FORWARD-LOOKING STATEMENTS

Some information in this report may contain forward-looking statements which include statements regarding Company’s expected financial
position and results of operations, business plans and prospects etc. and are generally identified by forward-looking words such as ‘‘believe,”
‘‘plan,” ‘‘anticipate,” ‘‘continue,” ‘‘estimate,” ‘‘expect,” ‘‘may,” ‘‘will” or other similar words. Forward-looking statements are dependent on
assumptions or basis underlying such statements. We have chosen these assumptions or basis in good faith, and we believe that they are
reasonable in all material respects. However, we caution that actual results, performances or achievements could differ materially from those
expressed or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement,
whether as a result of new information, future events, or otherwise.

INSIDE THE PAGES

01
CORPORATE OVERVIEW
45
STATUTORY REPORTS

02 Aster At a Glance
45 Business Responsibility Report

04 Chairman’s Message
52 Management Discussion and Analysis

06 Q&A with CFO

62 Board’s Report

07 Message from Aster Leadership

93 Corporate Governance Report

08
103
Financial Summary and Highlights

10 Aster DM Healthcare’s Edge

FINANCIAL STATEMENTS
11 Our Vision and Values

12 Our Evolution and Growth 103 Independent Auditors’ Report

14 Our Presence 108 Balance Sheet

16 Our Business Model 109 Statement of Profit and Loss

18 Clinical Review 110 Statement of Changes in Equity

36 Awards and Accreditations 112 Cash Flow Statement

38 Corporate Social Responsibility 114 Notes to the Standalone Financial Statements

42 Board of Directors 159 Consolidated Independent Auditors’ Report

43 Management Team 164 Consolidated Balance Sheet

44 Corporate Information 165 Consolidated Statement of Profit and Loss

166 Consolidated Statement of Changes in Equity

169 Consolidated Statement of Cash Flow

171 Notes to the Consolidated Financial Statements

Belonging to the healthcare
industry, we know how much
difference the right care at the
right time can make. And we
believe that quality healthcare
should be accessible to one and
all – because each life counts.
So, we have and still are striving
to continuously expand our
accessibility to the people across
the length and breadth of India
and the GCC countries.

And we are also

constantly developing
and bettering
our services and
bringing them at par
with international
standards – while
keeping them within
the means of the
common man. All in
the effort to provide
quality and affordable
healthcare to all!
ASTER AT A GLANCE
Aster DM Healthcare is an integrated healthcare service organisation, that provides
the complete circle of care to people through its world-class network of hospitals,
clinics and pharmacies, providing primary to quaternary care to all segments of
population. Aster DM Healthcare Limited is one of the largest private healthcare
service providers in Asia with a total of 327 facilities spread across Gulf Cooperation
Council (GCC) countries and India. All our efforts are directed towards making a
positive difference in the lives of patients that we serve everyday.

02 Aster DM Healthcare Limited

 Corporate Overview
We commenced our operations in 1987 as a single Doctor Clinic in Dubai, and over the last
three decades have grown our presence in 9 countries across GCC and India. We have the
largest number of Medical Centres or Polyclinics in GCC and chain of pharmacies in UAE. We
conduct our business in various segments of the healthcare value-chain including hospitals,
clinics and retail pharmacies under the aegis of our brands ‘Aster’, ‘Medcare’, and ‘Access’.

Hospitals Clinics Pharmacies

19 101 207
9 10 94 7 207
GCC India GCC India GCC

One of the Largest Private Present in 9 countries (UAE,

Healthcare Service Providers Saudi Arabia, Qatar, Oman,
operating in Asia (GCC & India) Bahrain, Kuwait, Jordan, Philippines
and India)

Largest Number of Medical Largest Chain of Pharmacies

Centres or Polyclinics in GCC in the UAE

Capacity Beds Patient Visits Revenue (FY18)

4,762 ~17 Mn J6,760 Cr
875 3,887 ~15 Mn ~2 Mn 5,582 Cr 1,178 Cr
GCC India GCC India GCC India

Human Resource
17,335

1,430 5,935 9,970

Doctors Nurses Other

Annual Report 2017-18 03

CHAIRMAN’S Dear Shareholders,

MESSAGE It gives me great pleasure to present in front of you the first annual
report of Aster DM Healthcare Limited, after successful listing on
Indian Stock Exchange on 26th February, 2018. Aster DM Healthcare

We have commissioned is a 30-year old well integrated, comprehensive healthcare service

organization with presence in 9 countries.

two new hospitals, I consider it appropriate to share with all of you some basic facts

increased the number of about the company. Our presence in India dates back to 2001 with
a large 300-bed hospital in Kerala. Proportion of our revenue from

beds from 4,651 to 4,762. India has grown from 11% in FY15 to 17% in FY18. Even now we have
83% of revenues coming from the establishments outside India and
hence we have the unique distinction of being one among the very
few companies listed in the Indian stock market with operating
units, income and profits arising outside India.

