZRUNIRUFHVZLWKDOPRVWGRFWRUVDQGRYHU PLOOLRQQXUVHVDQGPLGZLIHU\SHUVRQQHOWKHUHLVDPDMRUVKRUWDJHRIVNLOOHGODERXU,QGLD·VUDWLRRISK\VLFLDQV SHULQGLYLGXDOVLV FRPSDUHGWRWKHJOREDOPHGLDQRI DQGUDWLRIRUQXUVHVDQGPLGZLIHU\SHUVRQQHO SHULQGLYLGXDOVLV FRPSDUHGWRWKHJOREDOPHGLDQRI 

2YHU WKH QH[W  \HDUV DVVXPLQJ D FDSLWDO H[SHQGLWXUH RI 5V  PLOOLRQ SHU EHG H[FOXGLQJ ODQG FRVW LW LV estimated that in order to attain a ratio of 15 beds per 10,000 individuals, an investment of around Rs. 1,740 ELOOLRQZRXOGEHUHTXLUHG,QRUGHUWRDWWDLQWKHJOREDOEHQFKPDUNRIEHGVSHUSRSXODWLRQUDWLR,QGLD ZLOOUHTXLUHDQLQYHVWPHQWRIDSSUR[LPDWHO\5VELOOLRQ

52 Future Outlook and Trends

The growth in demand for healthcare delivery services will be driven by a combination of various factors including changing demographics, increasing income levels, greater health awareness and increasing health insurance coverage.

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‡ Health Insurance Coverage

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0HGLFDOWRXULVPKDVJDLQHGPRPHQWXPRYHUWKH\HDUVDQG,QGLDLVIDVWHPHUJLQJDVDPDMRUPHGLFDOWRXULVW destination. As governments across the globe and patients worldwide struggle with soaring healthcare costs , the UHODWLYHO\ORZFRVWVRIVXUJHU\DQGFULWLFDOFDUHLQ,QGLDLVGUDZLQJWKHDWWHQWLRQRIJOREDOKHDOWKFDUHSURYLGHUV

 7KHVHSULYDWHKHDOWKFDUHSOD\HUVDUHFROODERUDWLQJZLWK,QGLDQWRXULVPWRWDSWKHSRWHQWLDORIWKLVEXUJHRQLQJ industry. ,QGLDLVH[WUHPHO\FRPSHWLWLYHLQWHUPVRIKHDOWKFDUHFRVWVDVFRPSDUHGWRWKHGHYHORSHGFRXQWULHVDQGRWKHU QDWLRQVLQ$VLD,QDGGLWLRQ,QGLDKDVDSRRORIKLJKO\TXDOLÀHGGRFWRUVDQGVXSSRUWVWDII7KHIDFWWKDW,QGLDRIIHUV advanced medical facilities in critical areas such as cardiology, joint replacement, orthopedics, ophthalmology, organ transplants and urology adds to its competitive advantage. The presence of large private hospital chains, ZKRVHKRVSLWDOVDUHJOREDOO\UHQRZQHGHQKDQFHV,QGLD·VVWDWXVDVDQDWWUDFWLYHGHVWLQDWLRQIRUPHGLFDOWRXULVP

Pharmacy Market

7KH,QGLDQSKDUPDF\UHWDLOLQJLQGXVWU\LVDKLJKO\IUDJPHQWHGLQGXVWU\DQGSULPDULO\FRPSULVHVRIVWDQGDORQH drug retailing stores. These are represented by regional chemist associations to protect their business interests. ,WLVHVWLPDWHGWKDWDSSUR[LPDWHO\SKDUPDFLHVDUHVSUHDGDFURVVWKHFRXQWU\DQGWKHVHQXPEHUVDUH H[SHFWHGWRJURZLQWKHFRPLQJ\HDUV$OVRSUHVHQWWKRXJKFXUUHQWO\PLQLVFXOHDVDSURSRUWLRQRIWKHHQWLUH PDUNHWDUHSKDUPDF\FKDLQVZKLFKKDYHLQWURGXFHGRUJDQL]HGSKDUPDF\UHWDLOLQJLQWKHFRXQWU\DIHZ years ago.

Growth in pharmacy dispensing is driven by a growing and ageing population coupled with increasing per-capita incomes across both rural and urban areas. Earlier in smaller towns people were dependent on government hospitals for medication. With rising incomes consumers are now able to buy medication from retail outlets. As SHU%0,GDWD,QGLDZDVWKHIRXUWKODUJHVWSKDUPDFHXWLFDOPDUNHWLQWKH$VLD3DFLÀFUHJLRQLQ)<+RZHYHU WKHSHUFDSLWDVSHQGLQJRQPHGLFLQHVWRRGDW86'ZKLFKWUDLOVVHYHUDORWKHUUHJLRQDOHFRQRPLHVDQGWKLVLV set to increase in the coming years.

$OVRYDULRXV,QGLDQSKDUPDFHXWLFDOFRPSDQLHVDUHDJJUHVVLYHO\LQFUHDVLQJWKHLUSUHVHQFHLQQRQXUEDQWRZQV through distribution and marketing initiatives which is leading to enhanced consumer and medical practitioner awareness.

Even though the absolute number of pharmacy dispensing outlets seems high, the market is still attractive and throws up a lot of opportunity for the pharmacy retail chains on the back of a growing healthcare industry. Pharmacy chains of a reasonable scale in urban and non-urban regions would be able to generate attractive returns as the sheer volumes of transactions increase. Further, the distribution network and footfalls attracted by these stores can be leveraged to market and sell non-pharmaceutical products. Several chains have also IRUD\HGLQWRYDOXHDGGHGVHUYLFHVWRLQFUHDVHRSHUDWLQJSURÀWDELOLW\SHUVWRUH

,WLVHVWLPDWHGWKDWRUJDQL]HGUHWDLOFKDLQVDFFRXQWIRUDERXWVKDUHRI,QGLD·VSKDUPDFHXWLFDOUHWDLOLQGXVWU\ 7KHVHDUHODUJHO\IRFXVHGRQXUEDQDUHDVDQGDVWKH\SUROLIHUDWHLQWRVHPLXUEDQDQGUXUDODUHDVLWLVH[SHFWHG that their market share will increase substantially.

Health Insurance

$VSHUWKH,5'$DQQXDOUHSRUWWKHKHDOWKLQVXUDQFHVHFWRUZKLFKIDOOVXQGHUWKHQRQOLIHVHFWRUKDGXQGHUZULWWHQ SUHPLXPVLQH[FHVVRI5VELOOLRQLQ)<FRPSDUHGWR5VELOOLRQLQ)<WUDQVODWLQJWRDJURZWKUDWHRI +RZHYHUSUHPLXPVXQGHUZULWWHQE\WKHHQWLUHQRQOLIHVHFWRUJUHZE\7KLVFOHDUO\LQGLFDWHVWKDWKHDOWK LQVXUDQFHKDVJURZQKLJKHUWKDQWKHQRQOLIHVHFWRUDVDZKROHDQGLVH[SHFWHGWRJURZDWDVLPLODUUDWHRYHU WKHQH[WFRXSOHRI\HDUV

The market consists of general insurance companies who offer health insurance as a part of their product RIIHULQJ,5'$KDVUHFHQWO\JUDQWHGOLFHQVHVWRWKUHHLQVXUDQFHFRPSDQLHVWRRSHUDWHH[FOXVLYHO\LQWKHKHDOWK LQVXUDQFH VHJPHQW$SROOR 0XQLFK +HDOWK ,QVXUDQFH LV RQH RI WKHVH WKUHH FRPSDQLHV WR UHFHLYH D OLFHQVH WR RSHUDWHRQO\LQWKHKHDOWKLQVXUDQFHVHJPHQW*RLQJE\WKHJURZWKRIWKHKHDOWKFDUHLQVXUDQFHVHFWRULQ,QGLD $SROOR0XQLFKEHOLHYHVWKDWWKHUHOLHVDVLJQLÀFDQWRSSRUWXQLW\WREHWDSSHG

&XUUHQWO\WKHSHQHWUDWLRQLVORZDQGEDUHO\ÀYHSHUFHQWRI,QGLD·VSRSXODWLRQLVFRYHUHGE\KHDOWKLQVXUDQFHDV PRVWRIWKHKHDOWKLQVXUDQFHOLHVLQWKHFRUSRUDWHKHDOWKVSDFHDQGWKHUHWDLOVHJPHQWLVVWLOOHYROYLQJ,QFUHDVLQJ XUEDQL]DWLRQKDVOHGWRKLJKHULQFLGHQFHRIOLIHUHODWHGGLVHDVH)XUWKHUVWLOOLQFUHDVLQJQXPEHUVRISHRSOHLQWKH urban and semi-urban regions are opting for health insurance on back of rising healthcare costs.

54 Healthcare BPO

7KH SURVSHFWV IRU WKH KHDOWKFDUH %32 VHUYLFHV LQGXVWU\ DUH H[SHFWHG WR EH TXLWH VWURQJ DV RIIVKRULQJ RI KHDOWKFDUHUHYHQXHF\FOHPDQDJHPHQWVHUYLFHVDUHVHWWRJDLQWUDFWLRQZLWKWKHKHDOWKFDUHUHIRUPVLQWKH86 7KHRXWVRXUFLQJLQGXVWU\LVZHOOSODFHGWRFDSLWDOL]HRQWKHRSSRUWXQLWLHVFUHDWHGGXHWRWKHHPSKDVLVFUHDWHG on suppliers and providers across the health insurance space to identify avenues for cost savings . Further, PRUHWKDQKDOIRIWKH86EDVHGKRVSLWDOVDUHGLUHFWO\RULQGLUHFWO\RIIVKRULQJYDULRXVFRPSRQHQWVRIKHDOWKFDUH services .

:HRIIHUPHGLFDO%32VHUYLFHVWKURXJK$SROOR+HDOWK6WUHHW/LPLWHG $+6/ $+6/SURYLGHVHQGWRHQGPHGLFDO RXWVRXUFLQJVHUYLFHVFDWHULQJWRWKHKHDOWKFDUHLQIRUPDWLRQQHHGVRI8QLWHG6WDWHVEDVHGGRFWRUJURXSVKRVSLWDOV and insurers including voice and non-voice processes like revenue cycle management, accounts receivable follow-up, medical coding and medical transcription.

Opportunities and Threats Opportunities India – Favourable Demand Supply Equation

7KHUHLVDVLJQLÀFDQWJDSEHWZHHQWKHGHPDQGIRUDQGVXSSO\RITXDOLW\KHDOWKFDUHLQ,QGLD$SDUWIURPDE\VPDO SXEOLFKHDOWKFDUHIDFLOLWLHV,QGLDLVIDFHGZLWKPDQ\RWKHUIDFWRUVVXFKDVKLVWRULFDOXQGHULQYHVWPHQWJURZLQJ population and increasing incidence of lifestyle diseases. The current industry scenario favours larger players ZKRFDQPDNHWKHUHTXLUHGLQYHVWPHQWVDQGRIIHUH[WHQVLYHDQGKLJKTXDOLW\WUHDWPHQWV

Healthcare Spending Forecast to Grow

The nature of health problems is changing rapidly. As treatments struggle to keep pace with the increasing FRPSOH[LW\RIKHDOWKSUREOHPVWKHUHLVDQLQFUHDVHLQWKHXVHRIWHFKQRORJLFDOLQQRYDWLRQV)XUWKHUWKHUHLVD VKLIWLQWKHHSLGHPLRORJ\SURÀOHRIWKHFRXQWU\ZLWKDODUJHUSURSRUWLRQRIOLIHVW\OHGLVHDVHVVXFKDVGLDEHWHVDV well as increase in heart disease and cancer. This is resulting in an increase in the average cost of treatment.

Medical Tourism

0HGLFDOWRXULVPKDVHPHUJHGDVWKHIDVWHVWJURZLQJVHJPHQWRIWKHWRXULVPLQGXVWU\LQ,QGLDGHVSLWHWKHJOREDO HFRQRPLF GRZQWXUQ +LJK FRVW RI WUHDWPHQWV LQ WKH GHYHORSHG FRXQWULHV SDUWLFXODUO\ WKH 86$ DQG 8. KDV been forcing patients from such regions to look for alternative and cost-effective health care destinations. )XUWKHU,QGLD·VSULYDWHKRVSLWDOVKDYHJDLQHGLQWHUQDWLRQDOUHFRJQLWLRQIRUWKHLUVWDWHRIWKHDUWIDFLOLWLHV:LWK DJJUHVVLYHPDUNHWLQJVWUDWHJLHV,QGLDFDQIXUWKHULQFUHDVHLWVDWWUDFWLYHQHVVDVDGHVWLQDWLRQIRUPHGLFDOWRXULVP DQGFODLPDJUHDWHUPDUNHWVKDUHRIWKH*OREDO0HGLFDO7RXULVPLQGXVWU\

Innovation in Delivery Models

The high cost of setting up new hospitals and the intensifying competition have spurred innovations in the GHOLYHU\PRGHO2SHUDWRUVDUHXWLOLVLQJDYHQXHVOLNH5(,7VDQG2SHUDWLRQV 0DQDJHPHQWFRQWUDFWVWRUHGXFH WKHFDSLWDORXWOD\7KHUHLVDOVRLQFUHDVLQJUHJXODWLRQIDYRXULQJLQYHVWPHQWVLQKHDOWKFDUHZLWKWD[FRQFHVVLRQV provided for investments in setting up new hospitals. These innovations provide operators with the ability to H[SDQGDQGJHQHUDWHDWWUDFWLYHUHWXUQVZLWKRXWLQYHVWLQJVLPLODUDPRXQWVRIFDSLWDODVLQWKHSDVW

Threats Shortage of Trained Medical Personnel

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through its training centres whereby 750 nurses graduate every year.

55 Intensifying Competition

7KHDWWUDFWLYHQHVVRIWKHKHDOWKFDUHPDUNHWLQ,QGLDKDVDWWUDFWHGDQXPEHURISOD\HUVDQGWKHUHKDVEHHQDQ increase in competition in the industry. Certain areas of the country are faced with over supply and hospitals in these areas have to compete for market share. There is increased availability of funds for investment into the industry and this is leading to a surge in the number of hospital chains in the country. This will result in heightened competition for business, for resources, for locations and for market share.

Capital Intensive Nature of business

While the investment environment has improved, the fact remains that the healthcare business requires VLJQLÀFDQWGRPDLQH[SHUWLVHDVZHOODVODUJHDPRXQWVRIFDSLWDO)XUWKHUWKHJHVWDWLRQSHULRGIRUDQHZKRVSLWDO is high resulting in further challenges on account of capital requirements.

,QÁDWLRQ 5LVLQJ&RVWV

7KHUHKDVEHHQVXVWDLQHGFRVWSUHVVXUHDQGULVLQJLQÁDWLRQLQ,QGLD7KLVKDVUHVXOWHGLQDVLJQLÀFDQWLQFUHDVHLQ the operating costs for the hospitals business. Apart from high upfront costs, the costs involved in the day to day running of hospitals are increasing sharply. This poses a challenge for health care players to manage cost pressures while being able to sustain margins.

Obsolescence of Medical Equipment

The medical equipment and healthcare industries are characterised by rapid technological change. The GHYHORSPHQW RI QHZ RU LPSURYHG SURGXFWV SURFHVVHV RU WHFKQRORJLHV UHVXOWV LQ REVROHVFHQFH RI H[LVWLQJ equipment at a rapid pace. This has to be balanced with the need for providing high quality treatments at affordable costs. Apollo monitors market developments to ensure that we are updated on the latest technological developments and treatment methodologies.

Company Overview

The Company was founded by Dr. Prathap C. Reddy in 1979 and started with a single hospital in Chennai with 150 EHGV,WEHFDPHDSXEOLFO\OLVWHGFRPSDQ\RQWKH%6(DQGWKH0DGUDV6WRFN([FKDQJHLQDQGZDVOLVWHGRQ WKH16(LQ7KH$SROOR+RVSLWDOVJURXSWRGD\LQFOXGHVRYHUEHGVDFURVVKRVSLWDOVFOLQLFVDQ H[WHQVLYHFKDLQRI$SROOR3KDUPDFLHVPHGLFDO%32RSHUDWLRQVKHDOWKLQVXUDQFHVHUYLFHVDQGFOLQLFDOUHVHDUFK divisions that are working on the cutting edge of medical science. Apollo’s main business is the provision of healthcare services, catering to the primary, secondary and tertiary health requirements of patients.

We are a large healthcare service provider with a comprehensive span of healthcare capabilities, enabling us to SURYLGHHQGWRHQGVHUYLFHVWRSDWLHQWV7KH$SROOR+RVSLWDOV*URXSDOVRRIIHUVVHDPOHVVGHOLYHU\RIVHUYLFHVDW every level of care - primary, secondary and tertiary, and we are also engaged in inter-related businesses of retail SKDUPDF\FOLQLFDO GLDJQRVWLFVHUYLFHVPHGLFDO%32VHUYLFHVKHDOWKLQVXUDQFHDQGWKLUGSDUW\DGPLQLVWUDWLRQ services. The Apollo Group also supports healthcare related initiatives such as provision of telemedicine services, education and training programmes and research activities .

Healthcare Services

:HKDYHRYHUEHGVDFURVVKRVSLWDOVLQ,QGLD:HUHSRUWHG5VPLOOLRQ5VPLOOLRQDQG 5VPLOOLRQLQUHYHQXHVIURPWKHKRVSLWDOVVHJPHQWGXULQJÀVFDO\HDUVDQGUHVSHFWLYHO\ This includes revenues from our hospitals business along with revenues from our Global projects and consulting as well as revenues from Pharmacies located within the premises of our hospitals.

'XULQJÀVFDOKRVSLWDOVRZQHGE\XVRXUVXEVLGLDULHVDVVRFLDWHVDQGMRLQWYHQWXUHVKDQGOHGRYHUPLOOLRQ in-patient and out-patient cases.

We constantly seek to be in the forefront of the healthcare industry by providing new services and introducing VSHFLDOL]HGKHDOWKFDUHPRGHOV2XUKHDOWKFDUHIDFLOLWLHVSURYLGHWUHDWPHQWIRUDFXWHDQGFKURQLFGLVHDVHVDFURVV primary, secondary, and tertiary care sectors. Seven of our hospitals have received accreditations from the

56 -RLQW &RPPLVVLRQ ,QWHUQDWLRQDO 86$ ´-&,µ  IRU WKH GHOLYHU\ RI TXDOLW\ KHDOWKFDUH VHUYLFHV DQG PHHWLQJ WKH -&,·VVWDQGDUGVIRUSDWLHQWVDIHW\DQGWKUHHRIRXUKRVSLWDOVKDYHUHFHLYHGDFFUHGLWDWLRQVIURPWKH1DWLRQDO $FFUHGLWDWLRQ%RDUGIRU+RVSLWDOV +HDOWKFDUH3URYLGHUV ´1$%+µ IRUWKHGHOLYHU\RIKLJKTXDOLW\SDWLHQWFDUH Our tertiary care hospitals provide advanced levels of care in over 50 different medical departments, including cardiac sciences, oncology, radiology and imaging, gastroenterology, neurosciences, orthopedics and emergency VHUYLFHV:HKDYHLGHQWLÀHGFDUGLRORJ\RQFRORJ\QHXURORJ\RUWKRSHGLFVDQGWUDQVSODQWVDVWKHNH\IRFXVDUHDV of our tertiary care hospitals.

,GHQWLI\LQJDJDSEHWZHHQVXSSO\DQGGHPDQGIRUWHUWLDU\FDUHVHUYLFHVLQ,QGLDZHUHFRJQL]HWKDWWKHUHLVD QHHGWRUHDOL]HWKHIXOOSRWHQWLDORIDQGWRPD[LPL]HRXUPDUNHWVKDUHRISURFHGXUHVSHUIRUPHGLQHDFKRIWKHVH NH\IRFXVDUHDVRUZKDWZHUHIHUWRDV´&HQWHUVRI([FHOOHQFHµ ´&2(Vµ ZLWKWKHREMHFWLYHRIEHFRPLQJWKH ÀUVWFKRLFHIRUSDWLHQWVLQWKHUHVSHFWLYH&2(V:HLQWHQGWRDFKLHYHWKLVSULPDULO\E\SURYLGLQJWKHKLJKHVW standards of care and constantly improving our clinical outcomes in all procedures performed under each COE. We plan to undertake a number of initiatives, including:

‡ 6WUHQJWKHQLQJHDFK&2(SUDFWLFHWKURXJKDGGLWLRQRIH[SHULHQFHGDQGVNLOOHGVXUJHRQVDQGSK\VLFLDQV ‡ ([SDQGLQJHDFK&2(SUDFWLFHDUHDZLWKFRPSUHKHQVLYHVXEVSHFLDOWLHVDQGWUHDWPHQWVHUYLFHV ‡ &RQWLQXH LQYHVWLQJ LQ WKH ODWHVW FXWWLQJHGJH PHGLFDO WHFKQRORJ\ DQG HTXLSPHQW VR DV WR RIIHU KLJK quality healthcare services to our patients. ‡ (VWDEOLVKLQJZHOOGHÀQHGFOLQLFDOSDWKZD\VDQGSURWRFROVZLWKDVWURQJIRFXVRQFOLQLFDORXWFRPHV ‡ .QRZOHGJH VKDULQJ DQG LQWHJUDWLRQ DFURVV WKH $SROOR +RVSLWDOV JURXS WKURXJK GHGLFDWHG VHUYLFH OLQH managers for each COE practice.

Projects and Consultancy Services

2XUFRQVXOWDQF\VHUYLFHVEXVLQHVVLVDPRQJWKHOHDGLQJKHDOWKFDUHFRQVXOWLQJRUJDQL]DWLRQVLQ,QGLD:HSURYLGH pre-commissioning consultancy services which include feasibility studies, infrastructure planning and design DGYLVRU\ VHUYLFHV IXQFWLRQDO GHVLJQ DQG DUFKLWHFWXUH UHYLHZ  KXPDQ UHVRXUFH SODQQLQJ UHFUXLWPHQW DQG training and medical equipment consultancy planning, sourcing and installation services. We also provide post- FRPPLVVLRQLQJFRQVXOWDQF\VHUYLFHVZKLFKLQFOXGHPDQDJHPHQWFRQWUDFWV SURYLGLQJIRUGD\WRGD\RSHUDWLRQDO VXSSRUW  IUDQFKLVLQJ DQG WHFKQLFDO FRQVXOWDWLRQ VXFK DV KXPDQ UHVRXUFH SODQQLQJ DQG WUDLQLQJ DQG WKH HVWDEOLVKPHQWRIPHGLFDODQGDGPLQLVWUDWLYHSURWRFROV :HSURYLGHWKHVHVHUYLFHVWRRXURZQSURMHFWVLQ,QGLD DVZHOODVWRWKLUGSDUW\RUJDQL]DWLRQVDFURVVWKHJOREHIRUDIHH

Our international consultancy projects include providing operational management services for establishing and managing radiology and laboratory services for a large hospital in Kuwait and management of a tertiary care hospital in Bangladesh.

Apollo Reach Hospitals

As part of our commitment to make healthcare and advanced medical technology available to the masses, we DUHLQWKHSURFHVVRIHVWDEOLVKLQJDQHWZRUNRIKRVSLWDOVXQGHUWKH´$SROOR5($&+µLQLWLDWLYH

+RVSLWDOVXQGHUWKH$SROOR5HDFKLQLWLDWLYHVKDOOEHVPDOOHUKRVSLWDOVZLWKDURXQGEHGVDQGZLOOEH ORFDWHGLQ7LHU,,DQG7LHU,,,FLWLHVLQ,QGLD:HEHOLHYHWKDWWKLVZLOOHQDEOHXVWRWDNHKLJKTXDOLW\KHDOWKFDUH services closer to the masses so that patients in these locations do not have to travel to the Tier 1 cities for FRPSUHKHQVLYHPHGLFDOWUHDWPHQWV$WWKHVDPHWLPHWKHVHKRVSLWDOVZLOODOORZXVWRH[SDQGRXUQHWZRUNDQG SHQHWUDWHGLIIHUHQWPDUNHWVLQWKH7LHU,,DQG7LHU,,,FLWLHV

:HKDYHDOUHDG\HVWDEOLVKHG$SROOR5($&+KRVSLWDOVLQDQXPEHURI7LHU,,FLWLHVLQFOXGLQJ.DNLQDGD.DUDLNXGL Karimnagar, Bhubaneswar, and Karur, and have plans to establish more facilities across the country. We have LGHQWLÀHGDQXPEHURI7LHU,,DQG7LHU,,,FLWLHVDFURVVWKHFRXQWU\ZKLFKDUHXQGHUVHUYHGFXUUHQWO\EXWKDYHD VL]DEOHSRSXODWLRQDQGVSHQGLQJSRWHQWLDO%DVHGRQRXUH[SHULHQFHVWDUWXSFRVWVSHUKRVSLWDOEHGLQD7LHU,, RU7LHU,,,FLW\DUHJHQHUDOO\ORZHUFRPSDUHGWRD7LHU,FLW\$VLQFRPHOHYHOVULVHLQWKHVHPDUNHWVSXUFKDVLQJ SRZHUZLOOLQFUHDVHDFFRUGLQJO\ZHH[SHFWRXUUHYHQXHUHDOL]DWLRQVWRJURZIXUWKHU

Standalone Pharmacies

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57 7KHFRPSDQ\VHJUHJDWHVWKHSHUIRUPDQFHRIWKHPDWXUHVWRUHVLHVWRUHVVHWXSSULRUWR0DUFKDQGVWRUHV VHWXSDIWHUWKDWGDWH7KHPDWXUHVWRUHVLQGLFDWHWKHSRWHQWLDORIWKHEXVLQHVVDIWHUWKHVWDELOL]DWLRQSKDVH

7KH(%,7'$PDUJLQIURPPDWXUHVWRUHVLPSURYHGWRLQ)<IURPLQ)<7KHRYHUDOO6$3EXVLQHVV FRQVLVWLQJRIPDWXUHVWRUHVDVZHOODVQHZVWRUHVDFKLHYHGDSRVLWLYH(%,7'$IRUWKHÀUVWWLPHVLQFHLQFHSWLRQ )XUWKHUPRUHWKHUHWDLOSKDUPDF\VHJPHQWFRQVLVWHGRIVWRUHVDVRI0DUFK

:HDWWULEXWHWKHVXFFHVVRIRXUSKDUPDF\EXVLQHVVODUJHO\WRWKHEUDQGYDOXHDQGUHFRJQLWLRQRIWKH´$SROORµ name. Our pharmacies offer a wide range of medicines, surgical, hospital consumables, health products and JHQHUDO´RYHUWKHFRXQWHUµSURGXFWV7KHPL[EHWZHHQRYHUWKHFRXQWHUSURGXFWVDQGSUHVFULSWLRQSURGXFWVLV UHJXODUO\UHYLHZHGWRHQVXUHDODUJHUUDQJHIRUWKHFRQVXPHUDQGDOVRWRNHHSDQDSSURSULDWHPL[RIVDOHVDQG margins.

'XULQJÀVFDOZHIRFXVHGRQRSHUDWLRQDOLPSURYHPHQWVLQRXUUHWDLOSKDUPDFLHVDQGLQWURGXFHGVWUDWHJLHV VXFKDV L WKHLQWURGXFWLRQRIJHQHULFDQGVHOIEUDQGHGSURGXFWVZKLFKKDYHKLJKHUPDUJLQDQG LL LQFUHDVLQJ bulk distribution of medical supplies and disposable equipment to hospitals and other healthcare providers.

:KLOHWKHQXPEHURIVWRUHVLQFUHDVHGIURPDVRI0DUFKWRDVRI0DUFKRXUUHYHQXH LQFUHDVHGIURP5VPLOOLRQLQÀVFDOWRPLOOLRQLQÀVFDO

Primary Care Clinics

7KURXJK$SROOR+HDOWK DQG /LIHVW\OHRXUZKROO\RZQHG VXEVLGLDU\ZH SURYLGHSULPDU\KHDOWKFDUH WKURXJK D QHWZRUNRIFOLQLFVORFDWHGDFURVV,QGLD:HLQLWLDOO\VHWXSWKHFOLQLFVWKURXJKIUDQFKLVHPRGHOIRUDRQHWLPH À[HGSD\PHQWDQGUHJXODUUR\DOW\SD\PHQWVSD\DEOHE\IUDQFKLVHHV,Q\HDUZHFKDQJHGRXUEXVLQHVVPRGHO to set up clinics through own investment. After successfully establishing 10 owned clinics in the pilot phase, ZHKDYHSODQQHGWRLQFUHDVHRXUQHWZRUNWRFOLQLFVLQÀQDQFLDO\HDU$WSUHVHQWZHKDYHDWRWDORI FOLQLFVZLWKDQDGGLWLRQDOFOLQLFVXQGHULPSOHPHQWDWLRQDVRIVW0DUFK7KURXJKRXUFOLQLFVZHDLPWR make quality healthcare accessible in more regions and to more people. Our clinics provide facilities for basic and advanced consultation and diagnostic tests. All clinics are equipped with a 24-hour pharmacy. Some of our clinics also offer telemedicine facilities to facilitate the provision of second opinions from specialist doctors.

Medical Insurance – Apollo Munich Health Insurance

7KH,QGLDQKHDOWKLQVXUDQFHPDUNHWKDVHPHUJHGDVDQHZDQGOXFUDWLYHJURZWKDYHQXHIRUERWKWKHH[LVWLQJ SOD\HUVDVZHOODVWKHQHZHQWUDQWV7KH,QGLDQKHDOWKLQVXUDQFHPDUNHWKDVSRVWHGUHFRUGJURZWKLQWKHODVWWZR ÀVFDOV DQG +HDOWKLQVXUDQFHSUHPLXPFROOHFWLRQVDUHH[SHFWHGWRJURZDWD&$*5RIRYHU IRUWKHSHULRGVSDQQLQJIURPWR

7KH$SROOR+RVSLWDOV*URXSKDGHQWHUHGLQWRD-9ZLWK0XQLFK+HDOWK+ROGLQJ$*DVXEVLGLDU\RI0XQLFK5H 0XQLFK5HLVRQHRIWKHZRUOG·VOHDGLQJUHLQVXUHUV,WKDVDURXQGFOLHQWV LQVXUDQFH&RPSDQLHV LQDERXW FRXQWULHV0XQLFK5HKDVEURXJKWWRJHWKHULWVJOREDOKHDOWKFDUHNQRZKRZLQLQVXUDQFHDQGUHLQVXUDQFH XQGHUDVLQJOHEUDQG¶0XQLFK +HDOWK· 0XQLFK+HDOWKGHYLVHVLQQRYDWLYHKHDOWKFDUH VROXWLRQVIRUFOLHQWVDQG partners all over the world.

'XULQJWKHÀQDQFLDO\HDUWKHFRPSDQ\DFKLHYHGDJURVVZULWWHQSUHPLXPRI5VPLOOLRQDJDLQVW a full year premium of Rs.1,147 million in FY 2009-10. There has been an overall positive trend in the top line with improvements in operating parameters. During the year 2010-11 the company surpassed its target in Gross Written Premium considerably by more than 40% over the plan.

Apollo Health Street

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Telemedicine

Telemedicine is the ability to provide interactive healthcare solutions through the use of modern technology and telecommunications. Basically, Telemedicine allows patients to visit with physicians live over video for LPPHGLDWH FDUH RU FDSWXUH YLGHRVWLOO LPDJHV ZLWK WKH SDWLHQW GDWD EHLQJ VWRUHG DQG VHQW WR SK\VLFLDQV IRU diagnosis and follow-up treatment at a later time.

$SSOLFDWLRQRIWHOHPHGLFLQHLVH[SDQGLQJYLUWXDOO\DFURVVDOOWKHPHGLFDODUHDV7HOHPHGLFLQHFXUUHQWO\ÀQGV application in majority of medical domains including radiology, cardiology, dermatology, psychiatry, dentistry, pediatrics and pathology, among others.

7HOHPHGLFLQHIDFLOLWLHVDUHPDQDJHGE\WKH$SROOR7HOHPHGLFLQH1HWZRUNLQJ)RXQGDWLRQ ´$71)µ ,WVRSHUDWLRQV include providing teleconsultations and second opinion facilities to sites where there is limited access to quality KHDOWKFDUH7KHÀUVW96$7HQDEOHGYLOODJHKRVSLWDOLQWKHZRUOGZDVFRPPLVVLRQHGE\WKHWKHQ86SUHVLGHQW %LOO&OLQWRQLQ0DUFKDW$SROOR$UDJRQGDKRVSLWDO,QWKHODVW\HDUVPRUHWKDQWHOHFRQVXOWDWLRQV have been given in 25 different specialities at distances varying from 100 to 6500 miles, through its 95 centres LQ,QGLDDQGRYHUVHDV0RUHWKDQ&0(SURJUDPPHVDQGJUDQGURXQGVKDYHEHHQFDUULHGRXWWKURXJKWKH WHOHPHGLFLQHGHSDUWPHQWVRI$SROOR+RVSLWDOV7KURXJK´GHVNWRSWHOHPHGLFLQHµDUHFHQWLQLWLDWLYHFRQVXOWDQWV will eventually be able to give teleconsults from their departments without having to come to the telemedicine GHSDUWPHQW$71)KDVJLYHQWKHODUJHVWQXPEHURIWHOHFRQVXOWVDQGPRUHWKDQ&0(SURJUDPPHVWR FRXQWULHVLQ$IULFDLQWKH3DQ$IULFDQH1HWZRUN3URMHFWDQ´$LG$IULFDµLQLWLDWLYHRIWKH*RYHUQPHQWRI,QGLD $71)LVRQVHYHUDOZRUNLQJJURXSVDQGKLJKSRZHUFRPPLWWHHVRIWKH*RYHUQPHQWRI,QGLD

Education and Training Programs

:H SURYLGH H[WHQVLYH HGXFDWLRQ DQG WUDLQLQJ SURJUDPV WKURXJK $SROOR +RVSLWDOV (GXFDWLRQ DQG 5HVHDUFK )RXQGDWLRQ DQG $SROOR +RVSLWDOV (GXFDWLRQDO 7UXVW 2XU SULPDU\ REMHFWLYH LQ HVWDEOLVKLQJ PDLQWDLQLQJ DQG supporting educational institutions is to promote medical, paramedic and hospital management courses. Apollo ,QVWLWXWHRI+RVSLWDO0DQDJHPHQWRIIHUVD0DVWHU·VGHJUHHLQKRVSLWDOPDQDJHPHQWDQGKDVSURYLGHGWUDLQLQJWR PRUHWKDQVWXGHQWV7KH$SROOR6FKRRORI1XUVLQJDQG&ROOHJHRI1XUVLQJRIIHUVYDULRXVFRXUVHVDWGLIIHUHQW OHYHOVDQGSURYLGHVWUDLQLQJWRQXUVHVWRHTXLSWKHPWRVHUYHLQKRVSLWDOVDFURVV,QGLDDQGRYHUVHDV$WRWDORI QXUVHVDUHH[SHFWHGWRFRPSOHWHFRXUVHVDWWKHVHLQVWLWXWLRQVGXULQJWKHFXUUHQWDFDGHPLF\HDU%HVLGHV retaining a number of nurses that we have trained in our hospitals, through our Global Nursing Program, we have DOVRSODFHGVRPHRIWKHQXUVHVWKDWZHKDYHWUDLQHGLQKRVSLWDOVLQWKH8QLWHG6WDWHV(XURSHWKH0LGGOH(DVW and Asia.

We also offer programs to train medical technicians, including emergency medical technicians and laboratory technicians, with the required skill and knowledge in various aspects of medicine and technology.

Research

Our faculty members across various departments are engaged in a broad spectrum of research, including therapeutic trials, investigation of disease pathogenesis and discovery-oriented basic science. We also intend WRHVWDEOLVKD6XUJLFDO5HVHDUFK&HQWUHWRH[SORUHQHZDSSURDFKHVWRRUJDQUHFRQVWUXFWLRQDQGUHKDELOLWDWLRQ and we are also entering into clinical trials for the discovery of better treatment methods, cost-effective alternatives and improvements in medical technology, with the objective of providing better patient care.

59 Corporate Highlights

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Strengths

Leading Healthcare Service Provider in India

Our main business is the provision of healthcare services, catering to the primary, secondary and tertiary health requirements of patients. We have a large network of hospitals with a wide geographical spread, making quality KHDOWKFDUHVHUYLFHVDFFHVVLEOHWRWKHSRSXODWLRQOLYLQJDFURVVFLWLHVDQGUXUDODUHDVRI,QGLD:HEHOLHYHWKDWZH DUHRQHRIWKHODUJHVWEX\HUVRIPHGLFDOFRQVXPDEOHVDQGPHGLFDOHTXLSPHQWLQWKH,QGLDQSULYDWHKHDOWKFDUH sector. We also have a large network of retail pharmacies, which offer a wide range of medicines, surgical, KRVSLWDOFRQVXPDEOHVKHDOWKSURGXFWVDQGJHQHUDO´RYHUWKHFRXQWHUµSURGXFWV

To improve the general population’s access to quality healthcare, we have developed a distributed access PRGHO8QGHUWKLVPRGHORXUQHWZRUNRIVHFRQGDU\KRVSLWDOVDQGSULPDU\FOLQLFVVHUYHWKHQHHGVRISDWLHQWVLQ their local communities and at the same time, support our tertiary care hospitals by referring to them patients ZKRUHTXLUHVRSKLVWLFDWHGDGYDQFHGSURFHGXUHVDQGVSHFLDOL]HGFDUH7KLVPRGHOKHOSVXVWRH[SDQGRXUUHDFK beyond the core areas of the local communities that our secondary hospitals and primary clinics serve and also DOORZXVWRRSWLPL]HRXUFDSLWDOFRVWVE\GHSOR\LQJRXUUHVRXUFHVDFURVVRXUQHWZRUN

Clinical Excellence

:HEHOLHYHWKDWZHDUHZLGHO\UHFRJQL]HGDVWKHDUFKLWHFWRIPRGHUQKHDOWKFDUHLQ,QGLDDQGDSLRQHHURIVHYHUDO KHDOWKFDUHUHODWHGLQLWLDWLYHVLQ,QGLD6LQFHRXUÀUVWKRVSLWDOFRPPHQFHGRSHUDWLRQVLQZHKDYHEHHQ focused on the provision of high quality healthcare at competitive prices, a position which we believe the Apollo EUDQGQDPHKDVEHFRPHV\QRQ\PRXVZLWK:HEHOLHYHWKDWFOLQLFDOH[FHOOHQFHLVDFULWLFDOFRQVLGHUDWLRQIRU many people when choosing their healthcare provider and we therefore aim to constantly pursue it. We have LPSOHPHQWHGFOLQLFDOJRYHUQDQFHWRROVVXFKDV$SROOR&OLQLFDO([FHOOHQFH ´$&(#µ DQG&OLQLFDO3DWKZD\V and adhering to clinical practice guidelines for common diseases and high standards of clinical protocols set by OHDGLQJDFFUHGLWDWLRQERGLHVVXFKDVWKH-&,DQGWKH1$%+

$&( #  LV D VFRUHFDUG GHVLJQHG E\ XV WR DVVHVV FOLQLFDO H[FHOOHQFH WKURXJK REMHFWLYH DQG TXDQWLWDWLYH PHDVXUHPHQWRIDOOSDUDPHWHUVWKDWDUHFULWLFDOIRUWKHFOLQLFDORSHUDWLRQVRIRXU&RPSDQ\([DPSOHVRIVRPHRI WKHVHSDUDPHWHUVDUH$/26FRURQDU\DUWHU\E\SDVVVXUJHU\$/26SRVWUHQDOWUDQVSODQWDQGVXUYLYDOUDWHRIOLYHU transplant patients one year after surgery.

Our commitment to provide quality healthcare and patient-centric approach have improved our operational and FOLQLFDOHIÀFLHQF\DQGZHKDYHUHFHLYHGPDQ\DZDUGV$ODUJHQXPEHURIRXUIDFLOLWLHVKDYHEHHQDFFUHGLWHG E\OHDGLQJ,QGLDQDQGLQWHUQDWLRQDODFFUHGLWDWLRQDJHQFLHV,QGUDSUDVWKD$SROOR+RVSLWDOZDVWKHÀUVWKRVSLWDO

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Our Strong Brand Value

We believe that we have a strong track record in building long-standing relationships with senior doctors, continually increasing the number of new patients served and being the choice for our returning patients, resulting in our ability to attract and retain high quality talent in both medical and non-medical functions. We believe that such track record together with our focus on achieving and maintaining world class clinical outcomes have enabled us to build a strong brand name. We have received many awards that we believe are a testimony to our strong brand built over 27 years in the healthcare industry.

Tradition of Technology Innovation and Leadership

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The availability of sophisticated medical equipment, such as the 16-slice PET CT scan operated by Apollo *OHQHDJOHV3(7&73YW/LPLWHG ´$*3&/µ HQVXUHVWKDWZHDUHDPRQJWKHIHZKHDOWKFDUHSURYLGHUVLQ,QGLD who are able to offer advanced healthcare procedures, such as stereo tactic radio surgery and bone marrow WUDQVSODQWVWRRXUSDWLHQWV2XUKRVSLWDOLQ&KHQQDLKDVDOVRFRPPLVVLRQHGWKHQH[WJHQHUDWLRQRI'HOHFWUR anatomical mapping system, which will enable our doctors to accurately locate and treat electro-physical GLVRUGHUVRIWKHKXPDQKHDUW:HDOVRRIIHUVWHPFHOOWKHUDS\LQRXU0DXULWLXVKRVSLWDOWRWUHDWSDWLHQWVZLWK cardiovascular, vascular and orthopedic conditions and diseases.

We consistently promote telemedicine as a method to provide healthcare solutions to patients in remote ORFDWLRQV:HODXQFKHGWKHÀUVWUXUDOWHOHPHGLFLQHFHQWUHLQ,QGLDLQWRFDWHUWRDODUJHQXPEHURIYLOODJHUV LQYDULRXVORFDWLRQVDFURVV,QGLDDQGQHLJKERULQJFRXQWULHV

We believe that our investment in the latest and most advanced medical technology and equipment available KDVDOVRHQDEOHGXVWRDWWUDFWVRPHRIWKHPRVWUHVSHFWHGGRFWRUVLQ,QGLDWRSUDFWLFHLQRXUKRVSLWDOVDQGZKLFK has also made our hospitals the preferred treatment destinations for patients from various countries around the world. We constantly monitor technological innovations and medical developments globally to ensure that we have and are kept up-to-date with the latest relevant technology and treatments in the industry.

Strong Relationships with Doctors and Skilled Medical Professionals

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61 many of our doctors have received accolades and awards, including the Dr. B.C. Roy National award, and the Padma Bhushan and Padma Shree awards, with certain of our doctors heading international and national medical associations.

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:HZRUNRQD´IHHIRUVHUYLFHµPRGHOZLWKRXUGRFWRUV:HEHOLHYHWKLVLVDQLPSRUWDQWFRPSRQHQWRIWKHGRFWRU² KRVSLWDOUHODWLRQVKLSDQGKDVKHOSHGXVWRUHWDLQRXUGRFWRUVDQGVSHFLDOLVWVE\LQFHQWLYL]LQJSHUIRUPDQFHZKLFK in turn is linked to quality of service and clinical out-comes.

Experienced and professional management with domain expertise and strong execution track record

:HEHQHÀWIURPDQH[SHULHQFHGPDQDJHPHQWWHDPZLWKH[HFXWLYHGLUHFWRUVZKRKDYHORQJDQGSURYHQWUDFN UHFRUGVLQWKHKHDOWKFDUHLQGXVWU\DQGZKRKDYHPDGHVLJQLÀFDQWFRQWULEXWLRQWRWKHJURZWKRIWKH&RPSDQ\ IURPRQHKRVSLWDOLQWRRYHUKRVSLWDOVSKDUPDFLHVDQGFOLQLFVDVRIVW0DUFK,QDGGLWLRQ VHYHUDORIRXUGLUHFWRUVKDYHH[WHQVLYHH[SHULHQFHLQYDULRXVDVSHFWVRIRXUEXVLQHVVDQGWKHKHDOWKFDUHLQGXVWU\ LQFOXGLQJWKHDUHDVRIÀQDQFHDGPLQLVWUDWLRQDQGPDQDJHPHQW

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Weaknesses

We have added 150 Stand-alone pharmacies during the year and added 700 hospital beds during the last 15 PRQWKV 6LQFH WKH QHZ KRVSLWDOV DQG SKDUPDFLHV ZRXOG WDNH VRPH WLPH WR VWDELOL]H RSHUDWLRQV DQG DWWDLQ maturity, these can depress the margins.

The relatively high attrition rates among the nursing staff due to higher emoluments being offered by competitors and in overseas countries necessitates continuing investments in training to ensure that the clinical staff is HTXLSSHGZLWKWKHULJKWVNLOOVFRPSHWHQFLHVDQGH[SHUWLVHQHHGHGWRSURYLGHTXDOLW\KHDOWKFDUH

Awards

‡ ,QWKHDQQXDOUDQNLQJRI%HVW+RVSLWDOVLQWKHFRXQWU\E\´7KH:HHNµ0DJD]LQH$SROOR+RVSLWDOV&KHQQDL ZDVUDQNHGDVWKHQGEHVWKRVSLWDOLQWKHFRXQWU\ZKLOH,QGUDSUDVWKD$SROOR+RVSLWDOV'HOKLZDVUDQNHG as the 5th best hospital in the country.

