Dear Shareholders,
 
 The Directors take pleasure in presenting the 23rd Annual Report of the
 Company along with the audited accounts for the year ended 31st March,
 2011.
 
 FINANCIAL RESULTS
 
                                       (Rs. in Lakhs)
 
 Particulars                      Year ended    Year ended
 
                                  31-03-2011    31-03-2010
 
 Total Income                      46,241.50      43,647.98
 
 Profit before tax                  4,526.83       4,655.27
 
 Provision for taxation             1,454.34       1,549.26
 
 Net Profit (PAT)                   3,072.49       3,106.01
 
 Balance brought forward
 from previous year                 3,827.72       2,687.76
 
 Amount available for
 appropriation                      6,900.21       5,793.77
 
 Appropriations
 
 Transferred to
 
 General Reserve                      250.00         250.00
 
 Dividend (Proposed)                1,466.77       1,466.77
 
 Corporate Dividend Tax               243.61         249.28
 
 Balance carried to
 Balance Sheet                      4,939.83       3,827.72
 
 TRANSFER TO RESERVES
 
 The Company proposes to transfer Rs. 250.00 lakhs to the General
 Reserve out of the amount available for appropriations and an amount of
 Rs. 1,112.11 lakhs is proposed to be retained in the Profit and Loss
 Account.
 
 DIVIDEND
 
 The Directors are pleased to recommend payment of dividend on equity
 shares @ Rs. 1.60 per share (16 per cent) for the financial year ended
 31st March, 2011 (previous year Rs. 1.60 per share).
 
 OPERATIONS
 
 During the year under review, the total income of the Company increased
 to Rs 46,241.50 lakhs from Rs 43,647.98 lakhs in the previous year. The
 profit after tax stood at Rs. 3,072.49 lakhs against Rs. 3,106.01 lakhs
 in the previous year.
 
 With upgraded facilities and focus on more personalized services to the
 patient, the total number of patient footfalls increased by 8 percent
 over the previous year (from 90739 to 97712).
 
 The Company has identified Cardiology, Oncology, Neurology,
 Orthopaedics, Transplants and Emergency Services as key focus areas or
 what we refer to as Centers of Excellence (COEs), with the objective
 of becoming the first choice for patients in the respective COEs. We
 intend to achieve this primarily by providing the highest standards of
 care and consistently improving our clinical outcomes in all procedures
 under each COEs.
 
 The strong marketing activities led to a surge of 11 percent in
 international patients over the previous year (from 5030 to 5599).
 
 The multi organ transplant program of the hospital has achieved greater
 heights. Liver transplant surgeries increased by 42 percent over the
 previous year (from 117 to 166) and Renal transplant surgeries
 increased by 16 per cent over the previous year (from 151 to 175).
 
 The orthopedics unit of the Hospital also performed exceedingly well
 and registered a growth of 24 per cent over the previous year (from 501
 to 622).
 
 The Dialysis unit of the hospital continued to be one of the major
 centers in the region and registered a growth of 15 per cent over the
 previous year (from 22883 to 26322).
 
 A multi disciplinary team of surgeons at Indraprastha Apollo Hospitals
 has carried out a first independent successful Auditory Brain Implant
 (ABI) on a four year old child. In similar vein, successful total knee
 replacement was carried in a 93 year old gentleman by the Orthopedics
 team.
 
 In view of its excellence in clinical care, Indraprastha Apollo
 Hospitals has been chosen to be the first non government private
 organization to be included under Pharmacovigilance Program of India
 under the aegis of Central Drugs Standards Control Organization,
 Ministry of Health and Family Welfare, GOI, for monitoring and
 reporting adverse drug reactions to various drugs.
 
 The Hospitals held around 1500 indoor and outdoor Continuous Medical
 Education (CME) programs and several workshops, updates and symposia
 which comprehensively tackled many new advances and trends in all
 fields of medical sciences. Medical publications also formed a part of
 our continuous endeavor to share our experiences and expertise with the
 medical world all over the globe.
 
 Indraprastha Apollo Hospitals has been re-empanelled with CGHS under
 the super specialty category.
 
 Indraprastha Apollo Hospitals registered a strong presence in sporting
 events during the World Cup Hockey and Indian Premier League cricket
 matches.
 
 In pursuance of the interim order passed by the Hon''ble Supreme Court
 of India on 30.11.2009 the Company continues to provide free treatment
 exclusive of medicines and medicine consumables to the patients
 referred by the Government of Delhi for free treatment in the Hospital.
 During the year, 7677 patients including outpatients new registrations
 and repeat visits were provided free treatment in the Hospital. On an
 average, 60 to 70 inpatients per day including 20 to 25 ICU patients
 are being treated free in the Hospital.
 
