1.  RELATED PARTY DISCLOSURES
 
 A.  List of Related Parties where control exists and other related
 parties with whom the Company had transactions and their relationships
 
 Sl   Name of Related Parties                   Nature of relationship
 No
 1    Unique Home Health Care Limited
 
 2    AB Medical Centres Limited
 
 3    Samudra Healthcare Enterprises Limited
 
 4    Apollo Hospital (UK) Limited
 
 5    Apollo Health and Lifestyle Limited
 
 6    Imperial Hospital and Research Centre 
      Limited                                     Subsidiary Companies
 
 7    Pinakini Hospitals Limited                    (control exists)
 
 8    Apollo Cosmetic Surgical Centre Private Limited
 
 9    Alliance Medicorp (India) Limited
 
 10   ISIS Healthcare India Private Limited
 
 11   Mera Healthcare Private Limited
 
 12   Alliance Dental Care Private Limited
 
 13   Apollo Hospitals International Limited
 
 14   Apollo Gleneagles Hospitals Limited
 
 15   Apollo Gleneagles PET-CT Private Limited
 
 16   Western Hospitals Corporation Pvt. Limited    Joint Ventures
 
 17   Apollo Munich Health Insurance Company 
      Limited
 
 18   Apollo Lavasa Health Corporation Limited
 
 19   Quintiles Phase One Clinical Trials India 
      Private Limited
 
 20   Family Health Plan Limited
 
 21   Apollo Health Street Limited
 
 22   Indraprastha Medical Corporation Limited        Associates
 
 23   Stemcyte India Therapautics Private Limited
 
 24   Dr.  Prathap C Reddy
 
 25   Smt. Preetha Reddy                             Key Management
 
 26   Smt. Suneeta Reddy                               Personnel
 
 27   Smt. Sangita Reddy 
 
 28   Smt. Shobana Kamineni
 
 29   PCR Investments Limited                   Enterprises over which 
 
 30   Indian Hospitals Corporation Limited      Key Management Personnel
 
 31   Apollo Sindoori Hotels Limited            are able to exercise
 
 32   PPN Power Generating Company              significant influence 
      Private Limited
 
 33   Health Super Hiway Private Limited
 
 34   FaberSindoori Management Services 
      Private Limited
 
 35   Ashok Birla Apollo Hospitals Private 
      Limited
 
 36   Apollo Mumbai Hospital Limited
 
 37   Lifetime Wellness Rx International 
      Limited
 
 38   Apollo Clinical Excellence Solutions 
      Limited                                  Enterprises over which
 
 39   PPN Holding Private Limited              Key Management Personnel
 
 40   Preetha Investments Private Limited      are able to exercise
 
 41   PPN Power Generation (Unit II) 
      Private Limited                          significant influence
 
 42   PDR Investments Private Limited
 
 43   TRAC India Private Limited
 
 44   PPN Holdings (Alfa) Private Limited
   
 45   Aircel Limited
 
 46   Aircel Cellular Limited
 
 47   Dishnet Wireless Limited
 
 48   Apollo Infrastructure Project Finance 
      Company Limited
 
 49   Vasumathi Spinning Mills Limited
 
 50   Kalpatharu Infrastructure Development 
      Company Private Limited 
 
 51   Sindya Power Generating Company Private 
      Limited 
 
 52   Sindya Holdings Private Limited
 
 53   Sindya Resources Pte.Ltd. Singapore
 
 54   Garuda Energy Private Ltd
 
 55   Deccan Digital Networks Private Limited
 
 56   Kalpatharu Enterprises Private Limited
 
 57   Sirkazhi Port Private Limited
 
 58   Sindya Builders Private Limited
 
 59   Tharani Energy India Private Limited
 
 60   Apollo Energy Company Ltd                Enterprises over which
 
 61   KARAuto Private Limited                  Key Management Personnel
 
 62   Healthnet Global Ltd                     are able to exercise 
 
 63   Sindya Infrastructure Development 
      Company Private Limited                  significant influence
 
 64   Associated Electrical Agencies
 
 65   P. Obul Reddy & Sons
 
 66   Apex builder67 Apex Construction
 
 68   Kei Energy Private Limited
 
 69   Kamineni Builders Private Limited
 
 70   Primetime Recreations Private Limited
 
 71   Kiddy Concepts Private Limited
 
 72   Kei Vita Private Limited
 
 73   Kei Rajamahendri Resorts Private Limited
 
 74   KEI-RSOS Petroleum and Energy Private 
      Limited
 
 75   KEI-RSOS Shipping Private Limited
 