Before providing operational and strategic achievements about the

company, I would like to share with you our financial performance
for the FY18. I am extremely happy to announce that we have
posted a revenue growth of 13% (constant currency growth of 18%)
for the whole year and we have delivered a 189 % (constant currency
growth of 200%) growth in PAT (pre – non-controlling interest) during
REVENUE (IN H CRORE)

6,760
FY18. The revenues (excluding finance and investment income) for
FY18 stood at H6,760 crore and EBITDA at H651 crore.

Revenue excludes interest and investment income. Apart from the successful listing and good financial performance,
FY18 has been an eventful year for Aster DM Healthcare. We have
commissioned two new hospitals, increased the number of beds
EBITDA (IN H CRORE) from 4,651 to 4,762. We have 17,335 employees as on 31 March

651 2018. We take pride in the fact that we are a comprehensive service
provider, ranging from Primary to Quaternary medical care in 9
countries, through our 101 Clinics, 19 Hospitals and 207 Pharmacies.
We also have the unique distinction of serving the customers by

04 Aster DM Healthcare Limited

 Corporate Overview
providing quality healthcare to all segments of the society regardless REVENUE MIX
of their economic or social positioning. In line with this, we
conceptualized the Company’s three brands - Medcare for the high
income, Aster for the middle-income and Access for low-income FY18
strata of the population. We have perfected these models in UAE
over last 10 years and can roll it out in other geographies, as and FY15
when required. This gives us a unique strategic advantage to serve
the full pyramid of human population.

More important to us than the number of establishments, is our

achievements in the area of clinical quality and patient care. We are
proud that most of our hospitals in India are accredited by the NABH.
In fact, way back in 2007, our MIMS hospital at Calicut became the
first multi-specialty hospital in India to be accredited by the NABH. Geography FY18 FY15
We have six hospitals, including one in India that are accredited by GCC 83% 89%
Joint Commission International (JCI). Our highly specialized doctors India 17% 11%
are providing excellence in patient care, and doing many procedures
that have been attempted for the ‘first’ time in the country. Some
examples include the paediatric dual liver and kidney transplant in doing business in multiple geographies. One of the challenges for
from a live donor, robotic trans-vaginal renal transplant, minimally us with large portion of the revenues arising from GCC is the oil price
invasive multilevel cervical disc decompression etc. Recognition by to a certain extent. We have faced the impact of this in Saudi Arabia
way of awards were plenty, some of the important ones during the couple of years back with receivables going up and have restructured
year include the Asia Healthcare Excellence Award, FICCI Award for the business to insulate against this as much as possible in the last
Healthcare Innovation, Asian Hospital Management Association two years.
Award, Dubai Quality Appreciation Award, International Patient
Safety Award etc. In this digital age, one of the best barometers of Another key challenge is getting good healthcare professionals
performance for any institution is the Google Rating. I am proud to for the ever-expanding need of our institutions. While this is a
share that you will see us at the top of the list in Google Rating in challenge for all healthcare companies, we are marginally in a better
most places where our establishments are present. situation because of the access to the medical and paramedical
graduates passing out of our own sister institutions in Kerala. There
Our greatest strengths are the soundness of our vision, philosophy are challenges like increase in minimum wages of nursing and
and values rooted in ethical approach which is important for any paramedical staff in some of the geographies like Kerala where we
industry, more so in the healthcare sector. We envision a “Caring have significant presence, but we hope that we can manage this by
Mission with Global Vision’ with the philosophy that “Profit should market correction of tariff as we go forward.
be the by-product and not the aim in health care’. Our six core
values are Passion for the work we do, Respect for all stake holders, Healthcare, as we all know is a sector with significant potential in
Integrity in our actions, Compassion to our patients, Excellence in geographies like India and GCC. At the macro level, the GDP spent on
what we do and Unity as a Team. We make it a reality through the healthcare in India is very low and there is significant demand supply
team work of a seasoned and committed management and clinical gap. Low affordability and insurance penetration are major reasons
team. We are proud that the retention of our senior management why healthcare hasn’t taken off to the extent required. With the
and top consultants have been over 90% in last 10 years. Focus on new National Health Protection Scheme announced by the Central
human capital, investments in state-of-the-art equipment and Government covering half of the population in India, we expect
fostering an environment of innovation has helped us retain skilled improvement of capacity utilization in some of our Indian hospitals
talent reflected in our low attrition rate. The Company has 17,335 and scope for further expansion. Our strategy for India is to focus on
employees who we proudly call “Asterians” including 1,430 doctors large hospitals in Metros and Tier-I cities with an asset-light model.
and 7,926 nursing and paramedical personnel, focused on delivering We also foresee significant potential in bringing patients to our
compassionate care through our brand promise to clientele: “We’ll hospitals in India for high end procedures due to our presence in GCC
Treat You Well.’ countries through medical value travel. We already have 15-20% of
revenues of some of our large hospitals like Aster Medcity in Kochi,
I would like to call to your attention an unique aspect of seasonality coming from foreign patients. We have a large part of our business
of operations in our business which impacts our financial in GCC with an asset-light model providing high ROCE. Further, our
performance. The seasonality is because of the decline in volumes GCC operations is exposed to stable currencies pegged to US dollars,
across hospitals, pharmacies and segments during the summer creating a natural hedge to currency fluctuations.
months in the GCC countries from where we derive about 80% of
our annual revenues. The H1 and H2 revenues in GCC are usually We look forward to a great year ahead with the trust and faith of our
split 45%-55% but the EBITDA split can vary as much as 30% and 70% shareholders and patients. I would like to thank all our shareholders
for H1 and H2. This is due to the high fixed cost and operational who have put their trust on us. I would also like to thank our
efficiencies kicking in with higher revenues in H2. This skews the employees for their dedication and hard work and look forward to
picture significantly for the first and second half-yearly results. another exciting year.

