The Directors are pleased to present the THIRTY THIRD ANNUAL REPORT
and the audited statements of accounts for the year ended 31st March
Financial Results (Standalone)
(Rs. in million)
March 31, 2014 March 31, 2013
For the year ended
Income from operations 38,616 33,178
Profit before Extraordinary
Items and Taxation 4,201 4,034
Provision for Taxation 894 988
Net Profit before Extraordinary
Items after Taxation 3,307 3,046
Extraordinary Items - 45
Net Profit after Extraordinary
Items 3,307 3,091
Balance of Profit brought forward 2,307 1,763
Dividend paid on equity shares - 22
(arising on conversion of FCCB
loan & share warrants)
Profit available for appropriations 5,614 4,832
Dividend (inclusive of
dividend tax) 936 895
Transfer to General Reserve 1,500 1,000
Transfer to Debenture Redemption
Reserve 13 630
Balance carried forward to
Balance sheet 3,165 2,307
Results of Operations
During the year under review, the income from operations of the Company
increased to Rs. 38,616 million compared to Rs. 33,178 million in the
previous year, registering an impressive growth of 16%. The profit
after tax for the year increased by 7% to Rs. 3,307 million compared to Rs.
3,091 million in the previous year.
During the year under review, the consolidated gross revenue of the
Company increased to Rs. 43,842 million compared to Rs. 37,687 million in
the previous year, registering an impressive growth of 16%. Net profit
after minority interest for the group increased to Rs. 3,168 million from
Rs. 3,044 million representing a growth of 4%.
Consolidated Financial Statements
The Ministry of Corporate Affairs (MCA) vide its circular No.
5/12/2007-CL-Ill dated 8th February 2011 had granted general exemption
under Section 212(8) of the Companies Act, 1956 to companies from
attaching the accounts of their subsidiaries in their annual reports
subject to fulfllment of certain conditions prescribed. The Board of
Directors of the Company at its meeting held on 28th May 2014, noted
the provisions of the MCA circular cited and passed the necessary
resolution granting requisite approvals for not attaching the Balance
Sheet, Profit & Loss Account, Report of the Board of Directors and
Report of the Auditors of each of the subsidiary companies to the
accounts of the Company. A statement of summarized financials of all
subsidiaries of your Company, pursuant to Section 212(8) of the
Companies Act, 1956 forms part of this report. Any further information
in respect of the annual report and the financial statements of the
subsidiary companies of your Company will be made available to the
members on request and will also be available for inspection for any
member at its Registered office. In accordance with the Accounting
Standard, AS-21 issued by the Institute of Chartered Accountants of
India, the Consolidated Financial Statement presented by your Company
includes the financial information of all its subsidiaries.
The Board of Directors recommend a dividend of Rs. 5.75 per equity share
(115% on face value of Rs. 5/ - per share) (as against Rs. 5.50 per equity
share on face value of Rs. 5/- each, 110% in the previous year) on the
paid up equity share capital of the company for the financial year
ended 31st March 2014, which if approved at the forthcoming Annual
General Meeting on 25th August 2014 will be paid to those shareholders
whose names appear in the Register of Members as at the closing hours
of business on 18th August 2014. In respect of shares held in
electronic form, the dividend will be paid on the basis of beneficial
ownership furnished by the depositories viz., NSDL and CDSL for this
The Register of Members and Share Transfer Books will remain closed
from Tuesday, 19th August 2014 to Monday, 25th August 2014 (both days
Transfer of Reserves
Your Company proposes to transfer Rs. 1,500 million to the general
reserves out of the amount available for appropriations. An amount of Rs.
3,165 million is proposed to be retained in the Profit & Loss Account.
CRISIL has rated the company''s debt instruments as AA indicating a high
degree of safety.
CRISIL Equities has upgraded Company''s CRISIL IER fundamental grade to
5/5 from 4/5. The grade indicates that the company''s fundamentals are
''excellent'' relative to other listed equity securities in India.
