a. The Company has issued Foreign Currency Convertible Bonds (FCCBs)
to International Finance Corporation (IFC), Washington, to the value of
US$ 15 million on 28th January 2010. These bonds are convertible into
equity shares based on the rupee dollar parity exchange rate at any
time before the end of Final Repayment date. On 9th December 2010, the
Company converted FCCBs equivalent to $ 7.5 million into 1,140,992
equity shares of Rs 5 each. The underlying number of Equity shares as on
31st March 2012 is 1,268,343 Equity shares is based on the exchange
rate ( = Rs 51.1565) and if the option is not exercised, the Loan
shall be repayable in full in two approximately equal semi-annual
instalments commencing from the Final Repayment Date by way of
redemption of such number of FCCBs in respect of which IFC has not
exercised its Conversion option.
b. The Company had issued 9,000,000 Global Depository Receipts of Rs 10
(now 18,000,000 Global Depository Receipts of Rs 5) each with two way
fungibilty during the year 2005-06. Total GDR''s converted into
underlying Equity Shares for the year ended on 31st March 2012 is
5,396,660 (2010-11: 6,263,200) of Rs 5 each and total equity shares
converted back to GDR for the year ended 31st March 2012 is 7,689,329
(2010-11: Nil) of Rs 5 each. Total GDR''s converted into equity shares
upto 31st March 2012 is 12,644,531 (2010-11: 14,937,200) of Rs 5 each.
1. The Company has issued and allotted 3,276,922 equity warrants
convertible into equity shares of nominal value of Rs 5/- each at
premium of Rs 467.46 per share on 5th February 2011 to Dr. Prathap C
Reddy, one of the promoters of the Company on a preferential allotment
basis. The issue price is at minimum price of Rs 472.46 fixed in
accordance with the guidelines for preferential issues of the
Securities Exchange Board Of India (Issue of Capital and Disclosure
Requirements)Regulations 2009. Accordingly the promoter has paid 25%
of the consideration @ Rs 472.46 per warrant on the date of allotment.
The Balance 75% is payable on the exercise of option for conversion
within 18 months of date of allotment.
a. 10.30% Non Convertible Debentures
The Company has issued 500 Nos. 10.30% Non Convertible Redeemable
Debentures of Rs 1 million each on 28th December 2010 which will be
redeemed on 28th December 2020 and 500 Nos. 10.30% Non Convertible
Redeemable Debentures of Rs 1 million each on 22nd March 2011 which will
be redeemed on 22nd March 2021 to Life Insurance Corporation of India.
The Debentures are secured by way of pari passu first charge on the
Fixed Assets of the Company existing and future along with Canara Bank
and International Finance Corporation, Washington; such pari passu
first charge ensuring atleast a cover of 1.25 times the value of
outstanding principal amount of the loan.
c. Canara Bank
The loan is secured by way of pari passu first charge on the fixed
assets of the Company existing and future along with Debenture Trustee
and International Finance Corporation, Washington.
d. International Finance Corporation (External Commercial Borrowings)
The Company has been sanctioned a sum of US$ 35 million from
International Finance Corporation, Washington by way of External
Commercial Borrowings (ECB). The Company has withdrawn the full amount
of US$ 35 million as of 31st March 2012 on the above loan. The ECB loan
is secured by way of pari passu first ranking charge on the entire
movable plant and machinery and equipment including all the spare parts
and all other fixed assets such as furniture, fixtures, fittings,
installations, vehicles, office equipments, computers and all other
fixed assets owned by the Company (excluding immovable property), both
present and future belonging or hereafter belonging to or at the
disposal of the Company. The Loan is repayable in 15 equal semi-annual
Instalments starting from 15th September, 2012.
Pari passu charge in favour of IFC over the immovable assets of the
Company; such pari passu charge ensuring atleast a cover of 1.25 times
the value of outstanding principal amount of the loan.
e. International Finance Corporation has granted a loan of US$ 35
million during the year 2009-10. The Company has drawn full US$ 35
million of the sanctioned amount of US$ 35 million and the Company has
entered into Currency Cum Interest Rate Swap (CCIRS) with HDFC Bank in
Indian rupee and hedged the loan for interest rate and foreign currency
fluctuation risk. The derivative contract is secured by a second charge
on the immovable assets of the Company to the extent of Rs 1.100
million. The tenure of this derivative contract matches with the
tenure of the loan outstanding as of 31st March 2012.
2. Details of Trade payables are based on the information available
with the Company regarding the status of Suppliers as defined under the
Micro, Small and Medium Enterprises Development Act, 2006. The amount
due to Micro, Small and Medium Enterprises for the financial year ended
31st March 2012 is Rs 113.31 million (Rs 48.76 million). No interest in
terms of Section 16 of Micro, Small and Medium Enterprises Development
Act, 2006 or otherwise has either been paid or payable or accrued and
remaining unpaid as at 31st March 2012.