 FACILITY UPGRADATION & EXPANSION
 
 Upgradation and renovation work of a number of units continued during
 the year to add patient comfort and to achieve more operational
 efficiencies.
 
 A new Endoscopic Ultrasound Unit has been commissioned. This new
 facility is headed by a Senior Consultant (Gastroenterology) who has
 moved from New York (USA). It is used to visualize inner structures,
 take biopsy and also treat diseases of thorax and abdomen under an
 endoscopically directed ultrasound.
 
 A Bone Marrow Transplant Unit, one of the highest end of medical
 services, has also been created in the Hospital for intensive treatment
 and management of certain cancers like leukemia, lymphomas and also
 some non-cancerous diseases like thalessaemia.
 
 Responding to the increasing organ transplant demands, another multi
 organ transplant unit has also been added. A Video EEG facility has
 been incorporated to cater to epilepsy and epilepsy surgery program. An
 additional elevator has been commissioned. Four OPD wings and Day care
 facility have been renovated.  An OP pharmacy, OPD billing counter,
 Insurance TPA helpdesk and ICU patient lobby have been setup for the
 comfort and ease of our patients.
 
 The expansion plan undertaken by the Company to add 136 additional beds
 in the Hospital is almost complete despite of time overrun due to delay
 on the part of the contractors. About 50 beds are planned to be
 commissioned in September, 2011 and the remaining beds are expected to
 be commissioned by November, 2011.
 
 AWARDS AND ACCOLADES
 
 Awards and accolades continued to be heaped on the Hospital. It
 maintained its consistent good showing in the prestigious annual Best
 Hospitals in the country. Indraprastha Apollo Hospitals was ranked as
 the 5th Best Hospital in the country and 2nd best in Delhi in the
 annual ranking of the Best Hospitals in the country by The Week – Hansa
 Research Survey 2010.
 
 Indraprastha Apollo Hospitals was ranked as the 2nd best Hospital for
 Management of Epidemics in Delhi and 2nd best Multi Speciality Hospital
 for Infertility in the country by The Week – Hansa Research Survey
 2010.
 
 Over the years, the medical fraternity at Indraprastha Apollo Hospitals
 has received many awards and accolades in recognition of its pioneering
 achievements in Indian healthcare, Excellence is reflected in the
 caliber and brilliance of our medical fraternity. While most of them
 have been trained in the best medical institutions in the country and
 abroad, several of them have also been decorated with prestigious
 national and international awards including coveted awards like Padma
 Shri and Dr. B. C. Roy Award and executives board of national
 organizations and academic bodies.
 
 FOCUS ON QUALITY
 
 Indraprastha Apollo Hospitals became the first Hospital in India which
 received accreditation in the year 2005 and re-accreditation in the
 year 2008, from the Joint Commission International, USA (JCI) for
 delivery of quality healthcare services and meeting the JCI Standards
 for Patient Safety.  Indraprastha Apollo Hospitals was surveyed again
 for re-reaccreditation in July, 2011, and has amply demonstrated
 greater than acceptable compliance with JCI Standards, which reflects
 our commitment to improve the safety and quality of patient care.
 
 The Apollo Group has also been following 5S (sorting, straightening,
 systematic cleaning, standardizing, and sustaining) methodology – an
 acclaimed workplace practice. Indraprastha Apollo Hospitals won the
 first position in the 5S contest conducted across all the hospitals of
 the Apollo Group, securing a score of 72.8 per cent.
 
 Service Excellence Executives recruited, trained at ITC Maurya and
 deployed on ground for patient satisfaction, obtaining feedback and
 patient liaison.
 
 Apollo Hospitals, Noida has been awarded NABL (National Accreditation
 Board for Testing and Calibration Laboratories) certification. It has
 also received accreditation from the National Accreditation Board for
 Hospitals and Healthcare Provider (NABH) for the delivery of high
 quality of patient care.
 
 CORPORATE SOCIAL RESPONSIBILITY (CSR)
 
 Indraprastha Apollo Hospitals conducted numerous initiatives to improve
 the well-being of the community. Throughout the year mobile health
 camps and outreach events were conducted. The Hospital also took up
 some initiatives to increase awareness about pressing health issues. A
 few of these are highlighted below:
 
 Billion Hearts Beating: As one of Asia''s foremost integrated healthcare
 providers, Apollo Hospitals started the Billion Hearts Beating Campaign
 nationally. The idea behind this campaign is to create awareness among
 the people of this country on the risks associated with heart diseases
 and to motivate them to take the pledge to stay heart- healthy. The
 campaign was officially launched by Hon''ble Chief Minister Smt. Sheila
 Dikshit in July 2010. Over the first week of February 2011, over
 200,000 members of the Apollo Hospitals Group, including employees and
 their families took the pledge to stay heart-healthy.
 