 76   Peninsular Tankers Private Limited
 
 77   Kei Health Highway Private Limited
 
 78   Keimed Limited                           Enterprises over which
     
 79   Medvarsity Online Limited                Key Management Personnel
 
 80   Spectra Clinical Laboratory              are able to exercise 
 
 81   Kamineni Builders                        significant influence
 
 82   Universal Quality Services LLC
 
 83   Apollo Health Resources Limited
 
 
 2   Contingent Liabilities
 
 a.  Claims against the Company not acknowledged as debts- Rs. 268.71
 million (Rs. 242.24 million)
 
 b.  The Company has to pay a sum of Rs. 5.31 million by way of
 Redemption premium to International Finance Corporation (IFC),
 Washington as on 31st March 2011 if the FCCB conversion option is not
 exercised by IFC.  On 9th December 2010, the Company converted FCCBs
 equivalent to US $ 7.5 million into 1.14 million equity shares of Rs. 5
 each. For the balance US $ 7.5 million the Company has not received any
 conversion request from IFC, so the same has not been provided in the
 books and has been treated as a Contingent Liability (Also refer Note 8
 in the Notes forming part of Accounts).
 
 c.  Demand raised by Deputy Commissioner of Commercial Taxes
 (Enforcement) for VAT payable on the sale of Food and Beverages to
 patients, against which the Company has preferred an appeal with the
 Joint Commissioner of Commercial Taxes(Appeals) Mysore is Rs. 2.27
 million (Rs. 1.27 million)
 
 d.  The Company filed a Special Leave Petition on 6th May 2008 before
 the Honourable Supreme Court against the judgement of the Divisional
 Bench of the Madras High Court dated 10th March 2008 allowing the
 reopening of the assessment for Assessment Year 2000-01 and disallowing
 the claim for set off of unabsorbed depreciation. The Special Leave
 Petition has been admitted by the Honourable Supreme Court on 15th May
 2008. The Assessment Officer completed the assessment and raised a
 demand of Rs. 136.76 million which has since been stayed by the
 Honourable Supreme Court in its order dated 16th June 2008. This amount
 has been treated as a contingent liability for the year ended 31st
 March 2011 until the disposal of the case by the Honourable Supreme
 Court.
 
 e.  Estimated amount of contracts remaining to be executed on capital
 account not provided for on account of the expansion cum
 diversification programme of the Company Rs. 7,601.47 million (Rs.
 4,391.86 million).
 
 f.  Export obligation to be fulfilled in the next eight years on
 availing of concessional excise duty on imports under 3% EPCG Scheme to
 the extent of eight times the duty saved, amounts to Rs.1,114.96
 million (Rs.  905.46 million). The amount of duty saved for the year
 ended 31st March 2011 was Rs. 16.01 million (Rs. 37.00 million).
 
 g.  The estimated customs duty guarantees given by the Company in
 favour of the Assistant Collector of Customs, pending receipt of
 customs duty exemption certificates amounts to Rs. 99.70 million (Rs.
 99.70 million).
 
 - This is subject to the result of writ petition pending in the Madras
 High Court with respect to the Chennai Hospital division Rs. 73.71
 million (Rs. 73.71 million).
 
 - Application has been made for duty exemption certificates by the
 erstwhile Indian Hospitals Corporation Limited (Pharmaceutical
 division), which is pending with the Government. The estimated customs
 duty is Rs. 14.83 million (Rs. 14.83 million).
 
 - The Company has executed bonds in favour of the President of India to
 the extent of Rs. 11.16 million (Rs. 11.16 million) pending its
 application for receipt of customs duty exemption certificates from the
 Government.
 
 h. Letters of credit opened by various banks in favour of foreign
 suppliers for consumables, spares, medicines and medical equipments
 amounts to Rs. 120.69 million (Rs. 135.28 million).
 
 a.  Bank Guarantees as on 31.03.2011 is Rs.146.39 million (Rs.151.51
 million).
 
 i.  Additional liability for payment of sales tax on work orders
 pursuant to court proceedings between contractors and the State
 governments amounts to Rs. 0.20 million (Rs.0.20 million).
 
