About
Apollo Hospitals Enterprise Ltd
Apollo Hospitals Enterprise Limited (AHEL) is a leading private sector healthcare provider in Asia. It has a robust presence across the healthcare ecosystem, including Hospitals, Pharmacies, Primary Care & Diagnostic Clinics. AHEL's Hospitals are situated in Chennai, Hyderabad, Delhi, Ahmedabad, Pune, Chenganur, Coimbatore, Jaipur, Madurai, Anantpur, Nellore, Kurnool, Bhopal, Ranchi, Bilaspur and Bacheli.
Apollo Hospitals Enterprise Limited was incorporated as a Public Limited Company on December 5, 1979, a comprehensive 250-bed hospital with an emphasis on speciality and super specialties in over fifty departments at Chennai. Dr. Prathap C Reddy promoted it. 46 beds were added in the year 1985. It is the first group of hospitals that pioneered the concept of corporate healthcare delivery in India.
The Apollo Health Association (AHA) was inaugurated in April of the year 1986, based on credit card system. As per this scheme, the Apollo health insurance policyholders get Medicare offered by Apollo and 76 accredited hospitals in selected cities. The hospital was equipped with Magnetic Resonance Imaging (MRI) during the year 1989, also with SOMATOMCR whole body computed Tomography scanner, Dideoendoscopy and Mammography, breast-scanning equipment for the detection of occult carcinoma. During the same year 1989, AHEL group had finalised a joint venture project with the I.R.T.C. of Eye Micro Surgery, USSR to launch the Apollo Fyodorov Eye Research Institute. Apart from the hospital activities, The Apollo School of nursing was commissioned in August of the year1991, which offers a 3-year diploma programme followed by internship in the hospital.
During the year 1992, 16 intensive care beds and 26 additional patient beds together with balancing equipment were added in various disciplines. Also a 24-hour ambulance service with wireless facility was to be launched. Apollo cancer hospital was commissioned with 150-beds for cancer treatment and research centre in Chennai during the period of 1993. Further, AHEL had introduced state-of-the-art Bone Marrow transplant facility in Phase II expansion of cancer project. A third theater was added for cardio thoracic surgery in the year of 1994. As at 19th February of the year 1995, another one wing was added, Cancer hospital in Hyderabad was inaugurated. In the same year 1995, AHEL had joined hands with the WHO with its mission to eradicate Tuberculosis in India. With takeover of Orient Hospital, Madurai and Pinakini Hospital, Nellore, the Company had added 300 more beds in the year 1996 and the Apollo College of Nursing at Keezhkattalai was inaugurated on 21st October of the same year. AHEL had signed a memorandum of understanding with Jardine of UK for successful adaptation of the health maintenance organisations (HMO) in the year 1997, a concept for the first time in India. A year after, in 1998, also signed a memorandum of understanding with the Sri Lankan Government to build a super-speciality hospital in Colombo. It was the first time the speciality hospital group ventured abroad with investments. AHEL had opened a unit for the Kidney disorders; it was inaugurated in April of the year 1998 with the expansion in this facility for better and newer techniques in treatment.
In 1999, Apollo had launched its first poison information centre in the south of the India. Indian Oil Corporation Ltd (IOCL) and AHEL had signed a memorandum of understanding (MoU) in the year 2000 for setting up pharmaceutical general stores at the convenience stores of Indian Oil petrol stations. Apollo and Royal College of General Practioners made a tie-up in the period of 2000 to launch three programmes for revalidating and updating the knowledge of primary healthcare physicians in India. The company also inked an in-principle deal with the Singapore-based Parkway group, the global leader in healthcare business, to spread its wings to Afro Asian countries. In the same year AHEL had launched a personal accident insurance card and commissioned the Italian Dental Clinic. The amalgamation of Indian Hospitals Corporation (IHCL), Om Sindoori Hotels (OSHL) with the company has been approved; also Deccan Hospital Corporation (DHCL) has been amalgamated with company. In 2001, the company signed a memorandum of understanding with the government of Mauritius, appointing the Apollo Hospitals Group as the preferred healthcare provider for all the citizens of Mauritius and in the identical year, made a tie-up with a local hospital initially to deliver mother and child care.
During the year 2002, the hospital has taken over the 50.26 per cent of stake held by the Gauri Prasad Goenka in the Duncan Gleneagles Hospital for the consideration of Rs 3 crore. In 2003, AHEL made tie up with ICICI Lombard and unveiled an accident insurance product. Apollo launched a dedicated pediatric cardiac facility for children and sets up a 24X7 Chest Pain Clinic to offer round the clock and immediate access to quality heart care during the critical period.
AHEL had entered into a major technology partnership with the Defence Research & Development Organisation (DRDO) to leverage mutual strengths during the period of 2004. Launched the Apollo National Heart Plan' comprising three components of the preventive mode, a disease management programme (DMP) and the actual treatment and surgery component. And also in the same year, it made a partnership to provide advisory services to Hayel Saeed Anam (HSA) group, Yemen. Apollo Hospital Delhi gets JCI certification for its quality of care in a safe environment in the year 2005. In the same year, it forged alliance with Histotem and joined hands with Johns Hopkins. AHEL singed the Joint Venture Agreement with Deutsche Krankenversicherung AG (DKV) for setting up the Health Insurance Business in October 11 of the year 2006. AHEL had signed an agreement with Cadila Pharmaceuticals Limited as a partner in Apollo Hospitals International Limited, Ahmedabad. Also in the year the hospital had acquired the Zavata. The week magazine rated the Apollo Hospitals as the Best Private Sector Hospital in India for the year 2006. As at June 15th 2007, AHEL launched Health City, the first of its kind in Asia, at Hyderabad, an integrated healthcare delivery facility, spread over 33 acres, to cover disease prevention, management, wellness and research.
As at January 2008, the hospital has signed an agreement with Hindustan Construction Co (HCC), a real estate firm, to set up the medicity inside the upcoming hill station named Lavasa in Maharashtra. With an eye on foreign patients, Apollo Hospitals is setting up a medicity near Pune that will offer 'first rate ayurveda treatment'. The Apollo and BAI Medical Centre Ltd, a subsidiary of British American Investment Co (Mtius) Ltd Made a JV in February of the year 2008 to set up a hospital in Mauritius.
Apollo Hospitals Enterprise Ltd (AHEL) and Quintiles Mauritius Holdings Inc., (Quintiles) entered into a Shareholders Agreement on 27 January 2009 for setting up a Phase I clinical trial research facility in Hyderabad at an estimated cost of USD 6 million, through a separate joint venture company to be formed for this purpose. Quintiles and AHEL will be funding the project cost in the ratio of 60-40 respectively through a combination of debt and/or equity.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 28 January 2010 approved the allotment of 1,500 Unsecured Foreign Currency Convertible Bonds (FCCB) of face value of USD 10,000 each aggregating to US$ 15 million with an option of convertible into equity shares at a price of Rs 605 per share to International Finance Corporation, Washington.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 28 May 2010 approved the sub-division of each existing equity share of nominal value of Rs 10 each into 2 equity shares of nominal value of Rs 5 each.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 9 December 2010 approved the allotment of 11.40 lakh equity shares to International Finance Corporation, Washington on conversion of Foreign Currency Convertible Bonds to the extent of US$ 7.50 million. These shares have been issued at a price of Rs 302.50 per share at a premium of 14% over the floor price determined as per the FCCB Scheme, 1993 (after the subdivision of each equity share of face value of Rs. 10/- per share into two equity shares of face value of Rs. 5/- each) and in accordance with the terms of the FCCB Loan Agreement dated 18 June 2009.
On 18 July 2011, Apollo Hospitals Enterprise closed qualified institutional placement of equity shares. The company will issue 66.66 lakh equity shares at a price of Rs 495 per share to qualified institutional buyers for an amount aggregating Rs 330 crore.
On 7 June 2012, Apollo Hospitals Enterprise announced that International Finance Corporation (IFC), Washington had sent a communication to the company requesting for conversion of the balance loan amount of USD 7.50 million of the Foreign Currency Convertible Bonds (FCCBs) into equity shares. In this regard, committee of the Board of Directors at its meeting held on 7 June 2012 approved the allotment of 13.81 lakh equity shares to International Finance Corporation, Washington.
On 10 December 2012, Apollo Hospitals Enterprise announced that it has signed a definitive agreement with Sutherland Global Services, a global provider of business process and technology management services, to enable Sutherland Global Services acquire 100% of the shares of Apollo Health Street Limited (AHS), a leading provider of healthcare business services and world-class Health Information Technology (HIT) based solutions. AHS is an associate company of Apollo Hospitals Enterprise. This acquisition will position the combined organization as a leading healthcare service provider with comprehensive information technology and business process integrated solutions and consolidate its presence as a dominant player in the $38 billion US healthcare business process outsourcing (BPO). This also fosters Apollo Hospitals' strategic intent of focusing and growing its core healthcare delivery services.
On 21 January 2013, Apollo Hospitals Enterprise announced its plans to establish a Proton Therapy Center in India, the first of its kind across South East Asia, Africa and Australia. This launch that marks the beginning of the next wave of advancement in radiation therapy in India is worth approximately Rs 400 crore, which covers the equipment and services supplied by IBA (Ion Beam Applications S.A.) to help establish the Apollo Proton Therapy Center including the long-term operation and maintenance contract.
On 17 September 2014, Apollo Hospitals Enterprise announced that it has entered into an MoU with Hetero Med Solutions Limited (HMSL) for the acquisition of its retail pharmacy stores currently operated in Telengana, Andhra Pradesh and Tamilnadu. The acquisition would be in the form of purchase of the business undertaking, on a slump sale basis and comprises of 320 pharmacy stores, at an overall consideration not exceeding Rs 146 crore. This acquisition will further strengthen Apollo Pharmacy's leadership position in the industry. The addition of 320 stores are in existing core geographies where Apollo Pharmacy has a strong market presence and further consolidate its presence as a significant player in this region. Apollo Pharmacy plans to leverage its existing backend infrastructure to drive economies of scale, thereby accelerating profitability for these stores. This will also create an opportunity to increase the sales of Apollo private label products.
Apollo Health and Lifestyle Limited (AHLL), a wholly owned subsidiary of Apollo Hospitals Enterprise, announced on 30 January 2014 that Sanofi-Synthelabo (India) Limited has invested into Apollo Sugar Clinics Limited (ASCL). ASCL is a disease management clinic focused on providing high quality, integrated care across its clinics for people with diabetes. An amount of Rs 90 crore is being invested by Sanofi-Synthelabo in this venture through a combination of primary and secondary funding. Earlier, on 30 September 2014, Apollo Hospitals Enterprise and Sanofi announced their decision to collaborate on the expansion of Apollo Sugar Clinics.