Your Company has fourteen subsidiary companies (including fellow
subsidiaries) as on March 31, 2014. The statement in respect of the
details of the subsidiary companies viz., Unique Home Health Care
Limited (UHHCL), AB Medical Centres Limited (ABMCL), Samudra Healthcare
Enterprises Limited (SHEL), Apollo Hospital (UK) Limited (AHUKL),
Apollo Health and Lifestyle Limited (AHLL), Western Hospitals
Corporation Pvt Limited (WHCPL), , Apollo Nellore Hospital Limited
(ANHL) (formerly Pinakini Hospitals Limited), Imperial Hospital and
Research Centre Limited (IHRCL), Alliance Medicorp (India) Limited
(Alliance), Sapien Bio Sciences Pvt Limited (SBPL), Apollo Bangalore
Cradle Limited (ABCL) formerly Apollo Koramangala Cradle Limited,
Apollo Clinics (Gujarat) Limited (ACGL), Apollo Cosmetic Surgical
Centre Pvt Limited (ACSPL) and Alliance Dental Care Limited (Alliance
Dental) pursuant to section 212 of the Companies Act, 1956, is attached
to this report.
Unique Home Health Care Limited (UHHCL)
UHHCL, a wholly owned subsidiary of the Company provides medical and
paramedical services including doctor''s consultation, physiotherapy
direct to patient homes and also offers paramedical services in
hospitals to critically ill patients. For the year ended 31st March
2014 UHHCL, recorded a revenue of Rs. 25.56 million and net profit of Rs.
AB Medical Centres Limited (ABMCL)
ABMCL, a wholly owned subsidiary of the Company does not have any
commercial operations as it has leased out its infrastructure viz.,
land, building and medical equipment to the Company for running the
hospital. For the year ended 31st March 2014, ABMCL recorded an income
of Rs. 6.41 million and a net profit of Rs. 4.44 million.
Samudra Healthcare Enterprises Limited (SHEL)
SHEL, a wholly owned subsidiary of the company, runs a 120 bed multi
speciality hospital at Kakinada. For the year ended 31st March 2014,
SHEL recorded revenues of Rs. 279.56 million and a net profit of Rs. 3.36
Apollo Hospital (UK) Limited (AHUKL)
AHUKL is a wholly owned foreign subsidiary of the Company and has not
yet commenced its operations.
Apollo Health and Lifestyle Limited (AHLL)
AHLL, a wholly owned subsidiary of the Company is engaged in the
business of providing primary healthcare facilities through a network
of owned/franchised clinics across India offering specialist
consultation, diagnostics, preventive health checks, telemedicine
facilities and a 24-hour pharmacy all under one roof. For the year
ended 31st March 2014, AHLL recorded a consolidated revenue of Rs.
1,149.33 million and a net loss of Rs. 326.96 million.
Western Hospitals Corporation Private Limited (WHCPL)
For the year ended 31st March 2014, WHCPL, a wholly owned subsidiary of
the Company, recorded revenue of Rs. 11.61 million and a net profit of Rs.
Apollo Nellore Hospital Limited (ANHL)
ANHL has leased out its land at Nellore to the Company. ANHL recorded
revenues of Rs. 7.42 million and a net profit of Rs. 4.84 million.
Imperial Hospital and Research Centre Limited (IHRCL)
IHRCL, a 85.76% subsidiary of the company owns a 240 bed multi
speciality hospital at Bengaluru. For the year ended 31st March 2014,
IHRCL recorded a revenue of Rs. 1,469.35 million and a net profit of Rs.
Alliance Medicorp India Limited (Alliance)
Alliance, a 51% subsidiary of the Company is engaged in the business of
running dialysis clinics. For the year ended 31st March 2014, Alliance
recorded consolidated revenue of Rs. 309.72 million and a net loss of Rs.
Sapien Biosciences Pvt Ltd (SBPL)
SBPL, a 70% subsidiary of the company which is engaged in the business
of bio-banking of tissues is currently in the startup stage. For the
year ended 31st March 2014, SBPL recorded a revenue of Rs. 0.67 million
and a net loss of Rs. 6.35 million.
Apollo Bangalore Cradle Limited (ABCL) (formerly Apollo Koramangla
ABCL, a subsidiary of Apollo Health and Lifestyle Limited is engaged in
the business of healthcare service. For the year ended 31st March 2014,
ABCL recorded a revenue of Rs. 150.77 million and a net loss of Rs. 33.69
Apollo Clinics (Gujarat) Limited (ACGL)
ACGL, a subsidiary of Apollo Health and Lifestyle Limited is engaged in
the business of healthcare services. For the year ended 31st March
2014, ACGL recorded a revenue of Rs. NIL million and a net loss of Rs. 0.10
Apollo Cosmetic Surgical Centre Pvt Limited (ACSPL)
ACSPL, a subsidiary of Apollo Health and Lifestyle Limited is engaged
in the business of running cosmetic surgical centres. For the year
ended 31st March 2014, ACSPL recorded a revenue of Rs. 50.44 million and
a net loss of Rs. 0.50 million.