During the year, the amount transferred to Investors Education and
Protection Fund of the Central Government as per the provisions of
Section 205A and 205C of the Companies Act, 1956 is Rs 1.67 million (Rs
1.33 million) in aggregate which comprises of Rs 1.54 million (Rs 1.32
million) as unpaid dividend and Rs 0.13 million (Rs 0.01 million) as
3. Capital Work-in-Progress Rs 1,893.15 million (Rs 3,411.61 million)
comprises amounts spent on assets under construction and directly
related pre-operative expenses. The amount of interest included in
capital work in progress is Rs 250.41 million (Rs 325.02 million)*.
* Includes Interest on Borrowings Capitalised for the year ended 31st
March 2012 is Rs 183 million (Rs 154.42 million).
i. Accrued patient collections constitute Rs 273.97 million (Rs 233.56
million) of Trade receivables.
ii Confirmation of balance from Debtors, Creditors are yet to be
received in a few cases though the group has sent letters of
confirmation to them. The balances adopted are as appearing in the
books of accounts of the group.
iii Sundry Debtors represent the debt outstanding on sale of
pharmaceutical products, hospital services and project consultancy fees
for and is considered good. The group holds no other securities other
than personal security of the Debtors.
a. Gain on Forward Contract during the year ended 31st March 2012
accounted for in the Statement of Profit and Loss is Nil (Rs 11.77
b. For the year ended 31st March 2012, the Foreign Exchange gain (the
difference between the spot rates on the date of the transactions, and
the actual rates at which the transactions are settled) is Rs 4.29
million (2010-11: Foreign Exchange Loss Rs 8.86 million).
i. Expected return on plan assets is based on expectation of the
average long term rate of return expected on investments of the fund
during the estimated term of the obligations. The Gratuity scheme is
invested in Gratuity Pay plan offered by ICICI.
ii. The estimate of future salary increase, considered in actuarial
valuation, take account of inflation, seniority, promotion and other
relevant factors such as demand and supply in the employment market.
4. CONTINGENT LIABILITIES
Particulars 31.03.2012 31.03.2011
Contingent liabilities and commitments
(to the extent not provided for)
(i) Contingent Liabilities
(a) Claims against the company not
acknowledged as debt 275.03 268.71
Bank Guarantees 55.39 146.39
Corporate Guarantees 242.50 207.50
(c) Other money for which the company
is contingently liable
Sales Tax 1.41 1.85
Customs Duty 99.70 99.70
Income Tax 396.79 384.47
Letter of Credits 150.42 120.69
EPCG 1,010.20 1,114.96
Redemption premium on FCCB 11.28 5.31
Value added Tax 2.27 2.27
(a) Estimated amount of contracts
remaining to be executed on capital 12,436.38 7,601.47
account and not provided for
Total 14,681.37 9,953.32
Lease agreements are renewable for further period or periods on terms
and conditions mutually agreed between the lessor and AHEL.
Variations/Escalation clauses in lease rentals are made as per mutually
agreed terms and conditions by the lessor and AHEL.
5. During the year 2002-03, on a review of fixed assets, certain
selected medical equipments were identified and impaired. For the
current year, on a review as required by Accounting Standard 28
''Impairment of Assets'', the management is of the opinion that no
impairment loss or reversal of impairment loss is required, as
conditions of impairment do not exist.
6. The Company has been exempted from publishing the financial
statements for fourteen of its subsidiaries including fellow
subsidiaries which are required to be attached to the Company''s
accounts, under Sec.212(1) of the Companies Act, 1956 for the financial
year ended 31st March 2012.
7. In the process of acquiring Apollo Gleneagles Hospitals Limited
(AGHL) in Kolkata, Apollo Hospitals Enterprise Limited had initially
invested Rs 30 million [Rs 5 million towards equity and Rs 25 million to
discharge other liabilities of AGHL, erstwhile Duncan Gleneagles
Hospital Limited (DGHL)] to acquire 50.26% holding in the DGHL
(subsequently reduced to 49%, now increased to 50%). AGHL assigned an
unsecured debt of Rs 163.7 million existing in its books to Apollo
Hospitals Enterprise Limited. During the year the Company received Rs 90
million out of which Rs 25 million has been adjusted against the advance
and balance taken to income. As a measure of prudence, balance amount
is not recognized as an advance or investment in the books of Apollo
Hospitals Enterprise Limited currently and will be accounted for as and
when the amount(s) are received.
8. On review of the operations of setting up the Hospital in Noida,
the Company has re-assigned the lease agreement between itself and the
lessor to its associate, Indraprastha Medical Corporation Limited by
extinguishing its rights and privileges in the original lease deed
dated 27th October 2001.
9. Unrealised amounts on project development and pre-operative
project expenses incurred at Bilaspur Hospital amounting to Rs 56.62
million are included in advances and deposits account. The above
expenses incurred on project will be amortised over the balance lease
period of 8 years. The balance yet to be amortised as on 31.03.2012 is
Rs 25.17 million (Rs 28.31 million).
10. Figures of the current year and previous year have been shown in
11. Figures in brackets relate to the figures for the previous year.
12. Previous year figures have been regrouped and reclassified
wherever necessary to confirm with current years classification.