On 6 January 2015, Apollo Health and Lifestyle Limited (AHLL), a wholly owned subsidiary of Apollo Hospitals Enterprise, announced that it has successfully completed the acquisition of Nova Specialty Hospitals. The deal size would be in the range of Rs 135-145 crore. Nova Specialty Hospitals' existing centres will serve as new centres under the Apollo brand name. The acquired chain of Nova Specialty Hospitals is spread over 8 cities and will add to the Apollo network 45 Modular OTs, over 350 patient beds, with an average 20,000 SFT of built-up space in each centre. These centres provide both In-patient and OPD services with 60% of the procedures currently being done as day procedures.
The Board of Directors of Apollo Energy Company Ltd., an Apollo Hospitals Group Company, at its meeting held on 25 January 2016 approved the divestment of 23.3% shareholding in Apollo Munich Health Insurance Company Ltd. (Apollo Munich) to its joint venture partner, Munich Re of Germany for Rs 163.5 crore. Post consummation of the transaction, Apollo Hospitals Group's shareholding in Apollo Munich shall stand reduced from 74.4% to 51.1%. Correspondingly, Munich Re's shareholding in Apollo Munich shall increase to 48.7% and 0.2% stake will be held by employees. Apollo Hospitals shall continue to hold its stake in Apollo Munich. Apollo Munich Health Insurance is one of the largest private sector health insurance companies offering comprehensive health insurance plans for individuals, families, senior citizens and corporates.
On 12 March 2016, Apollo Hospitals Enterprise announced that it has completed the acquisition of 51% majority stake in Assam Hospitals Limited, Guwahati for a cash consideration of Rs 57.25 crore which will be utilized for refurbishing the hospital including addition of new equipments as well as towards expansion of the existing hospital block. Assam Hospitals Limited which was incorporated in 1997 and commenced operations from 1999, is engaged in the business of healthcare services. It has a presence in Guwahati where it currently runs a 220 bed hospital facility. The objective of the acquisition is to strengthen Apollo Hospitals leadership position in the hospital space as well as enhance its presence in North eastern region where it already has strong brand equity.
On 20 June 2016, Apollo Hospitals Enterprise and Hainan Ecological Smart City Group (HESCG), China signed a Memorandum of Understanding (MoU) to build a state-of-the art hospital in Hainan Province, China. HESCG will provide land, all investments for the construction, commissioning and equipping the hospital besides all operative expenses, while Apollo Hospitals Group would provide its services technical consulting, planning and commissioning of the hospital and post completion of the hospital, provide services for the operations and management of the hospital. Apollo Hospitals would also support in building the technical and management personnel, install it's acclaimed patient care clinical protocols and practices.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 1 September 2016 discussed and deliberated the possibility of considering and evaluating various options to restructure and reorganize the businesses of the company, by re-aligning the business lines as per verticals. The proposal for such restructuring is aimed at exploring options for improving operational efficiencies and augmenting further growth of the businesses in compliances with the applicable laws and creating greater flexibility through such restructuring and/or transfer of the existing businesses into separate legal entities, given the large opportunity that exits in the healthcare sector.
On 1 December 2016, Apollo Hospitals Enterprise announced that International Finance Corporation (affiliated to the World Bank) along with associated entity, has made a primary equity infusion of Rs 450 crore thereby acquiring a 29.03% stake in Apollo Health and Lifestyle Limited (AHLL), earlier a wholly owned subsidiary of the company. The equity infusion will be utilized to finance AHLL's growth plans. AHLL is engaged in retail healthcare business encompassing primary health clinics, birthing centres, dental & dialysis centres, day surgery centres and sugar clinics.
During the FY2017, the company has allotted 2000 Non Convertible Debentures of face value of Rs 1 million each to HDFC Bank Limited, 2,500 Non Convertible Debenture of face value of Rs 1 million each to Yes Bank Limited and 500 Non Convertible Debenture of face value of Rs 1 million each to Birla Sun Life Insurance Company Limited.
The Company had reduced its equity stake to 40% from 100% in Apollo Healthcare Technology Solutions Limited (AHTSL) on 23rd January 2017. However AHTSL shall continue to be a subsidiary of the Company due to the definition of controlling interest between the companies as per Ind AS standards.
One multi-speciality hospital at Navi, Mumbai was inaugurated during the year 2016-17.
As on 31st March 2017, your Company had eighteen direct subsidiaries, four step down subsidiaries, three joint ventures, and four associate companies.
During the FY2017,Apollo Hospital International Limited and Future Parking Private Limited have become the subsidiaries of the company.
During the year, Apollo Hospitals, Chennai and Indraprastha Apollo Hospitals, New Delhi were awarded the top 2 positions in the All India Critical Care Hospital Survey 2017 by Times Health.
As on 31st March 2019, the Company had nineteen direct subsidiaries, ten step down subsidiaries, four joint ventures and four associate companies.
The Board of Directors at their meeting held on November 14, 2018 have approved a Scheme of Arrangement ('the Scheme') between Apollo Hospitals Enterprise Limited ('AHEL') and Apollo Pharmacies Limited ('APL') and their respective shareholders in accordance with the provisions of Sections 230 to 232 of the Companies Act, 2013, for the transfer of the front-end retail pharmacy business ('the disposal group') carried out in the standalone pharmacy segment to APL by way of slump sale, subject to necessary approvals by stock exchanges, shareholders, National Company Law Tribunal and all other requisite regulatory authorities.
Pursuant to the Scheme of Arrangement (the Scheme'), duly sanctioned by the National Company Law Tribunal (NCLT) vide order dated August 3, 2020, with effect from April 1, 2019 (Appointed date'), the front-end retail pharmacy included in the standalone pharmacy segmentis transferred to Apollo Pharmacies Limited ('APL'), a wholly owned subsidiary of Apollo Medicals Private Limited (AMPL) for an overall cash consideration of Rs.52,780 lakhs. In accordance with Section 230 of the Companies Act, the Company filed the NCLT order with the Ministry of Company Affairs (Registrar of Companies) on September 1, 2020. Consequentto the filing, the Scheme became effective from September 1, 2020 (effective date').
The Company holds 25.5% of the equity shares in AMPL as on the effective date.
The Board of Directors at their meeting held on February 13, 2020 had approved the amalgamation of Apollo Home Healthcare (India) Limited and Western Hospitals Corporation Private Limited, wholly owned subsidiaries of the Company ('Transferor Companies') into Apollo Hospitals Enterprise Limited (Transferee Company) by way of a Scheme of Amalgamation between the Transferor Companies and the Transferee Company and their respective shareholders and creditors, in accordance with Sections 230 to 234 of the Companies Act, 2013.
The amalgamation is subject to requisite statutory and regulatory approvals and sanction by the respective shareholders of each of the companies involved in the scheme. There will not be any change in the shareholding pattern of the Transferee Company pursuant to implementation of the Scheme of Amalgamation as the Transferor Companies are wholly owned subsidiaries of the Transferee Company.
During the FY2020, Apollo Healthcare Technology Solutions Limited, a subsidiary of the Company had applied for strike off of its name to the Registrar of Companies on 19th March 2020.
The Company had divested its entire equity stake in Apollo Munich Health Insurance Company Ltd (AMHIL) on 9th January 2020 and consequently. AMHIL has ceased to be an Associate Company.
As on 31st March 2020, Company had 18 direct subsidiaries, 10 step down subsidiaries, 4 joint ventures and 3 associate companies.
As on 31 March 2020, AHEL had a network of 71 hospitals with total bed capacity of 10261.
The Board of Directors, in their meeting held on November 11, 2020 have approved the proposal for executing a definitive Share Purchase Agreement (SPA) for the acquisition of 50% equity stake held by Gleneagles Development PTE Limited, Singapore, in Apollo Gleneagles Hospital Limited, Kolkata ('AGHL'), a joint venture in which the Company holds a 50% equity stake, for a cash consideration of Rs 41,000 lakhs.
The Company had 18 direct subsidiaries, 10 step down subsidiaries, 4 joint ventures and 4 associate companies as on 31 March, 2021.
The company completed a QIP in January 2021,allotting an additional 4659498 equity shares at a price of Rs 2511 per share (premium of Rs 2506 per share) aggregating to a sum of Rs 116999.99 lakhs.
The Scheme of Arrangement relating to transfer of front end portion of retail pharmacy business (divestment business) to Apollo Pharmacies Limited (APL or Transferee Company) , a wholly owned subsidiary of Apollo Medicals Private Limited (AMPL) for an overall cash consideration of Rs. 5,278 million was approved by the National Company Law Tribunal vide their order dated August 3, 2020.
Pursuant to the Scheme becoming effective from 1st September, 2020, the Company invested a sum of Rs. 365 million towards its share of equity contribution and its ownership interest in AMPL reduced to 25.50% .
On 07 January 2021, the company acquired 1% additional stake in Medics International Life Sciences Limited, a Joint Venture,which runs a 330-bedded hospital in Lucknow. Consequently Medics became the subsidiary of the Company.
During year 2021, Company acquired the entire equity stake held by the existing shareholders in Apollo Health Co Limited (AHL) on 23rd June 2021. Consequent to that, AHL became a wholly owned subsidiary to the Company.
The Company had received approval on June 28, 2021 for Scheme of Amalgamation with the wholly owned subsidiary companies, Apollo Home Healthcare (India) Limited (AHHCL) and Western Hospitals Corporation Private Limited (WHCPL). The Appointed Date for the Scheme was 1st April, 2020 and the entire assets and liabilities of AHHCL and WHCPL got transferred to and recorded by Company. The entire share capital of AHHCL and WHCPL held by Company, stood cancelled without any further act or deed and no consideration was issued upon the amalgamation coming into effect.
As on 31st March 2022, the Company had 18 direct subsidiaries, 12 step down subsidiaries, 2 joint ventures and 3 associate companies.
The Board of Directors, in their meeting held on November 11, 2020 acquired 50% equity stake held by Gleneagles Development Pte Ltd., Singapore in AMSHL, in which the Company held a 50% equity stake at a consideration of Rs. 4,100 million. The Company acquired 50% equity stake held in AMSHL by Gleneagles Development Pte Limited on 22nd April, 2021. Consequently, AMSHL became a wholly-owned subsidiary of the Company effective from April 22, 2021, and name of the Company was changed from Apollo Gleneagles Hospital Limited to Apollo Multispeciality Hospitals Limited based on the approval obtained from the Ministry of Corporate Affairs on 5th May, 2021.