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Risk Management and Internal Controls

The management of the Company focuses immensely on risk management and internal controls, as these factors DUH FRUHODWHG ZLWK WKH EXVLQHVV RSHUDWLRQV7KH &RPSDQ\ KDV LQ SODFH D GHWDLOHG 5LVN 0DQDJHPHQW V\VWHP FRYHULQJOHJDOWUHDVXU\UHJXODWRU\DQGÀQDQFLDOUHSRUWLQJWRQDPHDIHZ$XWKRULW\DQGUHVSRQVLELOLW\KDYHEHHQ FOHDUO\GHÀQHGDWDOOVWDJHVRIWKHKLHUDUFK\WRPLWLJDWHULVNV,VVXHVUDLVHGE\WKH,QWHUQDODQG6WDWXWRU\$XGLWRUV are addressed with utmost importance, so as to identify loopholes and de-bottleneck to processes.

Risk Management Model

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‡ 5LVN,GHQWLÀFDWLRQ&RPPLWWHGPRQLWRULQJDQGLGHQWLÀFDWLRQRIULVNVLVFDUULHGRXWDWUHJXODULQWHUYDOV towards improving the processes and procedures. This assessment is based on risk perception survey, business environment scanning and inputs from stakeholders. ‡ Risk measurement and Treatment: 3RVWLGHQWLÀFDWLRQRIULVNVPHDVXUHPHQWDQGWUHDWPHQWLVDFUXFLDO VWHSLQRSHUDWLRQRIWKHEXVLQHVV5LVNPLWLJDWLRQDQGVROXWLRQVDUHGHÀQHGVRDVWREULQJLQOLQHWKHULVN H[SRVXUHOHYHOVWRWKHULVNDSSHWLWH ‡ Risk reporting: 5LVNUHSRUWLQJEULQJVULVNPDQDJHPHQWEDFNWRWKHFRUHEXVLQHVV7KHUHSRUWLQJDW$+(/ LVDLPHGWREHNQRZOHGJHEDVHGDQGFRQVLVWHQWZLWKWKHRUJDQL]DWLRQ·VRXWORRNRIUXOHVUHJXODWLRQVDQG accounting conventions. Besides risk reporting, there is an established Risk Council which deals with the UHSRUWHGULVNV,QDGGLWLRQDTXDUWHUO\UHSRUWLVSUHVHQWHGWRWKH5LVN0DQDJHPHQW&RPPLWWHHZKLFK UHYLHZVWKH(50SURJUDPWKHVWDWXVDQGWUHQGVDYDLODEOHRQWKHPDWHULDOULVNVKLJKOLJKWHG

Internal Control Systems and their Adequacy

There is an established internal control system in place for the Company and its subsidiaries. The company deploys a robust system of internal controls to allow optimal use and protection of assets, facilitate accurate DQGWLPHO\FRPSLODWLRQRIÀQDQFLDOVWDWHPHQWVDQGPDQDJHPHQWUHSRUWVDQGHQVXUHFRPSOLDQFHZLWKVWDWXWRU\ ODZVUHJXODWLRQVDQGFRPSDQ\SROLFLHV7KHFRPSDQ\KDVDOVRSXWLQSODFHDQH[WHQVLYHEXGJHWDU\DQGRWKHU control review mechanisms whereby the management regularly reviews actual performance with reference to the budgets and forecasts.

Discussion on Consolidated Financial Performance and Results of Operations

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2011 2010 Particulars (Rs in million) % of Income (Rs in million) % of Income Operating Revenues 26,054 20,265 $GG2WKHU,QFRPH 186  7RWDO,QFRPH 26,240 100.0% 20,587 100.0% 2SHUDWLYHH[SHQVHV  52.9% 10,726 52.1% 6DODULHVDQGEHQHÀWV 4,151 15.8%  16.1% $GPLQLVWUDWLRQ RWKHUH[SHQVHV  14.6%  15.6% 3URÀWEHIRUHLQWHUHVWGHSUHFLDWLRQDQGWD[  16.7%  16.2% 'HSUHFLDWLRQDQGDPRUWL]DWLRQ 948  757  3URÀWEHIRUHLQWHUHVWDQGWD[   2,578 12.5% )LQDQFLDOH[SHQVHV 814  602 2.9% 3URÀWEHIRUH,QFRPH7D[  10.0% 1,976 9.6%

 3URYLVLRQIRUWD[DWLRQ   676  3URÀWDIWHUWD[EHIRUHPLQRULW\LQWHUHVW  1,740 6.6%   share in associates /HVV0LQRULW\LQWHUHVW     3URÀWDIWHUPLQRULW\LQWHUHVW 1,755 6.7%  6.5% Add: Share in associates 84   0.2% 3URÀWDIWHUVKDUHLQDVVRFLDWHV  7.0%  6.7%

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Revenues The 29% change in our operating revenues for 2011 compared to 2010 was primarily the result of an increase in RFFXSDQF\DQG5HYHQXH3HU%HG'D\ 53%' IRUKRVSLWDOVDVZHOODVVWUHQJWKJURZWKLQWKH6$3EXVLQHVV+HDOWK care services revenues grew by 24% from Rs 15,511 million to Rs 19,295 million. Revenue per Bed Day increased from Rs. 16,620 to Rs. 18,706. The increase in RPBD is largely a result of changes in the acuity of patients as ZHOODVEHWWHUSULFHUHDOL]DWLRQV

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The following table shows the key drivers of our revenues for the periods presented: 

Expenses 6DODULHVDQG%HQHÀWV

2XUVDODULHVDQGEHQHÀWVH[SHQVHRI5VPLOOLRQGXULQJLQFUHDVHGE\5VPLOOLRQIURP5V million in 2010. 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 Standalone Phar- PDFLHV 6$3V 

Operative Expenses

'XULQJRXUVXSSOLHVH[SHQVHRI5VPLOOLRQLQFUHDVHGDVFRPSDUHGWR5VPLOOLRQLQ The increase in supplies cost was in line with the growth in operating revenues.

64 Other Operating Expenses

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Depreciation and Amortization

2XU GHSUHFLDWLRQ DQG DPRUWL]DWLRQ H[SHQVH LQFUHDVHG WR 5V  PLOOLRQ GXULQJ  DV FRPSDUHG WR 5VPLOOLRQGXULQJ7KHLQFUHDVHLQRXUGHSUHFLDWLRQDQGDPRUWL]DWLRQH[SHQVHLVODUJHO\GXHWRFDSLWDO improvement projects completed during 2011 and normal replacement costs of facilities and equipment.

Financial Expenses

2XUÀQDQFLDOH[SHQVHVLQFUHDVHGWR5VPLOOLRQGXULQJDVFRPSDUHGWR5VPLOOLRQGXULQJ7KH LQFUHDVHLVODUJHO\GXHWRDGGLWLRQDOERUURZLQJVIRUÀQDQFLQJWKHFDSLWDOLPSURYHPHQWSURMHFWVFRPSOHWHGGXULQJ 2011 and normal replacement costs of facilities and equipment.

Provision for Income Taxes

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Liquidity and Capital Resources Liquidity

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Capital Expenditures

$VZHFRQWLQXHWRLQFUHDVHEHGFDSDFLW\DQGUROORXWQHZKRVSLWDOVFDSLWDOH[SHQGLWXUHVFRQWLQXHWREHKLJK:H KDYHPDGHVLJQLÀFDQWWDUJHWHGLQYHVWPHQWVDWRXUKRVSLWDOVWRDGGQHZWHFKQRORJLHVPRGHUQL]HIDFLOLWLHVDQG H[SDQGRXUVHUYLFHV7KHVHLQYHVWPHQWVVKRXOGDVVLVWLQRXUHIIRUWVWRDWWUDFWDQGUHWDLQSK\VLFLDQVDQGWRPDNH our hospitals more desirable to our employees and potential patients.

65 7KHIROORZLQJWDEOHUHÁHFWVRXUFDSLWDOH[SHQGLWXUHVIRUWKH\HDUVLQGLFDWHG  5VLQPLOOLRQ Particulars 31.03.2011 31.03.2010 31.03.2009 &DSLWDO:RUN,Q3URJUHVV  592  &DSLWDO([SHQGLWXUHLQFOXGLQJWHFKQLFDOXSJUDGDWLRQ 2,554  1,910    ROCE 11.90% 10.00% 8.5%

SXPPDU\RI&DVKÁRZVWDWHPHQWLVJLYHQEHORZ     5VLQPLOOLRQ Year Ended Particulars 31.03.2011 31.03.2010 Cash and cash equivalents at beginning of the year  879.42 Net cash from operating activities 2,587.67 1,986.26 1HWFDVKXVHGLQ,QYHVWLQJDFWLYLWLHV   1HWFDVKIURPÀQDQFLQJDFWLYLWLHV 467.44  Net increase in cash and cash equivalents   Cash and cash equivalents at the end of the year 1,780.52 

Cash Flow from Operating Activities

1HWFDVKRI5VPLOOLRQZDVJHQHUDWHGIURPRSHUDWLQJDFWLYLWLHVE\WKH&RPSDQ\LQÀVFDOFRPSDUHG WR5VPLOOLRQLQÀVFDO 5VLQPLOOLRQ Year Ended Particulars 31.03.2011 31.03.2010 2SHUDWLQJSURÀWEHIRUHZRUNLQJFDSLWDOFKDQJHV   Effect of working capital changes   )RUHLJQ([FKDQJHORVV 6.26 7.91 $GMXVWPHQWVIRU0LVF([SZULWWHQRII   Cash generation from operations 3,262.78 2,850.97 7D[HVSDLG   Net cash provided by operating activities 2,587.67 1,986.26

,QÀVFDOQRQFDVKDGMXVWPHQWVWRUHFRQFLOHWKHQHWSURÀWEHIRUHWD[DQGH[WUDRUGLQDU\LWHPVRI5V PLOOLRQWRQHWFDVKIURPRSHUDWLQJDFWLYLWLHVFRQVLVWHGSULPDULO\RIGHSUHFLDWLRQH[SHQVHRI5VPLOOLRQ LQWHUHVWSDLGRI5VPLOOLRQDQGGHIHUUHGUHYHQXHH[SHQVHVDQGSUHOLPLQDU\H[SHQVHVRI5VPLOOLRQ 7UDGHDQGRWKHUUHFHLYDEOHVLQFUHDVHGE\5VPLOOLRQLQYHQWRULHVLQFUHDVHGE\5VPLOOLRQWUDGH SD\DEOHVLQFUHDVHGE\5VPLOOLRQDQGRWKHUQHWFXUUHQWDVVHWVLQFUHDVHGE\5VPLOOLRQ

Cash Flow from Investing Activities 5VLQPLOOLRQ Year Ended Particulars 31.03.2011 31.03.2010 3XUFKDVHRIÀ[HGDVVHWV 1HW   6DOH 3XUFKDVH RILQYHVWPHQWV  1,664.47 ,QWHUHVWDQG'LYLGHQGUHFHLYHG 102.97  Others   Net cash used in investing activities (4,414.65) (2,016.89)

66 1HWFDVKXVHGLQLQYHVWLQJDFWLYLWLHVZDV5VPLOOLRQLQÀVFDODVFRPSDUHGWR5VPLOOLRQ LQÀVFDO7KHQHWFDVKXVHGLQLQYHVWLQJDFWLYLWLHVLQÀVFDOFRQVLVWHGRISXUFKDVHRIÀ[HGDVVHWVRI 5V PLOOLRQ 3XUFKDVH RI WUDGH DQG QRQ WUDGH LQYHVWPHQWV QHW  RI 5V PLOOLRQ )L[HG DVVHWV comprised mainly of medical equipment and surgical instruments, buildings and electrical installations and JHQHUDWRUV2XULQYHVWPHQWVFRPSULVHGPDLQO\RILQYHVWPHQWVLQVKRUWWHUPÀQDQFLDOLQVWUXPHQWVLQPXWXDO IXQGVLQÀVFDO

Cash Flow from Financing Activities 5VLQPLOOLRQ Year Ended 31.03.2011 31.03.2010 Proceeds from share issue 791.86  Proceeds from Borrowings   5HSD\PHQWRIÀQDQFHOHDVHOLDELOLWLHV   ,QFRPHIURPWUHDVXU\RSHUDWLRQV 11.77  ,QWHUHVWDQG'LYLGHQGSDLG   1HWFDVKIURPÀQDQFLQJDFWLYLWLHV 467.44 2,267.93

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Human Resources

$SROORYLHZVLWV+XPDQ5HVRXUFHVUROHDVDVWUDWHJLFEXVLQHVVSDUWQHU7KHSHRSOHDVVRFLDWHGZLWKWKH*URXSDUH our assets as they are the key drivers for our sustained growth and success.

7KHWRWDOHPSOR\HHVWUHQJWKZDVHPSOR\HHVDVRQVW0DUFKFRPSDUHGWRHPSOR\HHVDVRQ VW0DUFK7KHLQFUHDVHLQHPSOR\HHVLVGXHWRWKHQHZKRVSLWDOVVHWXSGXULQJWKH\HDULQFUHDVHLQ6$3V and due to other initiatives undertaken during the year.

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Cautionary Statement

6WDWHPHQWVLQWKLV0DQDJHPHQW'LVFXVVLRQ$QDO\VLVGHVFULELQJWKHFRPSDQ\·VREMHFWLYHVSURMHFWLRQVHVWLPDWHV DQGH[SHFWDWLRQVPD\EH¶IRUZDUGORRNLQJVWDWHPHQWV·ZLWKLQWKHPHDQLQJRIDSSOLFDEOHODZVDQGUHJXODWLRQV $FWXDOUHVXOWVPD\GLIIHUVXEVWDQWLDOO\RUPDWHULDOO\IURPWKRVHH[SUHVVHGRULPSOLHG,PSRUWDQWGHYHORSPHQWV that could alter your company’s performance include increase in material costs, technology developments, and VLJQLÀFDQWFKDQJHVLQSROLWLFDODQGHFRQRPLFHQYLURQPHQWWD[ODZVDQGODERXUUHODWLRQV

67 Clinical Governance ([FHOOHQFHDW$SROOR+RVSLWDOVLVDFRQWLQXRXVMRXUQH\'LYHUVHDVZHPD\EHLQRXUORFDWLRQVWKH]HDOWRH[FHO LVWKHFRPPRQWKUHDGWKDWELQGVDOO$SROOR+RVSLWDOV:HFRQWLQXRXVO\VWULYHWRZDUGVLPSURYLQJWKHVWUXFWXUHV DQGSURFHVVHVDW$SROOR+RVSLWDOVWRDFKLHYHWKHEHVWRXWFRPHVIRURXUSDWLHQWV7KLVGULYHWRH[FHOLQWKHIDVW FKDQJLQJ ZRUOG RI PHGLFLQH OHDGV XV IURP RQH TXDOLW\ LPSURYHPHQW LQLWLDWLYH LQWR DQRWKHU$SROOR +RVSLWDOV IRFXVHVRQWKHWKUHHSLOODUVRI&OLQLFDO$FDGHPLFDQG5HVHDUFK([FHOOHQFH

ZDVWKHVHFRQG\HDURIUHSRUWLQJRI$&(#WKH$SROOR&OLQLFDO([FHOOHQFHVFRUHFDUG7KHDYHUDJH$&( #VFRUHIRUDOO$SROOR+RVSLWDOVWDNHQWRJHWKHUURVHIURPLQ-DQXDU\WRLQ'HFHPEHU a shift from scores in orange to scores in green. This was the overall result of numerous parameters at various locations showing a steady improvement in scores. To reward the efforts made by various hospitals for their RXWVWDQGLQJFOLQLFDOH[FHOOHQFHVKRZFDVHGDVWKHLU$&(#VFRUHV$&(#DZDUGVZHUHJLYHQWRWKHKLJKHVW scorers.

The Apollo Quality Workshop in October 2010 drafted the Apollo Quality Programme which has been implemented DWDOO$SROOR+RVSLWDOV,WDLPVDWDGGUHVVLQJWKHLVVXHVRIFOLQLFDOKDQGRYHUVVXUJLFDOVDIHW\VL[,QWHUQDWLRQDO 3DWLHQW VDIHW\ *RDOV DV HQYLVDJHG E\ -&, DQG PHGLFDWLRQ HUURUV DFURVV DOO *URXS +RVSLWDOV ZLWK FRPSOLDQFH checked through a measurable dashboard every month.

(DFKKRVSLWDORIWKH$SROOR*URXSKDVGHYHORSHG&OLQLFDO3UDFWLFH*XLGHOLQHV &3*V DQG&OLQLFDO3DWKZD\V &3V  for treatment of various diagnoses in consultation with their consultants in the respective specialty. Adherence WR&3*VDQG&3VE\WKHYDULRXVWUHDWLQJSK\VLFLDQVLVPRQLWRUHGRQDFRQWLQXRXVEDVLVWKURXJKFORVHGÀOHDXGLWV E\ WKH TXDOLW\ WHDPV $FXWH 0\RFDUGLDO ,QIDUFWLRQ )XOPLQDQW +HSDWLF )DLOXUH 6HL]XUH PDQDJHPHQW /6&6 +\VWHUHFWRP\5HQDO7UDQVSODQWVDUHH[DPSOHVRIGLDJQRVHVZKHUH&3*VDUHIROORZHG&$%**,%OHHG7853/DS &KROHDUHH[DPSOHVRIFOLQLFDOSDWKZD\VIROORZHGE\*URXSKRVSLWDOV&3*VDQG&3VDUHUHYLHZHGRQDSHULRGLF basis for incorporating newer developments.

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Last accredited Reaccreditation due 1 $SROOR+RVSLWDOV'HOKL 2008 2011 2 $SROOR+RVSLWDOV%DQJDORUH 2008 2011  Apollo Dhaka 2008 2011 4 $SROOR+RVSLWDOV&KHQQDL 2009 2012 5 $SROOR+RVSLWDOV+\GHUDEDG 2009 2012 6 $SROOR+RVSLWDOV.RONDWD 2009 2012 7 636$SROOR+RVSLWDOV/XGKLDQD 2010 

NABH Accreditation Sr. Name of Hospital Last Reaccredita- Accreditation No Accredited tion due planned 1 $SROOR6SHFLDOLW\+RVSLWDOV0DGXUDL 2009 Jun 12 2 $SROOR6SHFLDOW\+RVSLWDOV7H\QDPSHW&KHQQDL 2010 -DQ  $SROOR+RVSLWDOV$KPHGDEDG 2011 Feb 14 4 $SROOR+RVSLWDOV1RLGD 0DU 5 $SROOR'5'2+RVSLWDO 0DU 6 Apollo Ranchi Oct 11 7 $SROOR%65+RVSLWDOV%KLODL 0DU

68 8 $SROOR%*6+RVSLWDOV0\VRUH 0DU 9 $SROOR+RVSLWDOV.DNLQDGD 0D\ 10 $SROOR+RVSLWDOV6HFXQGHUDEDG Feb 12 11 $SROOR+RVSLWDOV.DULPQDJDU 0DU 12 $SROOR+RVSLWDOV%KXEDQHVZDU Feb 12  $SROOR+RVSLWDOV+HDUWDQG.LGQH\&HQWUH9L]DJ Jun 12 14 $SROOR+RVSLWDOV%LODVSXU Jun 12 15 $SROOR+RVSLWDOV.DUXU Jun 12

5RFNHWSURMHFWZDVODXQFKHGWRWDNHRXU&HQWUHVRI([FHOOHQFHWRQHZKHLJKWV6L[&HQWUHVRI([FHOOHQFHZHUH DVVLJQHGWRVL[&(2VZLWKQDWLRQDODQGUHJLRQDO6HUYLFH/LQH0DQDJHUVWRDFKLHYHH[FHOOHQFHLQFDUGLDFVFLHQFHV neurosciences, orthopedics, oncology, transplant medicine and emergency services.

The focus on academics and research received more and more emphasis and DNB courses are planned to be LQWURGXFHGDW$KPHGDEDG%DQJDORUH.DNLQDGD%KLODLDQG/XGKLDQDWRWDNHWKHQXPEHUIURPWRE\ 2012. Our success rate of DNB trainees remained over 50% against the national average of 25%. DNB trainees from $SROOR+RVSLWDOV+\GHUDEDGSHUIRUPHGFRPPHQGDEO\ZLWKVXFFHVVUDWHRIRYHUGXULQJWKH-XO\VHVVLRQ 3URJUDPPHVZLWKWKH5R\DOFROOHJHVDQGFRXUVHVE\0HGYDUVLW\FRQWLQXHGWRDWWUDFWDQXPEHURIVWXGHQWV

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Research grants of Rs 50,000 each were given to our consultants for 21 projects in 2010. Thirteen research papers by our consultants published in journals with high impact factor were rewarded with Rs 20,000 to Rs 40,000 depending on the impact factors. Five Apollo Fellows were appointed for clinical research in Radiation Oncology, Gastroenterology, Nephrology, CTVS and Cardiology.

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69 Auditor’s Report to the Members of Apollo Hospitals Enterprise Limited

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 :HFRQGXFWHGRXUDXGLWLQDFFRUGDQFHZLWKWKHDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQ,QGLD7KRVH standards require that we plan and perform the audit to obtain reasonable assurance about whether the ÀQDQFLDOVWDWHPHQWVDUHIUHHRIPDWHULDOPLVVWDWHPHQW V $QDXGLWLQFOXGHVH[DPLQLQJRQDWHVWEDVLV HYLGHQFH VXSSRUWLQJ WKH DPRXQWV DQG GLVFORVXUHV LQ WKH ÀQDQFLDO VWDWHPHQWV$Q DXGLW DOVR LQFOXGHV DVVHVVLQJ WKH DFFRXQWLQJ SULQFLSOHV XVHG DQG VLJQLÀFDQW HVWLPDWHV PDGH E\ PDQDJHPHQW DV ZHOO DV HYDOXDWLQJWKHRYHUDOOÀQDQFLDOVWDWHPHQWSUHVHQWDWLRQ:HEHOLHYHWKDWRXUDXGLWSURYLGHVDUHDVRQDEOH basis for our opinion.

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YL  ,QRXURSLQLRQDQGWRWKHEHVWRIRXULQIRUPDWLRQDQGDFFRUGLQJWRWKHH[SODQDWLRQVJLYHQWRXV WKHVDLGÀQDQFLDOVWDWHPHQWVWRJHWKHUZLWKWKHQRWHVWKHUHRQDQGDWWDFKHGWKHUHWRJLYHWKH information required by the Companies Act, 1956, in the prescribed manner and also give a true DQGIDLUYLHZLQFRQIRUPLW\ZLWKWKHDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQ,QGLD

70 D LQWKHFDVHRIWKH%DODQFH6KHHWRIWKHVWDWHRIDIIDLUVRIWKH&RPSDQ\DVDWVW 0DUFK

E LQWKHFDVHRIWKH3URÀWDQG/RVV$FFRXQWRIWKH352),7RIWKH&RPSDQ\IRUWKH\HDU ended on that date and

F LQWKHFDVHRIWKH&DVK)ORZ6WDWHPHQWRIWKHFDVKÁRZVRIWKH&RPSDQ\IRUWKH\HDU ended on that date.

For M/s. S. VISWANATHAN %LVKRS:DOOHUV$YHQXH :HVW     Chartered Accountants 0\ODSRUH Firm Registration No: 004770S &KHQQDL² 

V.C. KRISHNAN Partner Place: Chennai 0HPEHUVKLS1R 'DWHWK0D\ 

71 Annexure to the Auditors’ Report

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F  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQGRQWKHEDVLVRI RXUH[DPLQDWLRQWKH&RPSDQ\LVPDLQWDLQLQJSURSHUUHFRUGVRILQYHQWRU\)XUWKHULQRXURSLQLRQ DQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVQRPDWHULDOGLVFUHSDQFLHVZHUH QRWLFHGEHWZHHQWKHSK\VLFDOVWRFNVYHULÀHGDQGERRNUHFRUGV

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E  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKHUDWHRILQWHUHVW and other terms and conditions given by the company are prima facie not prejudicial to the inter- est of the company.

F  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\LVUHJX- lar in receipt of interest as per the terms and conditions. With respect to the principal we have been informed that the subsidiary company will start repaying as and when the subsidiary makes SRVLWLYHFDVKÁRZV

G  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVUHDVRQDEOHVWHSV have been taken by the company to recover the principal and interest where the amount overdue is more than rupees one lakh.

72 H  7KH&RPSDQ\KDVQRWWDNHQDQ\ORDQVVHFXUHGRUXQVHFXUHGIURPFRPSDQLHVÀUPVRURWKHUSDU- WLHVFRYHUHGLQWKHUHJLVWHUPDLQWDLQHGXQGHU6HFWLRQRIWKH&RPSDQLHV$FW+HQFHVXE FODXVHV H  I DQG J RIFODXVH LLL RIWKH2UGHUDUHQRWDSSOLFDEOHWRWKH&RPSDQ\

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Y D  ,QRXURSLQLRQWKHSDUWLFXODUVRIFRQWUDFWVRUDUUDQJHPHQWVUHIHUUHGWRLQ6HFWLRQRIWKH&RP- panies Act, 1956 have been entered in the register required to be maintained under that section.

E  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQJLYHQWRXVWKHWUDQVDFWLRQVPDGH in pursuance of such contracts or arrangements have been made at prices which are reasonable, having regard to the prevailing market prices.

YL  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVFRPSOLHG ZLWKWKHGLUHFWLYHVLVVXHGE\WKH5HVHUYH%DQNRI,QGLDDQGSURYLVLRQVRI6HFWLRQ$6HFWLRQ$$DQG RWKHUUHOHYDQWSURYLVLRQVRIWKH&RPSDQLHV$FWDQG&RPSDQLHV $FFHSWDQFHRI'HSRVLWV 5XOHV with regard to the 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 DQGH[SODQDWLRQVJLYHQWRXVQRRUGHUKDVEHHQSDVVHGE\WKH&RPSDQ\/DZ%RDUG1DWLRQDO&RPSDQ\ /DZ7ULEXQDORU5HVHUYH%DQNRI,QGLDRUDQ\&RXUWRUDQ\RWKHU7ULEXQDORQWKH&RPSDQ\LQUHVSHFWRIWKH aforesaid deposits.

YLL  7KH&RPSDQ\KDVÀUPVRI&KDUWHUHG$FFRXQWDQWVLQFOXGLQJD3ULYDWH/LPLWHG&RPSDQ\DV,QWHUQDO$XGL- tors for its various divisions and pharmacies. On the basis of the reports submitted by them to the man- DJHPHQWLQRXURSLQLRQWKHLQWHUQDODXGLWV\VWHPLVUHDVRQDEOHKDYLQJUHJDUGWRWKHVL]HDQGQDWXUHRI its business.

YLLL  $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&HQWUDO*RYHUQPHQWKDVQRWSUHVFULEHG WKHPDLQWHQDQFHRIFRVWUHFRUGVXQGHU6HFWLRQ   G RIWKH&RPSDQLHV$FWIRUDQ\RIWKHDFWLYL- ties of the Company.

L[ D  $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\LVUHJXODULQGHSRVLWLQJ ZLWKDSSURSULDWHDXWKRULWLHVXQGLVSXWHGVWDWXWRU\GXHVLQFOXGLQJ3URYLGHQW)XQG,QYHVWRU(GX- FDWLRQDQG3URWHFWLRQ)XQG(PSOR\HHV·6WDWH,QVXUDQFH,QFRPH7D[6DOHV7D[6HUYLFHWD[ &XVWRPV'XW\&HVV:HDOWK7D[DQGRWKHUVWDWXWRU\GXHVDSSOLFDEOHWRLW7RWKHEHVWRIRXU NQRZOHGJHDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKHUHDUHQRDUUHDUVRI RXWVWDQGLQJVWDWXWRU\GXHVDVDWVW0DUFKIRUDSHULRGRIPRUHWKDQVL[PRQWKVIURPWKH date they became payable. To the best of our knowledge and belief and according to the informa- WLRQDQGH[SODQDWLRQVJLYHQWRXVH[FLVHGXW\LVQRWDSSOLFDEOHWRWKLV&RPSDQ\

E  $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVDQGWKHUHFRUGVRIWKHFRPSDQ\H[- DPLQHGE\XVWKHUHDUHQRGXHVGLVSXWHGZLWKUHVSHFWWR&HVV:HDOWK7D[DQG6HUYLFHWD[7KH SDUWLFXODUVRI6DOHVWD[&XVWRPVGXW\DQG,QFRPHWD[ZKLFKKDYHQRWEHHQGHSRVLWHGRQDFFRXQW of any dispute are as follows:

 Name of the Nature of (Rs.in million) Period to which the Forum where dispute is statute the dues 31-03-2011 amount relates pending

Andhra Pradesh $VVHVVPHQW

 2008-2009 &,7 $SSHDOV

 Assessment Year 2000-2001 +RQRUDEOH6XSUHPH&RXUW TOTAL 488.08

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[LL  ,Q RXU RSLQLRQ DQG DFFRUGLQJ WR WKH LQIRUPDWLRQ DQG H[SODQDWLRQV JLYHQ WR XV WKH &RPSDQ\ KDV QRW granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

[LLL  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\LVQRWD&KLW )XQG1LGKL0XWXDO%HQHÀW)XQGRU6RFLHW\DQGKHQFH&ODXVH [LLL RIWKH&RPSDQLHV $XGLWRU·V5HSRUW  2UGHUDVDPHQGHGE\WKH&RPSDQLHV $XGLWRU·V5HSRUW  $PHQGPHQW 2UGHULVQRWDSSOL- cable to the Company.

[LY  %DVHGRQRXUH[DPLQDWLRQRIWKHUHFRUGVDQGHYDOXDWLRQRIWKHUHODWHGLQWHUQDOFRQWUROVZHDUHRIWKH opinion that proper records have been maintained of the transactions and contracts relating to shares, securities, debentures and other investments dealt in by the Company and timely entries have been made in the records. We also report that the Company has held and dealt with shares, securities, debentures and other investments in its own name.

74  [Y  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVJLYHQ JXDUDQWHHVIRUORDQVWDNHQE\-RLQW9HQWXUH&RPSDQLHVIURPEDQNVDQGÀQDQFLDOLQVWLWXWLRQVWKHWHUPV and conditions whereof are not prejudicial to the interest of the Company.

[YL  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVDYDLOHG term loans and a portion of these loans have been applied for the purpose for which the loans have been REWDLQHGSHQGLQJXWLOL]DWLRQRIWKHWHUPORDQVIRUWKHVWDWHGSXUSRVHWKHIXQGVKDYHEHHQWHPSRUDULO\ invested in mutual funds and short term deposits.

[YLL  ,QRXURSLQLRQDQGDFFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVWKH&RPSDQ\KDVQRWXVHG any funds raised on short term basis for long term investments.

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[L[  7KH &RPSDQ\ KDV LVVXHG  6HFXUHG 5HGHHPDEOH 1RQ&RQYHUWLEOH GHEHQWXUHV WR /LIH ,QVXUDQFH &RUSRUDWLRQRI,QGLD /,& GXULQJWKH\HDURQZKLFKDSDULSDVVXÀUVWFKDUJHRQDOOÀ[HGDVVHWVRIWKH Company has been created.

[[  'XULQJWKH\HDUWKHPDQDJHPHQWKDVQRWUDLVHGPRQH\WKURXJKSXEOLFLVVXHDQGKHQFHZHRIIHUQRFRP- ments on the same.

[[L  $FFRUGLQJWRWKHLQIRUPDWLRQDQGH[SODQDWLRQVJLYHQWRXVE\WKH&RPSDQ\QRIUDXGRQRUE\WKH&RP- pany has been noticed or reported, during the year.

%LVKRS:DOOHUV$YHQXH :HVW     For M/s. S. VISWANATHAN 0\ODSRUH Chartered Accountants Chennai 600 004 Firm Registration No: 004770S

V.C. KRISHNAN Place: Chennai Partner 'DWHWK0D\ 0HPEHUVKLS1R

75 Balance Sheet as at 31st March 2011 (Rs. in million) Schedule 31.03.2011 31.03.2010 I. SOURCES OF FUNDS (1)Shareholders’ Funds  D 6KDUHFDSLWDO $     E 3UHIHUHQWLDOLVVXHRI equity share warrants 685.07 - 5HIHUFODXVHRI6FKHGXOH -  F 5HVHUYHV 6XUSOXV %    

(2)Loan Funds  D 6HFXUHG/RDQV &     E 8QVHFXUHG/RDQV '     (3)Deferred Tax Liability * 1,071.06 751.46  5HIHU&ODXVHRI6FKHGXOH -   Total 26,202.82 23,069.11

II.APPLICATION OF FUNDS (1)Fixed Assets F  D *URVV%ORFN  14,444.95 12,555.11  E /HVV'HSUHFLDWLRQ      F 1HW%ORFN      G &DSLWDO:RUNLQSURJUHVV             (2)Investments G 6,241.12 4,897.88 (3)Current Assets, Loans & Advances +      D ,QYHQWRULHV      E 6XQGU\'HEWRUV      F &DVKDQGEDQNEDODQFHV      G /RDQV $GYDQFHV          11,425.08 Less : Current Liabilities & Provisions E  D /LDELOLWLHV      E 3URYLVLRQV            Net Current Assets      (4) Miscellaneous Expenditure ,      WRWKHH[WHQWQRWZULWWHQRIIRUDGMXVWHG  Total 26,202.82 23,069.11

6FKHGXOHV¶$·WR¶,·DQGQRWHVLQ6FKHGXOH¶-·IRUP part of this Balance Sheet

$VSHURXUUHSRUWDQQH[HG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV

For M/s. S Viswanathan Krishnan Akhileswaran Dr. Prathap C Reddy &KDUWHUHG$FFRXQWDQWV &KLHI)LQDQFLDO2IÀFHU  ([HFXWLYH&KDLUPDQ Firm Registration No.: 004770S

S M Krishnan Preetha Reddy V C Krishnan   *HQHUDO0DQDJHU3URMHFW)LQDQFH 0DQDJLQJ'LUHFWRU 3DUWQHU &RPSDQ\6HFUHWDU\ 0HPEHUVKLS1R %LVKRS:DOOHUV$YHQXH :HVW 0\ODSRUH&KHQQDL Suneeta Reddy ([HFXWLYH'LUHFWRU)LQDQFH Place: Chennai 'DWHWK0D\

76 Profit and Loss Account for the year ended 31st March 2011 (Rs. in million) Schedule 31.03.2011 31.03.2010 Income  D ,QFRPHIURP+HDOWKFDUH6HUYLFHV     E 2WKHULQFRPH ,   Total     Expenditure  D 2SHUDWLYHH[SHQVHV ,,    E 3D\PHQWVWRDQGSURYLVLRQVIRUHPSOR\HHV ,,,    F $GPLQLVWUDWLRQDQGRWKHUH[SHQVHV ,9    G )LQDQFLDOH[SHQVHV 9    H 3UHOLPLQDU\ 2WKHU([SHQVHV,QFO3XEOLF,VVXH     I 'HIHUUHG5HYHQXH([SHQGLWXUH    5HIHUFODXVHRI6FKHGXOH- Total 20,137.50 15,822.74 3URÀW%HIRUH'HSUHFLDWLRQ 7D[     /HVV'HSUHFLDWLRQ    3URÀW%HIRUH7D[     /HVV3URYLVLRQIRU7D[DWLRQ    $GG([FHVV3URYLVLRQRIHDUOLHU\HDUVZULWWHQEDFN    /HVV'HIHUUHG7D[    3URÀW$IWHU7D[ 1,817.18 1,519.64 6XUSOXVLQ3URÀW /RVV$FFRXQWEURXJKWIRUZDUG    Amount Available for Appropriations    

Dividend     'LYLGHQGWD[SD\DEOH    Transfer to Debenture Redemption reserve 100.00 - Transfer to General Reserve 1,000.00 750.00 %DODQFHRI3URÀWLQ3URÀW /RVV$FFRXQW    Total 3,291.25 2,728.40 Earnings Per Share 5HIHUFODXVHRI6FKHGXOH - %DVLF(DUQLQJV3HU6KDUHRIIDFHYDOXH5V 5V HDFK   'LOXWHG(DUQLQJV3HU6KDUHRIIDFHYDOXH5V 5V HDFK  14.24 12.26 6FKHGXOHV¶,·WR¶9·DQGQRWHVLQ6FKHGXOH¶-·IRUPSDUWRIWKLV3URÀWDQG/RVV$FFRXQW

$VSHURXUUHSRUWDQQH[HG )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV

For M/s. S Viswanathan Krishnan Akhileswaran Dr. Prathap C Reddy &KDUWHUHG$FFRXQWDQWV &KLHI)LQDQFLDO2IÀFHU  ([HFXWLYH&KDLUPDQ Firm Registration No.: 004770S

S M Krishnan Preetha Reddy V C Krishnan   *HQHUDO0DQDJHU3URMHFW)LQDQFH 0DQDJLQJ'LUHFWRU 3DUWQHU &RPSDQ\6HFUHWDU\ 0HPEHUVKLS1R %LVKRS:DOOHUV$YHQXH :HVW 0\ODSRUH&KHQQDL Suneeta Reddy ([HFXWLYH'LUHFWRU)LQDQFH Place: Chennai 'DWHWK0D\

77 Schedules to Balance Sheet (Rs. in million) 31.03.2011 31.03.2010 SCHEDULE (A) Share Capital Authorised (TXLW\6KDUHVRI5VHDFK 750.00 (TXLW\6KDUHVRI5VHDFK  1,000.00 3UHIHUHQFH6KDUHVRI5VHDFK  3UHIHUHQFH6KDUHVRI5VHDFK  100.00 1,100.00 100.00 850.00 Issued D    (TXLW\ 6KDUHV RI 5V HDFK HTXLW\VKDUHVRI5VHDFK  626.22 620.51 Subscribed and Paid up * E  (TXLW\6KDUHVRI5VHDFKIXOO\SDLG XS     (TXLW\ 6KDUHV RI 5V  617.85 HDFKIXOO\SDLGXS  D  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK IXOO\SDLGXSDOORWWHGRQFRQYHUVLRQRIÀUVW\HDUV interest on debentures, 20% on the face value of GHEHQWXUHVDQG(TXLW\VKDUHVRI5V each fully paid up allotted to the shareholders of amalgamated companies for consideration other than cash  E  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK fully paid up allotted on preferential basis during the year 2004-05  F  ,QFOXGHV    XQGHUO\LQJ (TXLW\ VKDUHV RI 5V  HDFK IXOO\ SDLG XS representing Global Depository Receipts issued GXULQJWKH\HDU 5HIHU&ODXVHRI6FKHGXOH ¶-·

 G  ,QFOXGHV  (TXLW\ VKDUHV RI 5VHDFKIXOO\SDLGXSDOORWWHGGXULQJWKH\HDU 2006-07 on conversion of Equity share warrants issued on preferential basis during the year 2005-06

 H  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK IXOO\ SDLG XS ZHUH DOORWWHG WR $SD[ 0DXULWLXV)',2QH/LPLWHGGXULQJWKH\HDU on preferential basis  I  ,QFOXGHV  (TXLW\ VKDUHV RI 5VHDFKIXOO\SDLGXSDOORWWHGGXULQJWKH\HDU 2008-09 on conversion of Equity share warrants issued on preferential basis during the year 2006-07 J  ,QFOXGHV  (TXLW\ VKDUHV RI 5VHDFKIXOO\SDLGXSDOORWWHGGXULQJWKH\HDU 2009-10 on conversion of Equity share warrants issued on preferential basis during the year 2007-08

K  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK IXOO\ SDLG XS DOORWWHG GXULQJ WKH year 2010-11 on conversion of FCCBs amounting 86   LVVXHG WR ,QWHUQDWLRQDO )LQDQFH &RUSRUDWLRQ ,)& :DVKLQJWRQ

(TXLW\VKDUHVRIIDFHYDOXHRI5VHDFKVXEGLYLGHG LQWRVKDUHVRI5VHDFKRQUG6HSWHPEHU7KH QXPEHURIHTXLW\VKDUHVDOORWWHGSULRUWRUG6HSWHPEHU DUHDGMXVWHGWRIDFHYDOXHRI5VSHUVKDUH

78 (Rs. in million) 31.03.2011 

SCHEDULE (B) Reserves & Surplus A. Capital Reserve   &DSLWDO5HVHUYH        3URÀWRQIRUIHLWHGVKDUHV 0.41 0.41 B. Capital Redemption Reserve 60.02 60.02 C. Securities Premium Account %DODQFHDVSHUODVW%DODQFHVKHHW     $GG3UHPLXPUHFHLYHGGXULQJWKH\HDU     $GG3UHPLXPUHFHLYHGIURP3URPRWHUV·LVVXH     D. General Reserve %DODQFHDVSHUODVWEDODQFHVKHHW     Add: Transfer during the year 1,000.00 750.00         E. Other Reserves ,QYHVWPHQW$OORZDQFH5HVHUYH      )RUHLJQ([FKDQJH)OXFWXDWLRQ5HVHUYH      Debenture Redemption Reserve 100.00 - 3URÀW /RVV$FFRXQW      Total 16,413.03 14,799.93 5HIHU&ODXVHRI6FKHGXOH¶-·

SCHEDULE (C) Secured Loans A Non-convertible Debentures L 'HEHQWXUHV      B Loans and Advances from Banks - L &DVKFUHGLW    LL ,QGLDQ%DQN     LLL %DQNRI,QGLD     LY &DQDUD%DQN      C Other Loans & Advances ,)&/RDQ ([WHUQDO&RPPHUFLDO%RUURZLQJV      Total 5,496.07 4,714.30 Refer clause 7 of Schedule J for details and security. Amount repayable within 1 year 5VPLOOLRQ 3UHYLRXV\HDU 5VPLOOLRQ H[FOXGLQJ&DVK&UHGLW

SCHEDULE (D) Unsecured Loans L )L[HG'HSRVLWV 579.16 507.52 LL 6KRUW7HUP/RDQVDQG$GYDQFHV   +')&      LLL 2WKHU/RDQVDQG$GYDQFHV      )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV      Total 1,914.04 2,185.57

79 (Rs. in million) 31.03.2011  SCHEDULE (E) Current Liabilities & Provisions A) Current Liabilities

(1) Acceptances      

(2) Sundry Creditors * L 7RWDORXWVWDQGLQJGXHVRIPLFUR HQWHUSULVHVDQGVPDOOHQWHUSULVHV     LL 7RWDORXWVWDQGLQJGXHVRIFUHGLWRUV other than micro enterprises and VPDOOHQWHUSULVHV     D )RU*RRGV     E )RU([SHQVHV     F )RU&DSLWDO*RRGV     G )RU2WKHUV     

(3) Advances

D ,QSDWLHQWGHSRVLWV     E 5HQW     F 2WKHUV     

(4) Investor Education and Production Fund shall be credited by the following (Not due) D 8QFODLPHG'LYLGHQG      E 8QFODLPHG'HSRVLWV     

(5) Other Liabilities

D 7D['HGXFWHGDWVRXUFH     E 5HWHQWLRQPRQH\RQFDSLWDOFRQWUDFWV    F 2XWVWDQGLQJH[SHQVHV     

(6) Interest accrued but not due 66.51 46.98 2,658.07 2,629.84 B) Provisions

(7) For Taxation     

(8) For Dividend L (TXLW\VKDUHV    

(9) Bonus 140.51 115.18

2,692.08 2,598.62 Total of Current Liabilities & Provisions 5,350.15 5,228.46 5HIHU&ODXVHRI6FKHGXOH -

80 0.41 21.71 17.47   255.22 As at 31.03.2010 - 1.28    405.92    As at     31.03.2011 1,091.57 1,082.00 99.59 198.15     As at 31.03.2011 6.81 26.85 - 1.00 0.87 0.87 8.77 5.58 28.42 27.97 (Rs. in million) 0.22 299.57  1.06 4.22 444.79 2.86 291.06 718.67 618.01 16.52 Deletions - -   For the year For  Additions - 6.09 0.94 0.06 6.97 8.56 0.21 - 4.76 0.81 - 70.99 44.25 0.98 114.25 221.68 292.27 82.18 20.94 92.06 26.40 0.44 118.02 257.10 261.19     As at 1,845.24 01.04.2010     791.76 As at  1,477.22 31.03.2011 26.85 25.57 1.28 - 20.72 0.22 6.59 - 1,091.57 - 1.87 1.00 -

- 4.76        - -   1.27 - 20.09 - 77.91 94.08 6.98     GROSS BLOCK AMORTIZATION / DEPRECIATION NETBLOCK Additions Deletions   26.85 - 27.80 875.12 215.65 90.16 8.07 1,082.00 9.58 5,057.24 - 904.15 1,269.29 247.66 As at 9,406.67 3,220.39 71.95 12,555.11 2,779.92 543.06 8.24 3,314.74 9,240.37 12,555.11 2,111.71 221.87 14,444.95 3,314.74 702.58 29.88 3,987.44 10,457.51 9,240.37 01.04.2010 Intangible Assets Computer Software Total Total Previous year &DSLWDOZRUNLQ3URJUHVV ,QFOXGHV FDSLWDODGYDQFHV    &DSLWDO:RUNLQ3URJUHVV 3UHYLRXV\HDU /DQG 0HGLFDO(TXLSPHQW 6XUJLFDO ,QVWXUPHQWV Vehicles Vehicles (OHFWULFDO,QVWDOODWLRQV *HQHUDWRUV )XUQLWXUH )L[WXUHV $LUFRQGLWLRQLQJ3ODQW $LUFRQGLWLRQHUV2IÀFH(TXLSPHQW     Tangible Assets Tangible Name of the Assets Name of the Sl 4 2 Buildings /HDVHKROG%XLOGLQJ   2,568.84 5 8 9 Fire Fighting Equipment 6 7 1 No 15 14 Electric Generator Wind 11 Equipment Kitchen 26.04  10 Boilers 1.87 - 12 Refrigerators SCHEDULE(F) Fixed Assets 5HIHUFODXVH '  Y LQ6FKHGXOH¶-·  5HIHUFODXVH )  E LQ6FKHGXOH¶-·