 In respect of the claim for sales tax made by the Commercial Tax
 Department for Rs. 1.65 million (Rs. 1.01 million) for the various
 assessment years, the matter is under contest.
 
 3.  The Company has pledged its 20.77 million (20.77 million) shares in
 Apollo Gleneagles Hospitals Limited as a security for the loan advanced
 by IDFC and HDFC to Apollo Gleneagles Hospitals Limited.
 
 4.  Capital Work -in-Progress comprises amounts spent on assets under
 construction and directly related pre-operative expenses. The amount of
 interest included in capital work in progress is Rs. 325.02 million
 (Rs. 170.60 million)*.
 
 * Includes Interest on Borrowings Capitalised for the year ended
 31.03.2011 is Rs.154.42 million (Rs. 198.68 million) .
 
 5.  Details of utilization of funds received on preferential allotment
 of equity share warrants.
 
 6.  Details of Secured Loans and Security
 
 a.  Indian Bank
 
 Loan from Indian Bank is secured by way of:
 
 Hypothecation to the bank by way of first charge of inventory of goods,
 produce and merchandise, vehicles, plant & machinery, consumer durables
 which are now in the possession of the company and/or to be purchased
 out of the banks loan, book debts, outstanding monies, recoverable
 claims, bills, contracts, engagements, securities, investments and
 rights.
 
 Pari passu charge on the Fixed Assets of the Company existing and
 future along with Bank of India, Canara Bank, Debenture Trustee and
 International Finance Corporation, Washington.
 
 b.  Bank of India
 
 Loan from Bank of India is secured by way of pari passu charge on the
 Fixed Assets of the Company existing and future along with Indian Bank,
 Canara Bank, Debenture Trustee and International Finance Corporation,
 Washington.
 
 c.  Canara Bank
 
 The loan is secured by way of pari passu charge on the Fixed Assets of
 the Company existing and future along with Indian Bank, Bank of India,
 Debenture Trustee and International Finance Corporation, Washington.
 
 d.  International Finance Corporation (External Commercial Borrowings)
 
 The Company has been sanctioned a sum of US$ 35 million from
 International Finance Corporation (IFC), Washington by way of External
 Commercial Borrowings (ECB). The Company has withdrawn
 
 the full amount of US $ 35 million as of 31st March 2011 on the above
 loan. The ECB is secured by way of pari passu first ranking charge on
 the entire movable plant and machinery and equipment including all the
 spare parts and all other fixed assets such as furniture, fixtures,
 fittings, installations, vehicles, office equipments, computers and all
 other fixed assets owned by the company (excluding immovable property),
 both present and future belonging or hereafter belonging to or at the
 disposal of the Company. The Loan is repayable in 15 equal semi-annual
 Instalments starting from 15th September 2012.
 
 Pari passu charge in favour of IFC over the immovable assets of the
 Company ; such pari passu charge ensuring atleast a cover of 1.25 times
 the value of outstanding principal amount of the loan.
 
 e.  10.3% Non Convertible Debentures
 
 The Company has issued 500 Nos. 10.3% Non Convertible Debentures of
 Rs.1 million each on 28th December 2010 and 500 Nos. 10.3% Non
 Convertible Debentures of Rs.1 million each on 22nd March 2011 to the
 Life Insurance Corporation of India.
 
 The Debentures are secured by way of pari passu charge on the Fixed
 Assets of the Company existing and future along with Indian Bank, Bank
 of lndia,Canara Bank and International Finance Corporation, Washington.
 ; such pari passu charge ensuring atleast a cover of 1.25 times the
 value of outstanding principal amount of the loan.
 
 f.  Cash Credit facilities from Banks are secured by hypothecation of
 inventories and book debts, and a second charge on specified fixed
 assets of the Company.
 
 g.  The Companys Fixed Deposit receipts amounting to Rs. 45.94 million
 (Rs. 24.43 million)are under lien with the bankers for obtaining
 Letters of credit and Bank Guarantee.
 