Effective 16th March 2022, the Pharmacy Distribution business along with the Omni channel digital healthcare platform Apollo 24/7 and the Company's equity interest in Apollo Medical Private Limited was transferred to Apollo HealthCo Limited
which is a wholly owned subsidiary of AHEL, through a slump sale process for a net consideration of Rs. 12,100 million.
As of March 31, 2022 the Company had a capacity of 9,911 beds in 71 hospitals located in India and overseas. Of the 9,911 beds, 8,538 beds are located in 44 owned hospitals, 278 beds in 11 cradles, 244 beds in 11 day care/ short surgical stay centers and 851 beds are in 5 hospitals under their management through operations and management contracts.
During 2022-23, the Company acquired a 60% equity stake in Kerala First Health Services Private Limited (KFHSL), for a consideration costing Rs 26.4 Crores and consequently, KFHSL became a subsidiary of the Company.
As of March 31, 2023, Company had a capacity of 9,957 beds in 70 hospitals located in India and overseas. Of the 9,957 beds, 8,544 beds are located in 43 owned hospitals, 305 beds in 11 cradles, 257 beds in 11 day care/ short surgical stay centers and 851 beds are in 5 hospitals operated through operations and management contracts. The Apollo Proton Cancer Center was opened in Chennai in FY'23.
Apollo Hospitals Enterprise Ltd
Chairman Speech
For 40 years, Apollo has been steadfast in providing world-class
integrated healthcare to patients with outcomes which are comparable to the best
healthcare institutions in the world and is now ready to deliver the healthcare needs of
the future. What does the future of healthcare hold for us – for you, the consumer,
and us, the care provider? The future of healthcare is going to led largely by consumers
and driven by technology like Artificial Intelligence and digitalization. Robotics and 3D
printing are revolutionizing the way healthcare is being delivered.
We have always put our patient on the fulcrum of our business and
focused on building a health delivery system that brings together doctors with exemplary
skills and experience in state-of-the-art facilities underscored by clinical and service
excellence. Over these long years we have been consistent in bringing the latest medical
equipment to India, investing in cutting-edge technologies, and staying abreast of the
breakthroughs in medical treatment. All because we want to delight our patient with a
differentiated care experience. This is the reason that our outcomes match or better those
at leading hospitals worldwide; that we are the most extensive telemedicine consultants in
India; that we are deploying AI and ML for predicting health risks; that Apollo 24/7, our
digital healthcare services platform, provides medicine delivery, consultations, and
diagnostics on the go. This in short, is what some may say is the future of healthcare;
but we are already well heeled into the various aspects of that future.
There is a palpable tectonic shift in the exponential pace of digital
adoption and futuristic innovation in the healthcare sector. The Digital India initiative
by the Government of India is a farsighted measure which will usher in a new paradigm of
socio-economic progress in the country. There will be sharp focus on agility, innovation,
digital transformation, financial and environmental sustainability, and empowered talent
with which to create enduring value for all stakeholders.
Apollo 24/7–India's Largest Healthcare Services Omnichannel
We have combined our legacy of clinical excellence with emerging
technology to make superior healthcare easily available to every Indian online through
Apollo 24/7. Patients can get a doctor consultation in 15 minutes or less from the comfort
of their homes via video conferencing. They can schedule home pick-ups of samples for
diagnostics with same-day report facility, and have their medicines delivered to their
doorstep. The platform provides a real time connect with all Apollo formats and pan Apollo
care continuum. Apollo 24/7 balances our physical brick and mortar pharmacies.
Apollo 24/7 has proved to be a beacon of hope for patients who were
home bound or restricted in their movements due to the impact of COVID-19.
ProHealth–A Holistic Health Program
We continue to focus on wellness. Preventive Health is the proactive
management of one's health and wellness. Over the last several decades, Non
Communicable Diseases or NCDs have increased alarmingly as a result of lifestyle habits.
Common among these are diabetes, hypertension, cardiovascular and respiratory conditions,
and obesity. Even some cancers. However, many of these can be controlled through a
reduction of modifiable risk factors. Our ProHealth program does exactly that. It is a
first its kind health check which provides an AI based predictive risk score for NCDs. It
creates awareness about lifestyle changes that can reduce the risk of the disease itself
or arrest its progression. It empowers the patient to make informed health decisions.
ProHealth is a one-time health record for an individual and provides pointers for
preventing and mitigating the effects of any disease or sickness.
Use of Artificial Intelligence (AI) & Machine Learning (ML)
We are using AI and ML in clinical areas as well. We have developed
extensive algorithms to help our doctors make point of care decisions to address clinical
complexities. Importantly, it has helped us frame better quality clinical pathways for
producing better outcomes.
Managing the Pandemic
We had a comprehensive, integrated COVID-19 management programme,
across our network to fight the pandemic. In living our Patient First philosophy, we
ensured patients had 24/7 access to quality healthcare — our ambulances and
diagnostic services, Emergency Care, and both online and offline pharmacies across the
country. We offered special procedures at home like blood transfusion, chemotherapy,
virtual consultations, oxygen cylinder, and oxygen concentrator. India's COVID
vaccination plan was ambitious with the target to immunize 1.3 billion population. The
vaccination drive in India was flagged off on 16th January 2021 with the priority given to
an estimated three crore health care and frontline workers.
Giving a Ray of Hope to People Around the World
As cancer care has become one of the fastest growing healthcare
imperatives across the globe, the Apollo Proton Cancer Centre in Chennai, stands as a ray
of hope for millions of cancer patients from 147 countries to access the most advanced
cancer care. It gives them the courage to stand and stare cancer down. Proton therapy is a
radiation therapy that uses tiny particles called protons. Because of the way protons
deliver their energy, proton therapy does not damage as much healthy tissue as much as
photon therapy. Therefore, a higher dose of radiation can be targeted at the tumor without
affecting many normal healthy cells.
Minimally Invasive Surgeries
The Apollo Institute of Robotic Surgery has exceptional outcomes and is
considered to be the best program for robotic surgery in India. We have 17 Robots across
11 facilities that perform minimally invasive surgeries with a shorter recovery time and
lower blood loss. We have performed 1300+ Robotic Surgeries in FY22.
Enhancing Access to Quality Healthcare
We have India's most extensive TeleHealth Services network and are
pioneers in that field. By leveraging the best available technology, we have been
successful in enhancing access to quality healthcare for people in 16 States in India,
especially for the under-served, last mile rural population.
Bringing Care Closer to Home– Apollo Health and Lifestyle
With over 1734 specialty neighborhood clinics which guarantee the
signature Apollo quality of care and clinical excellence, we have brought healthcare to
people's doorsteps. In combination with the other formats of care we offer, consumers
can be in control of their health and wellness.
Continuum of Care
We offer home care, both short and long term, as an extension of our
care continuum. We make no compromise in the quality of care or service we provide. This
was very beneficial to patients during COVID times, especially for those undergoing rehab.
Medical Value Travel
Over the years our healthcare units have been recognized for their
excellence in Medical Value Travel (MVT). India has medical expertise and potential that
is on par with standards in developed countries. At Apollo Hospitals, we have always
endeavored to provide world-class care with cutting edge technology to patients, but at a
tenth of the cost of the same abroad. This has allowed us to extend the best quality of
healthcare to people across the globe.
Healthcare continues to support the health of the country and its
economy. We have the potential to soon become the Medical Tourism capital of the world.
The Prime Minister, while appreciating Apollo Hospitals' efforts in the healthcare
space and in driving MVT, also suggested that we adapt our ancient naturopathy practices
with our modern healthcare practices and make ‘Heal in India' a bigger brand.
MVT is a US$600 billion industry and we can get substantial value from this.
The Apollo Network Effect
We are always there for you. The power of the Apollo network ensures
that there is a health facility close to you, no matter where you are. Beyond the brick
and mortar, the power of the Apollo network extends through our highly skilled and
experienced clinical fraternity, the group of doctors at Apollo, who are leaders in their
field and offer caring service. The amalgamation of class-leading doctors with our
cutting-edge technologies ensures that any doctor within our system is available to any
patient in any part of the country at their doorstep, or in their palm of their hand.
We leave no stone unturned in finding a treatment to suit our
patient's needs. For example, a 3-year-old child was successfully operated on for
treating Wilms' Tumor; a 4-day old new-born baby, weighing 1.6 kg, successfully
underwent Total Anomalous Pulmonary Venous Connection repair. Our doctors do not give up
without a fight.
All our initiatives have resulted in strong financial results that i am
happy to share with you. Patient footfalls have overtaken pre-COVID numbers and elective
treatments are again on the rise. Our revenue stands at Rs 146,626 mio. Healthcare
services has contributed 55% to our topline, and HealthCo 36%. Overall, the EBITDA (post
ind as 116) stood at Rs 21,851 mio. I am delighted to announce a dividend of Rs 11.75 per
share.
I would like to thank the board members for their unwavering trust and
support in our journey into that future. I thank you, our esteemed shareholders for the
tremendous trust you have reposed in us, without which support we will not be able to
venture into new domains in healthcare delivery. Beyond anything, my gratitude goes to my
Apollo family who have stood together with us on our journey. Without their unconditional
support, we would have scored far fewer wins.
We understand that the future of healthcare will see the evolution of
different formats of care and will continue to take us closer to the consumer. We are
agile to seize the possibilities. It has been a very challenging period for healthcare
over the last four decades. However, the Apollo Family has given the best healthcare
outcomes and treated not only 100 million patients thus far but has been adept in being
ready to meet future healthcare delivery needs, adopting cutting-edge technology across
all our delivery formats. We will grow organically and inorganically to serve the needs of
our people by leveraging the best in clinical care and healthcare technologies.
Let me remind you yet again, to take good care of yourselves. Your life
is Priceless. Stay safe. Stay Healthy.
| My warm personal regards to all of you, |
| Dr. Prathap C. Reddy |
| Executive Chairman, Apollo Hospitals Group |
| Dr. Prathap C Reddy |
| Founder and Executive_Chairman |
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Apollo Hospitals Enterprise Ltd
Company History
Apollo Hospitals Enterprise Limited (AHEL) is a leading private sector healthcare provider in Asia. It has a robust presence across the healthcare ecosystem, including Hospitals, Pharmacies, Primary Care & Diagnostic Clinics. AHEL's Hospitals are situated in Chennai, Hyderabad, Delhi, Ahmedabad, Pune, Chenganur, Coimbatore, Jaipur, Madurai, Anantpur, Nellore, Kurnool, Bhopal, Ranchi, Bilaspur and Bacheli.
Apollo Hospitals Enterprise Limited was incorporated as a Public Limited Company on December 5, 1979, a comprehensive 250-bed hospital with an emphasis on speciality and super specialties in over fifty departments at Chennai. Dr. Prathap C Reddy promoted it. 46 beds were added in the year 1985. It is the first group of hospitals that pioneered the concept of corporate healthcare delivery in India.