 Women''s Day – On the occasion free health camps were held for women,
 Breast Cancer Awareness talks, talks on prevention of heart disease and
 managing stress at work were also done. These were held at venues such
 as the Delhi Secretariat, the Canadian High Commission, Embassy of
 Nepal, British Council and the India Habitat Centre.
 
 A Run for Health - ''Apollo Dil Ki Daud'', a mini marathon, was organized
 by Indraprastha Apollo Hospitals. Approximately 1000 people from nearby
 colonies, and doctors, nurses and support staff of Indraprastha Apollo
 Hospitals, participated in this health awareness run. The marathon was
 supported by Mr Anuj Choudhary (Arjuna awardee and CWG Silver medalist
 in Wrestling), Mr Ashok Masti (Punjabi Singer), Mr Rajeev Tomar
 (Olympian and Arjuna awardee in wrestling) and Mr Manish Chaudhary
 (President – Delhi University Students Union) who ran and walked to
 promote the benefits of an active lifestyle in order to fight against
 heart disease.
 
 Apollo Times Wellness Workshops - Indraprastha Apollo Hospitals, in
 collaboration with The Times Wellness, has been organising regular
 workshops for the past four years. Five wellness workshops were
 conducted at the hospital auditorium in collaboration with the ''Times
 Foundation''. These workshops covered various health talks on general
 health, eye care, yoga, heart disease, osteoporosis and diabetes by the
 hospital''s senior consultants.  The talks were widely attended by
 public and applauded by the interactive audience Community outreach
 programs - Almost 80 camps across the National Capital Region were
 conducted over the past year providing free ECG, Echo, BP, Blood Sugar
 and various consultations, where 10,000 people were benefited. Almost
 12,000 people were screened across North India as part of our
 commitment to prevention and early detection of cardiac disease.
 Indraprastha Apollo Hospitals has, since its inception, stressed the
 importance of early diagnosis of cancer among the general public. Over
 the past year, several health awareness talks and cancer screening
 camps were conducted.
 
 As an outreach of our commitment to the community, the Hospital
 continued to provide free OPD with provision of free medicines and
 medical consumables in Jasola village, near Sarita Vihar, New Delhi.
 The clinic is held thrice a week in specialties like Gynecology,
 Internal Medicine and Pediatrics for two hours. More than 200 patients
 are benefited every month.
 
 Additionally, the hospital further built on its outreach activity by
 conducting monthly camps in Jasola village, where a total of nearly
 2500 patients were treated.
 
 The Hospital, in collaboration with the Government of Delhi, has
 treated nearly 20,000 patients under the Mobile Health Scheme Service
 to serve the following areas:
 
 JJ Cluster Area                 Madanpur Khadar
 
 BIW camp, Mathura Road          Subhash Camp, Near NTPC
 
 New Sanjay camp – Near Okhla    Badarpur, Jasola Village
 
 Indraprastha Apollo Hospitals was honoured with a special award for its
 contribution in the activities of Bhagidari Scheme of the government of
 NCT of Delhi.
 
 INFECTION CONTROL AND ENVIRONMENT
 
 The Hospital continued with the trend of decrease in its infection
 indices. Employee safety and infection prevention were addressed by
 educational drives and measures were taken to augment personal
 protective equipment to prevent exposure inoculation injuries and
 provision of pre and post exposure prophylaxis. Staff were vaccinated
 for various preventable infections including H1N1 and Meningococcal
 infections and for other infections like Hepatitis B, it is an ongoing
 phenomenon. Care was also taken to maintain environment to acceptable
 standards to contain infective exposures.
 
 It''s a matter of pride that infection rates at the Hospital are now
 comparable with the best in the world for urinary catheter related
 Urinary Tract Infection. (UTI), Central Line Related Blood Stream
 Infections (CRBSI) and Ventilator Associated Pneumonia (VAP). The
 success of the infection control programmes can be gauged by the
 decreasing trends in CRBSI with values as low as 1.26 per 1000 Central
 Lines Days and for VAP 3.31 per 1000 Ventilator Days and for CRUTI at
 1.56 per 1000 Urinary Catheter Days. This has largely been possible
 through ongoing meticulous implementation of numerous measures.
 