While we have done very well in the last 10 years in business growth Dr. Azad Moopen
and financial performance, we are aware of the challenges and risks Founder, Chairman and Managing Director

Annual Report 2017-18 05

Q&A WITH CFO

HOW WOULD YOU SUMMARISE ASTER DM HEALTHCARE’S

PERFORMANCE IN FY18?
Aster DM Healthcare has delivered strong financial performance
with significant improvements in revenue, EBITDA and PAT. In FY18,
revenues excluding finance and investment income grew 13% YoY
to H6,760 crore, up from H5,963 crore in FY17. In constant dollar
currency the growth will be at 18%. This was backed by healthy
growth in all segments.

Q&A
In FY18, EBITDA increased to H651 crore, up 79% YoY from H364 crore
in FY17. PAT (pre non-controlling interest) increased to H282 crore,
up by 189% YoY from H98 crore in FY17.

The above performance includes the initial losses of two new

hospitals in GCC – Medcare Hospital in Sharjah, UAE and Aster
Hospital, Doha, Qatar. The combined EBITDA loss for these two
entities was H93 crore in FY18; however, these units have ramped up
over the year resulting in a relatively low combined EBITDA loss of H9 our operations from India, that will help us de-risk and also help us
crore in fourth quarter of the financial year FY18. leverage the medical tourism from GCC region.
I am pleased to share the improvements in balance sheet. Our net Profitability in India also depends a lot on the asset profile. Large
debt-to-equity at 1.1 as on March 31st 2017, now stands at 0.6 as hospitals in metros and tier-I cities are more efficient and profitable,
on March 31st 2018. Debt-to-EBITDA ratio have improved from 7.1 as long as we can differentiate ourselves based on clinical and
as on March 31st 2017 to 2.9 as on March 31st 2018. Our target service quality as we have done in our flagship hospitals in Kochi and
debt-to-EBITDA ratio will be below 3. Bangalore. We are committed to follow this strategy going forward.