The Apollo Health Association (AHA) was inaugurated in April of the year 1986, based on credit card system. As per this scheme, the Apollo health insurance policyholders get Medicare offered by Apollo and 76 accredited hospitals in selected cities. The hospital was equipped with Magnetic Resonance Imaging (MRI) during the year 1989, also with SOMATOMCR whole body computed Tomography scanner, Dideoendoscopy and Mammography, breast-scanning equipment for the detection of occult carcinoma. During the same year 1989, AHEL group had finalised a joint venture project with the I.R.T.C. of Eye Micro Surgery, USSR to launch the Apollo Fyodorov Eye Research Institute. Apart from the hospital activities, The Apollo School of nursing was commissioned in August of the year1991, which offers a 3-year diploma programme followed by internship in the hospital.
During the year 1992, 16 intensive care beds and 26 additional patient beds together with balancing equipment were added in various disciplines. Also a 24-hour ambulance service with wireless facility was to be launched. Apollo cancer hospital was commissioned with 150-beds for cancer treatment and research centre in Chennai during the period of 1993. Further, AHEL had introduced state-of-the-art Bone Marrow transplant facility in Phase II expansion of cancer project. A third theater was added for cardio thoracic surgery in the year of 1994. As at 19th February of the year 1995, another one wing was added, Cancer hospital in Hyderabad was inaugurated. In the same year 1995, AHEL had joined hands with the WHO with its mission to eradicate Tuberculosis in India. With takeover of Orient Hospital, Madurai and Pinakini Hospital, Nellore, the Company had added 300 more beds in the year 1996 and the Apollo College of Nursing at Keezhkattalai was inaugurated on 21st October of the same year. AHEL had signed a memorandum of understanding with Jardine of UK for successful adaptation of the health maintenance organisations (HMO) in the year 1997, a concept for the first time in India. A year after, in 1998, also signed a memorandum of understanding with the Sri Lankan Government to build a super-speciality hospital in Colombo. It was the first time the speciality hospital group ventured abroad with investments. AHEL had opened a unit for the Kidney disorders; it was inaugurated in April of the year 1998 with the expansion in this facility for better and newer techniques in treatment.
In 1999, Apollo had launched its first poison information centre in the south of the India. Indian Oil Corporation Ltd (IOCL) and AHEL had signed a memorandum of understanding (MoU) in the year 2000 for setting up pharmaceutical general stores at the convenience stores of Indian Oil petrol stations. Apollo and Royal College of General Practioners made a tie-up in the period of 2000 to launch three programmes for revalidating and updating the knowledge of primary healthcare physicians in India. The company also inked an in-principle deal with the Singapore-based Parkway group, the global leader in healthcare business, to spread its wings to Afro Asian countries. In the same year AHEL had launched a personal accident insurance card and commissioned the Italian Dental Clinic. The amalgamation of Indian Hospitals Corporation (IHCL), Om Sindoori Hotels (OSHL) with the company has been approved; also Deccan Hospital Corporation (DHCL) has been amalgamated with company. In 2001, the company signed a memorandum of understanding with the government of Mauritius, appointing the Apollo Hospitals Group as the preferred healthcare provider for all the citizens of Mauritius and in the identical year, made a tie-up with a local hospital initially to deliver mother and child care.
During the year 2002, the hospital has taken over the 50.26 per cent of stake held by the Gauri Prasad Goenka in the Duncan Gleneagles Hospital for the consideration of Rs 3 crore. In 2003, AHEL made tie up with ICICI Lombard and unveiled an accident insurance product. Apollo launched a dedicated pediatric cardiac facility for children and sets up a 24X7 Chest Pain Clinic to offer round the clock and immediate access to quality heart care during the critical period.
AHEL had entered into a major technology partnership with the Defence Research & Development Organisation (DRDO) to leverage mutual strengths during the period of 2004. Launched the Apollo National Heart Plan' comprising three components of the preventive mode, a disease management programme (DMP) and the actual treatment and surgery component. And also in the same year, it made a partnership to provide advisory services to Hayel Saeed Anam (HSA) group, Yemen. Apollo Hospital Delhi gets JCI certification for its quality of care in a safe environment in the year 2005. In the same year, it forged alliance with Histotem and joined hands with Johns Hopkins. AHEL singed the Joint Venture Agreement with Deutsche Krankenversicherung AG (DKV) for setting up the Health Insurance Business in October 11 of the year 2006. AHEL had signed an agreement with Cadila Pharmaceuticals Limited as a partner in Apollo Hospitals International Limited, Ahmedabad. Also in the year the hospital had acquired the Zavata. The week magazine rated the Apollo Hospitals as the Best Private Sector Hospital in India for the year 2006. As at June 15th 2007, AHEL launched Health City, the first of its kind in Asia, at Hyderabad, an integrated healthcare delivery facility, spread over 33 acres, to cover disease prevention, management, wellness and research.
As at January 2008, the hospital has signed an agreement with Hindustan Construction Co (HCC), a real estate firm, to set up the medicity inside the upcoming hill station named Lavasa in Maharashtra. With an eye on foreign patients, Apollo Hospitals is setting up a medicity near Pune that will offer 'first rate ayurveda treatment'. The Apollo and BAI Medical Centre Ltd, a subsidiary of British American Investment Co (Mtius) Ltd Made a JV in February of the year 2008 to set up a hospital in Mauritius.
Apollo Hospitals Enterprise Ltd (AHEL) and Quintiles Mauritius Holdings Inc., (Quintiles) entered into a Shareholders Agreement on 27 January 2009 for setting up a Phase I clinical trial research facility in Hyderabad at an estimated cost of USD 6 million, through a separate joint venture company to be formed for this purpose. Quintiles and AHEL will be funding the project cost in the ratio of 60-40 respectively through a combination of debt and/or equity.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 28 January 2010 approved the allotment of 1,500 Unsecured Foreign Currency Convertible Bonds (FCCB) of face value of USD 10,000 each aggregating to US$ 15 million with an option of convertible into equity shares at a price of Rs 605 per share to International Finance Corporation, Washington.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 28 May 2010 approved the sub-division of each existing equity share of nominal value of Rs 10 each into 2 equity shares of nominal value of Rs 5 each.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 9 December 2010 approved the allotment of 11.40 lakh equity shares to International Finance Corporation, Washington on conversion of Foreign Currency Convertible Bonds to the extent of US$ 7.50 million. These shares have been issued at a price of Rs 302.50 per share at a premium of 14% over the floor price determined as per the FCCB Scheme, 1993 (after the subdivision of each equity share of face value of Rs. 10/- per share into two equity shares of face value of Rs. 5/- each) and in accordance with the terms of the FCCB Loan Agreement dated 18 June 2009.
On 18 July 2011, Apollo Hospitals Enterprise closed qualified institutional placement of equity shares. The company will issue 66.66 lakh equity shares at a price of Rs 495 per share to qualified institutional buyers for an amount aggregating Rs 330 crore.
On 7 June 2012, Apollo Hospitals Enterprise announced that International Finance Corporation (IFC), Washington had sent a communication to the company requesting for conversion of the balance loan amount of USD 7.50 million of the Foreign Currency Convertible Bonds (FCCBs) into equity shares. In this regard, committee of the Board of Directors at its meeting held on 7 June 2012 approved the allotment of 13.81 lakh equity shares to International Finance Corporation, Washington.
On 10 December 2012, Apollo Hospitals Enterprise announced that it has signed a definitive agreement with Sutherland Global Services, a global provider of business process and technology management services, to enable Sutherland Global Services acquire 100% of the shares of Apollo Health Street Limited (AHS), a leading provider of healthcare business services and world-class Health Information Technology (HIT) based solutions. AHS is an associate company of Apollo Hospitals Enterprise. This acquisition will position the combined organization as a leading healthcare service provider with comprehensive information technology and business process integrated solutions and consolidate its presence as a dominant player in the $38 billion US healthcare business process outsourcing (BPO). This also fosters Apollo Hospitals' strategic intent of focusing and growing its core healthcare delivery services.
On 21 January 2013, Apollo Hospitals Enterprise announced its plans to establish a Proton Therapy Center in India, the first of its kind across South East Asia, Africa and Australia. This launch that marks the beginning of the next wave of advancement in radiation therapy in India is worth approximately Rs 400 crore, which covers the equipment and services supplied by IBA (Ion Beam Applications S.A.) to help establish the Apollo Proton Therapy Center including the long-term operation and maintenance contract.
On 17 September 2014, Apollo Hospitals Enterprise announced that it has entered into an MoU with Hetero Med Solutions Limited (HMSL) for the acquisition of its retail pharmacy stores currently operated in Telengana, Andhra Pradesh and Tamilnadu. The acquisition would be in the form of purchase of the business undertaking, on a slump sale basis and comprises of 320 pharmacy stores, at an overall consideration not exceeding Rs 146 crore. This acquisition will further strengthen Apollo Pharmacy's leadership position in the industry. The addition of 320 stores are in existing core geographies where Apollo Pharmacy has a strong market presence and further consolidate its presence as a significant player in this region. Apollo Pharmacy plans to leverage its existing backend infrastructure to drive economies of scale, thereby accelerating profitability for these stores. This will also create an opportunity to increase the sales of Apollo private label products.
Apollo Health and Lifestyle Limited (AHLL), a wholly owned subsidiary of Apollo Hospitals Enterprise, announced on 30 January 2014 that Sanofi-Synthelabo (India) Limited has invested into Apollo Sugar Clinics Limited (ASCL). ASCL is a disease management clinic focused on providing high quality, integrated care across its clinics for people with diabetes. An amount of Rs 90 crore is being invested by Sanofi-Synthelabo in this venture through a combination of primary and secondary funding. Earlier, on 30 September 2014, Apollo Hospitals Enterprise and Sanofi announced their decision to collaborate on the expansion of Apollo Sugar Clinics.
On 6 January 2015, Apollo Health and Lifestyle Limited (AHLL), a wholly owned subsidiary of Apollo Hospitals Enterprise, announced that it has successfully completed the acquisition of Nova Specialty Hospitals. The deal size would be in the range of Rs 135-145 crore. Nova Specialty Hospitals' existing centres will serve as new centres under the Apollo brand name. The acquired chain of Nova Specialty Hospitals is spread over 8 cities and will add to the Apollo network 45 Modular OTs, over 350 patient beds, with an average 20,000 SFT of built-up space in each centre. These centres provide both In-patient and OPD services with 60% of the procedures currently being done as day procedures.