81 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Description Rs. Shares Rs.million Shares Rs.million SCHEDULE (G) Investments Investment in Government Securities Current Investments(lower of cost and market value) A) Unquoted 1DWLRQDO6DYLQJV&HUWLÀFDWH      Trade Investments LongTerm Investments ( at cost ) A) Unquoted ,QIXOO\SDLGXS3UHIHUHQFH6KDUH&DSLWDO     Zero % Non Cumulative Redeemable 3UHIHUHQFH6KDUHVRI$SROOR+RVSLWDOV ,QWHUQDWLRQDO/LPLWHG      A) Quoted ,QIXOO\SDLGXS(TXLW\6KDUH&DSLWDO     Associates ,QGDUSUDVWKD0HGLFDO&RUSRUDWLRQ/LPLWHG     0DUNHW9DOXHDVRQ5V SHUVKDUH (TXLW\VKDUHV SXUFKDVHGGXULQJWKH\HDU       B) Unquoted I) Subsidiaries L 8QLTXH+RPH+HDOWK&DUH/LPLWHG      LL $%0HGLFDO&HQWUHV/LPLWHG      LLL 6DPXGUD+HDOWK&DUH(QWHUSULVHV /LPLWHG (TXLW\VKDUHV SXUFKDVHGGXULQJWKH\HDU       LY ,PSHULDO+RVSLWDOV 5HVHDUFK &HQWUH/WG      Y $SROOR+RVSLWDOV 8. OWG       YL 3LQDNLQL+RVSLWDOV/LPLWHG      YLL $SROOR&RVPHWLF6XUJLFDO&HQWUH 3ULYDWH/LPLWHG      YLLL $OOLDQFH0HGLFRUS ,QGLD /WG       (TXLW\VKDUHVSXUFKDVHG GXULQJWKH\HDU      II) Joint Ventures L $SROOR+RVSLWDOV,QWHUQDWLRQDO/LPLWHG      LL $SROOR*OHQHDJOHV+RVSLWDOV/LPLWHG      LLL $SROOR*OHQHDJOHV+RVSLWDOV3(7&7 3ULYDWH/LPLWHG      LY :HVWHUQ+RVSLWDO&RUSRUDWLRQ/LPLWHG      Y 4XQLWLOHV3KDVH2QH&OLQLFDO7ULDOV ,QGLD3YW/WG VKDUHV SXUFKDVHGGXULQJWKH\HDU       C/f 2,343.26 2,064.73

82 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Description Rs. Shares Rs.million Shares Rs.million B/f 2,343.26 2,064.73 YL $SROOR/DYDVD+HDOWK&RUSRUDWLRQ /LPLWHG VKDUHVSXUFKDVHG GXULQJWKH\HDU       III) Associates 6WHPF\WH,QGLD7KHUDSDXWLFV3ULYDWH /LPLWHG      IV) Long term - Others L %ULWLVK$PHULFDQ+RVSLWDOV (QWHUSULVH/WG 085     LL .XUQRRO+RVSLWDOV(QWHUSULVHV/LPLWHG      LLL )XWXUH3DUNLQJ3ULYDWH/LPLWHG      LY +HDOWK6XSHU+LZD\3ULYDWH/LPLWHG       VKDUHVSXUFKDVHGGXULQJWKH\HDU       Y +HDOWK6XSHU+LZD\3ULYDWH/LPLWHG      3UHIHUHQFHVKDUHV VKDUHV      SXUFKDVHGGXULQJWKH\HDU      Non Trade Investments LongTerm Investments ( at cost ) i) Unquoted Debentures   'HEHQWXUHVRI$SROOR+HDOWK 6WUHHW/LPLWHG 2SWLRQDOO\5HGHHPDEOH &RQYHUWLEOH'HEHQWXUHV       Subsidiaries $SROOR+HDOWK /LIHVW\OH/LPLWHG       VKDUHVSXUFKDVHGGXULQJWKH\HDU      Joint Ventures $SROOR0XQLFK+HDOWK,QVXUDQFH &RPSDQ\/LPLWHG      Associates L )DPLO\+HDOWK3ODQ/LPLWHG      LL   $SROOR+HDOWK6WUHHW/LPLWHG      Unquoted Current Investment - Others Mutual Fund 5HOLDQFH0RQWKO\,QWHUYDO)XQG 6HULHV,,,QVWLWXWLRQDOGLYLGHQGSODQ      XQLWVSXUFKDVHG GXULQJWKH\HDU      Canara Robeco Floating Rate Short term *URZWK)XQG XQLWVSXUFKDVHG GXULQJWKH\HDU       +')&)03'0DUFK  'LYLGHQG 6HULHV;9,, XQLWVSXUFKDVHG during the year. 10 18,000,000 180.00 - - +')&4XDUWHUO\,QWHUYDO)XQG3ODQ&      XQLWVSXUFKDVHGGXULQJWKH\HDU      +')&)03'0DUFK        XQLWVVROGGXULQJWKH\HDU C/f 5,739.00 4,476.79

 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Description Rs. Shares Rs.million Shares Rs.million B/f 5,739.00 4,476.79 '63%ODFN5RFN0RQH\0DQDJHU)XQG ,QVWLWXWLRQDO3ODQ'DLO\'LYLGHQG       XQLWVSXUFKDVHGGXULQJWKH year, 1746 units cumulated during the \HDUDQGXQLWVVROGGXULQJWKH\HDU      .RWDN/LTXLG ,QVWLWXWLRQDO3UHPLXP 'DLO\'LYLGHQG3ODQ  units purchased during the year. 10 - - - - 1,508 units cumulated during the \HDUXQLWVVROGGXULQJ WKH\HDU  .RWDN)OH[L'HEW6FKHPH,QVWLWXWLRQDO 'DLO\'LYLGHQG XQLWV purchased during the year 54,906 10 - - - - units cumulatecd during the year XQLWVVROGGXULQJWKH\HDU       5HOLDQFH/LTXLGLW\)XQG'DLO\ Dividend Reinvestment Option XQLWVSXUFKDVHG during the year. 1,868 units 10 - - - - cumulated during the year. XQLWVVROGGXULQJWKH\HDU       5HOLDQFH0RQH\0DQDJHPHQW)XQG ,QVWLWXWLRQDO2SWLRQ'DLO\'LYLGHQG plan 199,744 units purchased during the year. 2,086 units cumulated during the year. XQLWVVROGGXULQJ WKH\HDU XQLWVSXUFKDVHG during the year. 2,086 units cumulated during the year. XQLWVVROGGXULQJWKH\HDU       5HOLDQFH/LTXLG)XQG&DVKSODQGDLO\ GLYLGHQGRSWLRQ XQLWV purchased during the year. 12,017 units cumulated during the year. XQLWVVROGGXULQJWKH\HDU       +')&&DVK0DQDJHPHQW)XQG6DYLQJV Plan-Daily Dividend Reinvestment Option XQLWVSXUFKDVHGGXULQJ the year. 5,126 units cumulated during WKH\HDUXQLWVVROG GXULQJWKH\HDU       +')&&DVK0DQDJHPHQW)XQG7UHDVXU\ $GYDQWDJH3ODQXQLWV SXUFKDVHGGXULQJWKH\HDU units cumulated during the year. VROGGXULQJWKH\HDU       C/f 5,890.75 4,476.79

84 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Total Description Rs. Shares Rs.million Shares Rs.million B/f 5,890.75 4,476.79

+')&6KRUWWHUP2SSRUWXQLWLHV Fund Dividend Payout Option XQLWVSXUFKDVHG GXULQJWKH\HDU XQLWVVROGGXULQJWKH\HDU       +')&)ORDWLQJ5DWH,QFRPHIXQG 6KRUWWHUP3ODQ  units purchased during the year. 40,075,201 units cumulated during the year. 122,657,114 XQLWVVROGGXULQJWKH\HDU       $,*7UHDVXU\)XQG6XSHU,QVWLWXWLRQDO Plan-Daily Dividend Reinvestment Option XQLWVSXUFKDVHGGXULQJ the year. 270,151 units cumulated during the year. 20,248,175 units VROGGXULQJWKH\HDU       &DQDUD5REHFR,Q'LJRTXDUWHUO\GLYLGHQG IXQG XQLWVSXUFKDVHGGXULQJ the year. 10,000,000 units sold GXULQJWKH\HDU       ,&,&,3UXGHQWLDO/LTXLG3ODQ6XSHU ,QVWLWXWLRQDO'DLO\'LYLGHQG5HLQYHVWPHQW 2SWLRQ XQLWVSXUFKDVHG during the year. 217 units cumulated during the year.1,999,775 units VROGGXULQJWKH\HDU       ,&,&,3UXGHQWLDO)OH[LEOH,QFRPH3ODQ Premium- Daily Dividend Reinvestment 2SWLRQ XQLWVSXUFKDVHG during the year. 17,144 units cumulated during the year 1,908,871 XQLWVVROGGXULQJWKH\HDU       $GYDQFHIRU,QYHVWPHQWVLQVKDUHV     IRUYDULRXVSURMHFWVXQGHUFRQVWUXFWLRQ      Total Investments 6,241.12 4,897.88 )RUPHUO\,PSHULDO&DQFHU+RVSLWDOV DQG5HVHDUFK&HQWUH/LPLWHG    )RUPHUO\$SROOR'.9,QVXUDQFH &RPSDQ\/LPLWHG      )RUPHUO\$SROOR*OHQHDJOHV3(7&7/LPLWHG      )RUPHUO\$SROOR+HDOWK6WUHHW 3ULYDWH/LPLWHG

85 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Total Description Rs. Shares Rs.million Shares Rs.million $JJUHJDWHDPRXQWRI4XRWHG,QYHVWPHQWV     0DUNHW9DOXH5VPLOOLRQ 5VPLOOLRQ       $JJUHJDWHDPRXQWRI8QTXRWHG,QYHVWPHQW      $GYDQFHIRU,QYHVWPHQWVLQVKDUHV      Total 6,241.12 4,897.88 'LYLGHQGIURP/RQJ7HUP,QYHVWPHQW      'LYLGHQGIURP&XUUHQW,QYHVWPHQW      3URÀW /RVV RQGLVSRVDORI&XUUHQW,QYHVWPHQW        3URÀWRQVDOHRI&XUUHQW,QYHVWPHQW5VPLOOLRQ     /RVVRQVDOHRI&XUUHQW,QYHVWPHQW5VPLOOLRQ     (Rs. in million) 31.03.2011  SCHEDULE (H) Current Assets, Loans & Advances

A. Current Assets (1) Inventories (at cost)**

L 0HGLFLQHV      LL 6WRUHVVSDUHV     LLL /DE0DWHULDOV     LY 6XUJLFDO,QVWUXPHQWV     Y 2WKHU&RQVXPDEOHV       $VWDNHQFHUWLÀHGDQGYDOXHGE\PDQDJHPHQW      5HIHUFODXVH % RI6FKHGXOH¶-·

(2) Sundry Debtors 5HIHUFODXVHRI6FKHGXOH¶-· D 'HEWRUV2XWVWDQGLQJIRUDSHULRG H[FHHGLQJVL[PRQWKV     /HVV3URYLVLRQIRU%DGGHEWV      E 2WKHU'HEWV     

(3) Cash and Bank Balances D &DVK%DODQFHRQKDQG     E %DQN%DODQFH     L :LWKVFKHGXOHGEDQNV    D &XUUHQW$FFRXQW      E 2Q'HSRVLW$FFRXQW      5HIHUFODXVHJLQVFKHGXOH¶-· B. Loans and Advances (4) Loans L 7R6XEVLGLDU\    D ,PSHULDO+RVSLWDO  5HVHDUFK&HQWUH/WG       &I    

86 (Rs. in million) 31.03.2011   %I     (5) Advances Subsidiaries D 8QLTXH+RPH+HDOWK&DUH/LPLWHG     E ,PSHULDO+RVSLWDO 5HVHDUFK &HQWUH/WG     F $%0HGLFDOFHQWHU/LPLWHG     G 6DPXGUD+HDOWK&DUH(QWHUSULVHV/WG    H $SROOR+RVSLWDOV 8. /LPLWHG      I 3LQDNLQL+RVSLWDOV/LPLWHG     J $SROOR+HDOWK /LIHVW\OH/LPLWHG     K $SROOR&RVPHWLF6XUJLFDOFHQWUHSYWOWG     L $OOLDQFH'HQWDO&DUH3ULYDWH/LPLWHG    

Others D )RUFDSLWDOLWHPV     E 7RVXSSOLHUV     F 2WKHUDGYDQFHV     G 6WDIIDGYDQFHV     

(6) Advance tax 1,579.28 1,750.64

(7) Deposits

D :LWK*RYHUQPHQW     E :LWKRWKHUV     

(8) Prepaid Expenses     

(9) Rent Receivables      

(10) Service Charges Receivables     

(11) Tax Deducted at Source 919.48 689.52

(12) Interest Receivable     

(13) Franchise Fees Receivable 11.10 6.57

(14) Royalty Receivable - 2.14

Total of Current Assets, Loans & Advances (A + B) 11,330.38 11,425.08

SCHEDULE (I) Miscellaneous Expenditure >7RWKHH[WHQWQRWZULWWHQRIIRUDGMXVWHG      D 'HIHUUHG5HYHQXH([SHQGLWXUH      Total Nil 0.12

87 Schedules to Profit & Loss Account

(Rs. in million) 31.03.2011  SCHEDULE - (I) Other Income  D  , Q W H U H V W  H D U Q H G   7 ' 6  5 V        P L O O L R Q   110.89 115.47 5VPLOOLRQ   E 'LYLGHQG  L )URP&XUUHQW,QYHVWPHQW 18.57   LL )URP/RQJ7HUP,QYHVWPHQW  25.81  F ,QFRPHIURP7UHDVXU\RSHUDWLRQV 11.77   G 3URÀWRQVDOHRI,QYHVWPHQW  62.09 &XUUHQW,QYHVWPHQW  H 3URÀWRQ6DOHRI$VVHW  0.60  I )RUHLJQ([FKDQJH*DLQ 41.52 - Total 213.70 329.66

SCHEDULE - (II) Operative Expenses Materials Consumed  D 2SHQLQJVWRFN  1,065.57 ADD : Purchases   Customs Duty   Freight Charges 11.85   10,847.81 /(66&ORVLQJVWRFN 1,505.21     E 3RZHU )XHO    F +RXVH.HHSLQJ([SHQVHV    G :DWHUFKDUJHV 44.79  Total 12,788.04 9,944.64

SCHEDULE - (III) Payments to and Provisions for Employees  D 6DODULHV :DJHV    E &RQWULEXWLRQWR3URYLGHQW)XQG 149.44   F (PSOR\HH6WDWH,QVXUDQFH 20.11 16.22  G (PSOR\HH%HQHÀWV 79.56 57.56  H 6WDII:HOIDUHH[SHQVHV  155.47  I 6WDII(GXFDWLRQ 7UDLQLQJ 12.22   J %RQXV 140.51 115.18 Total 3,572.00 2,863.81

88 (Rs. in million) 31.03.2011  SCHEDULE - (IV) Adminstrative & Other Expenses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ÀFHPDLQWHQDQFH RWKHUV 162.48  106.82 450.75  Y /RVVRQ6DOHRI$VVHWV  20.09  Z 5R\DOW\3DLG 1.26 1.56  [ 2XWVRXUFLQJ([SHQVHV    \ /RVVRQ6DOHRI&XUUHQW,QYHVWPHQW 1.66  Total 3,186.86 2,633.37 SCHEDULE - (V) Financial Expenses  D ,QWHUHVWRQ L )L[HG/RDQV   LL )L[HG'HSRVLWV 51.14 29.79 LLL 'HEHQWXUHV 14.96 519.16 -   E %DQN&KDUJHV  25.10  F %URNHUDJH &RPPLVVLRQ  2.26  G )RUHLJQ([FKDQJH/RVV  15.05 Total 587.32 377.47

89 Notes Forming Part of Accounts Schedule (J) Accounting Policies & Notes Forming Part of Accounts

1. SIGNIFICANT ACCOUNTING POLICIES A. Basis of Preparation of Financial Statements

7KHÀQDQFLDOVWDWHPHQWVDUHSUHSDUHGXQGHUWKHKLVWRULFDOFRVWFRQYHQWLRQXQGHUDFFUXDOPHWKRGRI accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles *$$3 SUHYDOHQWLQ,QGLDDQGWKH0DQGDWRU\$FFRXQWLQJ6WDQGDUGVDVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHVDQGDFFRUGLQJWRWKHSURYLVLRQVRIWKH&RPSDQLHV$FW

B. Inventories

1. The inventories of all medicines, medicare items traded and dealt with by the Company are valued DWFRVW,QWKHDEVHQFHRIDQ\IXUWKHUHVWLPDWHGFRVWVRIFRPSOHWLRQDQGHVWLPDWHGFRVWVQHFHVVDU\ 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 DIWHUDGMXVWLQJIRU9$7ZKHUHYHUDSSOLFDEOHDSSO\LQJWKH),)2PHWKRG

 6WRFN RI SURYLVLRQV VWRUHV LQFOXGLQJ ODE PDWHULDOV DQG RWKHU FRQVXPDEOHV  VWDWLRQHULHV DQG housekeeping items are stated at cost. The net realisable value is not applicable in the absence of DQ\IXUWKHUPRGLÀFDWLRQDOWHUDWLRQEHIRUHEHLQJFRQVXPHGLQKRXVHRQO\&RVWRIWKHVHLQYHQWR- ries comprises of all costs of purchase and other costs incurred in bringing the inventories to their SUHVHQWORFDWLRQDIWHUDGMXVWLQJIRU9$7ZKHUHYHUDSSOLFDEOHDSSO\LQJWKH),)2PHWKRG

 6XUJLFDOLQVWUXPHQWVOLQHQFURFNHU\DQGFXWOHU\DUHYDOXHGDWFRVWDQGDUHVXEMHFWWRZULWH RIIZKHUHYHUDSSOLFDEOHDSSO\LQJWKH),)2PHWKRG7KHQHWUHDOLVDEOHYDOXHLVQRWDSSOLFDEOHLQ WKHDEVHQFHRIDQ\IXUWKHUPRGLÀFDWLRQDOWHUDWLRQEHIRUHEHLQJFRQVXPHGLQKRXVH&RVWRIWKHVH inventories comprises of all costs of purchase and other costs incurred in bringing the inventories to their present location.

 ,PSRUWHGLQYHQWRULHVDUHDFFRXQWHGIRUDWWKHDSSOLFDEOHH[FKDQJHUDWHVSUHYDLOLQJRQWKHGDWHRI WUDQVDFWLRQ $OVRUHIHU1RWHLQWKH1RWHVIRUPLQJSDUWRI$FFRXQWV 

C. Prior Period Items and Extraordinary Items

3ULRUSHULRGLWHPVDQGH[WUDRUGLQDU\LWHPVDUHVHSDUDWHO\FODVVLÀHGLGHQWLÀHGDQGGHDOWZLWKDVUH- TXLUHGXQGHU$FFRXQWLQJ6WDQGDUGRQ¶1HW3URÀWRU/RVVIRUWKH3HULRG3ULRU3HULRG,WHPVDQG&KDQJHV LQ$FFRXQWLQJ3ROLFLHV·DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHV

D. Depreciation and Amortisation

i. Depreciation has been provided

D 2QDVVHWVLQVWDOOHGDIWHUVW$SULORQVWUDLJKWOLQHPHWKRGDWUDWHVVSHFLÀHGLQ6FKHGXOH;,9 of the Companies Act, 1956 on a single shift basis.

b. On assets installed prior to 2nd April 1987 on straight-line method at the rates equivalent to the ,QFRPH7D[UDWHV

ii. Depreciation on new assets acquired during the year is provided at the rates applicable from the date of DFTXLVLWLRQWRWKHHQGRIWKHÀQDQFLDO\HDU

LLL ,QUHVSHFWRIWKHDVVHWVVROGGXULQJWKH\HDUGHSUHFLDWLRQLVSURYLGHGIURPWKHEHJLQQLQJRIWKH\HDUWLOO the date of its disposal.

90 LY ,QGLYLGXDODVVHWVDFTXLUHGIRU5VDQGEHORZDUHIXOO\GHSUHFLDWHGLQWKH\HDURIDFTXLVLWLRQ v. Amortization

D 7KHFRVWSUHPLXPRIODQGDQGEXLOGLQJWDNHQRQOHDVHE\WKHFRPSDQ\IURP2ULHQW+RVSLWDO0DGXUDLZLOO EHDPRUWLVHGRYHUDSHULRGRI\HDUVWKRXJKWKHOHDVHLVIRUDSHULRGRI\HDUV

 7KHFRVWSUHPLXPRIODQGDQGEXLOGLQJWDNHQDGGLWLRQDOO\RQOHDVHE\WKHFRPSDQ\DW0DGXUDLLVIRUDSH- ULRGRI\HDUVZLWKDQRSWLRQWRH[WHQGWKHOHDVHE\DQRWKHU\HDUV7KHGHSUHFLDWLRQRQWKHOHDVHKROG building is charged on a straight line basis with the lease period being considered as 25 years.

 7KH&RPSDQ\KDVWDNHQODQGLQ.DUDLNXGLIURP$SROOR+RVSLWDOV(GXFDWLRQDO7UXVWRQOHDVHIRUDSHULRG RI\HDUV7KHEXLOGLQJFRQVWUXFWHGRQWKHOHDVHODQGZLOOEHDPRUWLVHGRYHUDSHULRGRI\HDUV7KLV LVLQFRQIRUPLW\ZLWKWKHGHÀQLWLRQRIOHDVHWHUPDVSHU&ODXVHRI$6¶/HDVHV·DVQRWLÀHGXQGHUWKH &RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHV

E /HDVHUHQWDORQRSHUDWLQJOHDVHVLVUHFRJQLVHGDVDQH[SHQVHLQWKH3URÀW /RVV$FFRXQWRQVWUDLJKWOLQH EDVLVDVSHUWKHWHUPVRIWKHDJUHHPHQWLQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUG¶/HDVHV·DVQRWLÀHG XQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHV

E. Revenue Recognition

D ,QFRPHIURP+HDOWKFDUH6HUYLFHVLVUHFRJQLVHGDVSHUWKHFRPSOHWHGVHUYLFHFRQWUDFWPHWKRG7KHKRVSL- tal collections of the company are net of discounts. Revenue also includes the value of services rendered SHQGLQJÀQDOELOOLQJLQUHVSHFWRILQSDWLHQWVXQGHUJRLQJWUHDWPHQWDVRQVW0DUFK b. Pharmacy Sales are recognised when the risk and reward of ownership is passed to the customer and are VWDWHGQHWRIUHWXUQVGLVFRXQWVDQGH[FOXVLYHRI9$7ZKHUHYHUDSSOLFDEOH

F +RVSLWDO3URMHFW&RQVXOWDQF\LQFRPHLVUHFRJQLVHGDVDQGZKHQLWEHFRPHVGXHRQSHUFHQWDJHFRPSOH- tion method, on achievement of milestones.

G ,QFRPHIURP7UHDVXU\2SHUDWLRQVLVUHFRJQLVHGRQUHFHLSWRUDFFUXDOEDVLVZKLFKHYHULVHDUOLHU

H ,QWHUHVWLQFRPHLVUHFRJQLVHGRQDWLPHSURSRUWLRQEDVLVWDNLQJLQWRDFFRXQWWKHDPRXQWRXWVWDQGLQJDQG 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

D $OO)L[HG$VVHWVDUHVWDWHGDWWKHLURULJLQDOFRVWRIDFTXLVLWLRQOHVVDFFXPXODWHGGHSUHFLDWLRQDQGLP- SDLUPHQWORVVHVDUHUHFRJQLVHGZKHUHQHFHVVDU\ $OVRUHIHU&ODXVH1LQWKH1RWHVIRUPLQJSDUWRIWKH $FFRXQWV $GGLWLRQDO FRVW UHODWLQJ WR WKH DFTXLVLWLRQ DQG LQVWDOODWLRQ RI À[HG DVVHWV DUH FDSLWDOLVHG :KHUHYHU9$7LVHOLJLEOHIRULQSXWDYDLOPHQW)L[HG$VVHWVDUHVWDWHGDWFRVWRIDFTXLVLWLRQDIWHUGHGXFWLRQ of input VAT.

E &DSLWDOZRUN²LQ²SURJUHVVFRPSULVHVRIRXWVWDQGLQJDGYDQFHVSDLGWRDFTXLUHÀ[HGDVVHWVDQGDPRXQWV H[SHQGHGRQGHYHORSPHQWDFTXLVLWLRQRI)L[HG$VVHWVWKDWDUHQRW\HWUHDG\IRUWKHLULQWHQGHGXVHDWWKH %DODQFH6KHHW'DWH([SHQGLWXUHGXULQJFRQVWUXFWLRQSHULRGGLUHFWO\DWWULEXWDEOHWRWKHFRVWRIDVVHWVRQ SURMHFWVXQGHULPSOHPHQWDWLRQLVLQFOXGHGXQGHU&DSLWDOZRUNLQ²SURJUHVVSHQGLQJDOORFDWLRQWRWKH assets.

F $VVHWVDFTXLUHGXQGHU+LUH3XUFKDVHDJUHHPHQWVDUHFDSLWDOLVHGWRWKHH[WHQWRISULQFLSDOYDOXHZKLOH ÀQDQFHFKDUJHVDUHFKDUJHGWRUHYHQXHRQDQDFFUXDOEDVLV

91 G ,QWHUHVW RQ ERUURZLQJV IRU DFTXLVLWLRQ RI )L[HG $VVHWV DQG UHODWHG UHYHQXH H[SHQGLWXUH LQFXUUHG IRU WKHSHULRGSULRUWRWKHFRPPHQFHPHQWRIRSHUDWLRQVIRUWKHH[SDQVLRQDFWLYLWLHVRIWKHFRPSDQ\DUH capitalised.

G. Transactions in Foreign Currencies

D 0RQHWDU\LWHPVUHODWLQJWRIRUHLJQFXUUHQF\WUDQVDFWLRQVUHPDLQLQJXQVHWWOHGDWWKHHQGRIWKH\HDUDUH WUDQVODWHGDWWKHH[FKDQJHUDWHVSUHYDLOLQJDWWKHGDWHRIWKH%DODQFH6KHHW7KHGLIIHUHQFHLQWUDQVODWLRQ RIPRQHWDU\LWHPVDQGWKHUHDOLVHGJDLQVDQGORVVHVRQIRUHLJQH[FKDQJHWUDQVDFWLRQVDUHUHFRJQLVHGLQ WKH3URÀW /RVV$FFRXQWLQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUG²¶7KH(IIHFWVRI&KDQJHVLQ)RUHLJQ ([FKDQJH 5DWHV 5HYLVHG  · DV QRWLÀHG XQGHU WKH &RPSDQLHV $FFRXQWLQJ 6WDQGDUGV  5XOHV  $OVRUHIHU1RWHLQWKH1RWHVIRUPLQJSDUWRI$FFRXQWV 

E ([FKDQJHGLIIHUHQFHVDULVLQJRQVHWWOHPHQWRUUHVWDWHPHQWRIIRUHLJQFXUUHQF\GHQRPLQDWHGOLDELOLWLHV ERUURZHGIRUWKHDFTXLVLWLRQRI)L[HG$VVHWVDUHUHFRJQLVHGLQWKH3URÀWDQG/RVV$FFRXQWZKLFKLVLQDF- FRUGDQFHZLWK$FFRXQWLQJ6WDQGDUG´7KH(IIHFWVRI&KDQJHVLQ)RUHLJQ([FKDQJH5DWHVµ $OVRUHIHU 1RWHLQWKH1RWHVIRUPLQJSDUWRI$FFRXQWV 

c. The use of foreign currency forward contract is governed by the company’s policies approved by the Board of Directors. These hedging contracts are not for speculation. All outstanding derivative instru- PHQWVDWFORVHDUHPDUNHGWRPDUNHWE\W\SHRIULVNDQGWKHUHVXOWDQWSURÀWVORVVHVUHODWLQJWRWKH\HDU LIDQ\DUHUHFRJQLVHGLQWKH3URÀWDQG/RVV$FFRXQW $OVRUHIHU1RWHLQWKH1RWHVIRUPLQJSDUWRI$F- FRXQWV 

H. Investments

,QYHVWPHQWVDUHFODVVLÀHGDVFXUUHQWRUORQJWHUPLQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUGRQ¶$FFRXQWLQJIRU ,QYHVWPHQWV·

D /RQJWHUPLQYHVWPHQWVDUHVWDWHGDWFRVWWRWKH&RPSDQ\LQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUGRQ ¶$FFRXQWLQJIRU,QYHVWPHQWV·7KH&RPSDQ\SURYLGHVIRUGLPLQXWLRQLQWKHYDOXHRIORQJWHUPLQYHVWPHQWV other than those temporary in nature.

b. Current investments are valued at lower of cost and fair value. Any reduction to the carrying amount and DQ\UHYHUVDOVRIVXFKUHGXFWLRQVDUHFKDUJHGRUFUHGLWHGWRWKH3URÀWDQG/RVV$FFRXQW

c. On disposal of an investment, the difference between the carrying amount and net disposal proceeds is FKDUJHGRUFUHGLWHGWRWKH3URÀWDQG/RVV$FFRXQW

G ,QFDVHRIIRUHLJQLQYHVWPHQWV

i. The cost is the rupee value of the foreign currency on the date of investment.

LL 7KHIDFHYDOXHRIWKHIRUHLJQLQYHVWPHQWVLVVKRZQDWWKHIDFHYDOXHUHÁHFWHGLQWKHIRUHLJQFXU- rency of that country.

, (PSOR\HH%HQHÀWV

6KRUWWHUPHPSOR\HHEHQHÀWV EHQHÀWVZKLFKDUHSD\DEOHZLWKLQWZHOYHPRQWKVDIWHUWKHHQGRIWKHSHULRGLQ ZKLFKWKHHPSOR\HHVUHQGHUVHUYLFH DUHPHDVXUHGDWFRVW

/RQJWHUPHPSOR\HHEHQHÀWV EHQHÀWVZKLFKDUHSD\DEOHDIWHUWKHHQGRIWZHOYHPRQWKVIURPWKHHQGRIWKH SHULRGLQZKLFKHPSOR\HHVUHQGHUVHUYLFH DQGSRVWHPSOR\PHQWEHQHÀWV EHQHÀWVZKLFKDUHSD\DEOHDIWHU FRPSOHWLRQRIHPSOR\PHQW DUHPHDVXUHGRQDGLVFRXQWHGEDVLVE\WKH3URMHFWHG8QLW&UHGLW0HWKRGRQWKH basis of annual third party actuarial valuations.

92 'HÀQHG&RQWULEXWLRQ3ODQ

7KH&RPSDQ\PDNHVFRQWULEXWLRQWRZDUGV3URYLGHQW)XQGDQG(PSOR\HHV6WDWH,QVXUDQFHDVDGHÀQHGFRQWULEX- WLRQUHWLUHPHQWEHQHÀWIXQGIRUTXDOLI\LQJHPSOR\HHV

7KH 3URYLGHQW )XQG 3ODQ LV RSHUDWHG E\ WKH 5HJLRQDO 3URYLGHQW )XQG &RPPLVVLRQHU8QGHU WKH VFKHPH WKH &RPSDQ\LVUHTXLUHGWRFRQWULEXWHDVSHFLÀHGSHUFHQWDJHRISD\UROOFRVWDVSHUWKHVWDWXWHWRWKHUHWLUHPHQW EHQHÀWVFKHPHVWRIXQGWKHEHQHÀWV(PSOR\HHV6WDWH,QVXUDQFHGXHVDUHUHPLWWHGWRWKH(PSOR\HHV6WDWH,Q- surance Corporation.

'HÀQHG%HQHÀW3ODQV

)RU'HÀQHG%HQHÀW3ODQWKHFRVWRISURYLGLQJEHQHÀWVLVGHWHUPLQHGXVLQJWKH3URMHFWHG8QLW&UHGLW0HWKRGZLWK DFWXDULDOYDOXDWLRQEHLQJFDUULHGRXWDWHDFK%DODQFH6KHHWGDWH$FWXDULDO*DLQVRU/RVVHVDUHUHFRJQLVHGLQIXOO LQWKH3URÀWDQG/RVV$FFRXQWIRUWKHSHULRGLQZKLFKWKH\RFFXU a. Gratuity 7KH&RPSDQ\PDNHVDQQXDOFRQWULEXWLRQWRWKH(PSOR\HHV·*URXS*UDWXLW\FXP/LIH$VVXUDQFH6FKHPHRIWKH ,&,&,DQG/LIH,QVXUDQFH&RUSRUDWLRQRI,QGLDIRUIXQGLQJGHÀQHGEHQHÀWSODQIRUTXDOLI\LQJHPSOR\HHVZKLFK LVUHFRJQLVHGDVDQH[SHQVH7KH6FKHPHSURYLGHVIRUOXPSVXPSD\PHQWWRYHVWHGHPSOR\HHVDWUHWLUHPHQW death while in employment, or on termination of employment of an amount equivalent to 15 days salary payable IRUHDFKFRPSOHWHG\HDURIVHUYLFHRUSDUWWKHUHRILQH[FHVVRIVL[PRQWKV9HVWLQJRFFXUVXSRQFRPSOHWLRQRI ÀYH\HDUVRIVHUYLFH7KH&RPSDQ\UHVWULFWVWKHSD\PHQWRIJUDWXLW\WRWKHHPSOR\HHVEHORZWKHUDQNRI*HQHUDO 0DQDJHUVWRWKHOLPLWVVSHFLÀHGLQWKH3D\PHQWRI*UDWXLW\$FW+RZHYHUWKHFRPSDQ\FRPSOLHVZLWKWKH norms of Accounting Standard 15.

E/HDYH(QFDVKPHQW%HQHÀWV 7KH&RPSDQ\SD\VOHDYHHQFDVKPHQWEHQHÀWVWRHPSOR\HHVDVDQGZKHQFODLPHGVXEMHFWWRWKHSROLFLHVRIWKH &RPSDQ\7KH&RPSDQ\SURYLGHVOHDYHEHQHÀWVWKURXJKDQQXDOFRQWULEXWLRQWRWKHIXQGPDQDJHGE\+')&/LIH

J. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as SDUWRIWKHFRVWRIVXFKDVVHWV$VSHU$FFRXQWLQJ6WDQGDUG¶%RUURZLQJFRVWV·DTXDOLI\LQJDVVHWLVRQHWKDW takes a necessarily substantial period of time to get ready for its intended use. All other borrowing costs are H[SHQVHGDVDQGZKHQLQFXUUHG

K. Segment Reporting

,GHQWLÀFDWLRQRI6HJPHQWV 7KH&RPSDQ\KDVFRPSOLHGZLWK$FFRXQWLQJ6WDQGDUG¶6HJPHQW5HSRUWLQJ·ZLWK%XVLQHVVDVWKHSULPDU\VHJ- ment.

7KH&RPSDQ\RSHUDWHVLQDVLQJOHJHRJUDSKLFDOVHJPHQWZKLFKLV,QGLDDQGWKHSURGXFWVVROGLQWKHSKDUPDFLHV 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 report- DEOHVHFRQGDU\VHJPHQWDVGHÀQHGLQ$FFRXQWLQJ6WDQGDUG

Segment Policies

The accounting policies adopted for segment reporting are in line with the accounting policies adopted in con- VROLGDWHGÀQDQFLDOVWDWHPHQWVZLWKWKHIROORZLQJDGGLWLRQDOSROLFLHVIRU6HJPHQW5HSRUWLQJ

L 5HYHQXHDQGH[SHQVHVKDYHEHHQLGHQWLÀHGWRVHJPHQWVRQWKHEDVLVRIWKHLUUHODWLRQVKLSWRWKHRSHUDWLQJ DFWLYLWLHVRIWKHVHJPHQW5HYHQXHDQGH[SHQVHVZKLFKUHODWHWRWKHHQWHUSULVHDVDZKROHDQGDUHQRW DOORFDEOHWRVHJPHQWVRQDUHDVRQDEOHEDVLVKDYHEHHQLQFOXGHGXQGHU´XQDOORFDEOHH[SHQVHVµ

LL ,QWHUVHJPHQWUHYHQXHDQGH[SHQVHVDUHHOLPLQDWHG

 7KH&RPSDQ\KDVGLVFORVHGWKLV6HJPHQW5HSRUWLQJLQ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVDVSHUSDUD  RI$F- FRXQWLQJ6WDQGDUG²¶6HJPHQW5HSRUWLQJ·

L. Earnings per Share

,QGHWHUPLQLQJWKHHDUQLQJVSHUVKDUHWKH&RPSDQ\FRQVLGHUVWKHQHWSURÀWDIWHUWD[EHIRUHH[WUDRUGLQDU\LWHP DQGDIWHUH[WUDRUGLQDU\LWHPVDQGLQFOXGHVSRVWWD[HIIHFWRIDQ\H[WUDRUGLQDU\LWHPV7KHQXPEHURIVKDUHV 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.

M. Taxation

i. Income Tax ,QFRPHWD[LVFRPSXWHGXVLQJWKHWD[HIIHFWDFFRXQWLQJPHWKRGZKHUHWD[HVDUHDFFUXHGLQWKHVDPHSHULRGDV DQGZKHQWKHUHODWHGUHYHQXHDQGH[SHQVHDULVH$SURYLVLRQLVPDGHIRU,QFRPH7D[DQQXDOO\EDVHGRQWKHWD[ OLDELOLW\FRPSXWHGDIWHUFRQVLGHULQJWD[DOORZDQFHVDQGH[HPSWLRQV

ii. Deferred Tax 7KHGLIIHUHQFHVWKDWUHVXOWEHWZHHQWKHSURÀWFDOFXODWHGIRULQFRPHWD[SXUSRVHVDQGWKHSURÀWDVSHUWKHÀQDQ- FLDOVWDWHPHQWVDUHLGHQWLÀHGDQGWKHUHDIWHUGHIHUUHGWD[DVVHWRUGHIHUUHGWD[OLDELOLW\LVUHFRUGHGIRUWLPLQJ differences, namely the differences that originate in one accounting period and get reversed in another, based RQWKHWD[HIIHFWRIWKHDJJUHJDWHDPRXQWEHLQJFRQVLGHUHG'HIHUUHGWD[DVVHWDUHQRWUHFRJQL]HGXQOHVVWKHUH LVYLUWXDOFHUWDLQW\WKDWVXIÀFLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHW FDQEHUHDOL]HG7KHWD[HIIHFWLVFDOFXODWHGRQWKHDFFXPXODWHGWLPLQJGLIIHUHQFHVDWWKHEHJLQQLQJRIWKLVDF- counting year based on the prevailing enacted or substantively enacted regulations.

N. Impairment

The carrying amounts of assets are reviewed at each Balance Sheet date to ascertain if there is any indication RILPSDLUPHQWEDVHGRQLQWHUQDOH[WHUQDOIDFWRUV$QDVVHWLVWUHDWHGDVLPSDLUHGEDVHGRQWKHFDVKJHQHUDWLQJ FRQFHSWDWWKH\HDUHQGZKHQWKHFDUU\LQJFRVWRIDVVHWVH[FHHGVLWVUHFRYHUDEOHYDOXHLQWHUPVRI3DUDWR 3DUDRI$6¶,PSDLUPHQWRI$VVHWV·DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHVIRU WKHSXUSRVHRIDUULYLQJDWLPSDLUPHQWORVVWKHUHRQLIDQ\$QLPSDLUPHQWORVVLVFKDUJHGWRWKH3URÀWDQG/RVV $FFRXQWLQWKH\HDULQZKLFKDQDVVHWLVLGHQWLÀHGDVLPSDLUHG7KHLPSDLUPHQWORVVUHFRJQL]HGLQSULRUDFFRXQW- ing periods is reversed if there has been a change in the estimate of the recoverable amount.

O. 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 manage- ment inputs on the collectability of the same,

Period % of write off 8SWR\HDU 0% 1-2 years 25% \HDUV 50% 2YHU\HDUV 100%

P. Miscellaneous Expenditure

3UHOLPLQDU\3XEOLF,VVXH5LJKWV,VVXH([SHQVHVDQG([SHQVHVRQ3ULYDWH3ODFHPHQWRIVKDUHVDUHDPRUWLVHGRYHU a period of 10 years.

94 Q. Intangible Assets

,QWDQJLEOHDVVHWVDUHLQLWLDOO\UHFRJQLVHGDWFRVWDQGDPRUWLVHGRYHUWKHEHVWHVWLPDWHRIWKHLUXVHIXOOLIH&RVW RIVRIWZDUHLQFOXGLQJGLUHFWO\DWWULEXWDEOHFRVWLIDQ\DFTXLUHGIRULQWHUQDOXVHLVDOORFDWHGDPRUWLVHGRYHUD SHULRGRIPRQWKVWRPRQWKV

R. Provisions, 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 WKDWDQRXWÁRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQHÀWVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGDUHOLDEOH estimate can be made of the amount of the obligation.