CAN YOU PLEASE ELABORATE ON THE PROFITABILITY COULD YOU EXPLAIN TO THE SHAREHOLDERS THE
PROFILE OF ESTABLISHED UNITS ACROSS THE BUSINESS SEASONALITY OF OPERATIONS IN GCC?
SEGMENTS OF THE COMPANY? Expats form a major proportion of the population in GCC countries
Aster DM Healthcare’s operations can be grouped into four business barring Saudi Arabia. During summer season and school holidays,
segments – GCC Hospitals, GCC Clinics, GCC Pharmacies and India there is a population outflow from GCC region. Also, even some our
Hospitals & Clinics and their revenue contributions are around 29%, doctors travel back to their home country during this period, which
26%, 28% and 17% respectively in FY18. falls mostly in the first half of the financial year. This results in a
decrease in revenue as compared to second half the financial year.
One common thread across our GCC business segments is the
This impact is especially pronounced in our primary care facilities
asset light model and the resulting high return on capital employed
like clinics and pharmacies. In the second half of the year, increase in
(ROCE). ROCE of established units in our GCC hospitals and GCC
revenue results in proportionately larger increase in profitability due
clinics segments is around 27% - 29%, while in our GCC Pharmacies
to operating leverage.
segment is around 39%. EBITDA margins of established units of
more than three years vintage in our GCC Hospitals, GCC clinics and WHAT ARE THE EXPANSION PLANS OF THE COMPANY?
GCC Pharmacies segments are ~18%, ~15% and ~9% respectively. We have a planned capex outlay of H650 crore; H300 crore in India
and H350 crore in GCC for FY19 and another H300 crore for FY20. The
In India we have focused on growth and brand establishment over
above capex includes our capex for capacity addition through new
the last few years. EBITDA margin of established hospitals of more
hospitals, clinics & pharmacies and also maintenance capex. We
than three years vintage in India is currently around ~13%. Going
have over 1200 hospital beds in pipeline across GCC and India.
forward, the focus will be on cost efficiencies across all business
segments to further enhance the profitability profile. As a strategy we believe our future expansions should be based on
asset light model. Another key consideration to guide our expansion
WITH RETURNS OF GCC OPERATIONS BEING HIGHER THAN
plans is to balance profitability with growth. We believe a growing
INDIA OPERATIONS, ARE WE LOOKING AT EXPANDING THE EBITDA profile, leaner balance sheet, improvement in utilization and
INDIA OPERATIONS? margin expansion led by ramp up of recently set up units, sets the
In India, in the medium and long-term there is an expected increase stage for us to deliver incremental free cash flows going forward.
in affordability of people and there is a huge demand/supply gap in
healthcare. Further, insurance penetration is currently very limited in Sreenath Reddy
India and we expect the same to increase. If we have around 25% of Chief Financial Officer