The Board of Directors of Apollo Energy Company Ltd., an Apollo Hospitals Group Company, at its meeting held on 25 January 2016 approved the divestment of 23.3% shareholding in Apollo Munich Health Insurance Company Ltd. (Apollo Munich) to its joint venture partner, Munich Re of Germany for Rs 163.5 crore. Post consummation of the transaction, Apollo Hospitals Group's shareholding in Apollo Munich shall stand reduced from 74.4% to 51.1%. Correspondingly, Munich Re's shareholding in Apollo Munich shall increase to 48.7% and 0.2% stake will be held by employees. Apollo Hospitals shall continue to hold its stake in Apollo Munich. Apollo Munich Health Insurance is one of the largest private sector health insurance companies offering comprehensive health insurance plans for individuals, families, senior citizens and corporates.
On 12 March 2016, Apollo Hospitals Enterprise announced that it has completed the acquisition of 51% majority stake in Assam Hospitals Limited, Guwahati for a cash consideration of Rs 57.25 crore which will be utilized for refurbishing the hospital including addition of new equipments as well as towards expansion of the existing hospital block. Assam Hospitals Limited which was incorporated in 1997 and commenced operations from 1999, is engaged in the business of healthcare services. It has a presence in Guwahati where it currently runs a 220 bed hospital facility. The objective of the acquisition is to strengthen Apollo Hospitals leadership position in the hospital space as well as enhance its presence in North eastern region where it already has strong brand equity.
On 20 June 2016, Apollo Hospitals Enterprise and Hainan Ecological Smart City Group (HESCG), China signed a Memorandum of Understanding (MoU) to build a state-of-the art hospital in Hainan Province, China. HESCG will provide land, all investments for the construction, commissioning and equipping the hospital besides all operative expenses, while Apollo Hospitals Group would provide its services technical consulting, planning and commissioning of the hospital and post completion of the hospital, provide services for the operations and management of the hospital. Apollo Hospitals would also support in building the technical and management personnel, install it's acclaimed patient care clinical protocols and practices.
The Board of Directors of Apollo Hospitals Enterprise at its meeting held on 1 September 2016 discussed and deliberated the possibility of considering and evaluating various options to restructure and reorganize the businesses of the company, by re-aligning the business lines as per verticals. The proposal for such restructuring is aimed at exploring options for improving operational efficiencies and augmenting further growth of the businesses in compliances with the applicable laws and creating greater flexibility through such restructuring and/or transfer of the existing businesses into separate legal entities, given the large opportunity that exits in the healthcare sector.
On 1 December 2016, Apollo Hospitals Enterprise announced that International Finance Corporation (affiliated to the World Bank) along with associated entity, has made a primary equity infusion of Rs 450 crore thereby acquiring a 29.03% stake in Apollo Health and Lifestyle Limited (AHLL), earlier a wholly owned subsidiary of the company. The equity infusion will be utilized to finance AHLL's growth plans. AHLL is engaged in retail healthcare business encompassing primary health clinics, birthing centres, dental & dialysis centres, day surgery centres and sugar clinics.
During the FY2017, the company has allotted 2000 Non Convertible Debentures of face value of Rs 1 million each to HDFC Bank Limited, 2,500 Non Convertible Debenture of face value of Rs 1 million each to Yes Bank Limited and 500 Non Convertible Debenture of face value of Rs 1 million each to Birla Sun Life Insurance Company Limited.
The Company had reduced its equity stake to 40% from 100% in Apollo Healthcare Technology Solutions Limited (AHTSL) on 23rd January 2017. However AHTSL shall continue to be a subsidiary of the Company due to the definition of controlling interest between the companies as per Ind AS standards.
One multi-speciality hospital at Navi, Mumbai was inaugurated during the year 2016-17.
As on 31st March 2017, your Company had eighteen direct subsidiaries, four step down subsidiaries, three joint ventures, and four associate companies.
During the FY2017,Apollo Hospital International Limited and Future Parking Private Limited have become the subsidiaries of the company.
During the year, Apollo Hospitals, Chennai and Indraprastha Apollo Hospitals, New Delhi were awarded the top 2 positions in the All India Critical Care Hospital Survey 2017 by Times Health.
As on 31st March 2019, the Company had nineteen direct subsidiaries, ten step down subsidiaries, four joint ventures and four associate companies.
The Board of Directors at their meeting held on November 14, 2018 have approved a Scheme of Arrangement ('the Scheme') between Apollo Hospitals Enterprise Limited ('AHEL') and Apollo Pharmacies Limited ('APL') and their respective shareholders in accordance with the provisions of Sections 230 to 232 of the Companies Act, 2013, for the transfer of the front-end retail pharmacy business ('the disposal group') carried out in the standalone pharmacy segment to APL by way of slump sale, subject to necessary approvals by stock exchanges, shareholders, National Company Law Tribunal and all other requisite regulatory authorities.
Pursuant to the Scheme of Arrangement (the Scheme'), duly sanctioned by the National Company Law Tribunal (NCLT) vide order dated August 3, 2020, with effect from April 1, 2019 (Appointed date'), the front-end retail pharmacy included in the standalone pharmacy segmentis transferred to Apollo Pharmacies Limited ('APL'), a wholly owned subsidiary of Apollo Medicals Private Limited (AMPL) for an overall cash consideration of Rs.52,780 lakhs. In accordance with Section 230 of the Companies Act, the Company filed the NCLT order with the Ministry of Company Affairs (Registrar of Companies) on September 1, 2020. Consequentto the filing, the Scheme became effective from September 1, 2020 (effective date').
The Company holds 25.5% of the equity shares in AMPL as on the effective date.
The Board of Directors at their meeting held on February 13, 2020 had approved the amalgamation of Apollo Home Healthcare (India) Limited and Western Hospitals Corporation Private Limited, wholly owned subsidiaries of the Company ('Transferor Companies') into Apollo Hospitals Enterprise Limited (Transferee Company) by way of a Scheme of Amalgamation between the Transferor Companies and the Transferee Company and their respective shareholders and creditors, in accordance with Sections 230 to 234 of the Companies Act, 2013.
The amalgamation is subject to requisite statutory and regulatory approvals and sanction by the respective shareholders of each of the companies involved in the scheme. There will not be any change in the shareholding pattern of the Transferee Company pursuant to implementation of the Scheme of Amalgamation as the Transferor Companies are wholly owned subsidiaries of the Transferee Company.
During the FY2020, Apollo Healthcare Technology Solutions Limited, a subsidiary of the Company had applied for strike off of its name to the Registrar of Companies on 19th March 2020.
The Company had divested its entire equity stake in Apollo Munich Health Insurance Company Ltd (AMHIL) on 9th January 2020 and consequently. AMHIL has ceased to be an Associate Company.
As on 31st March 2020, Company had 18 direct subsidiaries, 10 step down subsidiaries, 4 joint ventures and 3 associate companies.
As on 31 March 2020, AHEL had a network of 71 hospitals with total bed capacity of 10261.
The Board of Directors, in their meeting held on November 11, 2020 have approved the proposal for executing a definitive Share Purchase Agreement (SPA) for the acquisition of 50% equity stake held by Gleneagles Development PTE Limited, Singapore, in Apollo Gleneagles Hospital Limited, Kolkata ('AGHL'), a joint venture in which the Company holds a 50% equity stake, for a cash consideration of Rs 41,000 lakhs.
The Company had 18 direct subsidiaries, 10 step down subsidiaries, 4 joint ventures and 4 associate companies as on 31 March, 2021.
The company completed a QIP in January 2021,allotting an additional 4659498 equity shares at a price of Rs 2511 per share (premium of Rs 2506 per share) aggregating to a sum of Rs 116999.99 lakhs.
The Scheme of Arrangement relating to transfer of front end portion of retail pharmacy business (divestment business) to Apollo Pharmacies Limited (APL or Transferee Company) , a wholly owned subsidiary of Apollo Medicals Private Limited (AMPL) for an overall cash consideration of Rs. 5,278 million was approved by the National Company Law Tribunal vide their order dated August 3, 2020.
Pursuant to the Scheme becoming effective from 1st September, 2020, the Company invested a sum of Rs. 365 million towards its share of equity contribution and its ownership interest in AMPL reduced to 25.50% .
On 07 January 2021, the company acquired 1% additional stake in Medics International Life Sciences Limited, a Joint Venture,which runs a 330-bedded hospital in Lucknow. Consequently Medics became the subsidiary of the Company.
During year 2021, Company acquired the entire equity stake held by the existing shareholders in Apollo Health Co Limited (AHL) on 23rd June 2021. Consequent to that, AHL became a wholly owned subsidiary to the Company.
The Company had received approval on June 28, 2021 for Scheme of Amalgamation with the wholly owned subsidiary companies, Apollo Home Healthcare (India) Limited (AHHCL) and Western Hospitals Corporation Private Limited (WHCPL). The Appointed Date for the Scheme was 1st April, 2020 and the entire assets and liabilities of AHHCL and WHCPL got transferred to and recorded by Company. The entire share capital of AHHCL and WHCPL held by Company, stood cancelled without any further act or deed and no consideration was issued upon the amalgamation coming into effect.
As on 31st March 2022, the Company had 18 direct subsidiaries, 12 step down subsidiaries, 2 joint ventures and 3 associate companies.
The Board of Directors, in their meeting held on November 11, 2020 acquired 50% equity stake held by Gleneagles Development Pte Ltd., Singapore in AMSHL, in which the Company held a 50% equity stake at a consideration of Rs. 4,100 million. The Company acquired 50% equity stake held in AMSHL by Gleneagles Development Pte Limited on 22nd April, 2021. Consequently, AMSHL became a wholly-owned subsidiary of the Company effective from April 22, 2021, and name of the Company was changed from Apollo Gleneagles Hospital Limited to Apollo Multispeciality Hospitals Limited based on the approval obtained from the Ministry of Corporate Affairs on 5th May, 2021.
Effective 16th March 2022, the Pharmacy Distribution business along with the Omni channel digital healthcare platform Apollo 24/7 and the Company's equity interest in Apollo Medical Private Limited was transferred to Apollo HealthCo Limited
which is a wholly owned subsidiary of AHEL, through a slump sale process for a net consideration of Rs. 12,100 million.
As of March 31, 2022 the Company had a capacity of 9,911 beds in 71 hospitals located in India and overseas. Of the 9,911 beds, 8,538 beds are located in 44 owned hospitals, 278 beds in 11 cradles, 244 beds in 11 day care/ short surgical stay centers and 851 beds are in 5 hospitals under their management through operations and management contracts.
During 2022-23, the Company acquired a 60% equity stake in Kerala First Health Services Private Limited (KFHSL), for a consideration costing Rs 26.4 Crores and consequently, KFHSL became a subsidiary of the Company.