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2. 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 No Name of Related Parties Nature of relationship 1 8QLTXH+RPH+HDOWK&DUH/LPLWHG 2 $%0HGLFDO&HQWUHV/LPLWHG  6DPXGUD+HDOWKFDUH(QWHUSULVHV/LPLWHG 4 $SROOR+RVSLWDO 8. /LPLWHG 5 $SROOR+HDOWKDQG/LIHVW\OH/LPLWHG 6 ,PSHULDO+RVSLWDODQG5HVHDUFK&HQWUH/LPLWHG Subsidiary Companies FRQWUROH[LVWV 7 3LQDNLQL+RVSLWDOV/LPLWHG 8 $SROOR&RVPHWLF6XUJLFDO&HQWUH3ULYDWH/LPLWHG 9 $OOLDQFH0HGLFRUS ,QGLD /LPLWHG 10 ,6,6+HDOWKFDUH,QGLD3ULYDWH/LPLWHG 11 0HUD+HDOWKFDUH3ULYDWH/LPLWHG 12 $OOLDQFH'HQWDO&DUH3ULYDWH/LPLWHG  $SROOR+RVSLWDOV,QWHUQDWLRQDO/LPLWHG 14 $SROOR*OHQHDJOHV+RVSLWDOV/LPLWHG 15 $SROOR*OHQHDJOHV3(7&73ULYDWH/LPLWHG 16 :HVWHUQ+RVSLWDOV&RUSRUDWLRQ3YW/LPLWHG Joint Ventures 17 $SROOR0XQLFK+HDOWK,QVXUDQFH&RPSDQ\/LPLWHG 18 $SROOR/DYDVD+HDOWK&RUSRUDWLRQ/LPLWHG 19 4XLQWLOHV3KDVH2QH&OLQLFDO7ULDOV,QGLD3ULYDWH/LPLWHG 20 )DPLO\+HDOWK3ODQ/LPLWHG 21 $SROOR+HDOWK6WUHHW/LPLWHG Associates 22 ,QGUDSUDVWKD0HGLFDO&RUSRUDWLRQ/LPLWHG  6WHPF\WH,QGLD7KHUDSDXWLFV3ULYDWH/LPLWHG 24 Dr. Prathap C Reddy 25 Smt. Preetha Reddy .H\0DQDJHPHQW 26 Smt. Suneeta Reddy Personnel 27 Smt. Sangita Reddy 28 Smt. Shobana Kamineni 29 3&5,QYHVWPHQWV/LPLWHG Enterprises over which  ,QGLDQ+RVSLWDOV&RUSRUDWLRQ/LPLWHG .H\0DQDJHPHQW3HUVRQQHO DUHDEOHWRH[HUFLVHVLJQLÀ-  $SROOR6LQGRRUL+RWHOV/LPLWHG FDQWLQÁXHQFH  3313RZHU*HQHUDWLQJ&RPSDQ\3ULYDWH/LPLWHG

95  +HDOWK6XSHU+LZD\3ULYDWH/LPLWHG  )DEHU6LQGRRUL0DQDJHPHQW6HUYLFHV3ULYDWH/LPLWHG  $VKRN%LUOD$SROOR+RVSLWDOV3ULYDWH/LPLWHG  $SROOR0XPEDL+RVSLWDO/LPLWHG  /LIHWLPH:HOOQHVV5[,QWHUQDWLRQDO/LPLWHG  $SROOR&OLQLFDO([FHOOHQFH6ROXWLRQV/LPLWHG Enterprises over which  331+ROGLQJ3ULYDWH/LPLWHG .H\0DQDJHPHQW3HUVRQQHO 40 3UHHWKD,QYHVWPHQWV3ULYDWH/LPLWHG DUHDEOHWRH[HUFLVHVLJQLÀ- 41 3313RZHU*HQHUDWLRQ 8QLW,, 3ULYDWH/LPLWHG FDQWLQÁ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nterprises over which 61 .$5$XWR3ULYDWH/LPLWHG .H\0DQDJHPHQW3HUVRQQHO 62 +HDOWKQHW*OREDO/WG DUHDEOHWRH[HUFLVHVLJQLÀ-  6LQG\D,QIUDVWUXFWXUH'HYHORSPHQW&RPSDQ\3ULYDWH/LPLWHG FDQWLQÁXHQFH 64 Associated Electrical Agencies 65 32EXO5HGG\ 6RQV 66 $SH[EXLOGHUV 67 $SH[&RQVWUXFWLRQ 68 .HL(QHUJ\3ULYDWH/LPLWHG 69 .DPLQHQL%XLOGHUV3ULYDWH/LPLWHG 70 3ULPHWLPH5HFUHDWLRQV3ULYDWH/LPLWHG 71 .LGG\&RQFHSWV3ULYDWH/LPLWHG 72 .HL9LWD3ULYDWH/LPLWHG  .HL5DMDPDKHQGUL5HVRUWV3ULYDWH/LPLWHG 74 .(,56263HWUROHXPDQG(QHUJ\3ULYDWH/LPLWHG 75 .(,56266KLSSLQJ3ULYDWH/LPLWHG 76 3HQLQVXODU7DQNHUV3ULYDWH/LPLWHG 77 .HL+HDOWK+LJKZD\3ULYDWH/LPLWHG 78 .HLPHG/LPLWHG Enterprises over which 79 0HGYDUVLW\2QOLQH/LPLWHG .H\0DQDJHPHQW3HUVRQQHO 80 6SHFWUD&OLQLFDO/DERUDWRU\ DUHDEOHWRH[HUFLVHVLJQLÀ- 81 Kamineni Builders FDQWLQÁXHQFH 82 8QLYHUVDO4XDOLW\6HUYLFHV//&  $SROOR+HDOWK5HVRXUFHV/LPLWHG

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101 WKHIXOODPRXQWRI86PLOOLRQDVRIVW0DUFKRQWKHDERYHORDQ7KH(&%LVVHFXUHG E\ ZD\ RI SDUL SDVVX ÀUVW UDQNLQJ FKDUJH RQ WKH HQWLUH PRYDEOH SODQW DQG PDFKLQHU\ DQG HTXLSPHQW LQFOXGLQJ DOO WKH VSDUH SDUWV DQG DOO RWKHU À[HG DVVHWV VXFK DV IXUQLWXUH À[WXUHV ÀWWLQJV LQVWDOODWLRQV YHKLFOHV RIÀFH HTXLSPHQWV FRPSXWHUV DQG DOO RWKHU À[HG DVVHWV RZQHG E\WKHFRPSDQ\ H[FOXGLQJLPPRYDEOHSURSHUW\ ERWKSUHVHQWDQGIXWXUHEHORQJLQJRUKHUHDIWHU EHORQJLQJWRRUDWWKHGLVSRVDORIWKH&RPSDQ\7KH/RDQLVUHSD\DEOHLQHTXDOVHPLDQQXDO ,QVWDOPHQWVVWDUWLQJIURPWK6HSWHPEHU

3DULSDVVXFKDUJHLQIDYRXURI,)&RYHUWKHLPPRYDEOHDVVHWVRIWKH&RPSDQ\VXFKSDULSDVVX charge ensuring atleast a cover of 1.25 times the value of outstanding principal amount of the loan. e. 10.3% Non Convertible Debentures

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f. Cash Credit facilities from Banks are secured by hypothecation of inventories and book debts, and DVHFRQGFKDUJHRQVSHFLÀHGÀ[HGDVVHWVRIWKH&RPSDQ\

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 7KH&RPSDQ\KDVLVVXHG)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV )&&%V WR,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQ :DVKLQJWRQ ,)& WRWKHYDOXHRI86PLOOLRQRQWK-DQXDU\7KHVHERQGVDUHFRQYHUWLEOHLQWR (TXLW\6KDUHVEDVHGRQWKHUXSHHGROODUSDULW\H[FKDQJHUDWHDWDQ\WLPHEHIRUHWKHHQGRIWKHÀQDO UHSD\PHQWGDWH2QWK'HFHPEHUWKH&RPSDQ\FRQYHUWHG)&&%VHTXLYDOHQWWR86PLOOLRQ LQWRPLOOLRQHTXLW\VKDUHVRI5VHDFK7KHXQGHUO\LQJQXPEHURI(TXLW\VKDUHVDVRQVW0DUFK LVPLOOLRQHTXLW\VKDUHVLVEDVHGRQWKHH[FKDQJHUDWH  5V DQGLIWKHRSWLRQLV QRWH[HUFLVHGWKH/RDQVKDOOEHUHSD\DEOHLQIXOOLQWZRDSSUR[LPDWHO\HTXDOVHPLDQQXDOLQVWDOPHQWV FRPPHQFLQJIURPWKHÀQDOUHSD\PHQWGDWHE\ZD\RIUHGHPSWLRQRIVXFKQXPEHURI)&&%VLQUHVSHFWRI ZKLFK,)&KDVQRWH[HUFLVHGLWVFRQYHUVLRQRSWLRQ

 $VSHUWKHUHTXLUHPHQWVRI$FFRXQWLQJ6WDQGDUG¶(PSOR\HH%HQHÀWV· 5HYLVHG DVQRWLÀHGXQGHU WKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHVWKHFRQWULEXWLRQWRWKHJUDWXLW\LVGHWHUPLQHGXVLQJ the projected unit credit method with actuarial valuation being carried out at each Balance Sheet date. 2QO\WKHDGGLWLRQDOSURYLVLRQDVUHTXLUHGLVFKDUJHGWRWKH3URÀWDQG/RVV$FFRXQWIRUWKHUHOHYDQW\HDU 5VPLOOLRQ 5VPLOOLRQ  $OVRUHIHU&ODXVH , RI1RWHV)RUPLQJSDUWRI$FFRXQWV

As at 31.03.2011 As at 31.03.2010 Particulars Earned Earned Gratuity Gratuity Leave Leave Assumptions Discount Rate 8.00% 8.00% 8.00% 8.00% 5DWHRI,QFUHDVHLQ6DODULHV 6.00% 8.00% 6.00% 8.00% 0RUWDOLW\SUHUHWLUHPHQW /,&8OWLPDWH Disability Nil Nil Nil Nil Attrition     Estimated rate of return on plan assets 8.00% 8.00% 8.00% 8.00% ,QYHVWPHQWGHWDLOVRQSODQDVVHWV 100% of the plan assets are invested on debt instruments

102 5VLQPLOOLRQ As at 31.03.2011 As at 31.03.2010 Particulars Earned Earned Gratuity Total Gratuity Total Leave Leave Present Value of Obligation as on 150.26 91.06  165.91 121.99 287.90 1st April, 2010 ,QWHUHVW&RVW 11.96 7.12 19.08  9.62 22.80 Current Service Cost 20.24 10.64  18.64 9.45 28.09 %HQHÀW3DLG            $FWXDULDO JDLQ /RVVRQ 6.65   0.10       obligation Present Value of Obligation as on 187.59 98.05 285.64 150.26 91.06  VW0DUFK Change in plan assets Fair Value of Plan Assets as on 1st    118.29 61.12 179.41 April, 2010 ([SHFWHGUHWXUQRQSODQDVVHWV 12.52 5.98 18.50  5.42  Contributions  40.00 70.00  -  %HQHÀWVSDLG     -   $FWXDULDOJDLQ ORVV     7.85   )DLU9DOXHRI3ODQ$VVHWVDVRQVW  75.15 248.70    0DUFK Reconciliation of present value of the obligation and the fair value of the plan assets )DLUYDOXHRIWKHGHÀQHGEHQHÀW 187.59 98.05 285.64 150.26 91.06  obligation Fair value of plan assets at the end        of the year /LDELOLW\ DVVHWV 14.04 22.90  10.76 16.67  8QUHFRJQLVHGSDVWVHUYLFHFRVW ------/LDELOLW\ DVVHWV UHFRJQLVHGLQ 14.04 22.90  10.76 16.67  the balance sheet Gratuity & Leave Encashment cost for the period Service Cost 20.24 10.64  18.64 9.45 28.09 ,QWHUHVW&RVW 11.96 7.12 19.08  9.62 22.80 ([SHFWHGUHWXUQRQSODQDVVHWV          $FWXDULDO JDLQ ORVV   48.06     Past Service Cost - - - 54.45 49.99 104.44 Net gratuity cost  46.24 79.52 47.59  56.94 Investment details of plan assets 100% of the plan assets are invested in debt instruments Actual return on plan assets 5.57     

 L ([SHFWHGUHWXUQRQSODQDVVHWVLVEDVHGRQH[SHFWDWLRQRIWKHDYHUDJHORQJWHUPUDWHRIUHWXUQH[SHFWHG on investments of the fund during the estimated term of the obligations. The Gratuity scheme is invested LQWKH*UDWXLW\3D\SODQRIIHUHGE\,&,&,%DQN

LL 7KH HVWLPDWH RI IXWXUH VDODU\ LQFUHDVH FRQVLGHUHG LQ DFWXDULDO YDOXDWLRQ WDNH DFFRXQW RI LQÁDWLRQ seniority, promotion and other relevant factors such as demand and supply in the employment market.

D  )RUWKHSHULRGHQGHGVW0DUFKWKH)RUHLJQ([FKDQJHORVV WKHGLIIHUHQFHEHWZHHQWKHVSRW rates on the date of the transactions, and the actual rates at which the transactions are  VHWWOHG DPRXQWHGWR5VPLOOLRQ 5VPLOOLRQ  E  7KH)RUHLJQ([FKDQJHJDLQDULVLQJRXWRIWKHUHVWDWHPHQWRIWKHPRQHWDU\LWHPVDVRQWKH%DODQFH 6KHHWGDWHLV5VPLOOLRQ 5VPLOOLRQ 7KHDERYH([FKDQJHGLIIHUHQFHVKDYHEHHQDGMXVWHGLQ WKH3URÀWDQG/RVV$FFRXQWZKLFKLVLQFRQIRUPLW\WRWKH$FFRXQWLQJ6WDQGDUGRQ¶$FFRXQWLQJIRUWKH HIIHFWVRIFKDQJHVLQ)RUHLJQ([FKDQJHUDWHV·DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV  Rules, 2006.

11. Leases

,QUHVSHFWRI1RQFDQFHOODEOH2SHUDWLQJ/HDVHV

/HDVHSD\PHQWVUHFRJQLVHGLQWKH3URÀWDQG/RVV$FFRXQWLV5VPLOOLRQ 5VPLOOLRQ Minimum Lease Payments March 31 2011 (Rs.in million) March 31, 2010 (Rs.in million)

Not later than one year  442.25

/DWHUWKDQRQH\HDUDQGQRWODWHU 1,059.09  WKDQÀYH\HDUV /DWHUWKDQÀYH\HDUV 1,719.59 1,799.84

/HDVH DJUHHPHQWV DUH UHQHZDEOH IRU D IXUWKHU SHULRG RU SHULRGV RQ WHUPV DQG FRQGLWLRQV PXWXDOO\ DJUHHG between the lessor and the Company.

9DULDWLRQV(VFDODWLRQFODXVHVLQOHDVHUHQWDOVDUHPDGHDVSHUPXWXDOO\DJUHHGWHUPVDQGFRQGLWLRQVE\WKHOHVVRU and the Company.

12. The Company has issued and allotted 1.54 million equity warrants convertible into equity shares of nominal YDOXHRI5VHDFKDWSUHPLXPRI5VSHUVKDUHRQWK-XQHWR'U3UDWKDS&5HGG\RQH of the promoters of the company on a preferential allotment basis. The issue price is at minimum price RI5VÀ[HGLQDFFRUGDQFHZLWKWKHJXLGHOLQHVIRUSUHIHUHQWLDOLVVXHVRIWKH6HFXULWLHV([FKDQJH %RDUGRI,QGLD ,VVXHRI&DSLWDODQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV$FFRUGLQJO\WKHSURPRWHU KDVSDLGRIWKHFRQVLGHUDWLRQ#SHUZDUUDQWRQWKHGDWHRIDOORWPHQW7KHEDODQFHLV SD\DEOHRQWKHH[HUFLVHRIRSWLRQIRUFRQYHUVLRQZLWKLQPRQWKVRIGDWHRIDOORWPHQW&RQVHTXHQWWR WKHVSOLWWLQJRIRQH5VHTXLW\VKDUHLQWRWZR5VHTXLW\VKDUHVWKHZDUUDQWVRXWVWDQGLQJDVRQVW 0DUFKLVPLOOLRQ

7KH&RPSDQ\KDVLVVXHGDQGDOORWWHGPLOOLRQHTXLW\ZDUUDQWVFRQYHUWLEOHLQWRHTXLW\VKDUHVRIQRPLQDO YDOXHRI5VHDFKDWSUHPLXPRI5VSHUVKDUHRQWK)HEUXDU\WR'U3UDWKDS&5HGG\RQH of the promoters of the company on a preferential allotment basis. The issue price is at a minimum price RI5VÀ[HGLQDFFRUGDQFHZLWKWKHJXLGHOLQHVIRUSUHIHUHQWLDOLVVXHVRIWKH6HFXULWLHV([FKDQJH %RDUGRI,QGLD ,VVXHRI&DSLWDODQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV$FFRUGLQJO\WKHSURPRWHU KDVSDLGRIWKHFRQVLGHUDWLRQ#SHUZDUUDQWRQWKHGDWHRIDOORWPHQW7KHEDODQFHLV SD\DEOHRQWKHH[HUFLVHRIRSWLRQIRUFRQYHUVLRQZLWKLQPRQWKVRIGDWHRIDOORWPHQW

104  The Company had issued 9.00 million Global Depository Receipts with two way fungibilty during the year 7RWDO*'5·VFRQYHUWHGLQWRXQGHUO\LQJ(TXLW\6KDUHVIRUWKH\HDUHQGHGRQVW0DUFKLV PLOOLRQ PLOOLRQ DQGWKHWRWDO*'5·VFRQYHUWHGXSWRVW0DUFKLVPLOOLRQ PLOOLRQ &RQVHTXHQWWRWKHVSOLWWLQJRIHDFKHTXLW\VKDUHRIIDFHYDOXHRI5VLQWR WZRHTXLW\VKDUHVRIIDFHYDOXHRI5VHDFKWKHWRWDO*OREDO'HSRVLWRU\5HFHLSWVFRQYHUWHGWRHTXLW\ VKDUHVLVPLOOLRQ 14. 'XULQJWKH\HDURQDUHYLHZRIÀ[HGDVVHWVFHUWDLQVHOHFWHGPHGLFDOHTXLSPHQWVZHUHLGHQWLÀHG DQGLPSDLUHG)RUWKHFXUUHQW\HDURQDUHYLHZDVUHTXLUHGE\$FFRXQWLQJ6WDQGDUG¶,PSDLUPHQW of Assets’, the management is of the opinion that no impairment loss or reversal of impairment loss is UHTXLUHGDVFRQGLWLRQVRILPSDLUPHQWGRQRWH[LVW

15. Earnings in Foreign Exchange Rs. in million Particulars 31.03.2011 31.03.2010

+RVSLWDO)HHV  

Project Consultancy Services  

5HLPEXUVHPHQW([SHQVHV 5.99 2.10

6RIWZDUH&RQVXOWDQF\²2WKHUV 4.42 4.67

Pharmacy Sales* 0.59 0.49

3KDUPDF\VDOHVDUHVDOHVPDGHZLWKLQ,QGLDWRLQSDWLHQWVWKDWKDYHSDLGLQIRUHLJQFXUUHQF\

16. 'LUHFWRUVWUDYHOOLQJLQFOXGHGLQWUDYHOOLQJDQGFRQYH\DQFHDPRXQWVWR5VPLOOLRQ 5VPLOOLRQ 

17. Unclaimed Dividend

Year (Rs. in million)  1.65

2004-05 

2005-06 

  1.64

2006-07 1.06

2007-08 2.86

2008-09 

2009-10 

Total 18.28      ,QWHULP'LYLGHQG

'XULQJWKH\HDUWKHDPRXQWWUDQVIHUUHGWR,QYHVWRUV(GXFDWLRQDQG3URWHFWLRQ)XQGRIWKH&HQWUDO*RYHUQPHQW DVSHUWKHSURYLVLRQVRI6HFWLRQ$DQG&RIWKH&RPSDQLHV$FWLV5VPLOOLRQ 5VPLOOLRQ  LQDJJUHJDWHZKLFKFRPSULVHVRI5VPLOOLRQ 5VPLOOLRQ DVXQFODLPHGGLYLGHQGDQG5VPLOOLRQ 5VPLOOLRQ DVXQFODLPHGGHSRVLW

105 18. $GGLWLRQDOQHWGHIHUUHGWD[OLDELOLW\RI5VPLOOLRQ 5VPLOOLRQ IRUWKHSHULRGKDVEHHQ UHFRJQL]HGLQWKH3URÀWDQG/RVVDFFRXQW Rs. in million Deferred Tax Deferred Tax Current year Particulars Liability as at Liability as at charge /(credit) 31.03.2010 31.03.2011

'HIHUUHG7D[/LDELOLW\RQDFFRXQWRI'HSUHFLDWLRQ 697.10 125.15 822.25

'HIHUUHG7D[/LDELOLW\RQDFFRXQWRI'HIHUUHG 5HYHQXH([SHQGLWXUH $OVR5HIHU&ODXVHRI  (1.06) 53.29 6FKHGXOH- Deferred Tax Liability on account of 35 AD of 195.52 195.52 The Income Tax Act 1961

Total 751.45 319.61 1,071.06

1HWRIERRNGHSUHFLDWLRQIRUWKHDVVHWVFODLPHGDVGHGXFWLRQXV$'RIWKH,QFRPH7D[$FW 7KHFRPSDQ\DGMXVWVWKHDPRXQWRIGHIHUUHGWD[OLDELOLW\FDUULHGIRUZDUGE\DSSO\LQJWKHWD[UDWHWKDW 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

7KHHIIHFWVRQVXFK'HIHUUHG7D[/LDELOLW\LIDQ\DULVLQJRXWRIDVVHVVPHQWVFRPSOHWHGEXWXQGHUFRQWHVW under various stages will be made on the appeals being decided.

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

Proportion Proportion Country of of ownership of ownership Name of the Company Incorporation Interest (%) Interest (%) 31.03.2011 31.03.2010

$SROOR+RVSLWDOV,QWHUQDWLRQDO/LPLWHG ,QGLD 50* 50*

$SROOR*OHQHDJOHV+RVSLWDO/LPLWHG ,QGLD 50 50

$SROOR*OHQHDJOHV3(7&73ULYDWH/LPLWHG ,QGLD 50 50

$SROOR0XQLFK+HDOWK,QVXUDQFH&RPSDQ\/LPLWHG ,QGLD 11.01 16.71

:HVWHUQ+RVSLWDOV&RUSRUDWLRQ3ULYDWH/LPLWHG ,QGLD 40 40

4XLQWLOHV3KDVH2QH&OLQLFDO7ULDOV,QGLD3ULYDWH/LPLWHG ,QGLD 40 40

$SROOR/DYDVD+HDOWK&RUSRUDWLRQ/LPLWHG ,QGLD  6.77

,QFOXVLYHRI  VKDUHVKHOGE\8QLTXH+RPH+HDOWK&DUH/LPLWHGD6XEVLGLDU\RI$SROOR +RVSLWDOV(QWHUSULVH/LPLWHG

106 (b) The groups interests in the joint venture accounted for using proportionate consolidation in the Consolidated Financial Statements are: Rs. in million As at 31st March As at 31st March I ASSETS 2011 2010 1HW)L[HG$VVHWV 1,929.84  2. Capital Work-in-Progress 29.00 294.20 ,QYHVWPHQWV  296.16 &XUUHQW$VVHWV/RDQVDQG$GYDQFHV D ,QYHQWRULHV 27.46 26.01 E 6XQGU\'HEWRUV   F &DVKDQG%DQN%DODQFHV 190.61 155.86 G /RDQVDQG$GYDQFHV  119.66 'HIHUUHG7D[$VVHW 107.46  II LIABILITIES 6HFXUHG/RDQV   8QVHFXUHG/RDQV  169.41 &XUUHQW/LDELOLWLHVDQG3URYLVLRQV D /LDELOLWLHV 684.57  E 3URYLVLRQV 9.06 0.11 'HIHUUHG7D[/LDELOLW\ 1.48 -

For the year ended For the year ended III INCOME 31.03.2011 31.03.2010

,QFRPHIURPKHDOWKFDUHVHUYLFHV 1,416.94 1,058.14 2WKHU,QFRPH  18.18

IV EXPENSE

2SHUDWLQJ([SHQVHV 472.24  2.Payment and provisions to employees 280.55  $GPLQLVWUDWLYHDQGRWKHUH[SHQVH 479.00  )LQDQFLDOH[SHQVH 116.71 114.69 'HSUHFLDWLRQ$PRUWLVDWLRQ  117.90 3URÀW%HIRUH7D[DWLRQ   3URYLVLRQIRU7D[DWLRQ  2.66  'HIHUUHG7D[$VVHW 9.82 -  3URIWDIWHUWD[DWLRQEHIRUHPLQRULW\LQWHUHVWV    0LQRULW\LQWHUHVWV --  1HW3URÀW  

V OTHER MATTERS As at 31.03.2011 As at 31.03.2010

&RQWLQJHQW/LDELOLWLHV 178.65  2. Capital Commitments 17.00 84.56

107 20. ,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQKDVJUDQWHGDORDQRI86PLOOLRQGXULQJWKH\HDU)RUWKH \HDUHQGHGVW0DUFKWKH&RPSDQ\KDVGUDZQIXOO86PLOOLRQRIWKHVDQFWLRQHGDPRXQWRI86 PLOOLRQDQGWKH&RPSDQ\KDVHQWHUHGLQWR&XUUHQF\&XP,QWHUHVW5DWH6ZDS &&,56 ZLWK+')&%DQN LQ,QGLDQUXSHHDQGKHGJHGWKHORDQIRULQWHUHVWUDWHDQGIRUHLJQFXUUHQF\ÁXFWXDWLRQULVN7KHGHULYDWLYH FRQWUDFWLVVHFXUHGE\DVHFRQGFKDUJHRQWKHLPPRYDEOHDVVHWVRIWKH&RPSDQ\WRWKHH[WHQWRI5V PLOOLRQ7KHWHQXUHRIWKLVGHULYDWLYHFRQWUDFWPDWFKHVZLWKWKHWHQXUHRIWKHORDQRXWVWDQGLQJDVRIVW 0DUFK

21. *DLQRQ)RUZDUG&RQWUDFWGXULQJWKH\HDUHQGHGVW0DUFKDFFRXQWHGIRULQWKH3URÀWDQG/RVV $FFRXQWLV5VPLOOLRQ 5VPLOOLRQ 

22. Sundry Debtors, Loans and Advances

L &RQÀUPDWLRQVRIEDODQFHVIURP'HEWRUV&UHGLWRUVDQGIRU'HSRVLWVDUH\HWWREHUHFHLYHGLQDIHZ FDVHVWKRXJKWKH&RPSDQ\KDVVHQWOHWWHUVRIFRQÀUPDWLRQWRWKHP7KHEDODQFHVDGRSWHGDUHDV 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.

LLL 6XQGU\'HEWRUVDQG/RDQVDQG$GYDQFHVVKRZQXQGHUWKHKHDG&XUUHQW$VVHWVLQFOXGHVWKHDPRXQWV due from concerns which are under same management or in which some of the Directors are LQWHUHVWHGDV'LUHFWRUVZKLFKDPRXQWVWR5VPLOOLRQ 5VPLOOLRQ 

LY $FFUXHGSDWLHQWFROOHFWLRQVFRQVWLWXWH5VPLOOLRQ 5VPLOOLRQ RI6XQGU\'HEWRUV

Loans and advances due from Subsidiaries, Joint Ventures and Associates are as follows: 5VLQPLOOLRQ 2010-11 2009-10 Maximum Maximum COMPANY As on 31st As on 31st Outstanding Outstanding March 2011 March 2010 during 2010-11 during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pollo Gleneagles PET-CT Private 1.49 1.49 0.96  /LPLWHG $SROOR+HDOWK6WUHHW/LPLWHG -  - 1.44 ,QGUDSUDVWKD0HGLFDO&RUSRUDWLRQ -  - 0.15 /LPLWHG

108 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.

23. Power Generation

7KH(OHFWULFLW\FKDUJHVLQFXUUHGLQUHVSHFWRIWKH+RVSLWDOLVQHWRI5VPLOOLRQ 5VPLOOLRQ  >XQLWVTXDOLÀHG.:+²PLOOLRQ PLOOLRQ @EHLQJWKHUHEDWHUHFHLYHGIURP71(%IRU:LQG(OHFWULF *HQHUDWRUVRZQHG UXQE\WKH&RPSDQ\

24. 7KH&RPSDQ\KDVEHHQH[HPSWHGE\WKH0LQLVWU\RI&RUSRUDWH$IIDLUVYLGHRUGHU1R&/,,, IURPSXEOLVKLQJWKHTXDQWLWDWLYHSDUWLFXODUVDVSHUSDUD LL  G RI3DUW,,RI6FKHGXOH9,RIWKH&RPSDQLHV Act, 1956 with respect to the total value of turn over, purchases, goods traded, sales, consumption of raw PDWHULDOVHWFIRUWKH\HDUHQGHGVW0DUFKDQGKHQFHWKHVDPHLVQRWGLVFORVHGIRUWKLVÀQDQFLDO year.

25. 7KH&RPSDQ\KDVEHHQH[HPSWHGIURPSXEOLVKLQJWKHÀQDQFLDOVWDWHPHQWVIRUWZHOYHRILWVVXEVLGLDULHV including fellow subsidiaries which are required to be attached to the Company’s accounts, under 6HF  RIWKH&RPSDQLHV$FWIRUWKHÀQDQFLDO\HDUHQGHGVW0DUFK

26. Expenditure in Foreign Currency Rs. in million For the year ended For the year ended Particulars 31.03.2011 31.03.2010 a. CIF Value of Imports 0DFKLQHU\DQG(TXLSPHQW 589.59 808.97 Stores and Spares 15.16 17.77 Other Consumables 9.18 10.44 b. Expenditure 7UDYHOOLQJ([SHQVHV 21.52 15.04 Professional Charges 2.84 5.54 6WDII:HOIDUH([SHQVHV  - Business Promotion  1.96 c. Dividends Amount remitted during the year in foreign currency on DFFRXQWRIGLYLGHQGVH[FOXGLQJWKHSD\PHQWRIGLYLGHQGV   GLUHFWO\WRWKHVKDUHKROGHU V1RQUHVLGHQWH[WHUQDOEDQN account. Non-Residents shareholders to whom remittance was made  1RV  224 (Nos) Shares held by non-resident share-holders on which  1RV  580,869 (Nos) dividend was paid.

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109 29. Managerial Remuneration Rs. in million Particulars 31.03.2011 31.03.2010 3URÀWEHIRUH7D[DQG0DQDJHULDO5HPXQHUDWLRQ 2,946.91 2,415.24 Add: Provision for Bad debts 14.24 7.89 $GG/RVVRQ6DOHRI$VVHWVDQG,QYHVWPHQWV  20.52 $GG:HDOWK7D[ 1.82 1.25 /HVV3URÀWRQ6DOHRI$VVHWVDQG,QYHVWPHQWV 0.15 62.69 'LYLVLEOH3URÀWWR0DQDJHULDO5HPXQHUDWLRQ 2,996.06  Remuneration &KDLUPDQ RISURÀWV  109.44 0DQDJLQJ'LUHFWRU RISURÀWV  54.84  ([HFXWLYH'LUHFWRU²)LQDQFH RISURÀWV   ([HFXWLYH'LUHFWRU²2SHUDWLRQV RISURÀWV  10.94 ([HFXWLYH'LUHFWRU²6SHFLDO,QLWLDWLYHV RISURÀWV  1.82 &RPPLVVLRQWR1RQ([HFXWLYH'LUHFWRUV  8.12 30. Earnings per Share Particulars 31.03.2011 31.03.2010 3URÀWEHIRUHH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 5V 1,817.17  LQPLOOLRQ  $ :HLJKWHG$YHUDJH(TXLW\6KDUHVRXWVWDQGLQJGXULQJWKH\HDU 1RV  %   %DVLF(DUQLQJV3HU6KDUHEHIRUHH[WUDRUGLQDU\LWHP $%  5V 14.66  'LOXWHG(DUQLQJVEHIRUHH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\   VKDUHKROGHUV 5VLQPLOOLRQ  $ )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGLVVXHG &  1RV 1,107,025 2,241,480 Weighted Average Equity Shares outstanding for Diluted Earnings Per   6KDUH 1RV  ' 'LOXWHG(DUQLQJV3HU6KDUHEHIRUHH[WUDRUGLQDU\LWHP $'  5V 14.24 12.26 3URÀWDIWHUH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 5VLQ 1,817.17  PLOOLRQ  $ :HLJKWHG$YHUDJH(TXLW\6KDUHVRXWVWDQGLQJGXULQJWKH\HDU 1RV  %   %DVLF(DUQLQJV3HU6KDUHDIWHUH[WUDRUGLQDU\LWHP $%  5V 14.66  'LOXWHG(DUQLQJVEHIRUHH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\  VKDUHKROGHUV 5VLQPLOOLRQ  $  )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGVLVVXHG &  Nos. 1,107,025 2,241,480 Weighted Average Equity Shares outstanding for Diluted Earnings Per   6KDUH Nos.  ' 'LOXWHG(DUQLQJV3HU6KDUHDIWHUH[WUDRUGLQDU\LWHP $'  5V 14.24 12.26 7KH&RPSDQ\KDVLVVXHG)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV )&&%V WR,QWHUQDWLRQDO)LQDQFLDO&RUSRUDWLRQ ,)&  :DVKLQJWRQ FRQYHUWLEOH WR (TXLW\ VKDUHV DW WKH RSWLRQ RI ,)& GXULQJ WKH \HDU 7KH %RQGV DUH convertible at any time during the tenure of the loan. To comply with the requirements of Accounting Standard-20 (DUQLQJV3HU6KDUH WKHXQGHUO\LQJQXPEHURI(TXLW\VKDUHVHTXLYDOHQWWRPLOOLRQ(TXLW\VKDUHV FRPSXWHG RQWKHEDVLVRIH[FKDQJHUDWHVSUHYDLOLQJRQWKHGDWHRIVW0DUFK KDYHEHHQFRQVLGHUHGIRUWKHSXUSRVH of computing potential number of Equity Shares.

31. Consumption of Materials Rs. in million 31.03.2011 31.03.2010 Particulars Value % Value % 7RWDO&RQVXPSWLRQRI0DWHULDOV 12,275.72 100.00  100.00 ,QGLJHQRXV0DWHULDOV  99.80 9,476.14 99.70 ,PSRUWHG0DWHULDOV  0.20 28.22 

110 32. Audit Expenses As Statutory Auditors Rs. in million Particulars 31.03.2011 31.03.2010 Audit Fees* 1.65 1.65 7D[$XGLW 0.56 0.19 Others 0.49 0.49 ([SHQVHV  0.29 Total  2.62 ,QFOXVLYHRI6HUYLFH7D[#

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

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S M Krishnan Preetha Reddy V C Krishnan   *HQHUDO0DQDJHU3URMHFW)LQDQFH 0DQDJLQJ'LUHFWRU 3DUWQHU &RPSDQ\6HFUHWDU\ 0HPEHUVKLS1R %LVKRS:DOOHUV$YHQXH :HVW 0\ODSRUH&KHQQDL Suneeta Reddy ([HFXWLYH'LUHFWRU)LQDQFH Place: Chennai 'DWHWK0D\

111 Cash Flow Statement for the year ended 31st March 2011 5VLQPLOOLRQ 31.03.2011 31.03.2010 A. Cash Flow from operating activities 1HWSURÀWEHIRUHWD[DQGH[WUDRUGLQDU\LWHPV  2,221.65 Adjustment for: Depreciation 702.58  /RVVRQVDOHRIVDOHRI,QYHVWPHQW 1.66  3URÀWRQVDOHRI$VVHW    3URÀWRQVDOHRILQYHVWPHQW   /RVVRQVDOHRIDVVHW  20.09 interest paid 551.44  0LVF([SZULWWHQRII   )RUHLJQ([FKDQJHJDLQORVV   ,QWHUHVWUHFHLYHG   Dividend received   ,QFRPHIURP7UHDVXU\2SHUDWLRQV   Provision for bad debts 14.24 7.89 Baddebts written off 54.75 1,181.71 82.46 682.98 2SHUDWLQJSURÀWEHIRUHZRUNLQJFDSLWDOFKDQJHV  2,904.64 Adjustment for: Trade or other receivables   ,QYHQWRULHV   Trade payables  1,048.45 Others     Cash generated from operations 2,604.77  )RUHLJQ([FKDQJHORVVJDLQ 5.64 7.15 7D[HVSDLG   $GMXVWPHQWVIRU0LVF([SZULWWHQRII   Net cash from operating activities  1,689.28 %&DVKÁRZIURP,QYHVWLQJDFWLYLWLHV 3XUFKDVHRI)L[HG$VVHWV ,QFOXGLQJFDSLWDOZRUN   LQSURJUHVV  6DOHRI)L[HG$VVHWV  44.22 3XUFKDVHRI,QYHVWPHQWV   ,QYHVWPHQWLQ6XEVLGLDULHV -RLQW   9HQWXUHV $VVRFLDWHV Sale of investments 2,540.87 4,618.24 ,QWHUHVWUHFHLYHG 57.60 79.14 Dividend received  120.16 &DVKÁRZEHIRUHH[WUDRUGLQDU\LWHP 1HWFDVKXVHGLQ,QYHVWLQJDFWLYLWLHV   &&DVKÁRZIURPÀQDQFLQJDFWLYLWLHV Proceeds from issue of equity shares -  Proceeds from issue of securities premium - 679.96 Proceeds from issue of equity share warrants 685.07 - Proceeds from long term borrowings 1,911.62  Proceeds from short term borrowings  

112 31.03.2011 31.03.2010 5HSD\PHQWRIÀQDQFHOHDVHOLDELOLWLHV   ,QWHUHVWSDLG   ,QFRPHIURP7UHDVXUDU\RSHUDWLRQV 11.77  Dividend paid   '1HWFDVKIURPÀQDQFLQJDFWLYLWLHV 587.82 2,401.92 1HWLQFUHDVHLQFDVKDQGFDVKHTXLYDOHQWV $%&  2,209.42 Cash and cash equivalents 2,855.58 646.16  RSHQLQJEDODQFH Cash and cash equivalents  2,855.58  &ORVLQJEDODQFH Component of Cash and cash equivqlents &DVKRQ+DQG   Balance with Banks  $YDLODEOHZLWKWKHFRPSDQ\IRUGD\WRGD\  2,802.78 operations  $PRXQWDYDLODEOHLQXQFODLPHGGLYLGHQGDQG 18.28 19.51 unclaimed deposit payment accounts. Notes: 3UHYLRXV\HDUÀJXUHVKDYHEHHQUHJURXSHGZKHUHYHUQHFHVVDU\ )LJXUHVLQEUDFNHWUHSUHVHQWRXWÁRZ    3XUFKDVHRI)L[HG$VVHWVLQFOXGHVDQG,QWHUHVWSDLGH[FOXGHV5VPLOOLRQ SUHYLRXV\HDU5VPLOOLRQ  of interest capitalised

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S M Krishnan Preetha Reddy V C Krishnan   *HQHUDO0DQDJHU3URMHFW)LQDQFH 0DQDJLQJ'LUHFWRU 3DUWQHU &RPSDQ\6HFUHWDU\ 0HPEHUVKLS1R %LVKRS:DOOHUV$YHQXH :HVW &,7&RORQ\0\ODSRUH&KHQQDL Suneeta Reddy ([HFXWLYH'LUHFWRU)LQDQFH Place: Chennai 'DWHWK0D\

AUDITORS’ CERTIFICATE

:HKDYHH[DPLQHGWKHDWWDFKHG&DVK)ORZ6WDWHPHQWRI$SROOR+RVSLWDOV(QWHUSULVH/LPLWHGIRUWKH\HDUHQGHG VW0DUFK7KHVWDWHPHQWKDVEHHQSUHSDUHGE\WKHFRPSDQ\LQDFFRUGDQFHZLWKWKHUHTXLUHPHQWVRI&ODXVH RIWKHOLVWLQJDJUHHPHQWZLWKWKH6WRFN([FKDQJHVDQGLVEDVHGRQDQGLQDJUHHPHQWZLWKFRUUHVSRQGLQJ3URÀW DQG/RVV$FFRXQWDQGWKH%DODQFH6KHHWRIWKHFRPSDQ\FRYHUHGE\RXUUHSRUWRIWRWKHPHPEHUV of the company. For M/s. S. Viswanathan Place : Chennai Chartered Accountants 'DWHWK0D\ )LUP5HJLVWUDWLRQ1R6

V.C. Krishnan Partner  0HPEHUVKLS1R

 Balance Sheet Abstract & Company’s General Business Profile %DODQFH6KHHW$EVWUDFW &RPSDQ\·V*HQHUDO%XVLQHVV3URÀOHRIWKH&RPSDQ\XQGHU3DUW,9WR6FKHGXOH9,RI the Companies Act, 1956

I. Registration Details

Registration No. / 85110TN1979P/ C0080 5 State Code 1 8 Balance Sheet Date  10 2011 II. Capital Raised during the year (Amount in Rs. Million) 3XEOLF,VVXH N , / 5LJKWV,VVXH N ,/ %RQXV,VVXH N ,/ Private Placement 6 8 5 . 0 7 III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Million) 7RWDO/LDELOLWLHV 26202.82Total Assets 26202.82 Sources of Funds Paid up Capital 62 .55 3UHIHUHQWLDO,VVXHRI(TXLW\ 6 85.07 Share Warrants 6HFXUHG/RDQV 5496.07 8QVHFXUHG/RDQV 1914.04 'HIHUUHG7D[/LDELOLW\ 1071.06 5HVHUYHV 6XUSOXV 1641 .0 Application of Funds 1HW)L[HG$VVHWV 1  981.47,QYHVWPHQWV 6241.12 Net Current Assets 5980.2 0LVF([SHQGLWXUH 0.00 IV. Performance of the Company (Amount in Rs. Million) Tur no v er 2 19.622WKHU,QFRPH 21 .70 7RWDO([SHQGLWXUH 20840.083URÀWEHIRUH7D[ +269 .24 3URÀW$IWHU7D[ +1817.18 Dividend Rate % 7 5 (DUQLQJV3HU6KDUH %DVLF Rs. 1 4 . 6 6

(TXLW\6KDUHVRIIDFHYDOXHRI5VHDFK V. Generic Names of three principle/product services of Company (as per monetary terms)

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S M Krishnan Preetha Reddy V C Krishnan   *HQHUDO0DQDJHU3URMHFW)LQDQFH 0DQDJLQJ'LUHFWRU 3DUWQHU &RPSDQ\6HFUHWDU\ 0HPEHUVKLS1R %LVKRS:DOOHUV$YHQXH :HVW 0\ODSRUH&KHQQDL Suneeta Reddy ([HFXWLYH'LUHFWRU)LQDQFH Place: Chennai 'DWHWK0D\

114 Five years Standalone Financial Performance at a Glance 5VLQPLOOLRQ Year Ended 31st Mar 11 31st Mar 10 31st Mar 09 31st Mar 08 31st Mar 07 Balance Sheet Sources Share Capital  617.85  586.85  Preferential issue of equtiy share 685.07 -- -- warrants Reserve and Surplus     7,016.90 Networth 17,721.64 15,417.66   7,525.48 /RDQV 7,410.10 6,899.86 4,494.82  1,441.80 Capital Employed     8,967.28 'HIHUUHG7D[/LDELOLW\ 1,071.06 751.45 626.56 589.70 570.64 Applications Gross Block 17,968.91     Accumulated Depreciation   2,779.92  1,982.88 Net Block  11,974.49  5,951.78 4,452.97 ,QYHVWPHQWV 6,241.12 4,897.88 6,292.80 7,060.11  Current Assets, Loans & Advances ,QYHQWRU\ 1,505.21  1,088.42 790.89 551.95 Debtors    1,261.59 978.92 &DVK %DQN  2,855.58 646.16 1,045.57  /RDQV $GYDQFHV 5,714.98 5,170.72  2,721.10 1,847.08 $  11,425.07  5,819.15 4,021.98 Current Liabilities & Provisions Creditors 1,684.24 1,781.07 750.05 725.74 557.64 2WKHU/LDELOLWLHV   776.96 677.20 696.94 Provisions 2,692.08 2,607.44 1,970.85 1,404.75 912.05 %  5,228.46  2,807.69  Net Current Assets (A - B)  6,196.61    Miscellaneous Expenditure - 0.12 0.45  7.80 Key Indicators 230  16.90  17.54 16.71 130 7.72 8.18 7.98 8.85 11.12 Collection Growth % 26.61 25.56 28.72 27.85 25.10 23*URZWK   29.72 20.27 14.15 21.82 (DUQLQJV3HU6KDUH 5V  %DVLF  14.66  9.90  9.82 Equity shares of face value of 5VHDFK 52, 3%,7$9&(      14.95 RONW% 10.97  9.09 10.22 9.84 Employee Cost to Collections % 15.18 15.40  14.65 14.21 'HEW(TXLW\5DWLR 0.42 0.44  0.25 0.19

115 0.15   0.15  54.49  15.08 16.71 5VLQPLOOLRQ       288.16 164.24 1,297.76   - 258.18 - 0.12           1,450.98 12.62 2,017.41 17.54 1,684.82 14.65 1,278.70 14.21 11,500.66 8,995.15 0.25 19.06 0.17 20.44    1.51 198.98 2.97      ------ 401.60 - 479.79  8,096.51 54.69    8.18 1,180.69 7.97 1,017.45 8.85 1,000.70 11.12 0.02 5.81 0.04 8.72 0.08  2.92 14.17 2,065.74  16.92 2,424.94 15.41 2,210.51 ------25.04 0.17 20.07 0.17 - - 40.19 0.27 - -      124.89 0.67   9,944.64  18,587.45 0.01 2.50 %% %%%  11.44 2,221.65 11.95 15.18  570.00 2.42 577.12   31st Mar 11 31st Mar 10 31st Mar 09 31st Mar 08 31st Mar 07    12,788.04 Year Ended Year Dividend 467.67 P A T A P 1,817.18 7.72 )ULQJH%HQHÀW7D[ $GPLQLVWUDWLYH([SHQVHV    PROFIT AND PROFIT LOSS ACCOUNT ,QFRPH2SHUDWLYH([SHQVHV 2WKHU([SHQVHV  P BT  7D[&XUUHQW 2SHUDWLQJ3URÀW)LQDQFLDO([SHQVHV3URYLVLRQIRUORVVRQ,QYHVWPHQW ([WUDRUGLQDU\,WHPV     Deferred Salaries and Wages Previous Depreciation 702.58 2.99

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For M/s S Viswanathan %LVKRS:DOOHUV$YHQXH :HVW      Chartered Accountants 0\ODSRUH&KHQQDL Firm Registration No. 004770S

Place: Chennai 'DWHWK0D\ V. C. Krishnan Partner 0HPEHUVKLS1R

118 CONSOLIDATED FINANCIAL STATEMENTS

119 Consolidated Balance Sheet as at 31st March 2011 Rs. in million Schedule 31.03.2011 31.03.2010 1 Sources of Funds (i) Shareholders’ Funds  D 6KDUH&DSLWDO A  617.85  E 3UHIHUHQWLDOLVVXHRIHTXLW\VKDUH 685.07 - warrants 5HIHU&ODXVHRI6FKHGXOH -  F 5HVHUYHV 6XUSOXV B   15,786.24 16,404.09  G &DSLWDO5HVHUYHRQ&RQVROLGDWLRQ 159.26  (ii) Minority Interest 248.76 241.42 (iii) Loan Funds  D 6HFXUHG/RDQV C  6,764.68  E 8QVHFXUHG/RDQV D 2,144.76 9,584.75   (iv) Deferred Tax Liability 1,100.74 776.26 Total 29,923.66 26,684.42 2 Application of Funds (i) Goodwill on Consolidation 676.50 499.80 (ii) Fixed Assets F D *URVV%ORFN 19,767.05 16,950.40  E /HVV'HSUHFLDWLRQ 5,148.47   F 1HW%ORFN 14,618.58 12,719.81  G &DSLWDO:RUNLQ3URJUHVV  18,228.54  15,756.88 (iii) Investments G 5,020.06 4,165.78 (iv) Deferred Tax Asset  240.25 (v) Current Assets, Loans and Advances +  D ,QYHQWRULHV 1,584.44 1,412.24  E 6XQGU\'HEWRUV    F &DVKDQG%DQN%DODQFHV 1,780.52   G /RDQV $GYDQFHV 5,729.90  12,098.00 11,995.00 Less : Current Liabilities & Provisions E  D /LDELOLWLHV    E 3URYLVLRQV 2,720.12 2,615.64   Net Current Assets  6,021.60

(vi) Miscellaneous Expenditure to the I -0.12 extent not written off or adjusted Total 29,923.66 26,684.42 6FKHGXOHV¶$·WR¶,·DQGQRWHVLQ6FKHGXOH¶-· form part of this Balance Sheet