 CONSERVATION OF ENERGY
 
 The Company on a continuous basis undertakes programs for conservation
 of energy. Some of the energy conservations measures undertaken during
 the period under review are:-
 
 1.  Building Management Systems has been incorporated for critical &
 high energy consumption areas.
 
 2.  Plant maintenance on regular basis, review of Energy generation and
 its consumption are among the measures adopted towards this end also.
 
 3.  Water less urinals are being incorporated in public toilets.
 
 4.  Training & Education to reinforce energy conservation awareness
 among staff is being done on regular basis
 
 TECHNOLOGY ABSORPTION
 
 During the year, the Hospital continued its efforts to maintain
 international standards by investing in cutting-edge technology to
 offer the latest in medical care. Some of these are:
 
 Novalis Tx Radiosurgery Linear Accelerator.
 
 Novalis Tx Radiosurgery with Rapid Arc and BrainLAB-ExacTrac Frameless
 Stereotactic Radiotherapy. This state-of the art Linear accelerator
 provides extremely precise radiotherapy, even for moving organs, and is
 the first of its kind in North India.
 
 Biochemistry Analyser- Advia.
 
 The Siemens Advia is a state of the art, Blood Chemistry Analyzer with
 high throughput fully automatic workstation with automatic sample
 loading and preanalytic bar-coding. It is integrated with Hospital
 Information System enabling bidirectional patient data movement.
 
 Accela Liquid ChromatographyMass Spectrometry Analyzer.
 
 The state of the art Accela LC system with CTC auto sampler system has
 been installed to provide Rapamycin and Busulphan monitoring for
 patients undergoing Bone Marrow Transplant. This is currently the only
 hospital conducting these tests in Delhi.
 
 HFO Ventilators
 
 High Frequency Oscillatory Ventilation (HFOV) provides an alternative
 to conventional ventilation to treat respiratory failure in adults as
 well as paediatric patients.
 
 INFORMATION TECHNOLOGY INITIATIVES
 
 The Hospital continued investments in developing IT infrastructure and
 solutions that can not only result in better management of operations,
 but also result in substantial cost advantage. 
 
 A few of them were:
 
 Asset Management System – IBM Maximo: The system facilitates Biomedical
 and Engineering Departments to manage their Assets, preparation and
 follow-up of preventive maintenance schedule of Assets and importantly
 helps the user to log complaints as well as follow- up until the
 closure of the call.
 
 Tier 3 Datacenter This was commissioned in January 2011. Designed and
 fitted out by IBM, the 1650 sqft facility houses a Data Center, MUX and
 Network Operating Center (NOC) with the latest facilities of
 uninterrupted power, air conditioning, fire, rodent & water leakage
 control, and advanced biometric access control features.
 Simultaneously, the Network has also been upgraded to Fiber Backbone
 with Redundancy and Clustering Switching technology to provide superior
 support.
 
 FOREIGN EXCHANGE EARNINGS & OUTGO
 
 (a) Activities relating to exports; initiatives taken to increase
 exports; development of new export markets for products and services;
 and export plans
 
 The Company is engaged in the healthcare business and is not carrying
 on any export activities. The Hospital has been empanelled with eminent
 international insurance companies and appointed healthcare facilitators
 in various countries to cater to international patients.
 
 (b) Total Foreign Exchange Earnings and Outgo
 
 During the year under review, foreign exchange earnings and outgo were
 as under:- Earnings : Rs. 5,467.45 lakhs Outgo : Rs. 3,441.01 lakhs
 
 PARTICULARS OF EMPLOYEES
 
 The Particulars of employees as per Section 217 (2A) of the Companies
 Act, 1956 read with the Companies (Particulars of Employees) Rules,
 1975 are annexed and form part of this report.
 
 DIRECTORS'' RESPONSIBILITY STATEMENT
 
 As required under Section 217(2AA) of the Companies Act, 1956, your
 Directors state:
 
 (i) that in the preparation of the annual accounts, the applicable
 accounting standards have been followed;
 
 (ii) that appropriate accounting policies have been selected and
 applied consistently and have 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 as on 31st March, 2011 and of the profit of
 the Company for the year ended 31st March, 2011.
 
 (iii) that proper and sufficient care has been taken 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
 irregularities;
 
 (iv) that the annual accounts have been prepared on a going concern
 basis.
 
 CORPORATE GOVERNANCE
 
 Pursuant to Clause 49 of the Listing Agreement, a Management Discussion
 and Analysis Report and a Report on Corporate Governance is attached
 with this Report.
 