As of March 31, 2023, Company had a capacity of 9,957 beds in 70 hospitals located in India and overseas. Of the 9,957 beds, 8,544 beds are located in 43 owned hospitals, 305 beds in 11 cradles, 257 beds in 11 day care/ short surgical stay centers and 851 beds are in 5 hospitals operated through operations and management contracts. The Apollo Proton Cancer Center was opened in Chennai in FY'23.
Apollo Hospitals Enterprise Ltd
Directors Reports
TO THE SHAREHOLDERS
Your Directors are pleased to present the FORTY FIRST ANNUAL REPORT and
the audited financial statements for the year ended 31st March 2022.
Financial Results
|
|
|
|
(Rsin million) |
|
Standalone |
Consolidated |
| Particulars |
Year ended 31st March 2022 |
Year ended 31st March 2021 |
Year ended 31st March 2022 |
Year ended 31st March 2021 |
| Income from Operations |
60,983 |
46,539 |
146,626 |
105,600 |
| Profit before Exceptional Items and Tax after share of
profits in Joint Ventures & Associates |
8,590 |
(313) |
12,913 |
1,609 |
| Exceptional Items |
(67) |
(91) |
2,941 |
606 |
| Profit after Exceptional Items before Tax after share of
profits in Joint Ventures & Associates |
8,523 |
(404) |
15,854 |
2,215 |
| Provision for Tax |
2,798 |
(140) |
4,770 |
847 |
| Profit for the Period from continuing operations |
5,725 |
(264) |
11,084 |
1,368 |
| Profit before Tax from discontinued operations |
1,425 |
2,171 |
- |
- |
| Tax expense of discontinued operations |
498 |
857 |
- |
- |
| Profit for the Period from discontinued operations |
927 |
1,314 |
- |
- |
| Profit for the Period |
6,652 |
1,050 |
11,084 |
1,368 |
| Earnings Per Share (Rs) |
46.25 |
7.51 |
73.42 |
10.74 |
Transfer of Business Undertaking
Based on a review of the long term strategy for the Pharmacy
Distribution business and the online digital healthcare platform Apollo 24x7, the Board at
its meeting held on 23rd June 2021, approved the proposal for going ahead with the
transfer of the business undertaking comprising of the Pharmacy Distribution business and
Apollo 24x7 online digital healthcare platform on a slump sale basis to a wholly owned
subsidiary company, Apollo HealthCo Limited for a net consideration of Rs12,100 million
(Rupees Twelve Thousand One Hundred Million Only) which is in excess of the networth of
the Business Undertaking transferred to Apollo HealthCo Limited. This move is expected to
result in the following benefits:
1. Facilitate creation of India's largest omni - channel digital
healthcare delivery platform and thereby enable huge funneling potential for healthcare
consumers into the Apollo ecosystem
2. Enable the process of combining the strength of the Apollo Hospitals
Group's offline healthcare leadership with new age digital offerings to address all
healthcare consumer needs
3. An asset light approach (through digital offerings) would be
followed to fuel growth and achieve the objective of getting 100 million targeted
registered users on the Apollo 24x7 digital platform in the next 5 years
4. An appropriate platform would be created for attracting a new pool
of investor capital and to enable rapid scale up of the business, The transfer would
include the Company's investment in the pharmacy retail business apart from all
related assets and liabilities. The Company had obtained members approval on 14th August
2021 and also obtained approval from lenders and other statutory authorities.
The Business Transfer agreement was entered into between the Company
and Apollo HealthCo Limited and the transfer of the business undertaking to Apollo
HealthCo Limited was completed on 16th March 2022. Consequently the Pharmacy Distribution
has been classified as discontinued operations and the prior period figures have been
restated accordingly.
Consequent to the above re-organisation, the Company is engaged only in
healthcare business and therefore has only one reportable segment as at March 31, 2022. On
account of the said change in the composition of reportable segments, the corresponding
information of standalone financials relatiing to earlier periods/year have been restated
as prescribed by IND AS 108.
The Standalone financials for the year ended March 31, 2022 are not
comparable with the financials for the year ended March 31, 2021 which included the front
end retail pharmacy business, included in the standalone pharmacy segment, until its
effective date of transfer i.e 1st September 2020.
Results of Operations
During the year under review, the income from operations of the Company
grew by 31% to Rs60,983million in FY 22 compared to Rs 46,539 million in the previous
year. The profit after tax for the year increased by 534% to Rs6,652 million compared to
Rs1,050 million in the previous year.
During the year under review, the consolidated gross revenue of the
Company increased by 39% to Rs146,626 million compared to Rs105,600 million. Net profit
after minority interest for the group improved by 710% to Rs11,084 million compared to
Rs1,368 million in the previous year.
Consolidated Financial Statements
In accordance with the Companies Act, 2013 ("the Act") and
Ind AS 110 - Consolidated Financial Statements read with Ind AS 28 - Investment in
Associates and Ind AS 31 - Interests in Joint Ventures, the audited consolidated financial
statements form part of the Annual Report.
In terms of provision to sub section (3) of Section 129 of the Act, the
salient features of the financial statements of the Subsidiaries, Associates and Joint
Venture Companies are set out in the prescribed Form AOC-1, which forms a part of the
Annual Report.
In accordance with Section 136 of the Act, the audited financial
statements, including the consolidated financial statements of the Company and audited
accounts of the subsidiaries are available at the Company's website:
www.apollohospitals.com. The documents will also be available for inspection during
business hours at the registered office of the Company.
Material Changes affecting the Company
There have been no material changes and commitments affecting the
financial position of the Company between the end of the financial year and the date of
this Report. There has been no change in the nature of business of the Company.
Scheme of Amalgamation
The Company had received approval from the Regional Director, Ministry
of Corporate Affairs on June 28, 2021 for the Scheme of Amalgamation with the following
wholly owned subsidiary companies: a. Apollo Home Healthcare (India) Limited (AHHCL) and
b. Western Hospitals Corporation Private Limited (WHCPL) The Appointed Date for the scheme
was 1st April 2020 and the entire assets and liabilities of AHHCL and WHCPL have been
transferred to and recorded by the Company at the respective book values. The entire share
capital of AHHCL and WHCPL held by the Company, stood cancelled without any further act or
deed and no consideration was issued upon the amalgamation coming into effect.
Dividend
The Board of Directors have recommended a dividend of Rs11.75 per
equity share (235% on face value of Rs5/-per share) on the paid-up equity share capital of
the company for the financial year ended 31st March 2022 amounting to Rs1,689 million
which if approved, at the forthcoming Annual General Meeting on 25th August 2022, will be
paid to those shareholders whose names appear in the Register of Members as at the closing
hours of business on 19th August 2022. 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 purpose.
The Register of Members and Share Transfer Books will remain closed
from Saturday, 20th August 2022 to Thursday, 25th August 2022 (both days inclusive).
In view of the changes made under the Income-tax Act, 1961, by the
Finance Act, 2020, dividends paid or distributed by the Company shall be taxable in the
hands of the Shareholders. Your Company shall, accordingly, make the payment of the
dividend after deduction of tax at source.
The Board approved and adopted a dividend distribution policy at its
meeting held on 30th May 2017 which is annexed herewith as Annexure – I to this
report and also posted on the Company's website: www.apollohospitals.com.
Subsidiaries, Associate Companies and Joint Ventures
At the beginning of the year, your Company had eighteen direct
subsidiaries, ten step down subsidiaries, four joint ventures and three associate
companies. As on 31st March 2022, your Company had eighteen direct subsidiaries, twelve
step down subsidiaries, two joint ventures and three associate companies.
The statement containing the summarized financial position of the
subsidiary companies viz., A.B. Medical Centres Limited (ABMCL), Samudra Healthcare
Enterprises Limited (SHEL), Apollo Hospital (UK) Limited (AHUKL), Apollo Hospitals
Singapore Pte Limited (AHSPL), Apollo Health and Lifestyle Limited (AHLL), Total Health
(TH), Imperial Hospital and Research Centre Limited (IHRCL), Apollo Multispeciality
Hospitals Limited (AMSHL), Apollo Home Healthcare Limited (AHHL), Apollo Nellore Hospital
Limited (ANHL), Sapien BioSciences Pvt Limited (SBPL), Apollo Rajshree Hospitals Pvt
Limited (ARHPL), Apollo Lavasa Health Corporation Limited (ALHCL), Assam Hospitals Limited
(AHL), Apollo Hospitals International Limited (AHIL), Future Parking Pvt Limited (FPPL),
Apollo Medics International Lifesciences Limited (MEDICS), Apollo HealthCo Limited (AHCL),
Apollo Sugar Clinics Limited (ASCL), Apollo Specialty Hospitals Pvt Limited (ASHPL),
Alliance Dental Care Limited (ADCL), Apollo Dialysis Pvt Limited (ADPL), Apollo CVHF
Limited (CVHF), Apollo Bangalore Cradle Limited (ABCL), Kshema Healthcare Pvt Limited
(KHPL), AHLL Diagnostics Limited (ADL), AHLL Risk Management Pvt Limited (ARMPL), Surya
Fertility Centre Private Limited (SFC), Asclepius Hospitals & Healthcare Pvt Limited
(ACHL) and Apollo Hospitals North Limited (AHNL) pursuant to Section 129 read with Rules 5
of the Companies (Accounts) Rules, 2014 is contained in Form AOC-1, which forms part of
the Annual Report.
1. A.B. 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 and building to
the company for running a hospital. For the year ended 31st March, 2022, ABMCL recorded an
income of Rs8.12 million and a net profit of Rs 6.42 million.
2. Samudra Healthcare Enterprises Limited (SHEL)
SHEL, a wholly owned subsidiary of the company, runs a 120 bedded multi
speciality hospital at Kakinada. For the year ended 31st March, 2022, SHEL recorded an
income of Rs504.03 million and a net profit of Rs72.09 million.
3. Apollo Health and Lifestyle Limited (AHLL)
AHLL, is a 68.20% subsidiary of the Company engaged in the business of
providing primary healthcare facilities through a network of owned/franchised clinics
across India offering specialist consultations, diagnostics, preventive health checks,
telemedicine facilities and 24-hour pharmacy all under one roof. For the year ended 31st
March, 2022, AHLL recorded an income of Rs7,198.20 million and a net profit of Rs610.10
million.
4. Total Health (TH)
TH, is a wholly owned subsidiary of the Company registered under
Section 8 of the Companies Act, 2013, which is engaged in carrying on CSR activities in
the field of community/rural development.
5. Apollo Hospital (UK) Limited (AHUKL)
AHUKL, is a wholly owned foreign subsidiary of the Company and has not
yet commenced its operations.