06 Aster DM Healthcare Limited

MESSAGE FROM

Corporate Overview
ASTER LEADERSHIP

Our Company’s strengths lie in our In India, our diversified portfolio is Healthcare in UAE has evolved over
differentiated model and the strategic predominantly tertiary and quaternary the years and with the implementation
direction that the company is taking in care. Currently, the India operations have of mandatory health insurance in
order to deliver sustainable performance 10 hospitals with 3887 beds, with flagship Dubai in early 2017 there has been a
that is underlined by growth. The most hospitals located at Kochi, Calicut and significant growth in the daily patient
important aspect for us as a healthcare Bangalore. Aster MIMS Calicut, India’s footfalls at our Clinics, Diagnostic
organization is the impact that we are first NABH accredited multi-specialty Centers & Pharmacies. To keep up
able to make and the number of lives hospital, is perceived to be the dominant with the growth & the rapidly changing
we are able to heal. In 2017-18, it gives tertiary care referral hospital for the north dynamics of the healthcare industry,
me great pride to say, that we treated of Kerala. The flagship hospital in Kochi and to deliver a seamless end-to-
15 million patients in GCC. The focus – Aster Medcity is a Joint Commission end customer experience, we as a
area for us has been to enhance our International (JCI) and NABH accredited responsible healthcare provider have
reach slowly and steadily; and have a hospital. Our new unit located in north taken a strategic shift by bringing our
brand that you can trust, that caters Bangalore, Aster CMI Hospital, with a key primary care businesses, i.e. Clinics,
to day to day incidents such as broken state-of-the-art Minimal Access and Diagnostic Centers & Pharmacies
bones and routine vaccinations to Robotic Surgery unit and a multi-organ under one common umbrella of
advanced complex medical care. In transplant centre, is also a flagship ‘ASTER PRIMARY CARE’. This shift
the last five years we have expanded unit that has made its presence felt in has enabled consolidation of key
our capacity significantly in GCC; from Karnataka. In India, we have three new functions like Operations management,
145 operating units – 6 hospitals, 41 hospitals coming up one in Kerala, one in Business development, Supply chain,
clinics & 98 pharmacies in FY13 to 310 Chennai and one in Bangalore. This will IT, Procurement, Human capital
operating facilities – 9 hospitals, 94 augment the India capacity by additional management etc. which will bring in
clinics and 207 pharmacies in FY18. This 923 beds. The impending announcement more efficiency into the system and
is a testament to our brand strength of the National Health Provision Scheme further will enhance the journey of our
and execution capabilities. We have two will provide a boost in terms of healthcare patients at every single touchpoint.
planned hospitals in Dubai, another in expenditure as a percentage to total GDP This development will strengthen us
Sharjah and expansion of existing facility and vastly extend the coverage for our as an organization and position us as
in Riyadh with the combined capacity citizens. We have brought significant the preferred partner in the healthcare
of 307 beds in the pipeline. A challenge synergies in operational efficiencies across business community & all regulatory
faced by nations across the globe, in our network by the pooling of Human authorities.
both developing and devolved countries Resources, standardizing the supply
is the need for healthcare to be effective, chain and improving clinical outcomes With a mission to provide affordable
efficient and sustainable. Aster is with common benchmarking in-line healthcare, we continue to expand our
committed to contribute meaningfully to with reputed international benchmarks. offerings beyond Dubai to other parts of
be part of this solution. Additionally, our focus would be to adopt UAE & GCC in line with the anticipated
an Information Technology backbone that implementation of mandatory health
Alisha Moopen would improve the delivery of care and insurance in these regions.
Chief Executive Officer –GCC Hospitals & outreach of the clinical workforce to serve
Clinics the needs of our community. Jobilal M. Vavachan
Chief Executive Officer, Aster
Dr. Harish Pillai Pharmacies, Aster Clinics – UAE
Chief Executive Officer – India

Annual Report 2017-18 07

FINANCIAL SUMMARY
AND HIGHLIGHTS

Revenue (in H crore)

SEGMENT WISE BREAKUP OF
6,760 REVENUE IN FY18
5,963

CONSTANT CURRENCY GROWTH Hospitals 46%

18% Pharmacies
Clinics
28%
26%
YOY GROWTH

FY17 FY18 13%

EBITDA (in H crore)

SEGMENT WISE BREAKUP OF
651 EBITDA IN FY18

CONSTANT CURRENCY GROWTH Hospitals 50%

364
86% Pharmacies
Clinics
23%
27%
YOY GROWTH

FY17 FY18 79%

EBITDA Margin (in %) EPS-Basic (in H per share)

9.6 5.75

6.1

7.1%
2.20
YOY GROWTH

FY17 FY18 350bps FY17 FY18 ROCE (Pre-tax)

08 Aster DM Healthcare Limited

 Corporate Overview
GEOGRAPHICAL WISE BREAKUP
5,611 OF REVENUE IN FY18

GCC 83%
 India 17%

1,149

GEOGRAPHICAL WISE BREAKUP OF

EBITDA IN FY18

GCC 85%
India 15%

PAT Margin (in %) PAT (Pre-NCI*) (in H crore)

4.2 282
200%
Constant
Currency growth

1.6 98
YOY GROWTH YOY GROWTH

FY17 FY18 260bps FY17 FY18 189% * NCI - Non Controlling Interest

Annual Report 2017-18 09

ASTER DM HEALTHCARE’S EDGE

Aster DM Healthcare – A Healthcare Seasoned core management team

Ecosystem
• Directors/officers with an average
• Presence across hospitals, clinics & tenure of 18 years of healthcare
pharmacies and providing primary, experience
secondary and tertiary/ quaternary
care • Strong second line of management
• Strategic and sizeable network of with managerial, healthcare and
clinics enable patient feeder structure regulatory experience to provide
stability
• 101 Clinics in GCC and India