Alliance Dental Care Limited (Alliance Dental)
Alliance Dental, a subsidiary of Alliance Medicorp (India) Limited is
engaged in the business of running dental clinics. For the year ended
31st March 2014, Alliance Dental recorded a revenue of Rs. 272.77 million
and a net loss of Rs. 18.59 million.
Pursuant to Clause 49 (VII) of the Listing Agreement with the Stock
Exchanges, a separate report on Corporate Governance forms part of the
Directors'' Report in the Annual Report. Your Company has been complying
with the requirements of the Listing Agreement and necessary
disclosures have been made in this regard in the Corporate Governance
A certificate from the Auditors of the Company regarding compliance
with the conditions of Corporate Governance as stipulated under Clause
49 of the Listing Agreement is attached to this report.
- Apollo Hospitals has been awarded the Gallup Great Places to Work
Award (GGWA) for the year 2014 in recognition of exceptionally
leveraging its workforce to drive business results and sustainable
- Dr. Prathap C. Reddy, Founder and Chairman of the Apollo Hospitals
Group was honoured with the Lifetime Achievement Award by NDTV.
- Dr. Prathap C. Reddy, Chairman, Apollo Hospitals Group was conferred
with the Lifetime Achievement Award at the Asian Business Leadership
Forum Awards 2013.
- Dr. Prathap C Reddy was also conferred with the Lifetime Achievement
Award by CNBC TV18 at the 9th edition of India Business Leaders Awards
- In the Week-Nielsen Hospital Awards 2013, 3 Hospitals from the Apollo
Network were recognised as being among the Top 15 Multi-specialty
Hospitals in India. Chennai (#4), Delhi (#9) and Hyderabad (#14) have
been conferred with this prestigious honour. Chennai and Delhi have
featured in the list of Top 10 hospitals in India for the 6th year in a
row. These two facilities have also featured in the list of Best
Hospitals in India for the specialties of Cardiology and Oncology.
- Apollo Health City, Hyderabad has been bestowed the prestigious
''International Medical Tourism Award'' for Excellence in Customer
Service. This has been awarded by the reputed International Medical
Travel Journal, UK. Apollo Health City was the only hospital from India
to be nominated.
Directors'' Responsibility Statement
The Directors of the Company hereby state and confirm that:
- In the preparation of the annual accounts for the year, the
applicable accounting standards had been followed along with proper
explanations and there were no material departures;
- The Directors had selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
- The Directors had taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of
the Company and for preventing and detecting fraud and other
- The Directors had prepared the annual accounts on a going concern
In view of the new Companies Act, 2013 requirements, the Company can
accept deposits from the public and members only after obtaining
approval from the members at the ensuing annual general meeting.
The total deposits with the Company as on 31st March 2014 was Rs. 355.38
million (Rs. 367.61 million as on 31st March 2013) which include deposits
and interest thereon for an aggregate value of Rs. 4.40 million (Rs. 25.31
million as on 31st March 2013) not claimed by depositors.
The Company has gone in for a major re-organisation of its top
leadership with the twin objective of accelerating growth and
furthering its strategic goals. This strategic re-alignment will enable
the company to focus on growth opportunities and hospitals, pharmacies
and clinics while furthering its clinical leadership and service
excellence. The Company aims to deepen the focus in each of these
verticals as well as drive synergies between them using technology and
foster an ecosystem focused on wellness, innovation and productivity.
The Board of Directors at its meeting held on 2nd July 2014 approved
the expanded roles and responsibilities of the following Executive
Directors along with new designations.