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120 Consolidated Profit and Loss Account for the year ended 31st March 2011 Rs. in million Schedule 31.03.2011 31.03.2010 Income D ,QFRPHIURP2SHUDWLRQV  19,206.51 Add: Share of Joint Ventures 1,416.94 1,058.14 E 2WKHU,QFRPH , 186.52  Total 26,240.02 20,587.04 Expenditure D 2SHUDWLYH([SHQVHV ,,  10,725.99 E 3D\PHQWVWR 3URYLVLRQVIRU(PSOR\HHV ,,, 4,151.16  F $GPLQLVWUDWLRQ 2WKHU([SHQVHV ,9   G )LQDQFLDO([SHQVHV V  602.06 H 3UHOLPLQDU\([SHQVHV 0.09 1.07 I 'HIHUHG5HYHQXH([SHQGLWXUH 5.72 6.41 Total 22,685.15 17,861.09 3URÀW%HIRUH'HSUHFLDWLRQ 7D[ 3%'7  2,725.95 /HVV'HSUHFLDWLRQ 941.70 749.51 3URÀW%HIRUH([WUDRUGLQDU\,WHP 7D[  1,976.44 3URÀW%HIRUH7D[  1,976.44 /HVV3URYLVLRQIRU7D[DWLRQ&XUUHQW 580.42 582.69 $GG([FHVV3URYLVLRQRIHDUOLHU\HDUVZULWWHQEDFN   0.75 /HVV'HIHUUHG7D[/LDELOLW\  128.62 $GG'HIHUUHG7D[$VVHW 22.21   3URÀW$IWHU7D[   /HVV0LQRULW\,QWHUHVW     3URÀWDIWHU0LQRULW\,QWHUHVW 1,755.46  Add : Share in Associates   3URÀWDIWHU6KDUHLQ$VVRFLDWHV   $GG6XUSOXVLQ3URÀW /RVV$FFRXQWEURXJKWIRUZDUG 520.69  Amount available for Appropriations  1,775.02 Appropriations Dividend 467.67  'LYLGHQG7D[3D\DEOH 75.87  Transfer to General Reserve 1,000.00 750.00 Transfer to Debenture Redemption Reserve 100.00 - %DODQFHRI3URÀWLQ3URÀW /RVV$FFRXQW  520.69 Total 2,359.92 1,775.02 Earnings Per Share 5HIHU&ODXVHRI6FKHGXOH - Before Extraordinary Item %DVLF(DUQLQJV3HU6KDUHRIIDFHYDOXH5V 5V HDFK  11.15 'LOXWHG(DUQLQJV3HU6KDUHRIIDFHYDOXH5V 5V HDFK   After Extraordinary Item %DVLF(DUQLQJV3HU6KDUHRIIDFHYDOXH5V 5V HDFK   'LOXWHG(DUQLQJV3HU6KDUHRIIDFHYDOXH5V 5V HDFK   6FKHGXOHV¶,·WR¶9·DQGQRWHVLQ6FKHGXOH¶-·IRUPSDUWRIWKLV3URÀWDQG/RVV$FFRXQW $VSHURXUUHSRUWDQQH[HG  )RUDQGRQEHKDOIRIWKH%RDUGRI'LUHFWRUV

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121 Schedules to Consolidated Balance Sheet (Rs. in million) 31.03.2011 31.03.2010 SCHEDULE (A) Share Capital Authorised (TXLW\6KDUHVRI5VHDFK 1,000.00 750.00 (TXLW\6KDUHVRI5VHDFK  3UHIHUHQFH6KDUHVRI5VHDFK  100.00 1,100.00 100.00 850.00 3UHIHUHQFH6KDUHVRI5VHDFK  Issued D    (TXLW\ 6KDUHV RI 5V HDFK 626.22 620.51 HTXLW\VKDUHVRI5VHDFK  Subscribed and Paid up * E   (TXLW\ 6KDUHV RI 5V  HDFK IXOO\ SDLG XS (TXLW\6KDUHVRI5VHDFK 623.55 617.85 IXOO\SDLGXS 

D  ,QFOXGHV(TXLW\VKDUHVRI5VHDFKIXOO\ SDLGXSDOORWWHGRQFRQYHUVLRQRIÀUVW\HDUVLQWHUHVW on debentures, 20% on the face value of debentures DQG  (TXLW\ VKDUHV RI 5V  HDFK IXOO\ paid up allotted to the shareholders of amalgamated companies for consideration other than cash

 E  ,QFOXGHV(TXLW\VKDUHVRI5VHDFKIXOO\ paid up allotted on preferential basis during the year 2004-05  F  ,QFOXGHV     XQGHUO\LQJ (TXLW\VKDUHVRI5VHDFKIXOO\SDLGXSUHSUHVHQWLQJ Global Depository Receipts issued during the year  5HIHU&ODXVHRI6FKHGXOH ¶-·  G  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK IXOO\ SDLG XS DOORWWHG GXULQJ WKH \HDU 2006-07 on conversion of Equity share warrants issued on preferential basis during the year 2005-06  H  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK IXOO\ SDLG XS ZHUH DOORWWHG WR $SD[ 0DXULWLXV)',2QH/LPLWHGGXULQJWKH\HDU on preferential basis  I  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK IXOO\ SDLG XS DOORWWHG GXULQJ WKH \HDU 2008-09 on conversion of Equity share warrants issued on preferential basis during the year 2006-07

J  ,QFOXGHV  (TXLW\ VKDUHV RI 5V  HDFK IXOO\ SDLG XS DOORWWHG GXULQJ WKH \HDU 2009-10 on conversion of Equity share warrants issued on preferential basis during the year 2007-08 K  ,QFOXGHV  (TXLW\ VKDUHV RI 5VHDFKIXOO\SDLGXSDOORWWHGGXULQJWKH\HDU RQFRQYHUVLRQRI)&&%VZRUWK86LVVXHG WR,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQ:DVKLQJWRQ (TXLW\ VKDUHV RI IDFH YDOXH RI 5V  HDFK VXEGLYLGHG LQWRVKDUHVRI5VHDFKRQUG6HSWHPEHU7KH QXPEHURIHTXLW\VKDUHVDOORWWHGSULRUWRUG6HSWHPEHU DUHDGMXVWHGWRIDFHYDOXHRI5VHDFK

122 Rs. in million 31.03.2011 31.03.2010 SCHEDULE (B) Reserves & Surplus A. Capital Reserve   &DSLWDO5HVHUYH        3URÀWRQ)RUIHLWHG6KDUHV     

B. Capital Fund 2.61 2.61 $GG0HPEHUVKLS)HHVUHFHLYHGGXULQJWKH\HDU - 2.61 - 2.61

C. Capital Redemption Reserve 60.02 60.02 Add: Transfer during the year - 60.02 - 60.02

D.Securities Premium Account     $GG3UHPLXPUHFHLYHGGXULQJWKH\HDU    Add : Premium received from Promoter’s issue - 755.51        Share Premium from Group Companies 418.84 11,249.02 467.52 10,958.25

E. General Reserve     Add : Transfer during the year 1,000.00 750.00 $GG6KDUHRI$VVRFLDWHV     $GG6KDUHRI3URÀWV ORVV 6XEVLGLDULHV    $GG3URÀWIURP-RLQW9HQWXUH     

F. Foreign Currency Translation Reserve 0.02 0.05

G. Other Reserve )DLUYDOXHFKDQJH$FFRXQW      ,QYHVWPHQW$OORZDQFH5HVHUYH      )RUHLJQ([FKDQJH)OXFWXDWLRQ5HVHUYH     Debenture Redemption Reserve 100.00 - 3URÀWDQG/RVV$FFRXQW      Total 17,521.53 15,786.24 # Refer Clause 10 of Schedule J

SCHEDULE (C) Secured Loans A. Non-Convertible Debentures L 'HEHQWXUHV     

B.Loans and Advances from Banks  L &DVK&UHGLW       LL -DPPX .DVKPLU%DQN       LLL ,QGLDQ%DQN      LY %DQNRI,QGLD      Y &DQDUD%DQN     $GG,QWHUHVWDFFUXHGDQGGXH       YL +LUH3XUFKDVH/RDQV       YLL &DQDUD%DQN       YLLL ,QGLDQ2YHUVHDV%DQN     

C.Other Loans and Advances ,)&/RDQ ([WHUQDO&RPPHUFLDO%RUURZLQJV      6,482.76 5,690.92 $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-    Total 7,439.99 6,764.68 5HIHU&ODXVHRI6FKHGXOH-IRU'HWDLOV VHFXULW\

 Rs. in million 31.03.2011 31.03.2010

SCHEDULE (D) Unsecured Loans  L )L[HG'HSRVLWV       LL 6KRUW7HUP/RDQVDQG$GYDQFHV     D )URP%DQNV       E )URP'LUHFWRUV   0.18 0.18  LLL 2WKHU/RDQVDQG$GYDQFHV    )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV      Total 1,905.20 2,197.89 $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-     Total 2,144.76 2,367.29

SCHEDULE (E) Current Liabilities & Provisions A) Current Liabilities (1) Acceptances     

(2) Sundry Creditors *  D )RU*RRGV      E )RU([SHQVHV      F )RU&DSLWDO*RRGV      G )RU2WKHUV             (3) Advances  D ,QSDWLHQW'HSRVLWV      E 5HQW      F 2WKHUV             (4) Investor Education and Protection Fund shall be credited by the following  D 8QSDLG'LYLGHQG       E 8QSDLG'HSRVLWV   -  

(5) Other Liabilities  D 7D['HGXFWHGDW6RXUFH      E 5HWHQWLRQ0RQH\RQ&DSLWDO&RQWUDFWV     F 2XWVWDQGLQJ([SHQVHV             (6) Interest accrued but not due 65.84 46.98 Total 2,950.68 2,832.43

$GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-    3,635.25    B) Provisions  D )RU7D[DWLRQ      E )RU'LYLGHQG      F %RQXV             Add : Share of Joint Ventures 9.06 0.11 5HIHU&ODXVH &   RI6FKHGXOH-    2,720.12 2,615.64 Total 6,355.37 5,973.40  5HIHUFODXVHRI6FKHGXOH-   

124

- 27.98 21.71    As at  31.03.2010

Rs. in million -   748.02 As at   1,929.84     31.03.2011 1.78 1.78

- -    105.65 209.50        As at    4,408.58 12,688.74 11,401.40 31.03.2011 0.18 1.12 0.75 0.75 6.40 22.70 22.69 5.58 28.42 27.97 10.90

0.28 0.28 0.28

11.60 15.25 ------1.06 4.22 424.58 460.55 480.55 412.81 0.22 2.86 

------1.28 7.76   802.58 For the yearFor Deletions

- - 6.09 0.94 0.06 6.97 4.76 0.81 6.87 86.74  As at 01.04.2010 0.28 -    528.08 74.11 45.17 0.98 118.29 409.79 474.05 As at 6,828.48 2,009.12  401.45  16.55          31.03.2011 0.18 1.87 0.18 1.12 44.41 10.12 0.78 29.10 6.40

26.85 1.78

------8.46 7.21  499.29  99.28  42.69  0.61  222.49 

------   1.27 9.58   966.10 RI6FKHGXOH- 5HIHUFODXVH &   RI6FKHGXOH- Additions Deletions

- 0.18 1.87 1.78 12.18    27.80 26.85 29.10 945.82 142.76 4.76 747.14 161.66 548.16 85.15 228.27 As at         2,175.78 501.50 7.55         15,037.58 2,282.23 222.49 17,097.32 3,636.46 802.58 30.17 4,408.86 12,688.46 11,401.12 01.04.2010 Tangible Assets Tangible Name of the AssetsName of the Gross Block Depreciation Block Block Net /LEUDU\ Refrigerators PreviousYear 13,679.15 3,409.77 138.53 16,950.39 3,523.71 749.51 42.63 4,230.59 12,719.80 10,155.45 (OHFWULFDO,QVWDOODWLRQ *HQHUDWRUV Goodwill Total /HVV'HSUHFLDWRQ:ULWWHQ%DFN Total Total 17,213.36 2,783.73 230.04 19,767.05 4,240.53 941.70 33.74 5,148.47 14,618.58 12,972.84 Share of Joint Ventures# )XUQLWXUH )L[WXUHV $LUFRQGLWLRQLQJ3ODQW $LUFRQGLWLRQHUV2IÀFH(TXLSPHQW   0HGLFDO(TXLSPHQW 6XUJLFDO instruments Intangible Assets Capital work in Progress** Year Previous /DQG 9 Fire Fighting Equipment 5 2 and concepts rights Trademark  8 6 7 2 Building  /HDVHKROG%XLOGLQJ 1 Software 4 1 10 11 Boilers 12 Equipment Kitchen  14 Vehicles 15 Electric Generator Wind Sl. No. SCHEDULE (F) Fixed Assets  5HIHUFODXVH '  Y RI6FKHGXOH- 5HIHUFODXVH) E

125 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Description Rs. Shares Rs.million Shares Rs.million Schedule (G)

,QYHVWPHQWLQ*RYHUQPHQW6HFXULWLHV Current Investments(lower of cost and market value) A) Unquoted 1DWLRQDO6DYLQJV&HUWLÀFDWH 0.29 0.29 Trade Investments Long Term Investments ( at cost ) A) Quoted ,QIXOO\SDLGXS(TXLW\6KDUH&DSLWDO Associates

,QGUDSUDVWKD 0HGLFDO &RUSRUDWLRQ /LPLWHG 0DUNHW9DOXHDVRQ5V SHUVKDUH (TXLW\VKDUHVSXUFKDVHG GXULQJWKH\HDU  *RRGZLOORQ$FTXLVLWLRQ  10  289.58  295.06 5VPLOOLRQ5V PLOOLRQ

B) Unquoted i) Associates 6WHPF\WH ,QGLD 7KHUDSDXWLFV 3ULYDWH /LPLWHG *RRGZLOORQ$FTXLVLWLRQ 5V 1  58.82  61.84 PLOOLRQ ii) Long Term - Others %ULWLVK$PHULFDQ+RVSLWDOV(QWHUSULVHV/WG 085     .XUQRRO+RVSLWDOV(QWHUSULVHV/LPLWHG 10 157,500  157,500  )XWXUH3DUNLQJ3ULYDWH/LPLWHG 10 4,900 0.05 - - +HDOWK6XSHU+LZD\3ULYDWH/LPLWHG 10 200 - -  VKDUHVSXUFKDVHGGXULQJWKH\HDU  +HDOWK 6XSHU +LZD\ 3ULYDWH /LPLWHG 3UHIHUHQFH VKDUHV  VKDUHV 54.10 406,514 22.00 - SXUFKDVHGGXULQJWKH\HDU Non Trade Investments LongTerm Investments ( at cost )

A) Quoted

,QIXOO\SDLGXS(TXLW\6KDUH&DSLWDO The Karur Vysya Bank ltd 10 12,811 2.21  1.94 0DUNHW9DOXHDVRQ5V Per Share &KRODPDQGDODP'%6)LQDQFH/WG 10 1,000 0.16 1,000 0.16 0DUNHW9DOXHDVRQ5V Per Share

126 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Description Rs. Shares Rs.million Shares Rs.million i)Unquoted Debentures   'HEHQWXUHVRI$SROOR+HDOWK6WUHHW/LPLWHG Optionally Redeemable Convertible 160  589.24  589.24 Debentures Associates )DPLO\+HDOWK3ODQ/LPLWHG & D S L W D O  5H V H U Y H  R Q  & R Q V R O L G D W L R Q   10 490,000  490,000 22.06 5VPLOOLRQ5V PLOOLRQ   $SROOR+HDOWK6WUHHW/LPLWHG *RRGZLOO RQ $FTXLVLWLRQ  5V  10  2,458.24  2,428.91 PLOOLRQ5VPLOOLRQ Others 6XQULVH0HGLFDUH3ULYDWH/LPLWHG 10 250,000  250,000  Unquoted Current Investment - Others &XUUHQW ,QYHVWPHQW ORZHU RI FRVW DQG PDUNHWYDOXH &HUWLÀFDWHRI'HSRVLW+')&%DQN 1RQ&XPXODWLYH)L[HG'HSRVLWV Others - Mutual Fund 5HOLDQFH,QFRPH)XQG5HWDLO3ODQ*URZWK 10  0.70  0.70 Plan - Growth Option 1HW $VVHW 9DOXH DV RQ  5V SHUXQLW5HOLDQFH0RQWKO\,QWHUYDO )XQG 6HULHV ,, ,QVWLWXWLRQDO GLYLGHQG SODQ 10   - -  XQLWV SXUFKDVHG GXULQJ WKH \HDU Canara Robeco Floating Rate Short term *URZWK )XQG  XQLWV SXUFKDVHG 10  200.00 - - GXULQJWKH\HDU  +')& )03 ' 0DUFK    'LYLGHQG 6HULHV ;9,,  XQLWV SXUFKDVHG 10 18,000,000 180.00 - - during the year. +')& 4XDUWHUO\ ,QWHUYDO )XQG  3ODQ & 10  90.00 - - XQLWVSXUFKDVHGGXULQJWKH\HDU +')&)03'0DUFK    10 12,000,000 120.00 - - XQLWVVROGGXULQJWKH\HDU '63 %ODFN5RFN 0RQH\ 0DQDJHU )XQG  ,QVWLWXWLRQDO3ODQ'DLO\'LYLGHQG  units purchased during the year, 1746 units 1,000 151,626 151.75 - - cumulated during the year and 49,960 units VROGGXULQJWKH\HDU .RWDN /LTXLG ,QVWLWXWLRQDO 3UHPLXP 'DLO\ 'LYLGHQG3ODQ XQLWVSXUFKDVHG during the year. 1,508 units cumulated 12.2281 - - - - GXULQJ WKH \HDU  XQLWV VROG GXULQJWKH\HDU

127 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Description Rs. Shares Rs.million Shares Rs.million .RWDN )OH[L 'HEW 6FKHPH ,QVWLWXWLRQDO 'DLO\'LYLGHQG XQLWVSXUFKDVHG during the year 54,906 units cumulated 10 - - during the year 19,962,191 units sold GXULQJWKH\HDU

5HOLDQFH /LTXLGLW\ )XQG 'DLO\ 'LYLGHQG 5HLQYHVWPHQW 2SWLRQ  XQLWV purchased during the year. 1,868 units 10 - - FXPXODWHG GXULQJ WKH \HDU  XQLWVVROGGXULQJWKH\HDU

5HOLDQFH 0RQH\ 0DQDJHPHQW )XQG ,QVWLWXWLRQDO 2SWLRQ'DLO\ 'LYLGHQG SODQ 199,744 units purchased during the year. 1,000 - - 2,086 units cumulated during the year. XQLWVVROGGXULQJWKH\HDU 

5HOLDQFH /LTXLG )XQG &DVK SODQ GDLO\ GLYLGHQG RSWLRQ  XQLWV purchased during the year. 12,017 units 10 - - cumulated during the year. 12,577,650 XQLWVVROGGXULQJWKH\HDU

+')& &DVK 0DQDJHPHQW )XQG6DYLQJV Plan-Daily Dividend Reinvestment Option  XQLWV SXUFKDVHG GXULQJ WKH 10 - - year. 5,126 units cumulated during the \HDUXQLWVVROGGXULQJWKH\HDU 

+')& &DVK 0DQDJHPHQW )XQG7UHDVXU\ $GYDQWDJH3ODQXQLWVSXUFKDVHG GXULQJ WKH \HDU XQLWV FXPXODWHG 10 - - GXULQJWKH\HDUVROGGXULQJWKH \HDU

+')& 6KRUW WHUP 2SSRUWXQLWLHV )XQG 'LYLGHQG 3D\RXW 2SWLRQ  XQLWV 10 - - SXUFKDVHGGXULQJWKH\HDUXQLWV VROGGXULQJWKH\HDU

+')&)ORDWLQJ5DWH,QFRPHIXQG6KRUWWHUP 3ODQ  XQLWV SXUFKDVHG GXULQJ the year. 40,075,201 units cumulated 10 during the year. 122,657,114 units sold GXULQJWKH\HDU

$,* 7UHDVXU\ )XQG 6XSHU ,QVWLWXWLRQDO Plan-Daily Dividend Reinvestment Option  XQLWV SXUFKDVHG GXULQJ WKH 10 year. 270,151 units cumulated during the \HDUXQLWVVROGGXULQJWKH\HDU

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128 Face 31.03.2011 31.03.2010 Value No of Equity No of Equity Description Rs. Shares Rs.million Shares Rs.million ,&,&, 3UXGHQWLDO /LTXLG 3ODQ  6XSHU ,QVWLWXWLRQDO 'DLO\ 'LYLGHQG 5HLQYHVWPHQW 2SWLRQ  XQLWV SXUFKDVHG GXULQJ 100 the year. 217 units cumulated during the \HDUXQLWVVROGGXULQJWKH\HDU ,&,&, 3UXGHQWLDO )OH[LEOH ,QFRPH 3ODQ Premium- Daily Dividend Reinvestment 2SWLRQ  XQLWV SXUFKDVHG GXULQJ 100 the year. 17,144 units cumulated during the \HDUXQLWVVROGGXULQJWKH\HDU  $GYDQFH IRU ,QYHVWPHQWV LQ VKDUHV IRU   various projects under construction   Add: Share of Joint Ventures  296.16 5HIHUFODXVH &   RI6FKHGXOH- Total Investments 5,020.06 4,165.78 )RUPHUO\,PSHULDO&DQFHU+RVSLWDOVDQG 5HVHDUFK&HQWUH/LPLWHG )RUPHUO\$SROOR'.9,QVXUDQFH&RPSDQ\ /LPLWHG * Formerly Apollo Gleneagles PET CT /LPLWHG   )RUPHUO\ $SROOR +HDOWK 6WUHHW 3ULYDWH /LPLWHG $JJUHJDWHDPRXQWRI4XRWHG,QYHVWPHQWV 0DUNHW9DOXH5VPLOOLRQ  291.95 297.15 5VPLOOLRQ $JJUHJDWHDPRXQWRI8QTXRWHG,QYHVWPHQW   $GYDQFHIRU,QYHVWPHQWVLQVKDUHV   Total 5,020.06 4,165.78

129 Rs. in million 31.03.2011 31.03.2010 SCHEDULE (H) Current Assets, Loans & Advances A. Current Assets (1) Inventories (at cost)**  L 0HGLFLQHV      LL 6WRUHV6SDUHV      LLL /DE0DWHULDOV      LY 6XUJLFDO,QVWUXPHQWV      Y 2WKHU&RQVXPDEOHV             Add : Share of Joint Ventures 27.46 26.01 5HIHU&ODXVH &   RI6FKHGXOH-    1,584.44 1,412.24 $VWDNHQFHUWLÀHGDQGYDOXHGE\PDQDJHPHQW     (2) Sundry Debtors Refer Clause 21 of schedule J  D 'HEWRUV2XWVWDQGLQJIRUDSHULRG H[FHHGLQJVL[PRQWKV     /HVV3URYLVLRQIRU%DG'HEWV       E 2WKHU'HEWV      2,800.51 2,092.84 $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-             (3) Cash and Bank Balances  D &DVK%DODQFHRQKDQG      E %DQN%DODQFH     L ZLWKVFKHGXOH%DQNV     D 2Q&XUUHQW$FFRXQW      E 2Q'HSRVLW$FFRXQW      LL ZLWKQRQVFKHGXOHG%DQNV     1,589.91 2,960.87 Add : Share of Joint Ventures 190.61 155.85 5HIHU&ODXVH &   RI6FKHGXOH-         B. Loans and Advances Refer Clause 21 of schedule J (4) Advances  L )RU&DSLWDO,WHPV      LL 7R6XSSOLHUV      LLL 2WKHU$GYDQFHV      LY 6WDII$GYDQFHV     2,102.21 1,867.19 (5) Advance Tax      (6) Deposits  D :LWK*RYHUQPHQW      E :LWK2WKHUV             (7) Prepaid Expenses 88.62 70.84 (8) Rent Receivables       (9) Service Charges Receivables       (10) Tax Deducted at Source       (11) Franchise Fees Receivable 11.10 6.57 5,585.52 5,118.11 $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-           Total of Current Assets, Loans & Advances (A+B) 12,098.00 11,995.00 SCHEDULE (I) Miscellaneous Expenditure >7RWKHH[WHQWQRWZULWWHQRIIRUDGMXVWHG       D 3UHOLPLQDU\ 2WKHU([SHQVHV,QFOXGLQJ commission,brokerage underwriting of subscription of shares and debentures  E 'HIHUUHG5HYHQXH([SHQGLWXUH     

 Schedules to Consolidated Profit and Loss Account Rs. in million 31.03.2011 31.03.2010 SCHEDULE - I Other Income  D ,QWHUHVW(DUQHG       E 'LYLGHQG       F ,QFRPHIURP7UHDVXU\2SHUDWLRQV       G 3URÀWRQVDOHRI,QYHVWPHQW       H 3URÀWRQVDOHRI$VVHW       I ([FKDQJH*DLQ              $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-    Total 186.52 322.39

SCHEDULE - II Operative Expenses Materials Consumed  D 2SHQLQJ6WRFN     $''3XUFKDVHV     &XVWRPV'XW\     )UHLJKW&KDUJHV            /(66&ORVLQJ6WRFN       E )HHVWR&RQVXOWDQWV       F 3RZHU )XHO       G +RXVH.HHSLQJ([SHQVHV       H :DWHU&KDUJHV              $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-    Total 13,886.42 10,725.99

SCHEDULE - III Payments to and Provisions for Employees  D 6DODULHV :DJHV       E &RQWULEXWLRQWR3URYLGHQW)XQG       F (PSOR\HH6WDWH,QVXUDQFH       G 3URYLVLRQRQ5HWLUHPHQW2EOLJDWLRQ       H 6WDII:HOIDUH([SHQVHV       I 6WDII(GXFDWLRQ 7UDLQLQJ       J %RQXV               $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-     Total 4,151.16 3,307.93

 Rs. in million 31.03.2011 31.03.2010 SCHEDULE - IV Adminstrative & Other Expenses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ÀFH0DLQWHQDQFH 2WKHUV       [ /RVVRQ6DOHRI$VVHWV       \ /RVVRQ6DOHRI&XUUHQW,QYHVWPHQW       ] 2XWVRXUFLQJ([SHQVHV              $GG6KDUHRI-RLQW9HQWXUHV      5HIHU&ODXVH &   RI6FKHGXOH-    Total 3,827.41 3,217.64

SCHEDULE - V Financial Expenses  D ,QWHUHVWRQ     L )L[HG/RDQV      LL )L[HG'HSRVLWV      LLL 'HEHQWXUHV       E %DQN&KDUJHV       F %URNHUDJH &RPPLVVLRQ       G )RUHLJQ([FKDQJH/RVV              Add : Share of Joint Ventures 116.71 114.69 5HIHU&ODXVH &   RI6FKHGXOH-    Total 814.35 602.06

 Notes Forming Part of the Accounts Schedule (J)

$FFRXQWLQJ3ROLFLHV 1RWHV)RUPLQJ3DUWRI&RQVROLGDWHG$FFRXQWVRI$SROOR+RVSLWDOV(QWHUSULVH/LPLWHGLWV Subsidiaries, Associates and Joint Ventures.

1. BASIS OF ACCOUNTING

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Apollo Hospital (UK) Limited

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Apollo Munich Health Insurance Company Limited

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2. BASIS OF CONSOLIDATION

7KH&RQVROLGDWHG)LQDQFLDO6WDWHPHQWVKDYHEHHQSUHSDUHGLQDFFRUGDQFHZLWK$FFRXQWLQJ6WDQGDUG¶&RQVROL- GDWHG)LQDQFLDO6WDWHPHQWV·$FFRXQWLQJ6WDQGDUG¶$FFRXQWLQJIRU,QYHVWPHQWLQ$VVRFLDWHVLQ&RQVROLGDWHG )LQDQFLDO6WDWHPHQWV·DQG$FFRXQWLQJ6WDQGDUG¶)LQDQFLDO5HSRUWLQJRI,QWHUHVWVLQ-RLQW9HQWXUHV·DVQRWLÀHG XQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHV

 A. Investment in Subsidiaries

1. The Subsidiary Companies considered for the purpose of consolidation are: Country of % of holding as % of holding as Name of the Subsidiary Incorporation on 31st March on 31st March 2011 2010 8QLTXH+RPH+HDOWK&DUH/LPLWHG ,QGLD 100 100 $%0HGLFDO&HQWUHV/LPLWHG ,QGLD 100 100 $SROOR+HDOWKDQG/LIHVW\OH/LPLWHG ,QGLD 100 86.95 6DPXGUD+HDOWKFDUH(QWHUSULVH/LPLWHG ,QGLD 100 100 ,PSHULDO+RVSLWDO 5HVHDUFK&HQWUH/LPLWHG ,QGLD 51 51 $SROOR+RVSLWDO 8. /LPLWHG 8QLWHG.LQJGRP 100 100 3LQDNLQL+RVSLWDOV/LPLWHG ,QGLD 74.94 74.94 $SROOR&RVPHWLF6XUJLFDO&HQWUH3ULYDWH/LPLWHG ,QGLD 61 66.91 $OOLDQFH0HGLFRUS ,QGLD /LPLWHG ,QGLD 51 - ,6,6+HDOWKFDUH,QGLD3ULYDWH/LPLWHG ,QGLD *- 0HUD+HDOWKFDUH3ULYDWH/LPLWHG ,QGLD *- $OOLDQFH'HQWDO&DUH3ULYDWH/LPLWHG# ,QGLD # -

VXEVLGLDU\RI$SROOR+RVSLWDOV(QWHUSULVH/LPLWHGGXULQJWKH\HDU )RUPHUO\,PSHULDO&DQFHU+RVSLWDO 5HVHDUFK&HQWUH/LPLWHG VXEVLGLDU\RI$SROOR+HDOWKDQG/LIHVW\OH/LPLWHG #6XEVLGLDU\RI$OOLDQFH0HGLFRUS ,QGLD /LPLWHG

 )LQDQFLDO6WDWHPHQWVRIDOOWKHVXEVLGLDULHVKDYHEHHQGUDZQXSWRVW0DUFK

 0LQRULW\,QWHUHVWFRQVLVWVRIWKHLUVKDUHLQWKHQHWDVVHWVRIWKHVXEVLGLDULHVDVRQWKHGDWHRI%DODQFH Sheet.

 7KHDPRXQWRI'HIHUUHG5HYHQXH([SHQGLWXUH DWWULEXWDEOHWRWKH3DUHQW&RPSDQ\ QRWZULWWHQRIIDW WKHHQGRIWKHÀQDQFLDO\HDULPPHGLDWHO\SUHFHGLQJWKHGDWHRIDFTXLVLWLRQRID6XEVLGLDU\&RPSDQ\KDV EHHQGXO\DGMXVWHGDQGWKHDPRXQWDSSHDULQJDVGHIHUUHGUHYHQXHH[SHQGLWXUHLQWKH%DODQFH6KHHWDUH those pertaining to the post acquisition period.

B. Investment in Associates

1. The Associate Companies considered in the Consolidated Financial Statements are: Country of Proportion of owner- Proportion of owner- Name of the Associate Company ,QFRUSRUD- VKLSLQWHUHVW  DVRQ VKLSLQWHUHVW  DVRQ tion VW0DUFK VW0DUFK ,QGUDSUDVWKD0HGLFDO&RUSRUDWLRQ ,QGLD 21.06 20.75 /LPLWHG )DPLO\+HDOWK3ODQ 73$ /LPLWHG ,QGLD 49 49 $SROOR+HDOWK6WUHHW/LPLWHG ,QGLD   6WHPF\WH,QGLD7KHUDSDXWLFV3ULYDWH ,QGLD   /LPLWHG

 $SROOR+RVSLWDOV(QWHUSULVH/LPLWHGGLUHFWO\KROGVLQ$SROOR+HDOWK6WUHHW/LPLWHG IRUPHUO\$SROOR +HDOWK6WUHHW3ULYDWH/LPLWHG DQGDIXUWKHUWKURXJKLWV ZKROO\RZQHGVXEVLGLDU\8QLTXH+RPH +HDOWK&DUH/WG

 7KHÀQDQFLDOVWDWHPHQWVRIDOODVVRFLDWHVDUHGUDZQXSWRVW0DUFK

  7KH%RDUGRI'LUHFWRUVDWLWVPHHWLQJKHOGRQWK$SULOKDVDSSURYHGGLYHVWPHQWRIWKH&RPSDQ\·V LQYHVWPHQWLQ%ULWLVK$PHULFDQ(QWHUSULVHV/LPLWHG0DXULWLXV$VDSSURYHGE\WKHERDUGWKHVKDUHKROG- HUVDJUHHPHQWZLOOEHUHSODFHGE\RSHUDWLRQ0DQDJHPHQW$JUHHPHQWDQG)UDQFKLVHH$JUHHPHQWZLWK HIIHFWIURP-DQXDU\%DVHGRQWKHFODXVHRI$FFRXQWLQJ6WDQGDUG $FFRXQWLQJIRU,QYHVWPHQWV LQ$VVRFLDWHVLQ&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV WKHPDQDJHPHQWKDVH[FOXGHGWKLV&RPSDQ\EHLQJ WUHDWHGDVDQDVVRFLDWHIRUWKH\HDUHQGHGVW0DUFK  ,QWKHFDVHRI6WHPF\WH,QGLD7KHUDSDXWLFV/LPLWHGDQDVVRFLDWHXQDXGLWHGPDQDJHPHQWUHSRUWKDYH been taken for consolidation

C. Interests in Joint Ventures

1. The following are jointly controlled entities.

Country of Proportion of owner- Proportion of owner- Name of the Company ,QFRUSRUDWLRQ VKLSLQWHUHVW  DV VKLSLQWHUHVW  DV RQVW0DUFK RQVW0DUFK $SROOR*OHQHDJOHV+RVSLWDOV/LPLWHG ,QGLD 50 50 $SROOR*OHQHDJOHV3(7²&73ULYDWH/LPLWHG ,QGLD 50 50 $SROOR+RVSLWDOV,QWHUQDWLRQDO/LPLWHG ,QGLD 50** 50** :HVWHUQ+RVSLWDOV&RUSRUDWLRQ3ULYDWH/LPLWHG ,QGLD 40 40 $SROOR0XQLFK+HDOWK,QVXUDQFH&RPSDQ\ ,QGLD 11.01 16.71 /LPLWHG $SROOR/DYDVD+HDOWK&RUSRUDWLRQ/LPLWHG ,QGLD  6.77 4XLQWLOHV3KDVH2QH&OLQLFDO7ULDOV,QGLD3UL- ,QGLD 40 40 YDWH/LPLWHG

)RUPHUO\$SROOR*OHQHDJOHV3(7&7/LPLWHG )RUPHUO\NQRZQDV$SROOR'.9,QVXUDQFH&RPSDQ\/LPLWHG

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$SROOR/DYDVD+HDOWK&RUSRUDWLRQ/LPLWHGKDVEHHQFRQVLGHUHGDVMRLQWYHQWXUHEDVHGRQWKHVXEVWDQFHRIWKH DJUHHPHQWEHWZHHQ$SROOR/DYDVD+HDOWK&RUSRUDWLRQ/LPLWHGDQG$SROOR+RVSLWDOV(QWHUSULVH/LPLWHG

7KH)LQDQFLDOVWDWHPHQWVRIDOOWKH-RLQW9HQWXUHVDUHGUDZQXSWRVW0DUFK

7KH*URXS·VLQWHUHVWVLQWKH-RLQW9HQWXUHVDFFRXQWHGIRUXVLQJSURSRUWLRQDWHFRQVROLGDWLRQLQWKH&RQVROL- dated Financial Statements are:  5VLQPLOOLRQ I ASSETS As at 31st March 2011 As at 31st March 2010 1HW)L[HG$VVHWV 1,929.84  2. Capital Work-in-Progress 29.00 294.20 ,QYHVWPHQWV  296.16 &XUUHQW$VVHWV/RDQVDQG$GYDQFHV D ,QYHQWRULHV 27.46 26.01 E 6XQGU\'HEWRUV   F &DVKDQG%DQN%DODQFHV 190.61 155.86 G /RDQVDQG$GYDQFHV  119.66 'HIHUUHG7D[$VVHW 107.46 

 II LIABILITIES 6HFXUHG/RDQV   8QVHFXUHG/RDQV  169.41 &XUUHQW/LDELOLWLHVDQG3URYLVLRQV D /LDELOLWLHV 684.57  E 3URYLVLRQV 9.06 0.11 'HIHUUHG7D[/LDELOLW\ 1.48 - III INCOME As at 31st March 2011 As at 31st March 2010 ,QFRPHIURP+HDOWKFDUH6HUYLFHV 1,416.94 1,058.14 2WKHU,QFRPH  18.18 IV EXPENSE 2SHUDWLQJ([SHQVHV 472.24  2.Payment and provisions to employees 280.55  $GPLQLVWUDWLYHDQGRWKHUH[SHQVH 479.00  )LQDQFLDOH[SHQVH 116.71 114.69 'HSUHFLDWLRQ$PRUWLVDWLRQ  117.90 3URÀW%HIRUH7D[DWLRQ   3URYLVLRQIRU7D[DWLRQ ,QFOXGLQJ'HIHUUHG  2.66 7D[/LDELOLW\DQG)ULQJH%HQHÀW7D[ 'HIHUUHG7D[$VVHW 9.82 - 3URIWDIWHUWD[DWLRQEHIRUHPLQRULW\   interests 0LQRULW\LQWHUHVWV -- 1HW3URÀW   V OTHER MATTERS As at 31st March 2011 As at 31st March 2010 &RQWLQJHQW/LDELOLWLHV 178.65  2. Capital Commitments 17.00 84.56

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 Com- SDQ\·VVHSDUDWHÀQDQFLDOVWDWHPHQWV

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 vari- ant accounting policies adopted by the Subsidiaries, Associates and Joint Ventures have been disclosed in the ÀQDQFLDOVWDWHPHQWV

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 3. SIGNIFICANT ACCOUNTING POLICIES A. Use of Estimates

7KHSUHSDUDWLRQRIÀQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHVUHTXLUHVWKH management to make estimates and assumptions that affect the reported values of assets and liabilities, disclo- VXUHRIFRQWLQJHQWDVVHWVDQGOLDELOLWLHVDWWKHGDWHRIWKHÀQDQFLDOVWDWHPHQWVDQGWKHUHSRUWHGUHYHQXHVDQG H[SHQVHVGXULQJWKHUHSRUWLQJSHULRG$OWKRXJKWKHVHHVWLPDWHVDUHEDVHGXSRQPDQDJHPHQW·VEHVWNQRZOHGJH of current events and actions, actual results could differ from the estimates.

B. Inventories

Apollo Hospitals Enterprise Limited 1. The inventories of all medicines, medicare items traded and dealt with by the Company are valued at FRVW,QWKHDEVHQFHRIDQ\IXUWKHUHVWLPDWHGFRVWVRIFRPSOHWLRQDQGHVWLPDWHGFRVWVQHFHVVDU\WRPDNH 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 9$7ZKHUHYHUDSSOLFDEOHDSSO\LQJWKH),)2PHWKRG  6WRFNRISURYLVLRQVVWRUHV LQFOXGLQJODEPDWHULDOVDQGRWKHUFRQVXPDEOHV VWDWLRQHULHVDQGKRXVHNHHS- ing items are stated at cost. The net realisable value is not applicable in the absence of any further modi- ÀFDWLRQDOWHUDWLRQEHIRUHEHLQJFRQVXPHGLQKRXVHRQO\&RVWRIWKHVHLQYHQWRULHVFRPSULVHVRIDOOFRVWV of purchase and other costs incurred in bringing the inventories to their present location, after adjusting IRU9$7ZKHUHYHUDSSOLFDEOHDSSO\LQJWKH),)2PHWKRG  6XUJLFDOLQVWUXPHQWVOLQHQFURFNHU\DQGFXWOHU\DUHYDOXHGDWFRVWDQGDUHVXEMHFWWRZULWHRII ZKHUHYHUDSSOLFDEOHDSSO\LQJ),)2PHWKRG7KHQHWUHDOLVDEOHYDOXHLVQRWDSSOLFDEOHLQWKHDEVHQFHRI DQ\IXUWKHUPRGLÀFDWLRQDOWHUDWLRQEHIRUHEHLQJFRQVXPHGLQKRXVH&RVWRIWKHVHLQYHQWRULHVFRPSULVHV of all costs of purchase and other costs incurred in bringing the inventories to their present location.  ,PSRUWHGLQYHQWRULHVDUHDFFRXQWHGIRUDWWKHDSSOLFDEOHH[FKDQJHUDWHVSUHYDLOLQJRQWKHGDWHRIWUDQV- DFWLRQ $OVRUHIHU1RWHLQWKH1RWHVIRUPLQJSDUWRI$FFRXQWV 

Alliance Medicorp (India) Limited ,QYHQWRULHVDUHVWDWHGDWORZHURIFRVWRUQHWUHDOLVDEOHYDOXH&RVWRILQYHQWRU\FRPSULVHVFRVWRISXUFKDVH of inventories. Net realisable value represent the estimated selling price less all estimated cost necessary to complete the sale.

Apollo Gleneagles Hospitals Limited ,QYHQWRULHVDUHYDOXHGDWORZHURIWKHFRVWRUQHWUHDOLVDEOHYDOXH&RVWVKDYHEHHQFDOFXODWHGRQÀUVWLQÀUVW RXWEDVLV,WHPVVXFKDVVXUJLFDOLQVWUXPHQWVWRROVHWFDUHFKDUJHGRXWRYHUDSHULRGRIPRQWKVIURPWKH month of their purchase.

Indraprastha Medical Corporation Limited L  ,QYHQWRULHVDUHYDOXHGDWORZHURIFRVWDQGQHWUHDOLVDEOHYDOXH LL  7KHFRVWLQUHVSHFWRIWKHLWHPVFRQVWLWXWLQJWKHLQYHQWRULHVKDVEHHQFRPSXWHGRQ),)2EDVLV

C. Prior Period Items and Extraordinary Items

3ULRUSHULRGLWHPVDQGH[WUDRUGLQDU\LWHPVDUHVHSDUDWHO\FODVVLÀHGLGHQWLÀHGDQGGHDOWZLWKDVUHTXLUHGXQGHU $FFRXQWLQJ6WDQGDUGRQ¶1HW3URÀWRU/RVVIRUWKH3HULRG3ULRU3HULRG,WHPVDQG&KDQJHVLQ$FFRXQWLQJ3ROLFLHV· DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHV

D. Depreciation and Amortisation i. Depreciation has been provided

D 2QDVVHWVLQVWDOOHGDIWHUVW$SULORQ6WUDLJKW/LQH0HWKRGDWUDWHVVSHFLÀHGLQ6FKHGXOH;,9 of the Companies Act, 1956 on single shift basis. E 2QDVVHWVLQVWDOOHGSULRUWRQG$SULORQ6WUDLJKW/LQH0HWKRGDWWKHUDWHVHTXLYDOHQWWRWKH ,QFRPH7D[UDWHV

 ii. Depreciation on new assets acquired during the year is provided at the rates applicable from the date of DFTXLVLWLRQWRWKHHQGRIWKHÀQDQFLDO\HDU LLL ,QUHVSHFWRIWKHDVVHWVVROGGXULQJWKH\HDUGHSUHFLDWLRQLVSURYLGHGIURPWKHEHJLQQLQJRIWKH\HDUWLOO the date of its disposal. LY ,QGLYLGXDODVVHWVDFTXLUHGIRU5VDQGEHORZDUHIXOO\GHSUHFLDWHGLQWKH\HDURIDFTXLVLWLRQ

Apollo Hospitals Enterprise Limited

v. Amortisation D 7KH FRVWSUHPLXP RI ODQG DQG EXLOGLQJ WDNHQ RQ OHDVH E\ WKH &RPSDQ\ IURP 2ULHQW +RVSLWDO 0DGXUDLZLOOEHDPRUWLVHGRYHUDSHULRGRI\HDUVWKRXJKWKHOHDVHLVIRUDSHULRGRI\HDUV

7KHFRVWSUHPLXPRIODQGDQGEXLOGLQJWDNHQDGGLWLRQDOO\RQOHDVHE\WKH&RPSDQ\DW0DGXUDLLV IRUDSHULRGRI\HDUVZLWKDQRSWLRQWRH[WHQGWKHOHDVHE\DQRWKHU\HDUV7KHGHSUHFLDWLRQ on the leasehold building is charged on a straight line basis with the lease period being considered as 25 years.

7KH&RPSDQ\KDVWDNHQODQGLQ.DUDLNXGLIURP$SROOR+RVSLWDOV(GXFDWLRQDO7UXVWRQOHDVHIRUD SHULRGRI\HDUV7KHEXLOGLQJFRQVWUXFWHGRQWKHOHDVHODQGZLOOEHDPRUWLVHGRYHUDSHULRGRI \HDUV7KLVLVLQFRQIRUPLW\ZLWKWKHGHÀQLWLRQRIOHDVHWHUPDVSHU&ODXVHRI$6¶/HDVHV· DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHV

E $OHDVHUHQWDORQRSHUDWLQJOHDVHVLVUHFRJQLVHGDVDQH[SHQVHLQWKH3URÀW /RVV$FFRXQWRQ straight line basis as per the terms of the agreement in accordance with Accounting Standard 19 ¶/HDVHV·DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHV

Apollo Cosmetic Surgical Centre Private Limited

'HSUHFLDWLRQRQÀ[HGDVVHWVKDVEHHQSURYLGHGRQ´:ULWWHQ'RZQ9DOXHµPHWKRGDVSHU6FKHGXOH;,9RIWKH Companies Act, 1956.