Synergies in Operations due to Presence

Differentiated Asset-light Business
in GCC & India
Model in GCC
• GCC operations contribute ~83%
• Asset light model which is built
of revenue and Indian operations
around a leased asset as against the
contributes ~17% of revenue
traditional system of owned asset
• GCC network leveraged to promote
• Established units in GCC exhibit high
medical value tourism to India
average return on capital employed
• India network leveraged to source high (ROCE) (25% - 30%, excluding corporate
quality medical professionals overheads for established units of
more than 3 years)
• Low cost of debt in GCC (5% - 6%)
• Presence across hospitals, clinics &
pharmacies and providing primary,
secondary and tertiary/ quaternary De-risked Business Model
care
• Diversified revenue sources from
• Strategic and sizeable network of multi-geography and multi-economic
clinics enable patient feeder structure segment operations
• Presence across all economic
segments through our three brands –
Strong track record of performance since Medcare, Aster and Access
inception • GCC operations exposed to stable
• Built notable financial, operational, currencies pegged to US dollars,
societal growth trajectory in GCC creating a natural hedge to currency
fluctuations
• Rapid scale-up in hospitals, clinics and
pharmacies across geographies

No. of No. of No. of

pharmacies hospitals clinics Benchmark healthcare practices
• Highest standards of patient
207 19 101 care reflected in several industry
recognitions and patient
endorsements on rating platforms
98 10
41

FY13 FY18 FY13 FY18 FY13 FY18

10 Aster DM Healthcare Limited

OUR VISION AND VALUES

Corporate Overview
Our Vision In pursuit of providing quality healthcare that
is affordable and accessible for our people.

‘A caring mission with a global vision.’

“We’ll treat you well’. A promise that sums up what

Our Promise we do and why we exist. One that we strive to honour
every day, every moment.

Patients Employees Stakeholders Society

Our Values Excellence

To surpass current benchmarks
Respect
To treat people with utmost dignity,
constantly by continuously challenging valuing their contributions and
our ability and skills to take the encourage a culture that allows each
organization to greater heights. individual to utilize their full potential.

Compassion Passion
To move beyond boundaries with To go the extra mile voluntarily,
empathy and care. with a sense of belongingness and
purpose while creating value for all our
stakeholders.
Integrity
To do the right thing without any
compromise and embrace a higher Unity
standard of conduct. To harness the power of synergy
and engage people for exponential
performance and results.

Annual Report 2017-18 11

OUR EVOLUTION AND GROWTH
Robust growth across all
New geographies, Brand ‘Aster’ was formed, segments and geographies
Building the segments, and service private equity investment, along with rapid expansion
Foundations offerings further expansion in India

1987 2003 2008-09 2015

We commenced We expanded into new We entered Oman with Al We opened our first clinic in
our operations geography, Qatar by setting Raffah Hospital in Muscat, Philippines and Bahrain
as a single doctor up clinics and we also opened a new
clinic in Dubai hospital in Sohar, Oman 2016
2005 We increased our stake in Sanad
1995 We entered in new segment 2010 Medical Care, KSA to 97%
We launched with Al Rafa Hospital in UAE We consolidated the group’s
our first medical medical facilities under one 2016
centre 2006 brand, Aster We had set up Medcare Women
We entered into premium and Child hospital in UAE
GCC

segment Medcare hospital 2011

in UAE We acquired a minority stake 2017
in Sanad hospital, KSA and We had set up Medcare hospital
acquired Medicom Pharmacy in Sharjah, UAE and Aster
group in UAE Hospital in Doha, Qatar

2012
We had set up Medcare
Orthopedics and Spine
hospital in Dubai, UAE. We
also acquired Al Shafar
Pharmacies in UAE

Foundation Expansion Consolidation Growth

(1987-2000) (2001-2007) (2008-2012) (2013 onwards)

2001 2008 2014

We commenced our We undertook the first round We acquired management
Indian operations at MIMS of private equity investments rights in Aster CMI in Bangalore
hospital in Kozhikode, in India
Kerela 2014
2008 Aster Medcity was inaugurated
We acquired majority stake in Kerala
in Prerna hospital, Kolhapur
2014
2012 We acquired majority stake in
INDIA

We conducted second round Sainatha hospitals, Andhra Pradesh

of private equity investment
2016
We acquired majority stake in
Dr. Ramesh Hospital
2016
We acquired Operations and
Maintenance rights in DM
Wayanad Institute of Medical
Sciences, Wayanad in Andhra
Pradesh
2017
We entered into an Operations and
Maintenance contract Rashtreeya
Sikshana Samithi Trust

12 Aster DM Healthcare Limited

 Corporate Overview
Over last 5 years we had a dual focus of capitalizing on the mandatory
insurance introduction in GCC states, and creating a significant presence in
Indian healthcare market. During this period, we experienced a robust growth
and also created capacity for further growth which resulted in an extensive
geographical footprint.