Smt.Preetha Reddy has been re-designated as Executive Vice-Chairperson
of the Company. She will work closely with the organization''s 8,000
clinicians, industry bodies, State and Central Governments to advance
policy matters on important healthcare issues and also in reviewing
global medical advancements, in introducing contemporary protocols to
further enhance clinical outcomes. Considering the immense potential in
international business, Smt. Preetha Reddy will directly lead this
portfolio and drive Apollo''s aspiration of becoming the global
healthcare destination. She will also steer the Enterprise Risk
Management portfolio for the company.
Smt. Suneeta Reddy assumes the role of Managing Director of the
Company. She will lead the initiatives related to corporate strategy,
corporate finance, funding and investments and will leverage M&As to
achieve the accelerated pace of growth and optimize profitability. She
will directly steer the hospital vertical and will also handle Brand
Smt. Shobana Kamineni has been re-designated as Executive
Vice-Chairperson of the Compnay. She will continue to spearhead Apollo
Pharmacy related initiatives and will also oversee the planning, design
and execution of new projects and will lead the Apollo Global Projects
Smt Sangita Reddy will take charge as Joint Managing Director of the
Company and will assume greater responsibilities which will include
creating an IT enabled patient centric operation across the Apollo
footprint. She will continue to steer Apollo''s thrust on research,
innovation and healthcare initiatives. In growing the group''s retail
healthcare foray, Sangita will also spearhead Retail Health, including
running Clinics, Cradles and other retail service formats. She will
also lead the Human Resources and IT functions across all divisions of
the Group. The other terms and conditions including remuneration of the
Executive Directors as approved by the Members at the earlier Annual
General Meetings remain the same.
Smt. Sangita Reddy, Director retires by rotation at the ensuing Annual
General Meeting and being eligible offers herself for re-appointment.
Shri. Sanjay Nayar was appointed as an additional director with effect
from 10th February 2014 and holds office upto the date of the ensuing
Annual General Meeting.
Shri. Vinayak Chatterjee was appointed as an additional director with
effect from 2nd July 2014 and holds office upto the date of the ensuing
Annual General Meeting.
In terms of Sections 149, 152 and other applicable provisions of the
Companies Act, 2013 read with Rules made thereunder, the Independent
Directors viz., Shri. N. Vaghul, Shri.Deepak Vaidya, Shri. Rafeeque
Ahamed, Shri.Rajkumar Menon, Shri. Habibullah Badsha, Shri. G.
Venkatraman, Shri. Khairil Anuar Abdullah, Shri. Sanjay Nayar and Shri.
Vinayak Chatterjee are being recommended for appointment for a term of
upto five consecutive years i.e. upto 31st March 2019, on a
Shri. T.K. Balaji has resigned from the office of Director of the
Company w.e.f 15th April 2014 citing his inability to continue given
his other professional commitments.
The Board wishes to place on record its appreciation for his
contributions made during his tenure as a Director of the Company.
The Auditors, M/s. S. Viswanathan, Chartered Accountants, retire at the
ensuing Annual General Meeting and have confirmed their eligibility and
willingness to accept office, if re-appointed.
The Audit Committee and the Board recommend the re-appointment of
M/s.S.Viswanathan, Chartered Accountants, as Auditors of the Company,
to hold office till the conclusion of the next Annual General Meeting.
The Company has appointed M/s. Raman and Associates, Cost Accountants,
as the Cost Auditors for conducting the audit of cost records of the
Company for the financial year ending 31st March 2015.
Particulars of Employees as per Section 217(2A) of the Companies Act,
In terms of provisions of Section 217(2A) of the Companies Act, 1956,
read with the Companies (Particulars of Employees) Rules, 1975, the
names and other particulars of employees are set out in the Annexure to
the Directors'' Report. However, having regard to the provisions of
Section 219(1)(b)(iv) of the Companies Act, 1956, the Annual Report
excluding the aforesaid information is being sent to all the members of
the Company and others entitled thereto. Any members interested in
obtaining such particulars may write to the Company Secretary at the
Registered Office of the Company.
Particulars Regarding Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo.
Particulars as required to be disclosed as per the Companies
(Disclosure of Particulars in the Report of Board of Directors) Rules,
1988 are set out in the statement attached herewith as Annexure - A.
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.
Your Directors also wish to place on record their appreciation of
business constituents, banks and other financial institutions and
shareholders, of the Company for their continued support.
For and on behalf of the Board of Directors
Place : Chennai Dr. Prathap C Reddy
Date : 2nd July 2014 Executive Chairman