 7.  The Company has issued Foreign Currency Convertible Bonds (FCCBs)
 to International Finance Corporation, Washington (IFC), to the value of
 US$ 15 million on 28th January 2010. These bonds are convertible into
 Equity Shares based on the rupee dollar parity exchange rate at any
 time before the end of the final repayment date. On 9th December 2010,
 the Company converted FCCBs equivalent to US $ 7.5 million into 1.14
 million equity shares of Rs. 5 each. The underlying number of Equity
 shares as on 31st March 2011 is 1.10 million equity shares is based on
 the exchange rate ( = Rs. 44.65) and if the option is not exercised,
 the Loan shall be repayable in full in two approximately equal
 semi-annual instalments commencing from the final repayment date by way
 of redemption of such number of FCCBs in respect of which IFC has not
 exercised its conversion option.
 
 8.  As per the requirements of Accounting Standard 15 Employee
 Benefits (Revised 2005) as notified under the Companies (Accounting
 Standards) Rules, 2006, the contribution to the gratuity is determined
 using the projected unit credit method with actuarial valuation being
 carried out at each Balance Sheet date.  Only the additional provision
 as required is charged to the Profit and Loss Account for the relevant
 year Rs. 79.56 million (Rs. 57.55 million). (Also refer Clause (I) of
 Notes Forming part of Accounts.)
 
 i.  Expected return on plan assets is based on expectation of the
 average long term rate of return expected on investments of the fund
 during the estimated term of the obligations. The Gratuity scheme is
 invested in the Gratuity Pay plan offered by ICICI Bank.
 
 ii.  The estimate of future salary increase, considered in actuarial
 valuation, take account of inflation, seniority, promotion and other
 relevant factors such as demand and supply in the employment market.
 
 9.  a) For the period ended 31st March 2011, the Foreign Exchange loss
 (the difference between the spot rates on the date of the transactions,
 and the actual rates at which the transactions are settled) amounted to
 Rs. 8.86 million (Rs. 15.04 million).  
 
 b) The Foreign Exchange gain arising out of the restatement of the
 monetary items as on the Balance Sheet date is Rs. 14.51 million
 (Rs.22.20 million) The above Exchange differences have been adjusted in
 the Profit and Loss Account, which is in conformity to the Accounting
 Standard 11 on Accounting for the effects of changes in Foreign
 Exchange rates as notified under the Companies (Accounting Standards)
 Rules, 2006.
 
 10.  Leases
 
 In respect of Non- cancellable Operating Leases
 
 Lease agreements are renewable for a further period or periods on terms
 and conditions mutually agreed between the lessor and the Company.
 
 Variations/Escalation clauses in lease rentals are made as per mutually
 agreed terms and conditions by the lessor and the Company.
 
 11. The Company has issued and allotted 1.54 million equity warrants
 convertible into equity shares of nominal value of Rs. 10/- each at
 premium of Rs 761.76 per share on 12th June 2010 to Dr. Prathap C
 Reddy, one of the promoters of the company on a preferential allotment
 basis. The issue price is at minimum price of Rs 771.76 fixed in
 accordance with the guidelines for preferential issues of the
 Securities Exchange Board of India (Issue of Capital and Disclosure
 Requirements)Regulations 2009 .Accordingly the promoter has paid 25% of
 the consideration @ 771.76 per warrant on the date of allotment. The
 balance 75% is payable on the exercise of option for conversion within
 18 months of date of allotment. Consequent to the splitting of one
 Rs.10 equity share into two Rs.5/- equity shares the warrants
 outstanding as on 31st March 2011 is 3.08 million.
 
 The Company has issued and allotted 3.27 million equity warrants
 convertible into equity shares of nominal value of Rs. 5/- each at
 premium of Rs 467.46 per share on 5th February 2011 to Dr. Prathap C
 Reddy, one of the promoters of the company on a preferential allotment
 basis. The issue price is at a minimum price of Rs 472.46 fixed in
 accordance with the guidelines for preferential issues of the
 Securities Exchange Board of India (Issue of Capital and Disclosure
 Requirements) Regulations 2009. Accordingly the promoter has paid 25%
 of the consideration @ 472.46 per warrant on the date of allotment. The
 balance 75% is payable on the exercise of option for conversion within
 18 months of date of allotment.
 