OUTPATIENT COUNT - CLINICS AND INPATIENT COUNT (IN ‘000)

HOSPITALS (IN MILLIONS)

7.8 211
6.7
5.6 158
125
4.2 104
3.4 85
5 Year CAGR 5 Year CAGR
29% 41%
2.2
38
FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18

ASTER DM - OPERATIONAL REVENUE OPERATIONAL BEDS

(IN H CRORE)
1309 1335 1772 1976 3451 3538 Total

6721
5931
5250
2777
3876 2836
2871 1306 1436
5 Year CAGR
28%
908 917 India
1922
615 761
401 418 466 540 GCC
FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18

NUMBER OF FACILITIES (IN UNITS) INSTALLED BEDS

149 162 249 280 316 327 Total 1419 1455 2524 3632 4651 4762 Total

207
202
180 3887
166 3983
Clinics
98 107 2007 3083
96 101 Pharmacies 1018 1036 India
69 87
41 45 668 875
10 10 14 13 18 19 Hospital 401 419 517 549 GCC
FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18

Annual Report 2017-18 13

OUR PRESENCE

9
Number of countries
we are present

GCC

9 94 207
Hospitals Clinics Pharmacies

Medcare Aster

Medcare Multispeciality hospital Aster Hospital at Mankhool in

in Dubai, UAE Dubai, UAE
Medcare orthopedics and spine Aster Hospital in Qatar
hospital in Dubai, UAE Al Raffah Hospital in Muscat,
Medcare Women and Children Oman
Hospital in Dubai, UAE Al Raffah Hospital in Sohar,
Medcare hospital in Sharjah, UAE Oman
Sanad Hospital in Riyad, KSA

Countries in which Aster DM Healthcare is present in:

C - 77 C-7
UAE P - 174 Qatar P-6 Kuwait P-9 Philippines C-2

C-6
Oman P-6 KSA Jordan P - 12 Bahrain C-2

C - Clinic P - Pharmacy

14 Aster DM Healthcare Limited

 Corporate Overview
INDIA
States we are present in India:
Kerala C - 1

10
Karnataka C - 5
Maharashtra
Hospitals in India Telangana
Andhra Pradesh (A.P) C - 1

Aster
Aster Medcity in Kochi, Kerala
Aster MIMS in Calicut, Kerala
Aster MIMS in Kottakal, Kerala
Aster CMI in Bangalore, Karnataka
Aster Aadhar in Kolhapur, Maharashtra
Aster Prime at Ameerpet in Hyderabad,
Telangana

7 DM WIMS in Wayanad, Kerala

Ramesh Hospital in Guntur, A.P
Clinics in India
Ramesh Hospital at M G Road, in
Viijaywada, A.P
Ramesh Hospital at Labbipet
Vijayawada, A.P
C - Clinic P - Pharmacy

Annual Report 2017-18 15

OUR BUSINESS MODEL

A Healthcare Eco-System

Patient Life Cycle Management At Aster, over three

decades, we have
developed a healthcare
ecosystem across GCC
CLINICS and India. In GCC, our
primary care clinics are
INDIA
the initial touch-points
GCC
HOSPITALS in the patient’s journey,
while hospitals and
PHARMACIES pharmacies continue
the care. For complex
tertiary care, we
transfer our patients to
our hospitals located in
Resource Talent Management India.
On the other hand, our
Indian operations act as
a source of talent to our
CLINICS GCC operations. In GCC,
our clinic doctors get
GCC
the opportunity to hone
INDIA HOSPITALS their surgical skills
in some of our best
hospitals.

Clinics (Including Attached Pharmacies)

Close to Hospitals in a Hub and Spoke model
C
CC CLINICS CLINICS
C
C H C C
C
C
C C C
C C C C C
H
C H
C
C
C
C H H
C

HOSPITALS HOSPITALS

DUBAI, UAE DOHA, QATAR

16 Aster DM Healthcare Limited

An Integrated Healthcare Provider

Corporate Overview
With an integrated business model we provide our patients with all the services
starting from primary to secondary and tertiary or quaternary care.