6. Apollo Hospitals Singapore Pte Limited (AHSPL)
AHSPL, is a wholly owned subsidiary of the Company and has not yet
commenced its operations.
7. Apollo Multispeciality Hospitals Limited (AMSHL)
AMSHL, is a wholly owned subsidiary of the Company which owns a 750 bed
multi speciality hospital in Kolkata. For the year ended 31st March 2022, AMSHL recorded
an income of Rs8,352.85 million and a net profit of Rs513.61 million.
8. Apollo HealthCo Limited (AHCL)
AHCL, is wholly owned subsidiary of the Company, which is engaged in
the business of pharmacy distribution and providing healthcare services through online
technology platforms. For the year ended 31st March 2022, AHCL recorded an income of Rs
2,295.92 million and net loss of Rs4.22 million.
9. Imperial Hospital and Research Centre Limited (IHRCL)
IHRCL, is a 90% subsidiary of the company which owns a 290 beded
multi-specialty hospital at Bengaluru. For the year ended 31st March, 2022, IHRCL
recorded an income of Rs3,135.81 million and a net profit of Rs304.30 million.
10. Apollo Home Healthcare Limited (AHHL)
AHHL, a 89.69% subsidiary of the Company is engaged in the business of
providing high quality, personalized and professional healthcare services at the doorsteps
of the patients. AHHL recorded an income of Rs854.47 million and a net profit of Rs
82.66 million.
11. Apollo Nellore Hospital Limited (ANHL)
ANHL a 80.87% subsidiary of the Company has leased out its land at
Nellore to the Company. ANHL recorded an income of
Rs 8.17 million and a net profit of Rs6.38 million.
12. Sapien Biosciences Private Limited (SBPL)
SBPL, is a 70% subsidiary of the company which is engaged in the
business of bio-banking of tissues. For the year ended 31st March, 2022, SBPL
recorded an income of Rs 25.36 million and a net loss of Rs1.21 million.
13. Apollo Rajshree Hospitals Private Limited (ARHPL)
ARHPL, a 54.63% subsidiary of the company, runs a multi speciality
hospital at Indore. For the year ended 31st March, 2022, ARHPL recorded an income of
Rs987.6 million and a net profit of Rs77.80 million.
14. Apollo Lavasa Health Corporation Limited (ALHCL)
ALHCL, a 51% subsidiary of the company, runs a hospital at Lavasa. For
the year ended 31st March, 2022, ALHCL recorded a net loss of Rs26.89 million.
15. Assam Hospitals Limited (AHL)
AHL, a 66.70% subsidiary of the company, runs a multi speciality
hospital at Guwahati. For the year ended 31st March, 2022, AHL recorded an income of
Rs1,735.94 million and a net profit of Rs181.19 million.
16. Apollo Hospitals International Limited (AHIL) AHIL, a 50%
subsidiary of the company, runs a multi speciality hospital at Ahmedabad. For the year
ended 31st March, 2022, AHIL recorded an income of Rs2,082.79 million and a net profit of
Rs167.26 million
17. Future Parking Private Limited (FPPL)
FPPL, a subsidiary of the company, has been promoted for the
development of a Multi level Car parking facility at Wallace Garden, Nungambakkam,
Chennai. FPPL recorded an income of Rs50.38 million and a net loss of Rs20.98 million
18. Apollo Medics International Lifesciences Limited (MEDICS)
MEDICS, is a 51% subsidiary of the company which owns a 330 bedded
multi-specialty hospital at Lucknow. For the year ended 31st March, 2022, Medics recorded
an income of Rs2,765.69 million and a net profit of Rs 339.66 million
19. Apollo Speciality Hospitals Private Limited (ASHPL)
ASHPL, a subsidiary of Apollo Health and Lifestyle Limited, is engaged
in the business of running daycare surgery centres. For the year ended 31st March, 2022,
ASHPL recorded an income of Rs4,807 million and a net loss of Rs302.8 million.
20. Apollo Sugar Clinics Limited (ASCL)
ASCL, a subsidiary of Apollo Health and Lifestyle Limited, is engaged
in the business of running diabetes management centres. For the year ended 31st March,
2022, ASCL recorded an income of Rs241.5 million and a net profit of Rs23.5 million.
21. Alliance Dental Care Limited (ADCL)
ADCL, a subsidiary of Apollo Health and Lifestyle Limited is engaged in
the business of running dental care centres and recorded an income of Rs281.75 million and
a net loss of Rs3.1 million for the year ended 31st March 2022.
22. Apollo Dialysis Private Limited (ADPL)
ADPL, a subsidiary of Apollo Health and Lifestyle Limited is engaged in
the business of running dialysis centers. For the year ended 31st March 2022, ADPL
recorded a revenue of Rs563.16 million and a net profit of Rs19.10 million.
23. AHLL Diagnostics Limited (ADL)
ADL, a subsidiary of Apollo Health and Lifestyle Limited is yet to
commence its operations.
24. AHLL Risk Management Private Limited (ARML)
ARML, a subsidiary of Apollo Health and Lifestyle Limited had recorded
an income of Rs0.07 million and a net loss of Rs3.15 million.
25. Apollo CVHF Limited (CVHF)
CVHF, a subsidiary of Apollo Hospitals International Limited is in the
business of providing healthcare services. For the year ended 31st March, 2022, CVHF
recorded an income of Rs299.14 million and a net loss of Rs2.48 million.
26. Apollo Bangalore Cradle Limited (ABCL)
ABCL, a subsidiary of Apollo Speciality Hospitals Private Limited, is
engaged in the business of running cradle centres. For the year ended 31st March, 2022,
ABCL recorded an income of Rs533.1 million and a net profit of Rs65 million
27. Kshema Healthcare Private Limited (KHPL)
KHPL, a subsidiary of Apollo Speciality Hospitals Private Limited is
yet to commence its operations
28. Surya Fertility Centre Private Limited (SFC)
SFC, a subsidiary of Apollo Speciality Hospitals Private Limited is
engaged in the business of running cradle and fertility centres. For the year ended 31st
March, 2022, SFC recorded an income of Rs39.9 million and a net profit of Rs0.86 million
29. Asclepius Hospitals & Healthcare Pvt Limited (ACHL)
ACHL, a subsidiary of Assam Hospitals Limited owns a 200 bedded
hospital in Guwahati, Assam. For the year ended 31st March, 2022, ACHL recorded an income
of Rs941.86 million and a net loss of Rs194.56 million
30. Apollo Hospitals North Limited (AHNL) AHNL, a wholly owned
subsidiary of the Company is yet to commence its operations.
Investments
Apollo Multispeciality Hospitals Limited (AMSHL) (formerly known as
Apollo Gleneagles Hospital Limited)
The Board of Directors, in their meeting held on November 11, 2020
approved the proposal to acquire the 50% equity stake held by Gleneagles Development Pte
Ltd., Singapore in AMSHL, in which the Company held a 50% equity stake at a consideration
of Rs4,100 million. The Company completed the acquisition of 50% equity stake held in
AMSHL by Gleneagles Development Pte Limited on 22nd April 2021. AMSHL became a
wholly-owned subsidiary of the company effective from April 22, 2021, and the name of the
Company was changed from Apollo Gleneagles Hospital Limited to Apollo Multispeciality
Hospitals Limited subsequently based on the approval obtained from the Ministry of
Corporate Affairs on 5th May 2021.
Divestment of stake in Apollo Medicals Private Limited
As a part of re-organisation of the identified business undertaking
comprising of the pharmacy distribution business and online technology platform Apollo
24|7, the Company's equity stake in Apollo Medicals Private Limited (AMPL) (an
associate) was transferred to Apollo HealthCo Limited, a wholly owned subsidiary of the
Company through a slump sale process.
Compliance with FEMA Regulations
During the year, your Company has obtained a certificate from the
Statutory Auditors certifying that the Company is in compliance with the FEMA regulations
with respect to the downstream investments made including Subsidiary Companies.
Corporate Governance
The Company is committed to maintain the highest standards of corporate
governance and adhere to the corporate governance requirements set out by SEBI. The report
on corporate governance as required under the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter Listing
Regulations), forms an integral part of this report. The requisite certificate from M/s.
Lakshmmi Subramanian & Associates, Practising Company Secretaries confirming the
compliance with the conditions of corporate governance is attached to the report on
Corporate Governance.
Management Discussion and Analysis Report
Management Discussion and Analysis Report for the year under review, as
stipulated under Regulation 34 of the Listing Regulations is presented in a separate
section forming part of the Annual Report.
Business Responsibility and Sustainability Report
As stipulated under the Listing Regulations, the Business
Responsibility and Sustainability Report (BRSR) describing the initiatives taken by the
Company from an environmental, social and governance perspective is attached as part of
the Annual Report. While BRSR reporting was purely voluntary for FY 2021-2022, the Company
decided to pro-actively comply with the BRSR guidelines from FY22 itself.
Sexual Harassment
The Company has adopted a policy on prevention, prohibition and
redressal of sexual harassment at the workplace in line with the provisions of the Sexual
Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the
rules framed thereunder. The Company has an Internal Complaints Committee for providing a
redressal mechanism pertaining to sexual harassment of women employees at the work place.
During the year, 4 complaints were received under the policy, all of them were disposed
off.
Vigil Mechanism/Whistle Blower Policy
The Company has established a vigil mechanism for Directors and
Employees to report their genuine concerns, the details of which are given in the
Corporate Governance Report. The policy on Vigil Mechanism and Whistle Blower Policy has
been posted on the website of the Company www.apollohospitals.com.
Particulars of Loans, Guarantees and Investments
The details of Loans, Guarantees and Investments covered under the
provisions of Section 186 of the Companies Act, 2013 are given in the notes to the
Financial Statements.
Fixed Deposits
During the year, your company did not accept any deposits or renew
existing deposits from the public. The total outstanding deposits with the Company as on
31st March 2022 were Rs1.13 million (Rs1.28 million as on 31st March 2021) which were not
claimed by the depositors.
Directors and other Key Managerial Personnel (KMPs) Board Composition
and Independent Directors
The Board consists of the Executive Chairman, four Executive Directors
and six Independent Directors as on 31st March 2022. Independent directors are appointed
for a term of five years and are not liable to retire by rotation.
All Independent Directors have given their declarations that they meet
the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013
and Regulation 16 (b) of the SEBI Listing Regulations, as amended from time to time.
Lead Independent Director
Shri MBN Rao, Independent Director and Chairman of the Audit Committee
has been appointed as the Lead Independent Director with effect from May 25, 2022. The
roles and responsibilities of the Lead Independent Director are provided in the Corporate
Governance Report forming part of this Annual Report.