A.B. Medical Centres Limited

'HSUHFLDWLRQRQ)L[HG$VVHWVSXUFKDVHGEHIRUH'HFHPEHUDUHSURYLGHGRQ6WUDLJKW/LQH0HWKRG RQSURUDWD EDVLV DWWKHROGUDWHVSUHVFULEHGLQ6FKHGXOH;,9RIWKH&RPSDQLHV$FWDQGDVVHWVSXUFKDVHGDIWHU-DQXDU\ DUHSURYLGHGRQ6WUDLJKW/LQH0HWKRG RQSURUDWDEDVLV DWWKHQHZUDWHVSUHVFULEHGLQ6FKHGXOH;,9RIWKH Companies Act,1956.

Apollo Health and Lifestyle Limited

'HSUHFLDWLRQLVSURYLGHGXVLQJWKH6WUDLJKW/LQH0HWKRGSURUDWDIRUWKHSHULRGRIXVHRIWKHDVVHWVDWDQQXDO GHSUHFLDWLRQUDWHVVWLSXODWHGLQ6FKHGXOH;,9WRWKH,QGLDQ&RPSDQLHV$FWRUEDVHGRQWKHHVWLPDWHG useful lives of the assets, whichever is higher, as follows:-

Asset Rates of Depreciation )XUQLWXUH )LWWLQJV  /HDVHKROG,PSURYHPHQWV 20.00% /HDVHKROG,PSURYHPHQWV²)XUQLWXUH  2IÀFH(TXLSPHQW 4.75% Air Conditioners 4.75% (OHFWULFDO,QVWDOODWLRQ 4.75% &RPSXWHUV 6RIWZDUH 16.21% Broadband Connections 16.21% Vehicles 9.50% 0HGLFDO(TXLSPHQW 7.07%

 )L[HG$VVHWVKDYLQJDQRULJLQDOFRVWOHVVWKDQ5VLQGLYLGXDOO\DUHIXOO\GHSUHFLDWHGLQWKH\HDURISXUFKDVH or installation.

Alliance Medicorp (India) Limited 'HSUHFLDWLRQ LV SURYLGHG RQ :ULWWHQ 'RZQ 9DOXHPHWKRG DV SHU WKH UDWHV SUHVFULEHG LQ 6FKHGXOH ;,9 RI WKH Companies Act, 1956.

Apollo Munich Health Insurance Company Limited

'HSUHFLDWLRQ RQ À[HG DVVHWV LV SURYLGHG RQ VWUDLJKW OLQH PHWKRG 6/0  ZLWK UHIHUHQFH WR WKH 0DQDJHPHQW·V DVVHVVPHQWRIWKHHVWLPDWHGXVHIXOOLIHRIWKHDVVHWRUUDWHVPHQWLRQHGLQ6FKHGXOH;,9WR&RPSDQLHV$FW whichever is higher. The depreciation rates used are given below Asset Class Rate of Depreciation ,QIRUPDWLRQ7HFKQRORJ\(TXLSPHQW 25% Computer Software 20% 2IÀFH(TXLSPHQW 25% )XUQLWXUH )L[WXUHV 25% or on the basis of lease term of premises, whichever is higher Vehicles 20% 0HGLD)LOPV 

$VVHWVLQGLYLGXDOO\FRVWLQJXSWR5VDUHIXOO\GHSUHFLDWHGLQWKH\HDURISXUFKDVH'HSUHFLDWLRQRQ DVVHWVSXUFKDVHGGLVSRVHGRIIGXULQJWKH\HDULVSURYLGHGRQSURUDWDEDVLVZLWKUHIHUHQFHWRWKHGDWHRIDG- GLWLRQGHOHWLRQ

Apollo Gleneagles Hospital Limited

'HSUHFLDWLRQRQÀ[HGDVVHWVLVSURYLGHGIRURQVWUDLJKWOLQHEDVLVDVIROORZV D +RVSLWDO%XLOGLQJVDW E 2WKHU$VVHWV$VSHU6FKHGXOH;,9RIWKH&RPSDQLHV$FW

Quintiles Phase One Clinical Trials India Private Limited

'HSUHFLDWLRQRQÀ[HGDVVHWVLVSURYLGHGDWWKHUDWHVSUHVFULEHGLQ6FKHGXOH;,9WRWKH&RPSDQLHV$FWRU at the rates determined based on the useful life of the asset, as estimated by the management, whichever is KLJKHU'HSUHFLDWLRQLVSURYLGHGEDVHGRQWKH6WUDLJKW/LQH0HWKRG7KHUDWHVDGRSWHGIRUGHSUHFLDWLRQGHWHU- PLQHGRQWKHEDVLVRIXVHIXOOLIHRIÀ[HGDVVHWVDUHDVIROORZV

Type of Asset 5DWHRI'HSUHFLDWLRQ SD Furniture 15% Computers 20% 2IÀFH(TXLSPHQW 15% +RVSLWDO(TXLSPHQW 15% Vehicles 20%

)L[HG$VVHWV&RVWLQJOHVVWKDQ5VDQGPRELOHSKRQHVDUHGHSUHFLDWHGIXOO\LQWKH\HDURISXUFKDVH /HDVHKROG,PSURYHPHQWVDUHDPRUWLVHGRYHUWKHSULPDU\SHULRGRIOHDVHLH\HDUV &RPSXWHU6RIWZDUHLVDPRUWLVHGRYHUDSHULRGRI\HDUVRQ6WUDLJKW/LQH0HWKRG

Family Health Plan (TPA) Limited

'HSUHFLDWLRQRIÀ[HGDVVHWVKDVEHHQSURYLGHGRQ:ULWWHQ'RZQ9DOXHPHWKRGDWWKHUDWHVSUHVFULEHGLQ6FKHG- XOH;,9RIWKH&RPSDQLHV$FW'HSUHFLDWLRQRQQHZDVVHWVDFTXLUHGGXULQJWKHSHULRG$SULOWR0DUFK KDVEHHQSURYLGHGDWWKHUDWHVDSSOLFDEOHIURPWKHGDWHRILWVDFTXLVLWLRQWRWKHHQGRIWKHÀQDQFLDO\HDU

 Apollo Health Street Limited

'HSUHFLDWLRQDQGDPRUWLVDWLRQLVSURYLGHGXVLQJWKH6WUDLJKW/LQH0HWKRG ´6/0µ DWWKHUDWHVEDVHGRQXVHIXO OLIHRIWKHDVVHWVHVWLPDWHGE\0DQDJHPHQWRUDWWKHUDWHVSUHVFULEHGXQGHU6FKHGXOH;,9RIWKH&RPSDQLHV$FW 1956 whichever is higher, as mentioned below: Nature of the Fixed Assets Rates considered Schedule XIV Rates Computers and Computer Equipment 16.21% 2IÀFH(TXLSPHQW 4.75% )XUQLWXUHDQG)L[WXUHV  Vehicles 9.75% /HDVHKROG,PSURYHPHQWV Shorter of lease period and estimated useful life of such assets

Indraprastha Medical Corporation Limited

D'HSUHFLDWLRQLVFKDUJHGRQ6WUDLJKW/LQH0HWKRGDWWKHUDWHVSUHVFULEHGXQGHU6FKHGXOH;,9WRWKH&RPSDQLHV $FW FRQVLGHUHGWKHPLQLPXPUDWH RUKLJKHUUDWHVLIWKHHVWLPDWHGXVHIXOOLIHEDVHGRQWHFKQRORJLFDO HYDOXDWLRQRIWKHDVVHWVDUHORZHUWKDQDVHQYLVDJHGXQGHU6FKHGXOH;,9WRWKH&RPSDQLHV$FW,QFDVH of additions and deletions during the year, the computations are on the basis of number of days for which the DVVHWVKDYHEHHQLQXVH$VVHWVFRVWLQJQRWPRUHWKDQ5VHDFKLQGLYLGXDOO\KDYHEHHQGHSUHFLDWHGLQWKH year of purchase.

E:KHQLPSDLUPHQWORVVUHYHUVDOLVUHFRJQLVHGWKHGHSUHFLDWLRQFKDUJHIRUWKHDVVHWLVDGMXVWHGLQIXWXUH SHULRGVWRDOORFDWHWKHDVVHW·VUHYLVHGFDUU\LQJDPRXQWOHVVLWVUHVLGXDOYDOXH LIDQ\ RQDV\VWHPDWLFEDVLVRYHU its remaining useful life.

Amortisation of Intangible Assets

L  ,QWDQJLEOHDVVHWVDUHDPRUWLVHGRQ6WUDLJKW/LQH0HWKRGRYHUWKHHVWLPDWHGXVHIXOOLIHRIWKHDVVHW LL  7KHXVHIXOOLIHRIWKHLQWDQJLEOHDVVHWVIRUWKHSXUSRVHRIDPRUWLVDWLRQLVHVWLPDWHGWREHWKUHH\HDUV

E. Revenue Recognition Apollo Hospitals Enterprise Limited

D ,QFRPH IURP +HDOWKFDUH 6HUYLFHV LV UHFRJQLVHG RQ FRPSOHWHG VHUYLFH FRQWUDFW PHWK- od. The hospital collections of the Company are net of discounts. Revenue also LQFOXGHVWKHYDOXHRIVHUYLFHVUHQGHUHGSHQGLQJÀQDOELOOLQJLQUHVSHFWRILQSDWLHQWVXQGHUJRLQJWUHDW- PHQWDVRQVW0DUFK b. Pharmacy Sales are recognised when the risk and reward of ownership is passed to the customer and are VWDWHGQHWRIUHWXUQVGLVFRXQWVDQGH[FOXVLYHRI9$7ZKHUHYHUDSSOLFDEOH F +RVSLWDO3URMHFW&RQVXOWDQF\LQFRPHLVUHFRJQLVHGDVDQGZKHQLWEHFRPHVGXHRQSHUFHQWDJHFRPSOH- tion method, on achievement of milestones. G ,QFRPHIURP7UHDVXU\2SHUDWLRQVLVUHFRJQLVHGRQUHFHLSWRUDFFUXDOEDVLVZKLFKHYHULVHDUOLHU H ,QWHUHVWLQFRPHLVUHFRJQLVHGRQDWLPHSURSRUWLRQEDVLVWDNLQJLQWRDFFRXQWWKHDPRXQWRXWVWDQGLQJDQG 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

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One Time License Fees :LWKUHIHUHQFHWR&OLQLFVWKH2QH7LPH/LFHQVHIHHLVUHFRJQLVHGRQVLJQLQJWKH028DQGRQFRPSOHWLRQ RIPRQWKVIURPGDWHRIVLJQLQJ028DQGEDODQFHRQFRPPHQFLQJRIRSHUDWLRQ

140 :LWK5HIHUHQFHWR&UDGOHWKH2QH7LPH/LFHQVHIHHLVUHFRJQL]HGEDVHGRQSHUFHQWDJHRI&RPSOHWLRQPHWKRG

Operating License Fee 2SHUDWLQJ/LFHQVH)HHLVUHFRJQLVHGDVDSHUFHQWDJHRIWKHJURVVVDOHV)RU&OLQLFVRU&UDGOHVZKLFKEHFDPH operational during the current year from the date of the commencement of its operations.

Owned clinics operational income Owned clinics are recognising the revenues on basis of the services rendered on cash or on accrual basis which- ever is earlier

Corporate services Fee Corporate services fee is recognised on basis of the services rendered and as per the terms of the agreement.

Other Incomes All other incomes are recognised on a pro-rata basis, based on the completion of work and as per the terms of the agreement.

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Unique Home Health Care Limited L  ,QFRPHIURPPHGLFDOVHUYLFHVLVUHFRJQLVHGQHWRISD\PHQWWR0HGLFDOVWDII LL  ,QFRPHIURP+RVWHO5HFHLSWVLVUHFRJQLVHGQHWRISD\PHQWPDGHWRZDUGV+RVWHO5HQWDQG0HVV([SHQVHV and is accounted on accrual basis

Alliance Medicorp (India) Limited Dialysis income is recognised as and when the related services are performed.

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Quintiles Phase One Clinical Trials India Private Limited ,QFRPHIURPÀ[HGGHSRVLWVLVUHFRJQLVHGRQDWLPHSURSRUWLRQEDVLVWDNLQJLQWRDFFRXQWWKHDPRXQWLQYHVWHGDQG the rate of interest.

Apollo Munich Health Insurance Company Limited i. Premium 3UHPLXP QHWRIVHUYLFHWD[ LVUHFRJQLVHGDVLQFRPHRYHUWKHFRQWUDFWSHULRGRUSHULRGRIULVNZKLFKHYHU is appropriate. Any subsequent revision or cancellation of premium is accounted for in the year in which they occur. ii. Commission on Reinsurance Premium Commission on reinsurance ceded is recognised as income in the year of cession of reinsurance premium. 3URÀW FRPPLVVLRQ XQGHU UHLQVXUDQFH WUHDWLHV ZKHUHYHU DSSOLFDEOH LV UHFRJQL]HG LQ WKH \HDU RI ÀQDO GHWHUPLQDWLRQRIWKHSURÀWVDQGDVLQWLPDWHGE\WKHUHLQVXUHU

LLL 3UHPLXP'HÀFLHQF\ 3UHPLXPGHÀFLHQF\LVUHFRJQLVHGZKHQHYHUWKHXOWLPDWHDPRXQWRIH[SHFWHGFODLPVUHODWHGH[SHQVHV DQGPDLQWHQDQFHFRVWVH[FHHGVUHODWHGVXPRISUHPLXPFDUULHGIRUZDUGWRWKHVXEVHTXHQWDFFRXQWLQJ SHULRGDVUHVHUYHIRUXQH[SLUHGULVN iv. Reserve for Unexpired Risk 5HVHUYHIRUXQH[SLUHGULVNUHSUHVHQWVWKDWSDUWRIWKHQHWSUHPLXP SUHPLXPQHWRIUHLQVXUDQFHFHGHG  attributable to the succeeding accounting period subject to a minimum amount of reserves as required E\6HFWLRQ9   LL  E RI,QVXUDQFH$FW v. Interest / Dividend Income ,QWHUHVW LQFRPH LV UHFRJQLVHG RQ DFFUXDO EDVLV $FFUHWLRQ RI GLVFRXQWV DQG DPRUWLVDWLRQ RI SUHPLXP UHODWLQJWRGHEWVHFXULWLHVLVUHFRJQLVHGRYHUKROGLQJPDWXULW\SHULRG

141 Family Health Plan (TPA) Limited

7KH UHYHQXH IURP 7KLUG 3DUW\ $JUHHPHQW 73$  RSHUDWLRQV LV DFFRXQWHG LQ OLQH ZLWK WKH ZRUGLQJV LQ WKH PHGLFODLP SROLF\ZKLFK VSHFLÀHV WKH FRQGLWLRQV XQGHU ZKLFK WKH SUHPLXP SDLG ZLOO EH UHIXQGHG WKHUHE\ aligning the revenue recognition with the policy wordings.

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Indraprastha Medical Corporation Limited

L  5HYHQXHLVUHFRJQLVHGRQDFFUXDOEDVLV+RVSLWDOUHYHQXHFRPSULVHVRILQFRPHIURPVHUYLFHVUHQGHUHG to the out-patients and in-patients. Revenue also includes value of services rendered pending billing in UHVSHFWRILQSDWLHQWVXQGHUJRLQJWUHDWPHQWDVRQVW0DUFK LL  8QGHUWKH´6HUYHGIURP,QGLD6FKHPHµLQWURGXFHGE\*RYHUQPHQWRI,QGLDDQH[SRUWHURIVHUYLFHLV HQWLWOHG WR FHUWDLQ H[SRUW RQ IRUHLJQ FXUUHQF\ HDUQHG 7KH UHYHQXH LQ UHVSHFW RI H[SRUW EHQHÀWV LV UHFRJQLVHG RQ WKH EDVLV RI IRUHLJQ H[FKDQJH HDUQHG GXULQJ WKH \HDU DW WKH UDWH DW ZKLFK WKH VDLG HQWLWOHPHQWDFFUXHVWRWKHH[WHQWWKHUHLVQRVLJQLÀFDQWXQFHUWDLQW\DVWRWKHDPRXQWRIFRQVLGHUDWLRQ that would be derived and as to the ultimate collection.

Apollo Health Street Limited

5HYHQXHLVUHFRJQLVHGWRWKHH[WHQWWKDWLWLVSUREDEOHWKDWWKHHFRQRPLFEHQHÀWVZLOOÁRZWRWKH&RPSDQ\ and the revenue can be reliably measured. The Company recognises revenue from the last billing date to the Balance Sheet date for work performed but not billed as unbilled revenues which are included in other current assets.

The Company recognises revenue on the following basis:

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On the basis of software developed and billed, as per the terms of contracts based on milestones achieved under the percentage of completion method.

Software implementation

On the completion of installation based on the terms of arrangements with the concerned parties.

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F. Fixed Assets

D $OO)L[HG$VVHWVDUHVWDWHGDWWKHLURULJLQDOFRVWRIDFTXLVLWLRQOHVVDFFXPXODWHGGHSUHFLDWLRQDQGLPSDLU- PHQWORVVHVDUHUHFRJQLVHGZKHUHQHFHVVDU\ $OVRUHIHU&ODXVH1LQWKH1RWHVIRUPLQJSDUWRI$FFRXQWV  $GGLWLRQDOFRVWUHODWLQJWRWKHDFTXLVLWLRQDQGLQVWDOODWLRQRIÀ[HGDVVHWVDUHFDSLWDOLVHG:KHUHYHU9$7LV HOLJLEOHIRULQSXWDYDLOPHQWÀ[HGDVVHWVDUHVWDWHGDWFRVWRIDFTXLVLWLRQDIWHUGHGXFWLRQRILQSXW9$7

142 E &DSLWDOZRUN²LQ²SURJUHVVFRPSULVHVRIRXWVWDQGLQJDGYDQFHVSDLGWRDFTXLUHÀ[HGDVVHWVDQGDPRXQWV H[SHQGHGRQGHYHORSPHQWDFTXLVLWLRQRI)L[HG$VVHWVWKDWDUHQRW\HWUHDG\IRUWKHLULQWHQGHGXVHDWWKH %DODQFH6KHHW'DWH([SHQGLWXUHGXULQJFRQVWUXFWLRQSHULRGGLUHFWO\DWWULEXWDEOHWRWKHFRVWRIDVVHWVRQ SURMHFWVXQGHULPSOHPHQWDWLRQLVLQFOXGHGXQGHU&DSLWDOZRUNLQ²SURJUHVVSHQGLQJDOORFDWLRQWRWKH assets. F $VVHWVDFTXLUHGXQGHU+LUH3XUFKDVHDJUHHPHQWVDUHFDSLWDOLVHGWRWKHH[WHQWRISULQFLSDOYDOXHZKLOH ÀQDQFHFKDUJHVDUHFKDUJHGWRUHYHQXHRQDFFUXDOEDVLV G ,QWHUHVWRQERUURZLQJVIRUDFTXLVLWLRQRI)L[HG$VVHWVDQGUHODWHGUHYHQXHH[SHQGLWXUHLQFXUUHGIRUWKH SHULRGSULRUWRWKHFRPPHQFHPHQWRIRSHUDWLRQVIRUWKHH[SDQVLRQDFWLYLWLHVRIWKH&RPSDQ\DUHFDSLWDO- ised.

G. Transactions in Foreign Currencies

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Western Hospitals Corporation Private Limited

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Apollo Health Street Limited

Initial recognition Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount WKHH[FKDQJHUDWHEHWZHHQWKHUHSRUWLQJFXUUHQF\DQGWKHIRUHLJQFXUUHQF\DWWKHGDWHRIWKHWUDQVDFWLRQ

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c. Foreign Branch 7KHÀQDQFLDOVWDWHPHQWVRIDQLQWHJUDOIRUHLJQRSHUDWLRQDUHWUDQVODWHGDVLIWKHWUDQVDFWLRQVRIWKHIRUHLJQ operation are those of the Company itself.

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Apollo Health and Lifestyle Limited

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Apollo Munich Health Insurance Company Limited

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Unique Home Health Care 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. E 7KH (PSOR\HHV 3URYLGHQW )XQGV DQG 0LVFHOODQHRXV 3URYLVLRQV$FW  LV DOVR QRW DSSOLFDEOH WR WKH Company as the number of employees is below the statutory minimum. F 7KH (PSOR\HHV 6WDWH ,QVXUDQFH $FW  LV DOVR QRW DSSOLFDEOH WR WKH &RPSDQ\ DV WKH QXPEHU RI employees is below the statutory minimum. d. The Company does not have any leave encashment scheme or sick leave policy.

Imperial Hospital & Research Centre Limited a. Gratuity: The Company has contribution towards a recognised Gratuity Fund. The contributions are accounted on payments basis. b. Provident Fund: The Company is registered with the jurisdictional provident fund commissioner for SURYLGHQW)XQGEHQHÀWVDQGLVFRQWULEXWLQJWRWKHIXQGDVSHUSUHVFULEHGODZ7KHFRQWULEXWLRQVWRWKH Provident Fund are accounted on accrual basis. F /HDYH(QFDVKPHQW%HQHÀWV7KH&RPSDQ\SD\VOHDYHHQFDVKPHQWEHQHÀWVWR(PSOR\HHVDVDQGZKHQ claimed, subject to the policies of the Company.

145 Apollo Health Street Limited

D 6KRUWWHUPFRPSHQVDWHGDEVHQFHVDUHSURYLGHGIRUEDVHGRQHVWLPDWHV/RQJWHUPFRPSHQVDWHGDEVHQFHV are provided for based on actuarial valuation made at each Balance Sheet date. The actuarial valuation is done as per projected unit credit method. b. Retention bonus is provided based on actuarial valuation made at the end of each year. The actuarial valuation is done as per projected unit credit method. F $FWXDULDOJDLQVORVVHVDUHUHFRJQLVHGLQWKH3URÀWDQG/RVV$FFRXQWDVWKH\DULVH

J. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as SDUWRIWKHFRVWRIVXFKDVVHW$VSHU$FFRXQWLQJ6WDQGDUG¶%RUURZLQJFRVWV·D´TXDOLI\LQJDVVHWµLVRQHWKDW takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are H[SHQVHGDVDQGZKHQLQFXUUHG

K. Segment Reporting ,GHQWLÀFDWLRQRI6HJPHQWV

7KH &RPSDQ\ KDV FRPSOLHG ZLWK$FFRXQWLQJ 6WDQGDUG  ¶6HJPHQW 5HSRUWLQJ· ZLWK %XVLQHVV DV WKH SULPDU\ segment.

7KH &RPSDQ\ RSHUDWHV LQ D VLQJOH JHRJUDSKLFDO VHJPHQW ZKLFK LV ,QGLD DQG WKH SURGXFWV VROG LQ WKH 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 UHSRUWDEOHVHFRQGDU\VHJPHQWDVGHÀQHGLQ$FFRXQWLQJ6WDQGDUG

Segment Policies

The accounting policies adopted for segment reporting are in line with the accounting policies adopted in FRQVROLGDWHGÀQDQFLDOVWDWHPHQWVZLWKWKHIROORZLQJDGGLWLRQDOSROLFLHVIRU6HJPHQW5HSRUWLQJ

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L. Earnings per Share

,QGHWHUPLQLQJWKH(DUQLQJV3HU6KDUHWKH&RPSDQ\FRQVLGHUVWKHQHWSURÀWDIWHUWD[EHIRUHH[WUDRUGLQDU\LWHP DQGDIWHUH[WUDRUGLQDU\LWHPVDQGLQFOXGHVSRVWWD[HIIHFWRIDQ\H[WUDRUGLQDU\LWHPV7KHQXPEHURIVKDUHV 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.

M. Taxation i. Income Tax

,QFRPHWD[LVFRPSXWHGXVLQJWKHWD[HIIHFWDFFRXQWLQJPHWKRGZKHUHWD[HVDUHDFFUXHGLQWKHVDPHSHULRGDV DQGZKHQWKHUHODWHGUHYHQXHDQGH[SHQVHDULVH$SURYLVLRQLVPDGHIRU,QFRPH7D[DQQXDOO\EDVHGRQWKHWD[ OLDELOLW\FRPSXWHGDIWHUFRQVLGHULQJWD[DOORZDQFHVDQGH[HPSWLRQV ii. Deferred Tax

7KHGLIIHUHQFHVWKDWUHVXOWEHWZHHQWKHSURÀWFDOFXODWHGIRULQFRPHWD[SXUSRVHVDQGWKHSURÀWDVSHUWKH

146 ÀQDQFLDOVWDWHPHQWVDUHLGHQWLÀHGDQGWKHUHDIWHUGHIHUUHGWD[DVVHWRUGHIHUUHGWD[OLDELOLW\LVUHFRUGHGIRU timing differences, namely the differences that originate in one accounting period and get reversed in another, EDVHGRQWKHWD[HIIHFWRIWKHDJJUHJDWHDPRXQWEHLQJFRQVLGHUHG'HIHUUHGWD[DVVHWDUHQRWUHFRJQLVHGXQOHVV WKHUHLVYLUWXDOFHUWDLQW\WKDWVXIÀFLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[ DVVHWFDQEHUHDOLVHG7KHWD[HIIHFWLVFDOFXODWHGRQWKHDFFXPXODWHGWLPLQJGLIIHUHQFHVDWWKHEHJLQQLQJRIWKLV accounting year based on the prevailing enacted or substantively enacted regulations.

Apollo Health Street Limited

7D[H[SHQVHFRPSULVHVFXUUHQWDQGGHIHUUHGWD[HV&XUUHQWLQFRPHWD[LVPHDVXUHGDWWKHDPRXQWH[SHFWHG WREHSDLGWRWKHWD[DXWKRULWLHVLQDFFRUGDQFHZLWKWKHWD[ODZVDVDSSOLFDEOHWRWKHUHVSHFWLYHFRQVROLGDWHG HQWLWLHV 'HIHUUHG LQFRPH WD[HV UHÁHFWV WKH LPSDFW RI FXUUHQW SHULRG WLPLQJ GLIIHUHQFHV EHWZHHQ WD[DEOH income and accounting income for the period and reversal of timing differences of earlier years.

'HIHUUHG WD[ LV PHDVXUHG EDVHG RQ WKH WD[ UDWHV DQG WKH WD[ ODZV HQDFWHG RU VXEVWDQWLYHO\ HQDFWHG DW WKH %DODQFH6KHHWGDWH'HIHUUHGWD[DVVHWVDQGGHIHUUHGWD[OLDELOLWLHVDFURVVYDULRXVFRXQWULHVRIRSHUDWLRQDUH QRWVHWRIIDJDLQVWHDFKRWKHUDVWKH&RPSDQ\GRHVQRWKDYHDOHJDOULJKWWRGRVR'HIHUUHGWD[DVVHWVDUH UHFRJQLVHG RQO\ WR WKH H[WHQW WKDW WKHUH LV UHDVRQDEOH FHUWDLQW\ WKDW VXIÀFLHQW IXWXUH WD[DEOH LQFRPH ZLOO EH DYDLODEOH DJDLQVW ZKLFK VXFK GHIHUUHG WD[ DVVHWV FDQ EH UHDOLVHG ,Q VLWXDWLRQV ZKHUH WKH &RPSDQ\ KDV XQDEVRUEHGGHSUHFLDWLRQRUFDUU\IRUZDUGWD[ORVVHVDOOGHIHUUHGWD[DVVHWVDUHUHFRJQLVHGRQO\LIWKHUHLVYLUWXDO FHUWDLQW\VXSSRUWHGE\FRQYLQFLQJHYLGHQFHWKDWWKH\FDQEHUHDOLVHGDJDLQVWIXWXUHWD[DEOHSURÀWV

$W HDFK EDODQFH VKHHW GDWH WKH &RPSDQ\ UHDVVHVVHV XQUHFRJQLVHG GHIHUUHG WD[ DVVHWV  ,W UHFRJQLVHV XQUHFRJQLVHGGHIHUUHGWD[DVVHWVWRWKHH[WHQWWKDWLWKDVEHFRPHUHDVRQDEO\FHUWDLQRUYLUWXDOO\FHUWDLQDVWKH FDVHPD\EHWKDWVXIÀFLHQWIXWXUHWD[DEOHLQFRPHZLOOEHDYDLODEOHDJDLQVWZKLFKVXFKGHIHUUHGWD[DVVHWVFDQ be realised.

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0$7FUHGLWLVUHFRJQLVHGDVDQDVVHWRQO\ZKHQDQGWRWKHH[WHQWWKHUHLVFRQYLQFLQJHYLGHQFHWKDWWKH&RPSDQ\ ZLOOSD\QRUPDOLQFRPHWD[GXULQJWKHVSHFLÀHG\HDU,QWKH\HDULQZKLFKWKH0LQLPXP$OWHUQDWLYH7D[ 0$7  credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in JXLGDQFH1RWHLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLDWKHVDLGDVVHWLVFUHDWHGE\ZD\RID FUHGLWWRWKH3URÀWDQG/RVV$FFRXQWDQGVKRZQDV0$7&UHGLW(QWLWOHPHQW7KH&RPSDQ\UHYLHZVWKHVDPHDW HDFK%DODQFH6KHHWGDWHDQGZULWHVGRZQWKHFDUU\LQJDPRXQWRI0$7&UHGLW(QWLWOHPHQWWRWKHH[WHQWWKHUHLV QRORQJHUFRQYLQFLQJHYLGHQFHWRWKHHIIHFWWKDW&RPSDQ\ZLOOSD\QRUPDO,QFRPH7D[GXULQJWKHVSHFLÀHG\HDU

N. Impairment

The carrying amounts of assets are reviewed at each Balance Sheet date to ascertain if there is any indication RILPSDLUPHQWEDVHGRQLQWHUQDOH[WHUQDOIDFWRUV$QDVVHWLVWUHDWHGDVLPSDLUHGEDVHGRQWKHFDVKJHQHUDWLQJ FRQFHSWDWWKH\HDUHQGZKHQWKHFDUU\LQJFRVWRIDVVHWVH[FHHGVLWVUHFRYHUDEOHYDOXHLQWHUPVRI3DUDWR 3DUDRI$6¶,PSDLUPHQWRI$VVHWV·DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV 5XOHVIRU WKHSXUSRVHRIDUULYLQJDWLPSDLUPHQWORVVWKHUHRQLIDQ\$QLPSDLUPHQWORVVLVFKDUJHGWRWKH3URÀWDQG/RVV $FFRXQWLQWKH\HDULQZKLFKDQDVVHWLVLGHQWLÀHGDVLPSDLUHG7KHLPSDLUPHQWORVVUHFRJQLVHGLQSULRUDFFRXQW- ing periods is reversed if there has been a change in the estimate of the recoverable amount.

O. Bad Debts Policy

Apollo Hospitals Enterprise Limited

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 manage- ment inputs on the collectability of the same.

147 Period % of write off upto 1 year 0% 1-2 years 25% \HDUV 50% 2YHU\HDUV 100%

P. Miscellaneous Expenditure 3UHOLPLQDU\3XEOLF,VVXH5LJKWV,VVXH([SHQVHVDQG([SHQVHVRQ3ULYDWH3ODFHPHQWRIVKDUHVDUHDPRUWLVHGRYHU a period of 10 years.

Imperial Hospital & Research Centre Limited 3UHOLPLQDU\DQGSUHRSHUDWLYHH[SHQVHVDUHDPRUWLVHGRYHUDSHULRGRI\HDUV

Western Hospitals Corporation Private Limited ,WLVWKH&RPSDQ\·VLQWHQWLRQWRFDSLWDOLVHFKDUJHRIIWKH3UHRSHUDWLYH([SHQVHVZKHQFRPPHUFLDORSHUDWLRQV EHJLQLQDFFRUGDQFHZLWKWKHJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV3UHOLPLQDU\([SHQVHVZLOOEHZULWWHQRII fully in the year of commencement of commercial operations.

Apollo Health Street Limited Cost incurred on raising funds are amortised equally over the period for which funds are acquired.

Q. Intangible Assets

Apollo Hospitals Enterprise Limited ,QWDQJLEOHDVVHWVDUHLQLWLDOO\UHFRJQLVHGDWFRVWDQGDPRUWLVHGRYHUWKHEHVWHVWLPDWHRIWKHLUXVHIXOOLIH&RVW RIVRIWZDUHLQFOXGLQJGLUHFWO\DWWULEXWDEOHFRVWLIDQ\DFTXLUHGIRULQWHUQDOXVHLVDOORFDWHGDPRUWLVHGRYHUD SHULRGRIPRQWKVWRPRQWKV

Apollo Health and Lifestyle Limited

Trademark and Concept Rights 7KH &RPSDQ\ KDV HQWHUHG LQWR DQ DJUHHPHQW ZLWK $SROOR +RVSLWDOV (QWHUSULVH /LPLWHG WRZDUGV WKH XVDJH RI´$SROORµQDPHE\WKH&RPSDQ\IRUWKHIUDQFKLVHHFOLQLFVDQGDOVRIRUWKHFRQFHSWRIIUDQFKLVHHPRGHRI EXVLQHVVIRUWKLVWKH&RPSDQ\SDLG5VPLOOLRQWKH&RPSDQ\KDVDSROLF\RIDPRUWLVLQJDÀ[HGSURSRUWLRQ of this license amount each time a clinic comes into operation.

Imperial Hospital & Research Centre Limited ,QWDQJLEOHDVVHWVDUHLQLWLDOO\UHFRJQLVHGDWFRVWDQGDPRUWLVHGRYHUWKHEHVWHVWLPDWHRIWKHLUXVHIXOOLIH&RVW RIVRIWZDUHLQFOXGLQJGLUHFWO\DWWULEXWDEOHFRVWLIDQ\DFTXLUHGIRULQWHUQDOXVHLVDOORFDWHGDPRUWL]HGRYHU a period of 5 years.

Indraprastha Medical Corporation Limited ,QWDQJLEOH$VVHWVDUHVWDWHGDWFRVWOHVVDFFXPXODWHGDPRUWLVDWLRQ

Amortisation of Intangible Assets ,QWDQJLEOHDVVHWVDUHDPRUWLVHGRQ6WUDLJKW²/LQH0HWKRGRYHUWKHHVWLPDWHGXVHIXOOLIHRIWKHDVVHWV7KHXVHIXO life of the intangible assets for the purpose of amortisation is estimated to be three years.

Apollo Health Street Limited $QLQWDQJLEOHDVVHWLVUHFRJQLVHGZKHUHLWLVSUREDEOHWKDWIXWXUHHFRQRPLFEHQHÀWVDWWULEXWDEOHWRWKHDVVHW ZLOODFFUXHWRWKHHQWHUSULVHDQGWKHFRVWFDQEHPHDVXUHGUHOLDEO\,QWDQJLEOHDVVHWVDUHVWDWHGDWFRVWOHVV accumulated amortisation. Goodwill arising on consolidation of acquired subsidiaries is carried at cost.

Cost of software is amortised on straight line basis over the stipulated license period and for software without any stipulated license period over one to three years.

148 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 WKDWDQRXWÁRZRIUHVRXUFHVHPERG\LQJHFRQRPLFEHQHÀWVZLOOEHUHTXLUHGWRVHWWOHWKHREOLJDWLRQDQGDUHOLDEOH estimate can be made of the amount of the obligation.

&RQWLQJHQWOLDELOLWLHVDUHQRWSURYLGHGIRUXQOHVVDUHOLDEOHHVWLPDWHRISUREDEOHRXWÁRZWRWKH&RPSDQ\H[LVWV DVDWWKH%DODQFH6KHHWGDWH&RQWLQJHQWDVVHWVDUHQHLWKHUUHFRJQLVHGQRUGLVFORVHGLQWKHÀQDQFLDOVWDWHPHQWV

S. Lease a. Operating lease /HDVHVZKHUHWKHOHVVRUHIIHFWLYHO\UHWDLQVVXEVWDQWLDOO\DOOWKHULVNVDQGWKHEHQHÀWVRIRZQHUVKLSRIWKHOHDVHG DVVHWVDUHFODVVLÀHGDVRSHUDWLQJOHDVHV2SHUDWLQJOHDVHSD\PHQWVDUHUHFRJQLVHGDVDQH[SHQVHLQWKH3URÀWDQG /RVV$FFRXQWRQDVWUDLJKWOLQHEDVLVRYHUWKHOHDVHWHUP b. Finance lease

Apollo Health Street Limited /HDVHV ZKLFK HIIHFWLYHO\ WUDQVIHU WR WKH &RPSDQ\ VXEVWDQWLDOO\ DOO WKH ULVNV DQG EHQHÀWV LQFLGHQWDO WR ownership of the leased item, are capitalised at the lower of the fair value and present value of the minimum OHDVHSD\PHQWVDWWKHLQFHSWLRQRIWKHOHDVHWHUPDQGGLVFORVHGDVOHDVHGDVVHWV/HDVHSD\PHQWVDUHDSSRU- WLRQHGEHWZHHQWKHÀQDQFHFKDUJHVDQGUHGXFWLRQRIWKHOHDVHOLDELOLW\EDVHGRQWKHLPSOLFLWUDWHRIUHWXUQ )LQDQFHFKDUJHVDUHH[SHQVHGDVLQFXUUHG

,IWKHUHLVQRUHDVRQDEOHFHUWDLQW\WKDWWKH&RPSDQ\ZLOOREWDLQWKHRZQHUVKLSE\WKHHQGRIWKHOHDVHWHUP FDSLWDOL]HGOHDVHGDVVHWVDUHGHSUHFLDWHGRYHUWKHVKRUWHURIWKHHVWLPDWHGXVHIXOOLIHRIWKHDVVHWRUWKHOHDVH term.

T. Membership Fees

Unique Home Health Care Limited Non-repayable membership fee collected from patients are accounted as Capital Fund treating them as Capital Receipts.

U. Share Based Payments

Apollo Health Street Limited (PSOR\HHFRPSHQVDWLRQH[SHQVHVZKHUHDSSOLFDEOHLQUHVSHFWRIVWRFNRSWLRQVJUDQWHGWRWKHHPSOR\HHVDUH recognised over the vesting period of the option on straight line basis using intrinsic value method as prescribed LQ´*XLGDQFH1RWHRQ$FFRXQWLQJIRU(PSOR\HH6KDUHEDVHGSD\PHQWVµLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$F- FRXQWDQWVRI,QGLD

V. Financial Instruments Apollo Health Street Limited

Derivative Instruments $VSHUWKH,&$,$QQRXQFHPHQWDFFRXQWLQJIRUGHULYDWLYHFRQWUDFWVRWKHUWKDQWKRVHFRYHUHGXQGHU$6DUH marked to market on a portfolio basis, and the loss is charged to the income statement. Gains are ignored.

W. Insurance-related Policies Apollo Munich Health Insurance Company Limited a. Reinsurance Premium Reinsurance Premium on ceding of risk is accounted in the year in which risk commences and over the period of ULVNLQDFFRUGDQFHZLWKWKHWUHDW\DUUDQJHPHQWVZLWKWKHUHLQVXUHUV8QHDUQHGSUHPLXPRQUHLQVXUDQFHFHGHG LVFDUULHGIRUZDUGWRWKHSHULRGRIULVNDQGLVVHWRIIDJDLQVWUHODWHGXQHDUQHGSUHPLXP3UHPLXPRQH[FHVVRI loss reinsurance cover is accounted as per there insurance arrangements.

149 b. Acquisition Cost of Insurance Contracts &RVWVUHODWLQJWRDFTXLVLWLRQRIQHZDQGUHQHZDORILQVXUDQFHFRQWUDFWVYL]FRPPLVVLRQHWFDUHH[SHQVHGLQ the year in which they are incurred.

c. Advance premium Advance premium represents premium received in respect of those policies issued during the year where the risk commences subsequent to the Balance Sheet date.

d. Claims Incurred Estimated liability in respect of claims is provided for the intimations received upto the year end based on DVVHVVPHQW PDGH E\ 7KLUG 3DUW\ $GPLQLVWUDWRU 73$  LQIRUPDWLRQ SURYLGHG E\ WKH LQVXUHG DQG MXGJPHQW EDVHGRQWKHSDVWH[SHULHQFH&ODLPVDUHUHFRUGHGLQWKHUHYHQXHDFFRXQWQHWRIFODLPVUHFRYHUDEOHIURP UHLQVXUHUVFRLQVXUHUVWRWKHH[WHQWWKHUHLVDUHDVRQDEOHFHUWDLQW\RIUHDOLVDWLRQ7KHVHHVWLPDWHVDUHSURJUHVVLYHO\ re-valued on availability of further information.

e. Claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER) ,%15UHSUHVHQWVWKDWDPRXQWRIFODLPVWKDWPD\KDYHEHHQLQFXUUHGSULRUWRWKHHQGRIWKHFXUUHQWDFFRXQWLQJ SHULRGEXWKDYHQRWEHHQUHSRUWHGRUFODLPHG7KH,%15SURYLVLRQDOVRLQFOXGHVSURYLVLRQLIDQ\UHTXLUHGIRU FODLPVLQFXUUHGEXWQRWHQRXJKUHSRUWHG,%15DQG,%1(5OLDELOLWLHVDUHSURYLGHGEDVHGRQDFWXDULDOSULQFLSOHV DQGFHUWLÀHGE\WKH$SSRLQWHG$FWXDU\7KHPHWKRGRORJ\DQGDVVXPSWLRQVRQWKHEDVLVRIZKLFKWKHOLDELOLW\KDV EHHQGHWHUPLQHGKDVDOVREHHQFHUWLÀHGE\WKH$FWXDU\WREHDSSURSULDWHLQDFFRUGDQFHZLWKJXLGHOLQHVDQG QRUPVLVVXHGE\WKH$FWXDULDO6RFLHW\RI,QGLDDQGLQFRQFXUUHQFHZLWKWKH,5'$

f. Allocation of Investment Income ,QYHVWPHQWLQFRPHLVDSSRUWLRQHGWR3URÀWDQG/RVV$FFRXQWDQG5HYHQXH$FFRXQWLQWKHUDWLRRIDYHUDJHRI shareholder’s funds and policy holders funds at the end of each month.

g. Fair Value Change Account ¶)DLU9DOXH&KDQJH$FFRXQW·UHSUHVHQWVXQUHDOLVHGJDLQVRUORVVHVGXHWRFKDQJHLQIDLUYDOXHRIWUDGHGVHFXUL- ties and mutual fund units outstanding at the close of the year. The balance in the account is considered as a component of shareholder’s funds and not available for distribution as dividend.