 A Certificate from the Statutory Auditors of the Company regarding the
 Compliance by the Company of the conditions stipulated under Clause 49
 of the Listing Agreement is also attached with this report.
 
 A declaration by the Managing Director pursuant to clause 49(I)(D)(ii)
 of the Listing Agreement stating that all the Board Members and Senior
 Management Personnel of the Company have affirmed compliance with the
 Code of Conduct, during the financial year ended 31st March, 2011, is
 also attached with this report.
 
 AUDITORS / AUDITORS'' REPORT
 
 M/s. S. C. Vasudeva & Co., Chartered Accountants, Auditors of the
 Company shall hold office until the conclusion of the ensuing Annual
 General Meeting and are eligible for re-appointment.
 
 The Company has received a letter from M/s. S. C.  Vasudeva & Co.,
 Chartered Accountants, to the effect that their appointment, if made,
 would be within the prescribed limits under Section 224(1-B) of the
 Companies Act, 1956. The Board of Directors recommends the appointment
 of M/s. S. C.  Vasudeva & Co., Chartered Accountants as Auditors of the
 Company.
 
 DIRECTORS
 
 Mr. J. P. Singh, Mr. Rakesh Mehta and Mr. Rajendra Kumar, resigned as
 Directors of the Company consequent upon their retirement / transfer
 from their office being ex-officio Directors nominated by the Govt. of
 Delhi.
 
 Mr. P. K. Tripathi (Chief Secretary, Govt. of Delhi), Mr. D. M. Spolia
 (Principal Secretary – Finance, Govt. of Delhi) and Mr. Anshu Prakash
 (Principal Secretary – Health & Family Welfare, Govt. of Delhi) were
 appointed by the Board as Additional Directors of the Company. Pursuant
 to Section 260 of the Companies Act, 1956, Mr. P. K. Tripathi, Mr.  D.
 M. Spolia and Mr. Anshu Prakash hold the office of Directors only up to
 the date of the Annual General Meeting of the Company. Notices have
 been received from members pursuant to Section 257 of the Companies
 Act, 1956, proposing the appointment of Mr. P. K. Tripathi, Mr. D. M.
 Spolia and Mr. Anshu Prakash as Directors of the Company, liable to
 retire by rotation.
 
 In accordance with the provisions of the Companies Act, 1956 and the
 Articles of Association of the Company, Dr. B. Venkataraman, Lt. Gen.
 (R) Vijay Lall and Prof. V. N. Rajasekharan Pillai, Directors of the
 Company shall retire by rotation at the ensuing Annual General Meeting
 and being eligible, offer themselves for re-election.
 
 Resolutions seeking approval of the shareholders for the appointment /
 re-appointment of Directors have been incorporated in the notice of the
 Annual General Meeting.
 
 The information on the particulars of the Directors seeking appointment
 / re-appointment, as required under clause 49 of the Listing Agreement,
 has been furnished in the notice to the shareholders for the Annual
 General Meeting.
 
 Your Directors wish to place on record their appreciation of the
 valuable services rendered by
 
 Mr. Rakesh Mehta, Mr. J. P. Singh and Mr. Rajendra Kumar during their
 tenure as a Director of the Company.
 
 FIXED DEPOSITS
 
 During the year under review, the Company has not accepted any deposit
 under Section 58A of the Companies Act, 1956 read with Companies
 (Acceptance of Deposits) Rules, 1975.
 
 INSURANCE
 
 All properties and insurable assets of the Company, including Building,
 Plant & Machinery and Stocks have been adequately insured, wherever
 necessary.
 
 The Company also has a professional indemnity insurance policy to cover
 the risk on account of claims filed against the company in consumer
 courts.
 
 RESEARCH & DEVELOPMENT
 
 The Company is running a multi super-specialty Hospital and is not
 engaged in any major research & development activity. However, the
 Hospital continues to be a major centre for international clinical
 trials.
 
 INDUSTRIAL RELATIONS
 
 The Industrial Relations scenario continued to be cordial during the
 year under review.
 
 ACKNOWLEDGEMENT
 
 The Directors wish to thank and deeply acknowledge the cooperation,
 assistance and support extended by the financial institutions, banks,
 the Govt. of Delhi and the Union Government.
 
 The Directors also wish to place on record their appreciation for the
 all round support and cooperation received from the employees at all
 levels and the consultant doctors.
 
                                     For and on behalf of the Board
 
 Place : New Delhi                                    P.K. Tripathi
 
 Date  : 30th July, 2011                                   Chairman