 12.  The Company had issued 9.00 million Global Depository Receipts
 with two way fungibilty during the year 2005-06. Total GDRs converted
 into underlying Equity Shares for the year ended on 31st March 2011 is
 3.13 million (2009-10: 0.02 million) and the total GDRs converted upto
 31st March 2011 is 7.46 million (2009-10: 4.33 million). Consequent to
 the splitting of each equity share of face value of Rs. 10/- into two
 equity shares of face value of Rs. 5/- each, the total Global
 Depository Receipts converted to equity shares is 14.93 million.
 
 13.  During the year 2002-03, on a review of fixed assets, certain
 selected medical equipments were identified and impaired. For the
 current year, on a review as required by Accounting Standard 28 
 Impairment of Assets, the management is of the opinion that no
 impairment loss or reversal of impairment loss is required, as
 conditions of impairment do not exist.
 
 * Pharmacy sales are sales made within India to inpatients that have
 paid in foreign currency.
 
 14.  Directors travelling included in travelling and conveyance amounts
 to Rs.19.26 million (Rs. 5.83 million).
 
 15.  Unclaimed Dividend
 
 During the year, the amount transferred to Investors Education and
 Protection Fund of the Central Government as per the provisions of
 Section 205A and 205C of the Companies Act, 1956 is Rs.1.33 million
 (Rs. 1.23 million) in aggregate which comprises of Rs. 1.32 million
 (Rs. 1.12 million) as unclaimed dividend and Rs. 0.01 million (Rs. 0.11
 million) as unclaimed deposit.
 
 *Net of book depreciation for the assets claimed as deduction u/s 35AD
 of the Income Tax Act 1961 The company adjusts the amount of deferred
 tax liability carried forward by applying the tax rate that has been
 enacted or substantively enacted at the date of the Balance Sheet on
 accumulated timing differences. Surcharge rates has been revised from
 7.5% to 5% for Fiscal 2011 -12
 
 The effects on such Deferred Tax Liability, if any, arising out of
 assessments completed but under contest under various stages will be
 made on the appeals being decided.
 
 16.  International Finance Corporation has granted a loan of US$ 35
 million during the year 2009-10. For the year ended 31st March 2011 the
 Company has drawn full US$ 35 million of the sanctioned amount of US$
 35 million and the Company has entered into Currency Cum Interest Rate
 Swap (CCIRS) with HDFC Bank in Indian rupee and hedged the loan for
 interest rate and foreign currency fluctuation risk. The derivative
 contract is secured by a second charge on the immovable assets of the
 Company to the extent of Rs. 1,100 million The tenure of this
 derivative contract matches with the tenure of the loan outstanding as
 of 31st March 2011.
 
 17.  Gain on Forward Contract during the year ended 31st March 2011
 accounted for in the Profit and Loss Account is Rs.11.77 million (Rs.
 31.35 million)
 
 18.  Sundry Debtors, Loans and Advances
 
 i.  Confirmations of balances from Debtors, Creditors and for Deposits
 are yet to be received in a few cases though the Company has sent
 letters of confirmation to them. The balances adopted are as appearing
 in the books of accounts of the Company.
 
 ii. Sundry Debtors represent the debt outstanding on sale of
 pharmaceutical products, hospital services and project consultancy fees
 and are considered good. The Company holds no other securities other
 than the personal security of the debtors.
 
 iii. Sundry Debtors and Loans and Advances shown under the head Current
 Assets includes the amounts due from concerns which are under same
 management or in which some of the Directors are interested as
 Directors, which amounts to Rs.818.43 million (Rs. 629.49 million).
 
 iv.  Accrued patient collections constitute Rs. 233.56 million (Rs.
 123.86 million) of Sundry Debtors.
 
 v.  Advances and deposits represent the advances recoverable in cash or
 in kind or for value to be received. The amounts of these advances and
 deposits are considered good for which the Company holds no security
 other than the personal security of the debtors.
 