K 3URÀW/RVVRQ6DOH5HGHPSWLRQRI,QYHVWPHQWV 3URÀWRUORVVRQVDOHUHGHPSWLRQRILQYHVWPHQWVEHLQJWKHGLIIHUHQFHEHWZHHQVDOHFRQVLGHUDWLRQRUUHGHPS- WLRQYDOXHDQGFDUU\LQJYDOXHRILQYHVWPHQWVLVFUHGLWHGRUFKDUJHGWR3URÀWDQG/RVV$FFRXQW7KHSURÀWORVV RQVDOHRILQYHVWPHQWVLQFOXGHDFFXPXODWHGFKDQJHVLQWKHIDLUYDOXHSUHYLRXVO\UHFRJQLVHGLQ¶)DLU9DOXH&KDQJH Account’’ in respect of a particular security.

i. Long Term / Short Term Investments ,QYHVWPHQWVPDWXULQJZLWKLQWZHOYHPRQWKVIURPWKH%DODQFH6KHHWGDWHDQGLQYHVWPHQWVPDGHZLWKVSHFLÀF LQWHQWLRQWRGLVSRVHRIIZLWKLQWZHOYHPRQWKVIURPWKHGDWHRIDFTXLVLWLRQDUHFODVVLÀHGDVVKRUWWHUPLQYHVW- PHQWV2WKHULQYHVWPHQWVDUHFODVVLÀHGDVORQJWHUP,QYHVWPHQWV

4. 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.No. Name of Related Parties Nature of relationship 1 Dr. Prathap C Reddy 2 Smt. Preetha Reddy .H\0DQDJHPHQW3HUVRQQHO  Smt. Suneeta Reddy 4 Smt. Sangita Reddy 5 Smt. Shobana Kamineni

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151 48 .LGG\&RQFHSWV3ULYDWH/LPLWHG 49 .HL9LWD3ULYDWH/LPLWHG 50 .HL5DMDPDKHQGUL5HVRUWV3ULYDWH/LPLWHG 51 .(,56263HWUROHXPDQG(QHUJ\3ULYDWH/LPLWHG 52 .(,56266KLSSLQJ3ULYDWH/LPLWHG (QWHUSULVHVRYHUZKLFK.H\0DQDJH-  3HQLQVXODU7DQNHUV3ULYDWH/LPLWHG PHQW3HUVRQQHODUHDEOHWRH[HUFLVH 54 .HL+HDOWK+LJKZD\3ULYDWH/LPLWHG VLJQLÀFDQWLQÁXHQFH 55 .HLPHG/LPLWHG 56 0HGYDUVLW\2QOLQH/LPLWHG 57 6SHFWUD&OLQLFDO/DERUDWRU\ 58 Kamineni Builders 59 8QLYHUVDO4XDOLW\6HUYLFHV//& 60 $SROOR+HDOWK5HVRXUFHV/LPLWHG 61 0U$QWRQ\-DFRE Key management personnel of Apollo 0XQLFK+HDOWK,QVXUDQFH&RPSDQ\ /WG 62 &DGLOD3KDUPDFHXWLFDOV/WG 6LJQLÀ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arent Company of Quintiles Phase 2QH&OLQLFDO7ULDOV,QGLD3ULYDWH /LPLWHG 72 4XLQWLOHV7UDQVQDWLRQDO86$ 8OWLPDWHSDUHQW&RPSDQ\RI Quintiles Phase One Clinical Trials ,QGLD3ULYDWH/LPLWHG  4XLQWLOHV3DFLÀF,QF86$ 74 4XLQWLOHV/WG8. Subsidiaries of Quintiles Phase One &OLQLFDO7ULDOV,QGLD3ULYDWH/LPLWHG 75 4XLQWLOHV(DVW$VLD3WH/WG6LQJDSRUH 76 7ULYLWURQ+HDOWKFDUH3ULYDWH/LPLWHG 6LJQLÀFDQW&RQWURO $OOLDQFH0HGL- FRUS ,QGLD /LPLWHG 77 )DPLO\+HDOWK3ODQ/LPLWHG 78 $SROOR+HDOWK6WUHHW/LPLWHG Associates 79 ,QGUDSUDVWKD0HGLFDO&RUSRUDWLRQ/LPLWHG 80 6WHPF\WH,QGLD7KHUDSDXWLFV3ULYDWH/LPLWHG

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155 5. Contingent Liabilities

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(iii) Corporate Guarantees with respect to the parent Company 5VLQPLOOLRQ Particulars ,Q)DYRXURI $VDWVW0DUFK $VDWVW0DUFK %\$SROOR+RVSLWDOV(QWHUSULVH/LPLWHGRQEH- ,'%, 50.00 50.00 KDOIRI$SROOR+RVSLWDOV,QWHUQDWLRQDO/LPLWHG ,')& 157.50 157.50 727$/ 207.50 207.50

e. Apollo Hospitals Enterprise Limited

7KH &RPSDQ\ ÀOHG D 6SHFLDO /HDYH 3HWLWLRQ RQ WK 0D\  EHIRUH WKH +RQRXUDEOH 6XSUHPH &RXUW DJDLQVW WKH MXGJHPHQW RI WKH 'LYLVLRQDO %HQFK RI WKH 0DGUDV +LJK &RXUW GDWHG WK 0DUFK  DOORZ- ing the reopening of the assessment for Assessment Year 2000-01 and disallowing the claim for set off RI WKH XQDEVRUEHG GHSUHFLDWLRQ 7KH 6SHFLDO /HDYH 3HWLWLRQ KDV EHHQ DGPLWWHG E\ WKH +RQRXUDEOH 6X- SUHPH &RXUW RQ WK 0D\ 7KH$VVHVVPHQW 2IÀFHU FRPSOHWHG WKH DVVHVVPHQW DQG UDLVHG D GHPDQG RI 5VPLOOLRQZKLFKKDVVLQFHEHHQVWD\HGE\WKH+RQRXUDEOH6XSUHPH&RXUWLQLWVRUGHUGDWHGWK-XQH 7KLVDPRXQWKDVEHHQWUHDWHGDVDFRQWLQJHQWOLDELOLW\IRUWKH\HDUHQGHGVW0DUFKXQWLOWKHGLV- SRVDORIWKHFDVHE\+RQRXUDEOH6XSUHPH&RXUW

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The estimated customs duty guarantees given by the Company in favour of the Assistant Collector of Customs, SHQGLQJUHFHLSWRIFXVWRPVGXW\H[HPSWLRQFHUWLÀFDWHVDPRXQWVWR5VPLOOLRQ 5VPLOOLRQ 

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'HPDQGUDLVHGE\'HSXW\&RPPLVVLRQHURI&RPPHUFLDO7D[HV (QIRUFHPHQW IRU9$7SD\DEOHRQWKHVDOHRI)RRG and Beverages to the Patients, against which the Company has preferred an appeal with the Joint Commissioner RI&RPPHUFLDO7D[HV $SSHDOV 0\VRUHLV5VPLOOLRQ 5VPLOOLRQ 

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Apollo Health and Lifestyle Limited

The Company had received a Show cause notice from VAT authorities claiming that Franchise Services come un- GHUWKHVFRSHRI9$7DQGLVVXHGDQ$VVHVVPHQW2UGHUIRUSD\PHQWRI5VPLOOLRQ)RUUHVWRI,QGLDVHUYLFHV WKH\DVVHVVHG&67RI5VPLOOLRQIRUWKHSHULRGIURPVW$SULOWLOOVW0DUFK

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The Deputy Commissioner appeals partly allowed the appeal and directed the CTO for the reassessment.

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* Represents amount payable on cancellation of service contract.

Indraprastha Medical Corporation Limited ,QUHVSHFWRIRWKHUPDWWHUV5VPLOOLRQ 3UHYLRXV

Apollo Health Street Limited

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Family Health Plan (TPA) Limited

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157 GHOD\HGUHPLWWDQFHRI6HUYLFHWD[SD\DEOH $PRXQWRISHQDOW\QRWTXDQWLÀHG 7KH&RPSDQ\KDVSUHIHUUHGDS- SHDODJDLQVWWKHDERYHRUGHUZLWKWKH+RQRXUDEOH&XVWRPV([FLVHDQG6HUYLFHWD[$SSHOODWH7ULEXQDO 6RXWK =RQDO%HQFK ²%DQJDORUHDQGJRWWKHDSSHDODGPLWWHGDQGDOVRJRWWKHVWD\RUGHUIURPWKH+RQRXUDEOH&RXUWIRU SUHGHSRVLWRISHQDOW\7KHPDWWHULVVXEMXGLFHDZDLWLQJÀQDOKHDULQJ

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7KH&RPSDQ\KDVJRQHRQDSSHDODJDLQVWWKH6KRZ&DXVH1RWLFHIURPWKH,QFRPH7D['HSDUWPHQWDQGDOVRWKH &%'7&LUFXODU1RRI1RYHPEHUDW&KHQQDL+LJK&RXUWIRUDSSOLFDELOLW\RI7'6RQSD\PHQWVPDGHWRKRV- pitals. The same is admitted and granted Stay of Operations of Show Cause Notice and also that of CBDT Circular.  7KHSDUHQW&RPSDQ\KDVSOHGJHGLWVPLOOLRQ PLOOLRQ VKDUHVLQ$SROOR*OHQHDJOHV+RVSLWDOV /LPLWHGDVDVHFXULW\IRUWKHORDQDGYDQFHGE\,')&DQG+')&WR$SROOR*OHQHDJOHV+RVSLWDOV/LPLWHG

 &DSLWDO :RUN ²LQ3URJUHVV FRPSULVHV DPRXQWV VSHQW RQ DVVHWV XQGHU FRQVWUXFWLRQ DQG GLUHFWO\ UHODWHG SUHRSHUDWLYHH[SHQVHV7KHDPRXQWRILQWHUHVWLQFOXGHGLQFDSLWDOZRUNLQSURJUHVVLV5VPLOOLRQ 5VPLOOLRQ   ,QFOXGHV,QWHUHVWRQ%RUURZLQJV&DSLWDOLVHGIRUWKH\HDUHQGHGVW0DUFKLV5VPLOOLRQ 5VPLOOLRQ 

 'HWDLOVRIXWLOL]DWLRQRIIXQGVUHFHLYHGRQSUHIHUHQWLDODOORWPHQWRIHTXLW\VKDUHZDUUDQWV Rs. in million A )XQGV5HFHLYHGWKURXJK3UHIHUHQWLDO,VVXH Opening Balance as on 1st April 2010 - Amount received from the Promoter during the year 685.07 Total Funds Received 685.07 B 3DUWLFXODUVRI8WLOLVDWLRQ &DSLWDO([SHQGLWXUH :RUNLQJ&DSLWDO 298.02 %DODQFHO\LQJDV,QYHVWPHQWLQPXWXDOIXQGVDQGÀ[HGGHSRVLWV  Total 685.07

9. Details of Secured Loans and Security

a. Indian Bank Loan from Indian Bank is secured by way of

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b. Bank of India /RDQIURP%DQNRI,QGLDLVVHFXUHGE\ZD\RISDULSDVVXFKDUJHRQWKH)L[HG$VVHWVRIWKH3DUHQW&RPSDQ\H[LVW- LQJDQGIXWXUHDORQJZLWK,QGLDQ%DQN&DQDUD%DQN'HEHQWXUH7UXVWHHDQG,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQ Washington.

c. Canara Bank 7KHORDQLVVHFXUHGE\ZD\RISDULSDVVXFKDUJHRQWKH)L[HG$VVHWVRIWKH3DUHQW&RPSDQ\H[LVWLQJDQGIXWXUH DORQJZLWK,QGLDQ%DQN%DQNRI,QGLD'HEHQWXUH7UXVWHHDQG,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQ:DVKLQJWRQ

158 d. International Finance Corporation (IFC) (External Commercial Borrowings) 7KH3DUHQW&RPSDQ\KDVEHHQVDQFWLRQHGDVXPRI86PLOOLRQIURP,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQ ,)&  :DVKLQJWRQE\ZD\RI([WHUQDO&RPPHUFLDO%RUURZLQJV (&% 7KH&RPSDQ\KDVZLWKGUDZQWKHIXOODPRXQWRI 86PLOOLRQDVRIVW0DUFKRQWKHDERYHORDQ7KH(&%ORDQLVVHFXUHGE\ZD\RISDULSDVVXÀUVWUDQN- ing charge on the entire movable plant and machinery and equipment including all the spare parts and all other À[HG DVVHWV VXFK DV IXUQLWXUH À[WXUHV ÀWWLQJV LQVWDOODWLRQV YHKLFOHV RIÀFH HTXLSPHQW FRPSXWHUV DQG DOO RWKHUÀ[HGDVVHWVRZQHGE\WKH&RPSDQ\ H[FOXGLQJLPPRYDEOHSURSHUW\ ERWKSUHVHQWDQGIXWXUHEHORQJLQJRU KHUHDIWHUEHORQJLQJWRRUDWWKHGLVSRVDORIWKH&RPSDQ\7KH/RDQLVUHSD\DEOHLQHTXDOVHPLDQQXDO,QVWDO- ments starting from 15th September 2012.

3DULSDVVXFKDUJHLQIDYRXURI,)&RYHUWKHLPPRYDEOHDVVHWVRIWKH&RPSDQ\VXFKSDULSDVVXFKDUJHHQVXULQJ atleast a cover of 1.25 times the value of outstanding principal amount of the loan. e. 10.3% Non Convertible Debentures

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Apollo Health Street Limited Term loan as at 31st March 2011 is secured by following assets of the entire group

D  DOOHTXLW\LQWHUHVWVKHOGDQGRUEHQHÀFLDOO\RZQHGE\WKH*URXSPHPEHULQDQ\PHPEHURIWKH*URXS from time to time, provided that no such Group member shall be obligated to pledge or create security RYHUPRUHWKDQRIWKHHTXLW\LQWHUHVWV RULIDOHVVHUDPRXQWRIWKHYRWLQJHTXLW\LQWHUHVWV LQ DQ\UHVWULFWHGIRUHLJQVXEVLGLDU\ E  DOOÀQDQFLDOLQGHEWHGQHVVRZLQJWRWKH*URXSIURPDQ\REOLJRUDQ\PHPEHURIWKH*URXSRUDQ\$IÀOLDWH WKHUHRIIURPWLPHWRWLPH F  DOORIWKH*URXS·VULJKWVDQGLQWHUHVWVLQDQ\DFFRXQWIURPWLPHWRWLPH DQGDQ\EDODQFHVWDQGLQJWRWKH FUHGLWWKHUHRIIURPWLPHWRWLPH DQGDQ\FDVKDQGFDVKHTXLYDOHQWVIURPWLPHWRWLPH G  DOORIWKH*URXS·VULJKWVDQGLQWHUHVWVLQDQ\UHDOSURSHUW\IURPWLPHWRWLPH H  DOORIWKH*URXS·VULJKWVDQGLQWHUHVWVLQDQ\WDQJLEOHPRYDEOHSURSHUW\IURPWLPHWRWLPH I  DOO RI WKH *URXS·V ULJKWV DQG LQWHUHVWV LQ DQ\ LQYHVWPHQW LQWHUHVWV RWKHU WKDQ WKRVH UHIHUUHG WR LQ SDUDJUDSK D DERYH RUDQ\JRRGZLOORIRUXQFDOOHGFDSLWDORIWKH*URXSIURPWLPHWRWLPH J  DOORIWKH*URXS·VULJKWVDQGLQWHUHVWVLQDQ\LQWHOOHFWXDOSURSHUW\ LQFOXGLQJZLWKRXWOLPLWDWLRQDQ\ UHJLVWHUHGLQWHOOHFWXDOSURSHUW\DQGDQ\LQWHOOHFWXDOSURSHUW\SHQGLQJUHJLVWUDWLRQ IURPWLPHWRWLPH K  DOORIWKH*URXS·VULJKWVDQGLQWHUHVWVLQDQ\ERRNDQGRURWKHUGHEWVDQGRUPRQHWDU\FODLPVDQGDQ\ SURFHHGVWKHUHRIIURPWLPHWRWLPH L  DOORIWKH*URXS·VULJKWVDQGLQWHUHVWVLQDQ\LQVXUDQFHDQGRULQVXUDQFHSROLF\IURPWLPHWRWLPHDQG M  E\ZD\RIDVHFXULW\DVVLJQPHQWÁRDWLQJFKDUJHRURWKHUDSSURSULDWHPHDQVRIVHFXULW\DOORIWKH*URXS·V RWKHUDVVHWVDQGXQGHUWDNLQJV LQFOXGLQJZLWKRXWOLPLWDWLRQLQYHQWRU\ IURPWLPHWRWLPH

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‡ $SROOR+RVSLWDOV(QWHUSULVH/LPLWHG ‡ 6DPXGUD+HDOWKFDUH(QWHUSULVHV/LPLWHG ‡ $SROOR+HDOWKDQG/LIHVW\OH/LPLWHG ‡ $SROOR/DYDVD+HDOWK&RUSRUDWLRQ/LPLWHG ‡ $SROOR*OHQHDJOHV+RVSLWDO/LPLWHG ‡ $SROOR*OHQHDJOHV3HW&W3ULYDWH/LPLWHG ‡ 4XLQWLOHV3KDVH2QH&OLQLFDO7ULDOV,QGLD3ULYDWH/LPLWHG ‡ $SROOR+RVSLWDOV,QWHUQDWLRQDO/LPLWHG ‡ $SROOR0XQLFK+HDOWK,QVXUDQFH&RPSDQ\/LPLWHG ‡ $SROOR+HDOWK6WUHHW/LPLWHG ‡ )DPLO\+HDOWK3ODQ 73$ /LPLWHG ‡ ,QGUDSUDVWKD0HGLFDO&RUSRUDWLRQ/LPLWHG

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Alliance Medicorp (India) Limited

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Alliance Dental Care Private Limited

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Apollo Hospitals Enterprise Limited As at 31.03.2011 As at 31.03.2010 Particulars Earned Earned Gratuity Gratuity Leave Leave Assumptions Discount Rate 8.00% 8.00% 8.00% 8.00% 5DWHRI,QFUHDVHLQ6DODULHV 6.00% 8.00% 6.00% 8.00% 0RUWDOLW\SUHUHWLUHPHQW /,&8OWLPDWH Disability Nil Nil Nil Nil Attrition     Estimated rate of return on plan assets 8.00% 8.00% 8.00% 8.00% ,QYHVWPHQWGHWDLOVRQSODQDVVHWV 100% of the plan assets are invested on debt instruments

160 Rs. in million As at 31.03.2011 As at 31.03.2010 Particulars Earned Earned Gratuity Total Gratuity Total Leave Leave Present Value of Obligation as on 150.26 91.06  165.91 121.99 287.90 1st April, 2010 ,QWHUHVW&RVW 11.96 7.12 19.08  9.62 22.80 Current Service Cost 20.24 10.64  18.64 9.45 28.09 %HQHÀW3DLG            $FWXDULDO JDLQ /RVVRQ 6.65   0.10       obligation Present Value of Obligation as on 187.59 98.05 285.64 150.26 91.06  VW0DUFK Change in plan assets Fair Value of Plan Assets as on 1st    118.29 61.12 179.41 April, 2010 ([SHFWHGUHWXUQRQSODQDVVHWV 12.52 5.98 18.50  5.42  Contributions  40.00 70.00  -  %HQHÀWVSDLG     -   $FWXDULDOJDLQ ORVV     7.85   )DLU9DOXHRI3ODQ$VVHWVDVRQVW  75.15 248.70    0DUFK Reconciliation of present value of the obligation and the fair value of the plan assets )DLUYDOXHRIWKHGHÀQHGEHQHÀW 187.59 98.05 285.64 150.26 91.06  obligation Fair value of plan assets at the end        of the year /LDELOLW\ DVVHWV 14.04 22.90  10.76 16.67  8QUHFRJQLVHGSDVWVHUYLFHFRVW ------/LDELOLW\ DVVHWV UHFRJQLVHGLQ 14.04 22.90  10.76 16.67  the balance sheet Gratuity & Leave Encashment cost for the period Service Cost 20.24 10.64  18.64 9.45 28.09 ,QWHUHVW&RVW 11.96 7.12 19.08  9.62 22.80 ([SHFWHGUHWXUQRQSODQDVVHWV          $FWXDULDO JDLQ ORVV   48.06     Past Service Cost - - - 54.45 49.99 104.44 Net gratuity cost  46.24 79.52 47.59  56.94 Investment details of plan assets 100% of the plan assets are invested in debt instruments Actual return on plan assets 5.57     

161 12. Apollo Hospitals Enterprise Limited

D  )RUWKHSHULRGVW0DUFKWKH)RUHLJQ([FKDQJHORVV WKHGLIIHUHQFHEHWZHHQWKHVSRWUDWHVRQWKH GDWHRIWKHWUDQVDFWLRQVDQGWKHDFWXDOUDWHVDWZKLFKWKHWUDQVDFWLRQVDUHVHWWOHG DPRXQWLQJWR5V PLOOLRQ 5VPLOOLRQ  E  7KH)RUHLJQ([FKDQJHJDLQDULVLQJRXWRIWKHUHVWDWHPHQWRIWKHPRQHWDU\LWHPVDVRQWKH%DODQFH6KHHW GDWHLV5VPLOOLRQ 5VPLOOLRQ 7KHDERYH([FKDQJHGLIIHUHQFHKDYHEHHQDGMXVWHGWRWKH 3URÀWDQG/RVV$FFRXQWZKLFKLVLQFRQIRUPLW\WRWKH$FFRXQWLQJ6WDQGDUGRQ¶$FFRXQWLQJIRUWKH HIIHFWVRIFKDQJHVLQ)RUHLJQ([FKDQJHUDWHV·DVQRWLÀHGXQGHUWKH&RPSDQLHV $FFRXQWLQJ6WDQGDUGV  Rules, 2006.

13. Leases

Finance Lease

Apollo Health Street Limited

)L[HG DVVHWV LQFOXGH YHKLFOHV FRPSXWHUV DQG FRPSXWHU HTXLSPHQW RIÀFH HTXLSPHQW IXUQLWXUH DQG À[WXUHV DQGOHDVHKROGLPSURYHPHQWVREWDLQHGRQÀQDQFHOHDVHDUUDQJHPHQWV7KHÀQDQFHOHDVHWHUPLVIRUDSHULRGRI eighteen to seventy two months. There is no escalation clause in any of the lease agreements. Some leases have purchase and renewal clauses. There are no restrictions imposed by lease arrangements. The minimum lease payments due are as under: Rs. in million Particulars 31.03.2011 31.03.2010 Total minimum lease payments at the year end 10.06 25.70 /HVV8QHDUQHGÀQDQFHLQFRPH  2.66 3UHVHQWYDOXHRIWRWDOPLQLPXPOHDVHSD\PHQWV>5DWHRI,QWHUHVWWR 9.67  @ Not later than one year [Present value Rs. 9.45 million and Rs. 12.54 million 9.84  DVRQVW0DUFKDQGVW0DUFKUHVSHFWLYHO\@ /DWHUWKDQRQH\HDUEXWQRWODWHUWKDQ\HDUV>3UHVHQWYDOXH5V 0.22 11.07 PLOOLRQDQG5VPLOOLRQDVRQVW0DUFKDQGVW0DUFK UHVSHFWLYHO\@

Non- cancellable Operating Leases /HDVHSD\PHQWVUHFRJQLVHGLQWKH3URÀWDQG/RVV$FFRXQWLV5VPLOOLRQ 5VPLOOLRQ Rs. in million Minimum Lease Payments 31.03.2011 31.03.2010 Not later than one year 565.68 611.17 /DWHUWKDQRQH\HDUDQGQRWODWHUWKDQÀYH\HDUV 1,226.16 1,206.97 /DWHUWKDQÀYH\HDUV  1,821.59

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Apollo Gleneagles Hospitals Limited

The cost of leasehold land has not been amortised over the period of lease is intended to be renewed on the H[SLU\RIWKHVWLSXODWHGSHULRG

The Company has certain cancellable operating lease arrangements for residential accommodation and use of FHUWDLQPHGLFDOHTXLSPHQWZLWKWHQXUHH[WHQGLQJXSWRRQH\HDU)RUPRIFHUWDLQOHDVHDUUDQJHPHQWVLQFOXGH

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14. Apollo Hospitals Enterprise Limited

The Parent Company has issued and allotted 1.54 million equity warrants convertible into equity shares of QRPLQDOYDOXHRI5VHDFKDWSUHPLXPRI5VSHUVKDUHRQWK-XQHWR'U3UDWKDS&5HGG\ one of the promoters of the Company on a preferential allotment basis. The issue price is at minimum price of 5VÀ[HGLQDFFRUGDQFHZLWKWKHJXLGHOLQHVIRUSUHIHUHQWLDOLVVXHVRIWKH6HFXULWLHV([FKDQJH%RDUGRI ,QGLD ,VVXHRI&DSLWDODQG'LVFORVXUH5HTXLUHPHQWV 5HJXODWLRQV$FFRUGLQJO\WKHSURPRWHUKDVSDLGRI WKHFRQVLGHUDWLRQ#SHUZDUUDQWRQWKHGDWHRIDOORWPHQW7KHEDODQFHLVSD\DEOHRQWKHH[HUFLVH of option for conversion within 18 months of date of allotment. Consequent to the splitting of one Rs.10 equity VKDUHLQWRWZR5VHTXLW\VKDUHVWKHZDUUDQWVRXWVWDQGLQJDVRQVW0DUFKLVPLOOLRQ

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15. The Parent Company had issued 9.00 million Global Depository Receipts with two way fungibility during WKH\HDU7RWDO*'5·VFRQYHUWHGLQWRXQGHUO\LQJ(TXLW\6KDUHVIRUWKH\HDUHQGHGRQVW0DUFKLV PLOOLRQ PLOOLRQ DQGWKHWRWDO*'5·VFRQYHUWHGXSWRVW0DUFKLVPLOOLRQ  PLOOLRQ &RQVHTXHQWWRWKHVSOLWWLQJRIVKDUHVLQWR5VVKDUHVWKHWRWDOFRQYHUWHG*OREDO'HSRVLWRU\ 5HFHLSWVFRQYHUWHGWRVKDUHVLVPLOOLRQ

16. Impairment

Apollo Hospitals Enterprise Limited

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Apollo Gleneagles Hospital Limited

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18. Deferred Tax

7KHGHIHUUHGWD[IRUWKH\HDUUHFRJQL]HGLQWKH3URÀWDQG/RVV$FFRXQWRIWKHJURXSFRPSULVHV 5VLQPLOOLRQ Particulars 31.03.2011 31.03.2010 'HIHUUHG7D[/LDELOLW\IRUWKH\HDU  128.62 'HIHUUHG7D[$VVHWIRUWKH\HDU 22.21 

 7KHDFFXPXODWHGGHIHUUHGWD[OLDELOLW\ DVVHW RIWKHJURXSDVRQVW0DUFKFRPSULVHV 5VLQPLOOLRQ  Particulars 31.03.2011 31.03.2010 On account of depreciation 1,014.91 760.07 2QDFFRXQWRI'HIHUUHG5HYHQXH([SHQGLWXUH 'HIHUUHG7D[$VVHW   2QDFFRXQWRIXQDEVRUEHGORVVHVDQGGHSUHFLDWLRQ 'HIHUUHG7D[$VVHW   2QDFFRXQWRI$' 195.52 - 'HIHUUHG7D[$VVHW/LDELOLWLHVKDYHQRWEHHQFRQVLGHUHGZLWKUHVSHFWWR$VVRFLDWHV

Alliance Medicorp (India) Limited

7KH1HW'HIHUUHG7D[$VVHWRQDFFRXQWRI&DUU\IRUZDUGORVVHVDQG8QDEVRUEHG'HSUHFLDWLRQLVQRWUHFRJQL]HG in the books of accounts, on prudence.

Apollo Munich Health Insurance Company Limited

7KH&RPSDQ\KDVFDUULHGRXWLWVGHIHUUHGWD[FRPSXWDWLRQLQDFFRUGDQFHZLWKWKHPDQGDWRU\$FFRXQWLQJ6WDQ- GDUG$6²7D[HVRQ,QFRPHLVVXHGE\WKH,QVWLWXWHRI&KDUWHUHG$FFRXQWDQWVRI,QGLD7KHUHKDVEHHQDQHW GHIHUUHGWD[DVVHWDPRXQWLQJWR5VPLOOLRQ 5VPLOOLRQ RQDFFRXQWRIDFFXPXODWHGORVVHV+RZ- HYHUDVDSULQFLSOHRISUXGHQFHWKH&RPSDQ\KDVQRWUHFRJQL]HGGHIHUUHGWD[DVVHWVLQWKHÀQDQFLDOVWDWHPHQWV IRUWKH\HDUHQGHGVW0DUFK

19. ,QWHUQDWLRQDO)LQDQFH&RUSRUDWLRQKDVJUDQWHGDORDQRI86PLOOLRQGXULQJWKH\HDU)RUWKH \HDUHQGHGVW0DUFKWKH3DUHQW&RPSDQ\KDVGUDZQIXOO86PLOOLRQRIWKHVDQFWLRQHGDPRXQW RI86PLOOLRQDQGWKH&RPSDQ\KDVHQWHUHGLQWR&XUUHQF\&XP,QWHUHVW5DWH6ZDS &&,56 ZLWK+')& %DQNLQ,QGLDQUXSHHDQGKHGJHGWKHORDQIRULQWHUHVWUDWHDQGIRUHLJQFXUUHQF\ÁXFWXDWLRQULVN7KHGH- ULYDWLYHFRQWUDFWLVVHFXUHGE\DVHFRQGFKDUJHRQWKHLPPRYDEOHDVVHWVRIWKH&RPSDQ\WRWKHH[WHQWRI Rs.1,100 million. The tenure of this derivative contract matches with the tenure of the loan outstanding DVRQVW0DUFK

*DLQORVVRQ)RUZDUG&RQWUDFWGXULQJWKH\HDUHQGHGVW0DUFKDFFRXQWHGIRULQWKH3URÀWDQG/RVV $FFRXQWLV5VPLOOLRQ 5VPLOOLRQ 

20. Apollo Health Street Limited a. Reversal of Impairment losses The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment EDVHGRQWKHLQWHUQDOH[WHUQDOIDFWRUV$QLPSDLUPHQWORVVLVUHFRJQLVHGZKHUHYHUWKHFDUU\LQJDPRXQWRIDQ DVVHWH[FHHGVLWVUHFRYHUDEOHDPRXQW7KHUHFRYHUDEOHDPRXQWLVWKHJUHDWHURIWKHDVVHW·VQHWVHOOLQJSULFH DQGLWVYDOXHLQXVH,QDVVHVVLQJYDOXHLQXVHWKHHVWLPDWHGIXWXUHFDVKÁRZVDUHGLVFRXQWHGWRWKHLUSUHVHQW value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

$SUHYLRXVO\UHFRJQLVHGLPSDLUPHQWORVVLVLQFUHDVHGRUUHYHUVHGGHSHQGLQJRQFKDQJHVLQFLUFXPVWDQFHV+RZ- ever the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

21. Sundry Debtors, Loans and Advances

&RQÀUPDWLRQVRIEDODQFHVIURP'HEWRUV&UHGLWRUVDQGIRU'HSRVLWVDUH\HWWREHUHFHLYHGLQDIHZFDVHVWKRXJK WKHJURXSKDVVHQWOHWWHUVRIFRQÀUPDWLRQWRWKHP7KHEDODQFHVDGRSWHGDUHDVDSSHDULQJLQWKHERRNVRIDF- counts of the group.

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. 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.

164 22. Power Generation

7KH(OHFWULFLW\FKDUJHVLQFXUUHGLQUHVSHFWRI3DUHQW&RPSDQ\LVQHWRI5VPLOOLRQ 5VPLOOLRQ >XQLWV TXDOLÀHG.:+²PLOOLRQ PLOOLRQ @EHLQJWKHUHEDWHUHFHLYHGIURP71(%IRU:LQG(OHFWULF*HQHUDWRUV owned and run by the Company.

23.  7KH3DUHQW&RPSDQ\KDVEHHQH[HPSWHGE\WKH0LQLVWU\RI&RUSRUDWH$IIDLUVYLGH2UGHU1R &/,,,IURPSXEOLVKLQJWKHTXDQWLWDWLYHSDUWLFXODUVDVSHU3DUD LL GRI3DUW,,RI6FKHGXOH9,RIWKH&RP- panies Act, 1956 with respect to the total value of turnover, purchases, goods traded, sales, consumption RIUDZPDWHULDOVHWFIRUWKH\HDUHQGHGVW0DUFKDQGKHQFHWKHVDPHLVQRWGLVFORVHGIRUWKLV ÀQDQFLDO\HDU

 ,QWKHFDVHRI,QGUDSUDVWKD0HGLFDO&RUSRUDWLRQ/LPLWHGPDWHULDOVFRQVXPHGDUHRIYDULHGQDWXUHDQGLQ- clude items of food, beverages, medical consumables etc., Therefore it is not feasible to give the details DVUHTXLUHGXQGHUSDUW,,RI6FKHGXOH9,WRWKH&RPSDQLHV$FW

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

25. General Information Apollo Hospitals Enterprise Limited

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b) Apollo Cosmetic Surgical Centre Private Limited

Number of employees of the Company who are in receipt of or entitled to receive emoluments amounting in the DJJUHJDWHWR5VPLOOLRQRUPRUHSHUPRQWKRU5VPLOOLRQSHUDQQXPLQFOXGLQJSHUTXLVLWHVLV1,/ c) A.B. Medical Centers Limited

$VWKH&RPSDQ\·VPDLQEXVLQHVVLVUXQQLQJRIKRVSLWDOWKHSURYLVLRQVUHJDUGLQJGLVFORVXUHRILQIRUPDWLRQRQ/L- FHQVHG&DSDFLW\,QVWDOOHGFDSDFLW\3URGXFWLRQDQG6DOHVSDUWLFXODUVDUHQRWDSSOLFDEOH

The Share capital includes a sum of Rs. 0.90 million allotted for consideration other than cash. d) Apollo Gleneagles Hospital Limited

%XLOGLQJVRI5VPLOOLRQ 1HW >3UHYLRXV\HDU5VPLOOLRQ 1HW @SHUWDLQLQJWRGLDJQRVWLFFHQWHUDW*D- ULDKDWLQFOXGHWKHFRVWRIODQGSHQGLQJDOORFDWLRQDVFHUWDLQPHQWRIFRVWDWWULEXWDEOHWKHUHDJDLQVW

,QWKHRSLQLRQRIWKH%RDUGRI'LUHFWRUVXQOHVVRWKHUZLVHVWDWHGWKHFXUUHQWDVVHWVDQGORDQVDQGDGYDQFHVKDYH WKHYDOXHDWOHDVWHTXDOWRWKHDPRXQWDWZKLFKWKHVHDUHVWDWHGLQWKHEDODQFHVKHHWLIUHDOL]HGLQWKHRUGLQDU\

165 FRXUVHRIWKHEXVLQHVVDQGDGHTXDWHSURYLVLRQVIRUDOONQRZQOLDELOLWLHVKDYHEHHQPDGHDQGDUHQRWLQH[FHVV of the amount reasonably required in this respect.

Certain debit and credit balances including debtors, creditors including deposits and loans and advances etc. are VXEMHFWWRFRQÀUPDWLRQDQGUHFRQFLOLDWLRQDQGFRQVHTXHQWLDODGMXVWPHQWVLIDQ\DULVLQJWKHUHIURP

3ODQWDQG0DFKLQHU\LQFOXGHV5VPLOOLRQEHLQJFRQWULEXWLRQWRZDUGVFRVWRIVHUYLFHOLQH RZQHGE\HOHFWULF- LW\VHUYLFHSURYLGHU ZKLFKLVDPRUWLVHGRQVWUDLJKWOLQHEDVLVRYHUDSHULRGRIPRQWKV

e) Quintiles Phase One Clinical Trials India Private Limited

7KH&RPSDQ\LVLQSURFHVVRIDSSRLQWLQJZKROHWLPHVHFUHWDU\DVUHTXLUHGXQGHUVHFWLRQ$RIWKH&RPSDQLHV Act, 1956.

f) Apollo Munich Health Insurance Company Limited

(i) Encumbrances 7KH&RPSDQ\KDVDOOWKHDVVHWVZLWKLQ,QGLD$OOWKHDVVHWVRIWKH&RPSDQ\DUHIUHHIURPDQ\HQFXPEUDQFHV H[FHSWGHSRVLWVLQEDQNVDPRXQWLQJWR5VPLOOLRQ

(ii) Commitments made and outstanding for: 5VLQPLOOLRQ Particulars As at 31st March 2011 As at 31st March 2010 /RDQV Nil Nil ,QYHVWPHQWV Nil Nil )L[HG$VVHWV  

(iii) Claims, less reinsurance paid to claimants 5VLQPLOOLRQ  Class of Business In India Outside India $V DW VW 0DUFK $V DW VW 0DUFK $VDWVW0DUFK $V DW VW 0DUFK 2011 2010 2010 0LVFHOODQHRXV 828.75 497.64  

(iv) Age-wise breakup of claims outstanding:  5VLQPLOOLRQ Class of Busi- Outstanding for more than six months Outstanding for six months or less ness $VDWVW0DUFK $VDWVW0DUFK $VDWVW0DUFK $VDWVW0DUFK 0LVFHOODQHRXV 10.14 1.15 109.50 

(v) Claims Settled and remaining unpaid for a period of more than six months: 5VLQPLOOLRQ Class of Business As at 31st March 2011 As at 31st March 2010 0LVFHOODQHRXV Nil Nil

(vi) Premium less reinsurance written during the year: 5VLQPLOOLRQ Class of Business In India Outside India $VDWVW0DUFK $VDWVW0DUFK $VDWVW0DUFK $VDWVW0DUFK 2011 2010 2011 2010 0LVFHOODQHRXV 2,286.66  Nil Nil

1RSUHPLXPLQFRPHLVUHFRJQL]HGRQ´YDU\LQJULVNSDWWHUQµEDVLV

166 (vii) Extent of risk retained and reinsured: Class of Business Risk Retained Risk Reinsured $VDWVW0DUFK $VDWVW0DUFK $VDWVW0DUFK $VDWVW0DUFK 2011 2010 2011 2010 0LVFHOODQHRXV 81% 87% 19% 

(viii) Value of Contracts in relation to Investments: 5VLQPLOOLRQ Particulars As at 31st March 2011 As at 31st March 2010 Purchase where deliveries are pending Nil Nil Sales where payments are overdue Nil Nil

(ix) All the investments held by the Company are performing assets. (x) 7KH&RPSDQ\GRHVQRWKDYHDQ\LQYHVWPHQWSURSHUW\DVDWVW0DUFK (xi) 7KHLQYHVWPHQWVDVDWSHULRGHQGLQJVW0DUFKKDYHQRWEHHQDOORFDWHGWR3ROLF\+ROGHUV  Shareholders accounts since the same are not earmarked separately. (xii) The historical cost of investments in mutual funds which have been valued on fair value basis is Rs. PLOOLRQ SUHYLRXV\HDU5VPLOOLRQ 

(xiii) Investments made pursuant to section 7 of Insurance Act, 1938, are as follows: 5VLQPLOOLRQ Particulars As at 31st March 2011 As at 31st March 2010 *2,&'66   *2,&'66  5.24 *2,&'66 19.45 19.42 *2,&'66 2.00 2.00 *2,&'66 1.00 1.00 Total 101.89 

7KHVHLQYHVWPHQWVDUHLQWKHFRQVWLWXHQWVXEVLGLDU\JHQHUDOOHGJHUDFFRXQWZLWK$[LV%DQN/LPLWHG

(xiv) Expenses relating to outsourcing, business development and marketing support are given below:  5VLQPLOOLRQ Operating expenses Year ended 31.03.2011 Year ended 31.03.2010 2XWVRXUFLQJ([SHQVHV 197.16  0DUNHWLQJ6XSSRUW 188.94 171.95 Business Promotion 65.12 

(xv) Sector wise business

'LVFORVXUHRI6HFWRUZLVHEXVLQHVVEDVHGRQJURVVGLUHFWZULWWHQSUHPLXP *:3 LVDVXQGHU Business Year ended 31.03.2011 Year ended 31.03.2010 Sector *:3 5VLQ 1RRI/LYHV % of GWP *:3 5VLQ 1RRI/LYHV % of GWP PLOOLRQ PLOOLRQ Rural  14,715 5.46%  46,441  Social 5.07  0.18% 14.81  1.29% 8UEDQ      94.75%

167 (xvi) Disclosure of Fire and Marine Revenue accounts:

$VWKH&RPSDQ\RSHUDWHVLQVLQJOHEXVLQHVVVHJPHQWYL]0LVFHOODQHRXV,QVXUDQFH%XVLQHVVWKHUHSRUWLQJUH- TXLUHPHQWVDVSUHVFULEHGE\,5'$ZLWKUHVSHFWWRSUHVHQWDWLRQRI)LUHDQG0DULQH,QVXUDQFHUHYHQXHDFFRXQWV are not applicable.

(xvii) Summary of Financial Statements is provided as under   5VLQPLOOLRQ S. No. Particulars 2010-2011 2009-2010 Operating Results: 1. Gross Premium Written  1,146.69 2. 1HW(DUQHG3UHPLXP,QFRPH  699.58  ,QFRPHIURP,QYHVWPHQWV QHW 66.96  4. 2WKHU,QFRPH -- 5. 7RWDO,QFRPH  729.59 6. &RPPLVVLRQ 1HWRI5HLQVXUDQFH 1,777.42  7. Brokerage  52.16 8. 2SHUDWLQJ([SHQVHV   9. &ODLPV,QFXUUHG 921.54  10. 2SHUDWLQJ3URÀW/RVV   11. 7RWDO,QFRPHXQGHU6KDUHKROGHUV$FFRXQW 82.87 59.46 12. 3URÀW /RVV EHIRUHWD[    3URYLVLRQIRU7D[  - 14. 3URÀW /RVV DIWHUWD[   Miscellaneous: 15. Policy holders’ Account: Total Fund 7RWDO,QYHVWPHQWV 1RWDSSOLFDEOHEHLQJ1RQ²/LIH,QVXUDQFH&R Yield on investments 16 Shareholders’ Account: Total Fund 7RWDO,QYHVWPHQWV 1RWDSSOLFDEOHEHLQJ1RQ²/LIH,QVXUDQFH&R Yield on investments 17. 3DLG8S(TXLW\&DSLWDO 1,962.00  18. Net Worth 1,050.70 895.44 19. Total Assets  1,914.21 20. Yield on total investments 8.20% 8.82% 21. (DUQLQJV3HU6KDUH 5V   22. %RRNYDOXHSHU6KDUH 5V  6.80  Total Dividend Nil Nil 24. Dividend Per share Nil Nil

(xviii) Accounting Ratios are provided as under: Performance Ratios 2010-2011 (in times) 2009-2010 (in times) Gross Premium Growth Rate 2.47  Gross Premium to Shareholders Funds Ratio 2.70 1.28 Growth Rate of Shareholders Funds 1.17 

168 Net Retention Ratio 0.81 0.87 Net Commission Ratio 0.08 0.11 ([SHQVHVRI0DQDJHPHQWWR*URVV'LUHFW3UHPLXP 0.47 0.86 Combined Ratio 0.90  Technical Reserves to Net Premium Ratio 0.69 0.70 8QGHUZULWLQJ%DODQFH5DWLRV   2SHUDWLQJ3URÀW5DWLR   /LTXLG$VVHWVWR/LDELOLW\5DWLR  0.15 Net Earnings Ratio   Return on Net Worth   Reinsurance Ratio 0.19  g) Indraprastha Medical Corporation Limited

L  7KHDSSHDOÀOHGE\WKH&RPSDQ\DJDLQVWDVVHVVPHQWRISURSHUW\WD[E\0&'KDVEHHQGHFLGHGE\WKH $GGLWLRQDO'LVWULFW-XGJH'HOKLRQWK$SULOUHPDQGLQJWKHFDVHWR0&'IRUUHDVVHVVPHQWRQWKH basis of directions set out in the said order.

'XULQJWKHTXDUWHUHQGHGVW0DUFKDVVHVVPHQWZDVFDUULHGRXWE\0&'DQGDVSHUDVVHVVPHQW RUGHUDQDPRXQWRI5VPLOOLRQLVDVVHVVHGDVSURSHUW\WD[OLDELOLW\XSWRVW0DUFK7KHSURYL- VLRQPDGHLQWKHERRNVXSWRVWPDUFKZDV5VPLOOLRQ7KLVKDVUHVXOWHGLQZULWLQJEDFNRI SURYLVLRQWR3 /$FFRXQWDPRXQWLQJWR5VPLOOLRQ

)XUWKHUWKH&RPSDQ\KDVSURYLGHG5VPLOOLRQ 3UHYLRXVSHULRG5VPLOOLRQ DJDLQVWSURSHUW\WD[ OLDELOLW\IRUWKHSHULRGHQGHGVW0DUFKDVSHUXQLWDUHDPHWKRGRIFDOFXODWLQJWKHSURSHUW\WD[

LL  8QGHUWKHWHUPVRIWKHDJUHHPHQWEHWZHHQWKH*RYHUQPHQWRI1&7RI'HOKLDQGWKH&RPSDQ\WKH+RV- pital project of the Company has been put up on the land belonging to Government of NCT of Delhi. The *RYHUQPHQWRI1&7RI'HOKLLVFRPPLWWHGWRPHHWWKHH[SHQGLWXUHWRWKHH[WHQWRI5VPLOOLRQ RXWRI,0&/%XLOGLQJIXQGDFFRXQW IXQGVHDUPDUNHGIRUWKHSHULRG WRJHWKHUZLWKWKHLQWHUHVWWKHUHRQ IRUFRQVWUXFWLRQRIGHÀQLWHDQGGHVLJQDWHGEXLOGLQJVZKLOHWKHEDODQFHDPRXQWRIWKHFRVWRIWKHEXLOGLQJ ZLOOEHERUQHE\WKH&RPSDQ\$VDWVW0DUFKWKHDIRUHVDLGIXQGWRJHWKHUZLWKLQWHUHVWWKHUHRQ DPRXQWLQJWR5VPLOOLRQKDYHEHHQXWLOL]HGWRZDUGVSURJUHVVSD\PHQWVWRFRQWUDFWRUVDGYDQFHV 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.