Retirement by Rotation
Pursuant to Section 152 of the Companies Act 2013, Smt.Shobana
Kamineni, Director retires by rotation at the ensuing Annual General Meeting and being
eligible, offers herself for re-appointment.
Changes in Board Composition New Directors
During the year, Shri. Som Mittal and Smt. Rama Bijapurkar were both
inducted as Independent Directors for a term of 5 (five) consecutive years, with effect
from July 21, 2021 and November 12, 2021 respectively.
The Company received declarations from both Shri. Som Mittal and Smt.
Rama Bijapurkar confirming that they meet the criteria of independence prescribed under
the Act and Regulation 25 of the Listing Regulations.
Key Managerial Personnel
Pursuant to the provisions of Section 203 of the Companies Act, 2013,
the Key Managerial Personnel of the Company are Smt. Suneeta Reddy, Managing Director,
Shri. Krishnan Akhileswaran, Chief Financial Officer and Shri.S.M. Krishnan, Sr. Vice
President-Finance & Company Secretary. There has been no change in the Key Managerial
Personnel during the year.
Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and in terms of
Regulation 17(10) of the SEBI Listing Regulations, the Board has carried out an annual
performance evaluation of its own performance, the directors individually as well as the
evaluation of the working of the Committees. The manner in which the evaluation has been
carried out has been explained in the Corporate Governance Report.
Remuneration Policy
The Board has, on the recommendation of the Nomination &
Remuneration Committee, approved a policy for selection and appointment of Directors,
Senior Management personnel and their remuneration. The Remuneration Policy is stated in
the Corporate Governance Report.
Meetings of the Board
The Board met eight times during the financial year, the details of
which are given in the Corporate Governance Report. The intervening gap between the
Meetings was within the period prescribed under the Companies Act, 2013.
Risk Management
The Board of Directors had constituted a Risk Management Committee to
identify elements of risk in different areas of operations and to develop a policy for
actions associated to mitigate the risks. The Committee on a timely basis informed the
members of the Board of Directors about risk assessment and minimization procedures and in
the opinion of the Committee there was no risk that may threaten the existence of the
Company. The details of the Risk Management Committee are included in the Corporate
Governance Report.
Internal Financial Controls and their Adequacy
The Company has an Internal Control System, commensurate with the size,
scale and complexity of its operations
The scope and authority of the Internal Audit (IA) function is defined
in the Internal Audit Charter. To maintain its objectivity and independence, the Internal
Audit function reports to the Chairman of the Audit Committee of the Board. The details of
the internal control system and its terms of reference are set out in the Management
Discussion and Analysis Report forming part of the Board's Report. The Board of
Directors has laid down internal financial controls to be followed by the Company and the
policies and procedures to be adopted by the Company for ensuring the orderly and
efficient conduct of its business, including adherence to the Company's policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information. The Audit Committee evaluates the internal financial
control systems periodically.
Significant and Material Orders passed by the Regulators or Courts
There are no significant material orders passed by the Regulators /
Courts which would impact the going concern status of the Company and its future
operations.
Directors' Responsibility Statement
Pursuant to Section 134(5) of the Companies Act 2013, the Board of
Directors to the best of their knowledge hereby state and confirm: a. that in the
preparation of the annual financial statements for the year ended March 31, 2022 the
applicable accounting standards have been followed along with proper explanations relating
to material departures, if any; b. that such accounting policies have been selected and
applied consistently and judgement and estimates have been made that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the Company as at
March 31, 2022 and of the profit of the Company for the year ended on that date; c. that
proper and sufficient care has been taken for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 2013 for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities; d.
that the annual financial statements have been prepared on a going concern basis; e. that
proper internal financial controls were in place and that the financial controls were
adequate and were operating effectively; f. that systems to ensure compliance with the
provisions of all applicable laws were in place and were adequate and operating
effectively.
Share Capital
The paid-up Equity Share Capital as on March 31, 2022 was Rs718.93
million.
During the year under review, the Company has not issued shares with
differential voting rights nor granted stock options nor sweat equity. As of March 31,
2022, the details of shareholding in the Company held by the Directors are set out in the
Corporate Governance Report forming part of the Board's Report and none of the
directors hold convertible instruments of the Company.
Contracts and Arrangements with Related Parties
All contracts/arrangements/transactions entered by the Company during
the financial year with related parties were in the ordinary course of business and on an
arm's length basis. During the year, the Company had not entered into any
contract/arrangement/ transaction with related parties which could be considered material
in accordance with the policy of the Company on materiality of related party transactions
other than the transactions stated in Form No. AOC-2 in terms of Section 134(3)(h) read
with Section 188 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014.
The Policy on materiality of related party transactions and dealing
with related party transactions as approved by the Board may be accessed on the
Company's website www.apollohospitals.com. Your Directors draw the attention of the
members to the Notes to the financial statements which sets out related party disclosures.
None of the Directors have any pecuniary relationships or transactions
vis-?-vis the Company.
Termination of GDR Program
The Board of the Company at its meeting held on 12th February 2021 had
resolved to terminate the GDR program. The notice of termination of the GDR program was
sent to all GDR holders on 25th February 2021 by Bank of New York Mellon, Custodian of GDR
which will be effective from 26th March 2021. The holders could surrender their GDRs to
Bank of New York Mellon, for delivery of underlying equity shares up to the period of
March, 2022, subsequent to which Bank of New York Mellon, Custodian would attempt to sell
the underlying shares and distribute the net proceeds to the respective GDR Holders.
As on March 31, 2022, the total outstanding GDRs was 88,607
representing 0.06% of the paid up share capital of the Company. All the GDRs were
subsequently converted into underlying equity shares. There are no outstanding GDRs as on
date and the GDR programme was terminated and delisted from the Luxembourg Stock Exchange.
Particulars of Employees and related disclosures
In terms of the provisions of Section 197(12) of the Act read with
Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial
Personnel) Rules, 2014, as amended, a statement showing the names and other particulars of
the employees drawing remuneration in excess of the limits set out in the said rules are
provided in the Annual Report, which forms part of this Report. Disclosures relating to
remuneration and other details as required under Section 197(12) of the Act read with Rule
5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
are also provided in the Annual Report, which forms part of this Report.
Having regard to the provisions of Section 136(1) read with the
relevant provisions of the Companies Act, 2013, the Annual Report excluding the aforesaid
information is being sent to the members of the Company. The said information is available
for inspection at the Registered Office of the Company during working hours. Any member
interested in obtaining such information may write to the Company Secretary and the same
will be furnished free of cost.
Employee Stock Options
No Employee Stock Options have been granted to the employees of the
Company and thus no disclosure is required.
Corporate Social Responsibility Initiatives
As part of its initiatives under Corporate Social Responsibility (CSR),
the Company has undertaken projects in the areas of Rural Development, Healthcare,
Education & Skill Development and Research in Healthcare.
These projects are in accordance with Schedule VII of the Companies
Act, 2013. The Report on CSR activities for the financial year 2021-2022 is annexed
herewith as "Annexure A".
Statutory Auditors
M/s. Deloitte Haskins & Sells LLP, Chartered Accountants having
registration No. 117366W/ W100018 were appointed as the Statutory Auditors of the Company
to hold office from the conclusion of the 36th AGM held on 20th September 2017, until the
conclusion of the ensuing Annual General Meeting and is eligible for reappointment. The
Company has received confirmation from the Auditors to the effect that their appointment,
if made, will be in accordance with the limits specified under the Companies Act, 2013 and
the firm satisfies the criteria specified in Section 141 of the Companies Act, 2013 read
with Rule 4 of the Companies (Audit & Auditors) Rules 2014. The Board is of the
opinion that the continuation of M/s. Deloitte Haskins & Sells LLP, as Statutory
Auditors will be in the best interests of the Company and therefore, the members are
requested to consider their re-appointment as Statutory Auditors of the Company, for the
second and final term of five consecutive years, from the conclusion of the ensuing Annual
General Meeting, till the conclusion of the Annual General Meeting to be held in the
calendar year 2027, at such remuneration as may be mutually agreed and approved by the
Board. The Report given by the Statutory Auditors on the financial statement of the
Company for the year 2022 forms part of the Annual Report. The Notes on financial
statement referred to in the Auditor's Report are self-explanatory and do not call
for any further comments. The Auditors' Report on the financial statements of the
Company for the financial year ended March 31, 2022 is unmodified i.e. it does not contain
any qualification, reservation or adverse remark.
Cost Auditors
Pursuant to Section 148 of the Companies Act, 2013 read with the
Companies (Cost Records and Audit) Amendment Rules, 2014, the Board on the recommendation
of the Audit Committee, appointed M/s. A.N. Raman & Associates, Cost Accountants,
Chennai (FRN 102111) to audit the cost accounts of the Company for the financial
year 2022-2023 on a remuneration of Rs1.50 million.
As required under the Companies Act, 2013, the remuneration payable to
the cost auditor is required to be placed before the Members in a general meeting for
their ratification. Accordingly, a resolution seeking Member's ratification for the
remuneration payable to M/s. A.N. Raman & Associates, Cost Accountants, Chennai
(FRN102111) is included at Item No. 8 of the Notice convening the Annual General Meeting.
The Company has maintained cost records in accordance with the
provisions of the Companies Act, 2013 read with the Companies (Cost Records and
Audit) Amendment Rules, 2014 in respect of healthcare services.
Secretarial Auditors
The Board had appointed Smt. Lakshmmi Subramanian, Senior Partner, M/s.
Lakshmmi Subramanian & Associates, a firm of Company Secretaries in Practice, to
conduct Secretarial Audit for the financial year 2021-2022. The Secretarial Audit Report
for the financial year ended March 31, 2022 is annexed herewith as "Annexure B".
The Secretarial Audit Report does not contain any qualification, reservation or adverse
remark.
Statutory Auditors and Secretarial Auditors Report
The Directors hereby confirm that there is no qualification,
reservation or adverse remark made by the statutory auditors of the company or in the
secretarial audit report by the practicing company secretary for the year ended 31st
March, 2022.
Particulars regarding Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo.
Information as required to be disclosed on conservation of energy,
technology absorption and foreign exchange earnings and outgo stipulated under Section
134(3)(m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules,
2014, is annexed herewith as "Annexure C".
Annual Return
In terms of Section 92(3) of the Companies Act, 2013 and Rule 12 of the
Companies (Management and Administration) Rules, 2014, the Annual Return of the Company is
available on the website of the Company at
https://www.apollohospitals.com/investor-relations.
Acknowledgement
Your Directors wish to place on record their appreciation of the
contribution made by the employees at all levels, towards 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 : July 16, 2022 |
Executive Chairman |
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