 19.  Power Generation
 
 The Electricity charges incurred in respect of the Hospital is net of
 Rs. 6.94 million (Rs. 7.47 million) [units qualified KWH -1.39 million
 (1.59 million)], being the rebate received from TNEB for Wind Electric
 Generators owned & run by the Company.
 
 20.  The Company has been exempted by the Ministry of Corporate
 Affairs, vide order No. 46/115/2011 -CL III from publishing the
 quantitative particulars as per para 3(ii) (d) of Part II of Schedule
 VI of the Companies Act, 1956 with respect to the total value of turn
 over, purchases, goods traded, sales, consumption of raw materials etc.
 for the year ended 31st March 2011 and hence the same is not disclosed
 for this financial year.
 
 21.  The Company has been exempted from publishing the financial
 statements for twelve of its subsidiaries including fellow subsidiaries
 which are required to be attached to the Companys accounts, under
 Sec.212(1) of the Companies Act, 1956 for the financial year ended 31st
 March 2011
 
 22.  In the process of acquiring Apollo Gleneagles Hospitals Limited
 (AGHL) in Kolkata, Apollo Hospitals Enterprise Limited had initially
 invested Rs. 30 million [Rs. 5 million towards equity and Rs.25 million
 to discharge other liabilities of AGHL, erstwhile Duncan Gleneagles
 Hospital Limited (DGHL)] to acquire 50.26% holding in DGHL
 (subsequently reduced to 49%, now increased to 50%). AGHL assigned an
 unsecured debt of Rs.176 million existing in its books to Apollo
 Hospitals Enterprise Limited. As a measure of prudence, this amount is
 not recognized as an advance or investment in the books of Apollo
 Hospitals Enterprise Limited currently and will be accounted for as and
 when the amount(s) are received.
 
 23.  On review of the operations of setting up the Hospital in Noida,
 the Company has re-assigned the lease agreement between itself and the
 lessor to its associate, Indraprastha Medical Corporation Limited by
 extinguishing its rights and privileges in the original lease deed
 dated 27th October 2001.
 
 *The Company has issued Foreign Currency Convertible Bonds (FCCBs) to
 International Financial Corporation (IFC), Washington convertible to
 Equity shares at the option of IFC during the year 2009-10. The Bonds
 are convertible at any time during the tenure of the loan. To comply
 with the requirements of Accounting Standard-20 (Earnings Per Share)
 the underlying number of Equity shares equivalent to 1.10 million
 Equity shares (computed on the basis of exchange rates prevailing on
 the date of 31st March 2011) have been considered for the purpose of
 computing potential number of Equity Shares.
 
 24.  In respect of the Income Tax claims of Rs. 384.46 million (Rs.
 243.73 million) by the Income Tax Department, the amount is under
 contest.
 
 - Provision for taxation is determined after availing concession under
 Section 35AD of the Income Tax Act 1961.
 
 25.  National Saving Certificates shown under investments are pledged
 with the Chief Ration Officer, Government of Andhra Pradesh.
 
 26.  Details of Sundry Creditors under Current Liabilities are based on
 the information available with the Company regarding the status of
 Suppliers as defined under the Micro, Small and Medium Enterprises
 Development Act, 2006. The amount due to Micro, Small and Medium
 Enterprises for the financial year ended 31st March 2011 is Rs. 48.76
 million (Rs. 153.26 million). No interest interms of section 16 of
 Micro, Small and Medium Enterprises Development Act, 2006 or otherwise
 has either been paid or payable or accrued and remaining unpaid as at
 31st March 2011.
 
 27.  The hospital collections of the Company are net of discounts of
 Rs. 37.09 million (Rs. 59.99 million).
 
 28.  Unrealised amount on project development and pre oprerative
 project expenses incurred at Bilaspur Hospital amounting to Rs. 56.62
 million are included in advances and deposits account. The above
 expenses incurred on project will be amortised over the balance lease
 period of 9 years. The balance yet to be amortised as on 31st March
 2011 is Rs. 28.31 million (Rs. 31.45 million).
 
 29.  Figures of the current year and previous year have been shown in
 million.
 
 30.  Figures in brackets relate to the figures for the previous year.
 
 31.  Previous year figures have been regrouped and reclassified
 wherever necessary to confirm with current years classification.