LLL  2QD3XEOLF,QWHUHVW/LWLJDWLRQ 3,/ UHJDUGLQJIUHHWUHDWPHQWLQWKHKRVSLWDOWKH+RQ·EOH'HOKL+LJK 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 RIPHGLFLQHVDQGFRQVXPDEOHV,QUHVSRQVHWRWKHVDLGRUGHUWKH&RPSDQ\ÀOHGD6SHFLDO/HDYH3HWLWLRQ LQWKH+RQ·EOH6XSUHPH&RXUWIRUDSSURSULDWHGLUHFWLRQVZLWKDSUD\HUWRIRUVWD\WKHMXGJPHQWRIWKH +RQ·EOH'HOKLKLJKFRXUW7KH+RQ·EOH6XSUHPH&RXUWKDVDGPLWWHGWKH6SHFLDO/HDYH3HWLWLRQDQGSDVVHG DQLQWHULPRUGHURQWK1RYHPEHU,QSXUVXDQFHRIWKHLQWHULPRUGHUWKH+RVSLWDOLVFKDUJLQJIRU medicines and medical consumables from patients referred by the Govt. of Delhi for free treatment in +RVSLWDO

LY  7KHUHZDVDÀUHLQRQFRORJ\GHSDUWPHQWRQUG0D\DQGDPHGLFDOHTXLSPHQWVXIIHUHGH[WHQVLYH damage. The said equipment was insured at reinstatement value. The compensation of Rs.98.51 million UHFHLYHGLQWKLVUHJDUGLQWKHFXUUHQW\HDUIURPWKHLQVXUDQFH&RPSDQ\KDVEHHQXWLOL]HGIRUWKHSXUFKDVH RIQHZPHGLFDOHTXLSPHQW7KH:ULWWHQ'RZQ9DOXHRIWKHPHGLFDOHTXLSPHQWDVDWVW0DUFKZDV 5VPLOOLRQDQG:ULWWHQ'RZQ9DOXHRQWKHGDWHRIORVVZDV5VPLOOLRQ7KHH[FHVVRIFODLP UHFHLYHGIURPWKHLQVXUDQFH&RPSDQ\RYHUWKH:ULWWHQ'RZQ9DOXHRIWKHDVVHWDVDSSHDULQJLQ3URÀWDQG /RVV$FFRXQWKDVEHHQVKRZQDVFRPSHQVDWLRQUHFHLYHG 1HW LQRWKHULQFRPH g) Quintiles Phase One Clinical Trials India Private Limited 7KH&RPSDQ\LVLQSURFHVVRIDSSRLQWLQJZKROHWLPHVHFUHWDU\DVUHTXLUHGXQGHUVHFWLRQ$RIWKH&RPSDQLHV

169 Act, 1956. h) Apollo Health Street Limited i) Employee stock option plan (A) Employee stock option plan 2005

7KH&RPSDQ\KDGLQVWLWXWHGDQHPSOR\HHVWRFNSODQLQWKHÀQDQFLDO\HDUDQGKDGJUDQWHGVWRFNRS- tions to certain employees. The shareholder and Board of Directors approved the plan on 14th April 2005. The options vest over a period of three years and would be settled by issue of fully paid equity shares. During the \HDURQWK$SULOH[HUFLVHSHULRGZDVFKDQJHGWRHLWKHU\HDUVIURPWKHYHVWLQJGDWHRUXSRQLVVXDQFH RI,QLWLDO3XEOLF2IIHU ,32 ZKLFKHYHULVHDUOLHUIURPDSHULRGRI\HDUVIURPGDWHRIYHVWLQJ

a) Key features of Employee stock option plan Grant date 14th April 2005 ([HUFLVHSULFH 10 ([HUFLVHSHULRG 5 years from date of vesting Vesting schedule of out- Date Number of options standing VW0DUFK VW0DUFK Options WK6HSWHPEHU   VW0DUFK 700 5,500 VW0DUFK 48,000 56,400 VW0DUFK 19,400  85,400 112,200 Stock options VW0DUFK VW0DUFK Outstanding at the beginning of the year 112,200 147,200 Granted during the year - - )RUIHLWHGVXUUHQGHUHGGXULQJWKH\HDU 2,000  ([HUFLVHGGXULQJWKH\HDU 24,800  ([SLUHGGXULQJWKH\HDU -- ([HUFLVDEOHDWWKHHQGRIWKH\HDU 85,400 112,200 Outstanding at the end of the year 85,400 112,200 Weighted average remaining contractual life * 2.01 years \HDUVIURPGDWHRIYHVWLQJRU,32ZKLFKHYHULVHDUOLHU

b) Pricing of option Fair value of option at grant date 1.90 Option pricing model used %ODFN6FKROHV0RGHO ,QSXWVWRWKHPRGHO D $YHUDJHVKDUHSULFH 160 E ([HUFLVHSULFH 10 F ([SHFWHGYRODWLOLW\8QOLVWHG&RPSDQ\ 0% G 5LVNIUHHLQWHUHVWUDWH 7.5% H :HLJKWHGDYHUDJHRSWLRQOLIH 5 years

7KH&RPSDQ\DFFRXQWVIRUFRPSHQVDWLRQFRVWLQUHVSHFWRILWVVWRFNRSWLRQVXVLQJLQWULQVLFYDOXHPHWKRG+DG WKH&RPSDQ\DFFRXQWHGIRULWVVWRFNRSWLRQVXVLQJWKHIDLUYDOXHPHWKRGWKHHPSOR\HHFRPSHQVDWLRQH[SHQVH IRUWKH\HDUHQGHGVW0DUFKZRXOGKDYHEHHQKLJKHUE\5VPLOOLRQ VW0DUFK1LO DQGWKH SURÀWIRUWKH\HDUKDYHEHHQORZHUE\5VPLOOLRQ VW0DUFK1LO

170 (B) Employee stock option plan 2006

The Company instituted employee stock option plan 2006. The shareholders and the board of directors approved the plan on 20th October 2006 which provided for the issue of 1,100,850 stock options to certain employees. The scheme follows a graded vesting schedule over a period of three years and would be settled by issue of fully SDLGHTXLW\VKDUHV'XULQJWKH\HDURQWK$SULOH[HUFLVHSHULRGZDVFKDQJHGWRHLWKHU\HDUVIURPWKH YHVWLQJGDWHRUXSRQLVVXDQFHRI,QLWLDO3XEOLF2IIHU ,32 ZKLFKHYHULVHDUOLHUIURPDSHULRGRI\HDUVIURPGDWH of vesting. a) Key features of employee stock option plan Grant date 20th October 2006 ([HUFLVHSULFH 98 ([HUFLVHSHULRG Vesting schedule of out- 5 years from date of vesting standing Options Date Number of options VW0DUFK VW0DUFK 19th October 2007   19th October 2008 186,548  19th October 2009    864,499 Stock options VW0DUFK VW0DUFK Outstanding at the beginning of the year 864,499 912,999 Granted during the year - - )RUIHLWHGVXUUHQGHUHGGXULQJWKH\HDU 1,751 48,500 ([HUFLVHGGXULQJWKH\HDU  - ([SLUHGGXULQJWKH\HDU -- ([HUFLVDEOHDWWKHHQGRIWKH\HDU  864,499 Outstanding at the end of the year  864,499 Weighted average remaining contractual life * \HDUV

\HDUVIURPGDWHRIYHVWLQJRU,32ZKLFKHYHULVHDUOLHU b) Pricing of option Fair value of option at grant date  Option pricing model used %ODFN6FKROHV0RGHO ,QSXWVWRWKHPRGHO D $YHUDJHVKDUHSULFH 160 E ([HUFLVHSULFH 98 F ([SHFWHGYRODWLOLW\8QOLVWHG&RPSDQ\ 0% G 5LVNIUHHLQWHUHVWUDWH 7.5% H :HLJKWHGDYHUDJHRSWLRQOLIH 5 years

7KH&RPSDQ\DFFRXQWVIRUFRPSHQVDWLRQFRVWLQUHVSHFWRILWVVWRFNRSWLRQVXVLQJLQWULQVLFYDOXHPHWKRG+DG WKH*URXSDFFRXQWHGIRULWVVWRFNRSWLRQVXVLQJWKHIDLUYDOXHPHWKRGWKHHPSOR\HHFRPSHQVDWLRQH[SHQVHIRU WKH\HDUHQGHGVW0DUFKZRXOGKDYHEHHQKLJKHUE\5VPLOOLRQ VW0DUFK5VPLOOLRQ  DQGWKHSURÀWIRUWKHSHULRGZRXOGKDYHEHHQORZHUE\5V5VPLOOLRQ VW0DUFK5VPLOOLRQ 

171 (C) Employee stock option plan 2006 - Plan II

7KH &RPSDQ\ LQVWLWXWHG HPSOR\HH VWRFN RSWLRQ   3ODQ ,, 7KH VKDUHKROGHUV DQG WKH ERDUG RI GLUHFWRUV DSSURYHGWKHSODQRQWK0DUFKZKLFKSURYLGHGIRUWKHLVVXHRIVWRFNRSWLRQVWRFHUWDLQHPSOR\HHV The options vest over a period of three years and to be settled by issue of fully paid equity shares. During the \HDURQWK$SULOH[HUFLVHSHULRGZDVFKDQJHGWRHLWKHU\HDUVIURPWKHYHVWLQJGDWHRUXSRQLVVXDQFH RI,QLWLDO3XEOLF2IIHU ,32 ZKLFKHYHULVHDUOLHUIURPDSHULRGRI\HDUVIURPGDWHRIYHVWLQJ

a) Key features of employee stock option plan Grant date WK0DUFK ([HUFLVHSULFH 154 ([HUFLVHSHULRG Vesting schedule of out- 5 years from date of vesting standing Options Number of options Date VW0DUFK VW0DUFK WK0DUFK 4,920 4,920 WK0DUFK 9,840 9,840 WK0DUFK   49,200 49,200 Stock options VW0DUFK VW0DUFK Outstanding at the beginning of the year 49,200 55,600 Granted during the year - - )RUIHLWHGVXUUHQGHUHGGXULQJWKH\HDU - 6,400 ([HUFLVHGGXULQJWKH\HDU -- ([SLUHGGXULQJWKH\HDU -- ([HUFLVDEOHDWWKHHQGRIWKH\HDU 49,200 49,200 Outstanding at the end of the year 49,200 49,200 Weighted average remaining contractual life * 4.56 years

\HDUVIURPGDWHRIYHVWLQJRU,32ZKLFKHYHULVHDUOLHU

b) Pricing of option Fair value of option at grant date 4.17 Option pricing model used %ODFN6FKROHV0RGHO ,QSXWVWRWKHPRGHO D $YHUDJHVKDUHSULFH 160 E ([HUFLVHSULFH 154 F ([SHFWHGYRODWLOLW\8QOLVWHG&RPSDQ\ 0% G 5LVNIUHHLQWHUHVWUDWH 7.5% H :HLJKWHGDYHUDJHRSWLRQOLIH 5Years

7KH&RPSDQ\DFFRXQWVIRUFRPSHQVDWLRQFRVWLQUHVSHFWRILWVVWRFNRSWLRQVXVLQJLQWULQVLFYDOXHPHWKRG+DG WKH*URXSDFFRXQWHGIRULWVVWRFNRSWLRQVXVLQJWKHIDLUYDOXHPHWKRGWKHHPSOR\HHFRPSHQVDWLRQH[SHQVHIRU WKH\HDUHQGHGVW0DUFKZRXOGKDYHEHHQKLJKHUE\5VPLOOLRQ VW0DUFK5VPLOOLRQ  DQGWKHSURÀWIRUWKHSHULRGZRXOGKDYHEHHQORZHUE\5VPLOOLRQ VW0DUFK5VPLOOLRQ 

172 (D) Apollo Employees – Accelerated stock option plan

7KH&RPSDQ\LQVWLWXWHG$SROOR(PSOR\HHV²$FFHOHUDWHGVWRFNRSWLRQSODQ7KHVKDUHKROGHUVDQGWKHERDUGRI GLUHFWRUVDSSURYHGWKHSODQRQWK-XO\ZKLFKSURYLGHGIRUWKHLVVXHRIVWRFNRSWLRQV7KHRSWLRQV vest over a period of one month and are to be settled by issue of fully paid equity shares. During the year on WK$SULOH[HUFLVHSHULRGRIWKHRSLQLRQZDVUHYLVHGIURP5VWR5V a) Key features of employee stock option plan

Grant date 20th July 2007 ([HUFLVHSULFH 160 ([HUFLVHSHULRG 5 years from date of vesting Vesting schedule of outstanding options GD\VIURPGDWHRIJUDQW

Stock options

VW0DUFK VW0DUFK Outstanding at the beginning of the year 298,484 298,484 Granted during the year - - )RUIHLWHGVXUUHQGHUHGGXULQJWKH\HDU -- ([HUFLVHGGXULQJWKH\HDU -- ([SLUHGGXULQJWKH\HDU -- ([HUFLVDEOHDWWKHHQGRIWKH\HDU 298,484 298,484 Outstanding at the end of the year 298,484 298,484 Weighted average remaining contractual life 1.40 years \HDUV b) Pricing of option

Fair value of option at grant date 21.92 Option pricing model used %ODFN6FKROHV0RGHO ,QSXWVWRWKHPRGHO D $YHUDJHVKDUHSULFH 160 E ([HUFLVHSULFH 160 F ([SHFWHGYRODWLOLW\8QOLVWHG&RPSDQ\ 0% G 5LVNIUHHLQWHUHVWUDWH 6.5% H :HLJKWHGDYHUDJHRSWLRQOLIH \HDU

7KH&RPSDQ\DFFRXQWVIRUFRPSHQVDWLRQFRVWLQUHVSHFWRILWVVWRFNRSWLRQVXVLQJLQWULQVLFYDOXHPHWKRG+DG WKH*URXSDFFRXQWHGIRULWVVWRFNRSWLRQVXVLQJWKHIDLUYDOXHPHWKRGWKHHPSOR\HHFRPSHQVDWLRQH[SHQVHIRU WKH\HDUHQGHGVW0DUFKZRXOGKDYHEHHQKLJKHUE\5VPLOOLRQ VW0DUFK5V1LO DQGWKH SURÀWIRUWKHSHULRGZRXOGKDYHEHHQORZHUE\5VPLOOLRQ VW0DUFK5V1LO 

(E) Employee stock option plan 2007

The Company instituted employee stock option 2007. The shareholders and the board of directors approved the plan on 14th August 2007 which provided for the issue of 297,000 stock options to certain employees. The options vest over a period of three years and to be settled by issue of fully paid equity shares.

 a) Key features of employee stock option plan Grant date 14th August 2007 ([HUFLVHSULFH 154 ([HUFLVHSHULRG 5 years from date of vesting Vesting schedule of out- standing Options Number of options Date VW0DUFK VW0DUFK WK$XJXVW - 85,000 WK$XJXVW - 85,000 WK$XJXVW -- - 170,000

Stock options VW0DUFK VW0DUFK Outstanding at the beginning of the year 170,000 297,000 Granted during the year - - )RUIHLWHGVXUUHQGHUHGGXULQJWKH\HDU 170,000 127,000 ([HUFLVHGGXULQJWKH\HDU -- ([SLUHGGXULQJWKH\HDU -- ([HUFLVDEOHDWWKHHQGRIWKH\HDU - 170,000 Outstanding at the end of the year - 170,000 Weighted average remaining contractual life - \HDUV

b) Pricing of option

Vesting date WK$XJXVW WK$XJXVW WK$XJXVW Fair value of option at grant date 117.97 127.75  Option pricing model used Black Scholes Black Scholes Black Scholes ,QSXWVWRWKHPRGHO D $YHUDJHVKDUHSULFH 250 250 250 E ([HUFLVHSULFH 154 154 154 F ([SHFWHGYRODWLOLW\8QOLVWHG&RPSDQ\ 0% 0% 0% G 5LVNIUHHLQWHUHVWUDWH 8% 8% 8% H :HLJKWHGDYHUDJHRSWLRQOLIH 2 years \HDUV 4 years

7KH*URXSDFFRXQWVIRUFRPSHQVDWLRQFRVWLQUHVSHFWRILWVVWRFNRSWLRQVXVLQJLQWULQVLFYDOXHPHWKRG+DGWKH *URXSDFFRXQWHGIRULWVVWRFNRSWLRQVXVLQJWKHIDLUYDOXHPHWKRGWKHHPSOR\HHFRPSHQVDWLRQH[SHQVHIRUWKH \HDUHQGHGVW0DUFKZRXOGKDYHEHHQKLJKHUE\5V1LO VW0DUFK5VPLOOLRQ DQGSURÀWIRU WKHSHULRGZRXOGKDYHEHHQORZHUE\5V1LO VW0DUFK5VPLOOLRQ 

(F) Proforma disclosures

7KH*XLGDQFH1RWHRQ¶$FFRXQWLQJIRUHPSOR\HHVKDUHEDVHGSD\PHQWV· ¶*XLGDQFH1RWH· LVVXHGE\,&$,HV- WDEOLVKHVÀQDQFLDODFFRXQWLQJDQGUHSRUWLQJSULQFLSOHVIRUHPSOR\HHVVKDUHEDVHGSD\PHQWSODQV7KH*XLGDQFH Note applies to employee share based payments, the grant date in respect of which falls on or after 1st April 7KH*URXSIROORZVWKHLQWULQVLFYDOXHPHWKRGWRDFFRXQWFRPSHQVDWLRQH[SHQVHDULVLQJIURPLVVXDQFHRI

174 VWRFNRSWLRQVWRWKHHPSOR\HHV+DGFRPSHQVDWLRQFRVWEHHQGHWHUPLQHGXQGHUWKHIDLUYDOXHDSSURDFKGH- VFULEHGLQWKH*XLGDQFH1RWHXVLQJWKH%ODFN6FKROHVSULFLQJPRGHOWKH*URXS·VQHWLQFRPH ORVV DQGEDVLF DQGGLOXWHGHDUQLQJVSHUVKDUH DVUHVWDWHG ZRXOGKDYHEHHQUHGXFHGWRWKHSURIRUPDDPRXQWVDVVHWRXWEHORZ

31st March 2011 31st March 2010 &RQVROLGDWHG1HWSURÀW ORVV DVUHSRUWHG 5VLQPLOOLRQ 48.47 84.95 /HVV(PSOR\HHVWRFNFRPSHQVDWLRQH[SHQVH 5VLQPLOOLRQ  0.84 3URIRUPDFRQVROLGDWHGQHWSURÀW ORVV  5VLQPLOOLRQ  85.79 Basic EPS $VUHSRUWHG 5V 1.68  3URIRUPD 5V 1.18  Diluted EPS $VUHSRUWHG 5V 1.66  3URIRUPD 5V 1.16  ii) Derivative instruments a) Interest rate swap $VRQVW0DUFKWKH&RPSDQ\·VVXEVLGLDU\$SROOR+HDOWK6WUHHW,QFKDGFHUWDLQRSHQLQWHUHVWUDWHVZDSV DUUDQJHPHQWVZLWKEDQNVZKLFKZHUHHQWHUHGLQWRVROHO\IRUWKHSXUSRVHRIKHGJLQJDJDLQVWLQWHUHVWUDWHÁXF- WXDWLRQVRQFHUWDLQORQJWHUPERUURZLQJVRIDERXW86PLOOLRQ VW0DUFK86PLOOLRQ ZLWK WKRVHEDQNV$VRQWKH%DODQFH6KHHWGDWHD´0DUNWR0DUNHWµYDOXDWLRQRIWKHRXWVWDQGLQJVZDSVLQGLFDWHVD QRWLRQDOORVVRIDERXW86PLOOLRQDSSUR[LPDWHO\5VPLOOLRQ VW0DUFK86PLOOLRQ DSSUR[LPDWHO\ 5V PLOOLRQ  0DQDJHPHQW EHOLHYHV WKDW WKH PDUN WR PDUNHW ORVV LV QRWLRQDO LQ QDWXUH +RZHYHUDVDPHDVXUHRIDEXQGDQWSUHFDXWLRQLWKDGDFFUXHG86PLOOLRQ DSSUR[LPDWHO\5VPLOOLRQ WR- ZDUGVWKHÀ[HGSUHPLXPVSD\DEOHGHÀQHGLQWKHORDQUHVWUXFWXULQJDJUHHPHQWLQFDVHPDUNWRPDUNHWDPRXQW continues to be negative. 0DQDJHPHQWVWURQJO\EHOLHYHVWKDWQRSURYLVLRQLVUHTXLUHGWREHPDGHIRUWKH0DUNWR0DUNHWORVVRI5V million as at the date of balance sheet since:

‡ 7KHVZDSDUUDQJHPHQWVDUHSXUHO\IRUKHGJLQJSXUSRVHVDQGQRWLQWHQGHGWREHXVHGIRUWUDGLQJRUVSHFX- ODWLYHSXUSRVHV ‡ 7KHORVVRQEDODQFHVKHHWGDWHLVHQWLUHO\QRWLRQDOLQQDWXUHDQGGRHVQRWUHTXLUHWREHSDLGRUVHWWOHG DVRQWKDWGDWH ‡ %HLQJLQWKHQDWXUHRILQWHUHVWUDWHKHGJHWKH070RQVZDSVDUHOLNHO\WRKDYHOLWWOHRUQRLPSDFWRQ reported results over the period of the contracts. b) Interest rate swaps outstanding as at the balance sheet date 7KH&RPSDQ\·VVXEVLGLDU\$+6,KDVHQWHUHGLQWRLQWHUHVWUDWHVZDSVWRKHGJHLWVULVNVDVVRFLDWHGZLWKLQWHUHVW UDWHÁXFWXDWLRQVDQGWKHGHWDLOVRIWKHVDPHDUHPHQWLRQHGEHORZ VW0DUFK +HGJHDJDLQVWH[SRVXUHWRYDULDEOHLQWHUHVWRXWÁRZRQORDQV 5HFHLYH/,%25SOXVVSUHDGRIDQGSD\DVSHUWKHWHUPVPHQWLRQHGEHORZ Notional Amount Period Rate (Rs.in million) From(and including) To(but excluding)

108.75 0D\ 29-Aug-09 1.25% 96.15 29-Aug-09 0D\ 1.25% 96.15 0D\ 29-Nov-10 6.25% 94.15 29-Nov-10 28-Feb-11 6.25% 94.05 28-Feb-11 0D\ 9.25%  0D\ 29-Aug-11 9.25%

175  29-Aug-11 29-Nov-11 9.25%  29-Nov-11 29-Feb-12 9.25%  29-Feb-12 0D\ 9.25% 90.78 0D\ 28-Aug-12 9.25%

0DUFK +HGJHDJDLQVWH[SRVXUHWRYDULDEOHLQWHUHVWRXWÁRZRQORDQV 5HFHLYH/,%25SOXVVSUHDGRIDQGSD\DVSHUWKHWHUPVPHQWLRQHGEHORZ Notional Amount Period Rate (Rs.in million) From(and including) To(but excluding)

108.75 0D\ 29-Aug-09 1.25% 96.15 29-Aug-09 0D\ 1.25% 96.15 0D\ 28-Feb-11 6.25% 96.05 28-Feb-11 0D\ 9.25% 95.96 0D\ 29-Aug-11 9.25% 95.81 29-Aug-11 29-Nov-11 9.25% 95.67 29-Nov-11 29-Feb-12 9.25%  29-Feb-12 0D\ 9.25% 92.78 0D\ 29-Aug-12 9.25%

c. Details of other outstanding derivatives

i) Forward contracts 5VLQPLOOLRQ Particulars of derivatives Purpose 31-Mar-11 31-Mar-10 Forward contracts outstanding as at +HGJHDJDLQVWH[SHFWHGUHFHLYDEOHV 6HOO86' 6HOO86' Balance Sheet date 9.25* 6.00 Range forward contracts outstanding +HGJHDJDLQVWH[SHFWHGUHFHLYDEOHV - 6HOO86' as at Balance Sheet date 0.50

2XWRIDERYH86PLOOLRQUHSUHVHQWVKHGJHDJDLQVWLQWHU²&RPSDQ\UHFHLYDEOHV

ii) Options $ $QH[HPSOR\HHRIWKHVXEVLGLDU\$SROOR+HDOWK6WUHHW,QFKDVDQRSWLRQWRSXWEDFNVKDUHVRI $+6/KHOGE\KLPWR$+6,DWSULFHRI86'SHUVKDUH7KHSULFHZLOOLQFUHDVHE\SHUDQQXPIURP August 2009. B. During the current period, the Company has entered into an interest rate option for one year starting RQWK$XJXVWIRUKHGJHDJDLQVWWKHLU86'/,%25EDVHGLQWHUHVWOLDELOLW\$VSHUWKHDUUDQJHPHQW LIWKH86'/LERULVDERYHSDWKH&RPSDQ\UHFHLYHVGLIIHUHQWLDOEHWZHHQWKHWKUHHPRQWKV/LERU and 5.50% p.a. The notional amounts are as follows:

Period Notional Amount From (and including) To (but excluding) (Rs. in million) 29-Aug-2012 29-Nov-2012 91.10 29-Nov-2012 )HE 89.42 )HE 0D\ 86.78 0D\ $XJ 

176 iii) Particulars of unhedged foreign currency exposure $VDWVW0DUFK USD Closing rate (Rs. in million) Sundry creditors 297,988 44.65  Cash balances  44.65 19.28

GBP Closing rate (Rs. in million) Sundry debtors   1.42 Cash balances 1,576  0.11

EUR Closing rate (Rs. in million) Sundry debtors 4,000  0.25 $VDWVW0DUFK USD Closing rate (Rs. in million) Sundry creditors 72,696 45.14  8QELOOHGUHYHQXH 125,665 45.14 5.67 Cash balances  45.14 

GBP Closing rate (Rs. in million) Sundry debtors    Sundry creditors 20,716  1.41 Cash balances 15,028  1.02

EUR Closing rate (Rs. in million) Sundry debtors 4,000 60.56 0.24

26. Earnings per Share Particulars 31.03.2011 31.03.2010 3URÀWEHIRUHH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 5V   LQPLOOLRQ  $ :HLJKWHG$YHUDJHG(TXLW\6KDUHVRXWVWDQGLQJGXULQJWKH\HDU 1RV  %  

%DVLF(DUQLQJV3HU6KDUHEHIRUHH[WUDRUGLQDU\LWHP $%  5V 14.84 11.15

'LOXWHG(DUQLQJVEHIRUHH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\ 1,845.25  VKDUHKROGHUV 5VLQPLOOLRQ  $

)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGLVVXHG &  1RV 1,107,025 2,241,480

Weighted Averaged Equity Shares outstanding for Diluted Earnings Per   6KDUH 1RV  ' 'LOXWHG(DUQLQJV3HU6KDUHEHIRUHH[WUDRUGLQDU\LWHP $'  5V  11.10 3URÀWDIWHUH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\VKDUHKROGHUV 5VLQ   PLOOLRQ  $ :HLJKWHG$YHUDJHG(TXLW\6KDUHVRXWVWDQGLQJGXULQJWKH\HDU 1RV  %   %DVLF(DUQLQJV3HU6KDUHDIWHUH[WUDRUGLQDU\LWHP $%  5V 14.84 11.15 'LOXWHG(DUQLQJVEHIRUHH[WUDRUGLQDU\LWHPVDWWULEXWDEOHWRHTXLW\ 1,845.25  VKDUHKROGHUV 5VLQPLOOLRQ  $ )RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGVLVVXHG &  Nos. 1,107,025 1,120,740

177 Weighted Averaged Equity Shares outstanding for Diluted Earnings Per   6KDUH Nos.  ' 'LOXWHG(DUQLQJV3HU6KDUHDIWHUH[WUDRUGLQDU\LWHP $'  5V  11.10 7KH&RPSDQ\KDVLVVXHG)RUHLJQ&XUUHQF\&RQYHUWLEOH%RQGV )&&%V WR,QWHUQDWLRQDO)LQDQFLDO&RUSRUDWLRQ ,)& :DVKLQJWRQFRQYHUWLEOHWR(TXLW\VKDUHVDWWKHRSWLRQRI,)&GXULQJWKH\HDU7KH%RQGVDUHFRQ- vertible at any time during the tenure of the loan. To comply with the requirements of Accounting Standard-20 (DUQLQJV3HU6KDUH WKHXQGHUO\LQJQXPEHURI(TXLW\VKDUHVHTXLYDOHQWWR(TXLW\VKDUHV FRPSXWHG RQWKHEDVLVRIH[FKDQJHUDWHVSUHYDLOLQJRQWKHGDWHRIVW0DUFK KDYHEHHQFRQVLGHUHGIRUWKHSXU- pose of computing potential number of Equity Shares.

27. Income Tax Apollo Hospitals Enterprise Limited  ,QUHVSHFWRIWKH,QFRPH7D[FODLPVRI5V0LOOLRQ 5V0LOOLRQ E\WKH,QFRPH7D['HSDUW- ment, the amount is under contest.

‡ 3URYLVLRQIRUWD[DWLRQLVGHWHUPLQHGDIWHUDYDLOLQJFRQFHVVLRQXQGHU6HFWLRQ$'RI7KH,QFRPH7D[$FW 1961.

Western Hospital Corporation Private Limited  'XULQJWKH\HDUHQGHGVW0DUFKWKH&RPSDQ\KDVUHFHLYHGDQ$VVHVVPHQW2UGHUIRUWKH$VVHVV- PHQW

28.  1DWLRQDO6DYLQJ&HUWLÀFDWHVVKRZQXQGHULQYHVWPHQWVDUHSOHGJHGZLWKWKH&KLHI5DWLRQ2IÀFHU*RYHUQ- ment of Andhra Pradesh.

29. Consolidated Segment Reporting 5VLQPLOOLRQ Particulars 31st March 2011 31st March 2010 1.Segment Revenue  1HWVDOHV,QFRPHIURPHDFK6HJPHQW D +RVSLWDOV 19,295 15,511 E 5HWDLO3KDUPDF\ 6,614 4,850 E 2WKHUV  255 6XE²7RWDO 26,271 20,616 /HVV ,QWHUVHJPHQW5HYHQXH  29 1HWVDOHV,QFRPHIURPRSHUDWLRQV 26,240 20,587 2. Segment Results  3URÀW /RVV EHIRUH7D[DQGLQWHUHVWIURPHDFKVHJPHQW D +RVSLWDOV   E 5HWDLO3KDUPDF\     E 2WKHUV     6XE²7RWDO  2,778 /HVV  L ,QWHUHVW 1HW 814 602  LL 2WKHUXQDOORFDEOHH[SHQGLWXUHQHWRI un-allocable income 261 200 3URÀW%HIRUH7D[DQG([WUDRUGLQDU\LWHP  1,976 /HVV([WUD2UGLQDU\,WHP - -

178 3URÀW%HIRUH7D[  1,976 /HVV  L &XUUHQWWD[ 567   LL 7D[IRUHDUOLHU\HDUV QHW   1  LLL 'HIHUUHGWD[OLDELOLW\  129  LY )ULQJH%HQHÀWWD[ - - Add: 'HIHUUHG7D[$VVHW 22   3URÀW$IWHU7D[EHIRUH0LQRULW\,QWHUHVW 1,740  /HVV0LQRULW\,QWHUHVW     $GG6KDUHRI$VVRFLDWHV 3URÀWV 84  1HW3URÀW5HODWLQJWRWKH*URXS   3. Segment assets D +RVSLWDOV 29,657 26,946 E 5HWDLO3KDUPDF\  1,999 F 2WKHUV 1,151 575 Total 33,231 29,520 8QDOORFDWHG&RUSRUDWH$VVHWV   Goodwill on consolidation 677 500 'HIHUUHG7D[$VVHW 0 - 0LVFHOODQHRXV([SHQGLWXUH - - Total Assets as per Balance Sheet   4.Segment liabilities D +RVSLWDOV  12,548 E 5HWDLO3KDUPDF\ 208 188 F 2WKHUV  219 Total 13,738 12,955 8QDOORFDWHG&RUSRUDWH/LDELOLWLHV 2,209 2,150 Shareholder’s Funds 18,989  0LQRULW\,QWHUHVW 249 241 'HIHUUHG7D[/LDELOLW\ 1,101 776 7RWDO/LDELOLWLHVDVSHU%DODQFH6KHHW   5.Segment capital employed D +RVSLWDOV 26,279  E 5HWDLO3KDUPDF\ 2,215 1,811 F 2WKHUV  512 Total 28,823 25,908 6.Segment capital expenditure incurred D +RVSLWDOV   E 5HWDLO3KDUPDF\ 174 240 F 2WKHUV 77  Total 2,784 3,410 7.Segment Depreciation

179 D +RVSLWDOV 852 677 E 5HWDLO3KDUPDF\ 74 56 F 2WKHUV 16 16 Total 942 750 8.Segment Non-cash expenditure  H[FOXGLQJ'HSUHFLDWLRQ D +RVSLWDOV 5 5 E 5HWDLO3KDUPDF\ 1 2 F 2WKHUV - - Total 6 7

30. Change in Authorised share capital Western Hospitals Corporation Limited

7KH6KDUHKROGHUVRIWKH&RPSDQ\KDYHSDVVHGDUHVROXWLRQDWWKH([WUDRUGLQDU\*HQHUDO0HHWLQJKHOGRQWK December 2008, for increasing the Authorised Share Capital of the Company from 50 million Equity Shares of 5VHDFKDJJUHJDWLQJWR5VPLOOLRQWRPLOOLRQ(TXLW\6KDUHVRI5VHDFKDJJUHJDWLQJWR5V PLOOLRQ+RZHYHUWKH&RPSDQ\KDVQRWÀOHGWKHUHTXLUHGIRUPVIRULQFUHDVLQJWKH$XWKRULVHG6KDUH&DSLWDOZLWK WKH5HJLVWUDURI&RPSDQLHV 52& DVDWVW0DUFKDORQJZLWKWKHDPHQGHG0HPRUDQGXPRI$VVRFLDWLRQIRU JLYLQJHIIHFWWRWKHDIRUHVDLGFKDQJHIRUDSSURYDOFRQÀUPDWLRQIURPWKH52&+HQFHWKH$XWKRULVHG6KDUH &DSLWDORIWKH&RPSDQ\DVDWVW0DUFKFRQWLQXHVWREHUHÁHFWHGDV5VPLOOLRQ

31.  'HWDLOVRI6XQGU\&UHGLWRUVXQGHU&XUUHQW/LDELOLWLHVDUHEDVHGRQWKHLQIRUPDWLRQDYDLODEOHZLWKWKHSDU- HQW&RPSDQ\UHJDUGLQJWKHVWDWXVRI6XSSOLHUVDVGHÀQHGXQGHUWKH¶0LFUR6PDOODQG0HGLXP(QWHUSULVHV 'HYHORSPHQW$FW7KHDPRXQWGXHWR0LFUR6PDOODQG0HGLXP(QWHUSULVHVIRUWKHÀQDQFLDO\HDU HQGHGVW0DUFKLV5VPLOOLRQ 5VPLOOLRQ 1RLQWHUHVWLQWHUPVRI6HFWLRQRI0L- FUR6PDOODQG0HGLXP(QWHUSULVHV'HYHORSPHQW$FWRURWKHUZLVHKDVHLWKHUEHHQSDLGRUSD\DEOH RUDFFUXHGDQGUHPDLQLQJXQSDLGDVDWVW0DUFK

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

33.  )LJXUHVLQEUDFNHWVUHODWHWRWKHÀJXUHVIRUWKHSUHYLRXV\HDU

34.  3UHYLRXV\HDUÀJXUHVKDYHEHHQUHJURXSHGDQGUHFODVVLÀHGZKHUHYHUQHFHVVDU\WRFRQÀUPZLWKFXUUHQW \HDUVFODVVLÀFDWLRQ

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For M/s. S Viswanathan Krishnan Akhileswaran Dr. Prathap C Reddy &KDUWHUHG$FFRXQWDQWV &KLHI)LQDQFLDO2IÀFHU  ([HFXWLYH&KDLUPDQ Firm Registration No.: 004770S

S M Krishnan Preetha Reddy V C Krishnan   *HQHUDO0DQDJHU3URMHFW)LQDQFH 0DQDJLQJ'LUHFWRU 3DUWQHU &RPSDQ\6HFUHWDU\ 0HPEHUVKLS1R %LVKRS:DOOHUV$YHQXH :HVW 0\ODSRUH&KHQQDL Suneeta Reddy ([HFXWLYH'LUHFWRU)LQDQFH Place: Chennai 'DWHWK0D\

180 Consolidated Cash Flow Statement for the year ended 31st March 2011 5VLQPLOOLRQ 31.03.2011 31.03.2010 A. Cash Flow from operating activities 1HWSURÀWEHIRUHWD[DQGH[WUDRUGLQDU\LWHPV  1,976.44 Adjustment for: Depreciation 941.70 749.51 3URÀWRQVDOHRIDVVHWV   3URÀWRQVDOHRILQYHVWPHQWV   /RVVRQVDOHRI,QYHVWPHQWV 4.05  /RVVRQVDOHRIDVVHWV   ,QWHUHVWSDLG 778.44 587.01 )RUHLJQ([FKDQJH/RVV   0LVF([SZULWWHQRII 5.81 7.48 Provision for bad debts  12.11 Dividend received   ,QWHUHVWUHFHLYHG   ,QFRPHIURP7UHDVXU\RSHUDWLRQV   Bad debts written off  102.75 /LDELOLW\ VXQGU\EDODQFHV:ULWWHQEDFN    1,167.02 2SHUDWLQJSURÀWEHIRUHZRUNLQJFDSLWDO   changes Adjustment for: Trade or other receivables   ,QYHQWRULHV   Trade payables   Others     )RUHLJQ([FKDQJH /RVV *DLQ 6.26 7.91 7D[HVSDLG LQFXGLQJ)ULQJH%HQHÀW7D[   $GMXVWPHQWVIRU0LVF([SZULWWHQRII   Net cash from operating activities 2,587.67 1,986.26 %&DVKÁRZIURP,QYHVWLQJDFWLYLWLHV 3XUFKDVHRIÀ[HGDVVHWV ,QFOXGLQJ&DSLWDO   :RUNLQ3URJUHVV  3UHRSHUDWLYHH[SHQVHV   Purchase of investments   Sale of investments 2,615.96 4,716.61 6DOHRIÀ[HGDVVHWV 178.07 46.70 ,QWHUHVWUHFHLYHG 52.00  Dividend received 50.97  &DVKÁRZEHIRUHH[WUDRUGLQDU\LWHP   Arbitrage paid -- Net cash used in Investing activities  

181 31.03.2011 31.03.2010 &&DVKÁRZIURPÀQDQFLQJDFWLYLWLHV 0HPEHUVKLSIHHV Proceeds from issue of share premium   Proceeds from issue of share capital 71.52 50.58 Proceeds from advance against share capital  14.52 Proceeds from long term borrowings 1,949.50 2,716.86 Proceeds from short term borrowings 181.70  5HSD\PHQWRIÀQDQFHOHDVHOLDELOLWLHV   ,QWHUHVWSDLG   ,QFRPHIURP7UHDVXU\RSHUDWLRQV 11.77  Dividend paid   1HWFDVKIURPÀQDQFLQJDFWLYLWLHV 467.44 2,267.94 Net increase in cash and cash equivalents    $%&  Cash and cash equivalents  879.42  RSHQLQJEDODQFH  Cash and cash equivalents 1,780.52   &ORVLQJEDODQFH  Component of Cash and cash equivqlents Cash Balances   Bank Balances* L $YDLODEOHZLWKWKHFRPSDQ\IRUGD\WRGD\ 1,706.87  operations LL $PRXQWDYDLODEOHLQXQSDLGGLYLGHQGDQG 18.28 19.52 unpaid deposit payment accounts

Notes

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S M Krishnan Preetha Reddy V C Krishnan   *HQHUDO0DQDJHU3URMHFW)LQDQFH 0DQDJLQJ'LUHFWRU 3DUWQHU &RPSDQ\6HFUHWDU\ 0HPEHUVKLS1R %LVKRS:DOOHUV$YHQXH :HVW 0\ODSRUH&KHQQDL Suneeta Reddy ([HFXWLYH'LUHFWRU)LQDQFH

Place: Chennai 'DWHWK0D\

182 NA NA Care Dental Private Limited Alliance 0DU QDQFH 1.24 2.78 Mera Mera Private Limited 11-Jul-09 Healthcare 0DQDJLQJ'LUHFWRU Suneeta Reddy Preetha Reddy   ISIS Limited Healthcare India Private NA (India) Limited Alliance 0DU 0DU Medicorp

Pvt Apollo Limited Centres Surgical Cosemtic

Limited Pinakini Hospitals QDQFLDO2IÀFHU   ([HFXWLYH&KDLUPDQ HQHUDO0DQDJHU3URMHFW)LQDQFH S M Krishnan & Ltd Centre Imperial Hospitals Research               and Apollo Health Limited Lifestyle    Apollo ,15   ,15  (UK) Ltd Hospital 17.40 Limited Samudra Samudra Enterprises Health care  16,800 12,500,000 5,000 7,419,800 15,271,000 855,228 1,500,000 5,661,000 50,000 865,000 15,052,980 AB Medical Limited Centres NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 2.18 4.28 17.16 11.08 100.00 100.00 100.00 100.00 100.00 51.00 74.94 61.00 51.00 100.00 100.00 100.00 Home Unique 5-Sep-98 19-Jul-01 29-Nov-05 8-Aug-05 12-Dec-02 18-Jan-06 18-Jun-08 7-Oct-09 Limited 0DU 0DU 0DU 0DU 0DU 0DU 0DU 0DU 0DU 0DU 0DU 0DU Healthcare ([HFXWLYH'LUHFWRU)L For and on behalf of the Board of Directors of Board the of behalf on and For Company &KLHI)L KrishnanAkhileswaran Dr. Prathap C Reddy KrishnanAkhileswaran C Prathap Dr. Name of the Subsidiary RQWKHDERYHGDWHDQGH[WHQWRI holding L (TXLW\6KDUHV 1RV LL ([WHQWRI+ROGLQJ  1HWDJJUHJDWHDPRXQWRISURÀWV  ORVVHV RIWKHVXEVLGLDU\IRUWKH DERYHÀQDQFLDO\HDUVRIDUDV Apollo they concern members of +RVSLWDOV(QWHUSULVH/LPLWHG L 'HDOWZLWK LL 1RW'HDOWZLWK 5VLQPLOOLRQ Financial Year of the subsidiary Year Financial ended on Shares of subsidiary company held 1HWDJJUHJDWHDPRXQWRISURÀWV ORVVHV RIWKHVXEVLGLDU\IRU SUHYLRXVÀQDQFLDO\HDUVDVIDUDV Apollo it concerns members of +RVSLWDOV(QWHUSULVH/LPLWHG L 'HDOW:LWK LL 1RW'HDOW:LWK 5VLQPLOOLRQ Date from which it become subsidiary STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956, RELATING TO THE SUBSIDIARY COMPANIES THE SUBSIDIARY TO 1956, RELATING ACT, THE COMPANIES SECTION 212 OF TO PURSUANT STATEMENT Place: Chennai Chennai Place:  &RPSDQ\6HFUHWDU\ 'DWHGWK0D\ * 



0.26   71.59  DENTAL ALLIANCE - ...... - - .. - .. - ..   2.68 1.24 .. 1.85 4.48 1.24 2.78 (Rs. in million)  - - - 1.52 1.80 ..  18.67 12.20 84.80       - - - 1.52 1.80 -       0.06   ,QGLD ,QGLD ,QGLD ,QGLD - - - 0.01 - - 0.01 .. .. - .. 0.26 $+//$SROOR+HDOWK /LIHVW\OH/WG ,+5&/,PSHULDO+RVSLWDOV 5HVHDUFK&HQWUH/WG $OOLDQFH$OOLDQFH0HGLFRUS ,QGLD /LPLWHG $OOLDQFH'HQWDO$OOLDQFH'HQWDO&DUH3ULYDWH/LPLWHG VXEVLGLDU\RI$+// VXEVLGLDU\RI$OOLDQFH 15.07 .. - 7.15 15.46  54.27 7.20 8.26 - - ...... -     94.80 56.97 145.26 7.49  94.80 56.96 145.26 1.79 2.29 71.59 - - ......    286.15 55.67  144.77 875.25 - 14.65          1,619.94 14.45 18.15 56.69 12.47 - .. ..   9.09 2.40 55.91 525.99 220.70 299.45 11.41 22.42 111.00 0.50 8.65 15.05  

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184 FOR THE KIND ATTENTION OF SHAREHOLDERS

D 6KDUHKROGHUV3UR[\KROGHUVDWWHQGLQJWKHPHHWLQJVKRXOGEULQJWKHDWWHQGDQFHVOLSWR the meeting and hand over the same at the entrance duly signed.

E 6KDUHKROGHUV3UR[\KROGHUVDWWHQGLQJWKHPHHWLQJDUHUHTXHVWHGWREULQJWKHFRS\RIWKH Annual Report for the reference at the meeting.

185 Notes

186 187 Apollo Hospitals Enterprise Limited Registered Office: No. 19, Bishop Garden, Raja Annamalai Puram, Chennai – 600 028 Regd. Folio / DP Client ID.No. No. of Shares Attendance Form 30th Annual General Meeting

I certify that I am a Member / Proxy for the Member of the Company.

I hereby record my presence at the Annual General Meeting of the Company held on Friday, 22nd July 2011 at 10.15 a.m. at Kamaraj Arangam, No. 492, Anna Salai, Teynampet, Chennai - 600 006. Note: 1. Please sign this attendance slip and hand it over at the Attendance Verification Counter at the entrance of the Meeting Hall...... 2. This attendance is valid only in case shares are held on the date of the Meeting. Signature of Member / Proxy Apollo Hospitals Enterprise Limited Registered Office: No. 19, Bishop Garden, Raja Annamalai Puram, Chennai – 600 028 Regd. Folio / DP Client ID.No. No. of Shares

I/We………………………………………………………………………………… Proxy Form of………………………………………………………………………..………….. being a Member(s) of APOLLO HOSPITALS ENTERPRISE LIMITED Mr/Mrs…………………………………………………………………….………. th 30 Annual General Meeting of…………………………………………………………………………..………. or failing him Mr/Mrs……………………………………………………..……….. Note: of…………………………………………………………………………..………. as my/our proxy to attend and vote for me/us and on my/our behalf at the Annual The Proxy Form signed across revenue General Meeting of the Company to be held on Friday, 22nd July 2011 at 10.15 a.m. at stamp must be deposited either at Kamaraj Arangam, No. 492 Anna Salai, Teynampet, Chennai - 600 006 and any Registered Office of the Company No.19, Bishop Garden, Raja Annamalaipuram , adjournment there of. Chennai – 600 028 or at Secretarial Department, Ali Towers III Floor, No.55, Signed this………day of ……………….2011 Greams Road, Chennai – 600 006 not less than 48 hours before the commencement of Affix the meeting. Rs.1/- Revenue Stamp ...... Signature of Member / Proxy Apollo Hospitals Enterprise Limited No.19, Bishop Garden, Raja Annamalaipuram, Chennai - 600 028 | www.apollohospitals.com