Primary Care

4.9 Mn 9.2 Mn 2.9 Mn

Clinic OPD visits Pharmacy visits Hospital OPD visits

Secondary Care

2,10,000+ 9,500+ 900+

IP Discharges General Surgeries Joint Replacements

700+ 9,750+ 2,850+

Urology Cases Deliveries Gastro-intestinal Surgeries

Tertiary and Quaternary Care

1700+ 550+ 1200+

Cardiovascular Surgeries Bariatric Surgeries Spine Surgeries

200+ 1700+ 2650+

Transplants* Neurosurgery Plastic Surgeries
Note: *Transplants includes kidney, heart, liver, pancreas, etc.
Above numbers are for the financial year FY18

Annual Report 2017-18 17

CLINICAL REVIEW

Centres of and patient endorsements on rating

platforms. Our Centres of Excellence ~17 MN
Excellence provides us with leadership in clinical Out-patients
Centres of Excellence (CoE) is an entity practice, fulfilling stringent criteria from
that promotes collaboration, provides people, scope of work for research,
leadership, best practices, research
support and training for a surgical
clinical indicators to infrastructure and
equipment. Our Centres of Excellence
~211,000
(medical & surgical) specialty to drive include Cardiac sciences, Integrated
In-patients
clinical outcomes and business growth Liver Care, Oncology, Orthpaedic,
on a comprehensive continuum. At Aster Neurosciences, Bariatric, Women and
DM Healthcare we maintain the highest Children, Nephrology, Urology, NICU,
standards of patient care, which is Gastroenterology.
reflected in several industry recognitions

India
Aster Medcity

Centre of Excellence Specialities

Cardiac Sciences Internal Medicine Emergency

Neurosciences General Surgery Clinical Imaging
Orthopaedics & Rheumatology Interventional Radiology Psychiatry
Nephrology & Urology Pulmonology Nuclear Medicine
Oncology Physical Medicine and Rehabilitation Podiatry
Women’s Health Infectious Diseases & Infection Ophthalmology
Child & Adolescent Health Control Aesthetics Plastic Surgery
Gastroenterology & Integrated Craniomaxillofacial Surgery Endocrinology
Liver Care Dental Sciences Pain & Palliative Medicine
Multi-Organ Transplant & Minimal Dermatology
Access Robotic Surgery ENT
Anaesthesia & Critical Care

18 Aster DM Healthcare Limited

Aster CMI

Corporate Overview
Specialities

Multi Organ Transplant

Urology and Nephrology
Orthopaedics
Women’s Health
Child and Adolescent Health
Robotic Surgery
Pulmonology
Plastic, Reconstructive & Aesthetic
Surgery
Medical & Surgical Oncology
Nuclear Medicine
Vascular Surgery
General Medicine
ENT
Critical Care & Anaesthesia
Fertility
Rheumatology
Dermatology
Endocrinology
Ophthalmology
Centre of Excellence Infectious Disease And Travel
Medicine
Cardiac Sciences Gastroenterology Dental Sciences
Neurosciences Bariatric Craniomaxillofacial Surgery
Integrated Liver Care (ILC) Psychiatry

Aster MIMS Specialities

Orthopaedics & Rheumatology

Gastroenterology
Anaesthesiology & Critical Care
Plastic & Reconstructive Surgery
Multi Organ Transplant
Dental, Oral & Maxillo Facial Surgery
Dermatology
Endocrinology
ENT And Head & Neck Surgery
Family Medicine
General Medicine
General Surgery

Centre of Excellence

Cardiac Sciences Neonatal Intensive Care Unit (NICU)

Neurology Nephrology
Women and Child Health Oncology
Integrated Liver Care (ILC) Urology

Annual Report 2017-18 19

 Aster Prime Specialities

Cardiac Sciences
Gynaecology
Neurology
Nephrology
Orthopaedics
Pulmonology
Urology
Anaesthesiology & Critical Care
Child And Adolescent Health
Dental
Dermatology
Dietetics
Endocrinology
ENT
Gastroenterology
General & Laparoscopic Surgery
General Medicine
Plastic Surgery
Podiatry
Psychiatry

Aster Aadhar Specialities

Cardiac Sciences
Anaesthesiology & Critical Care
Cosmetology
Dental
Dermatology
ENT
Endocrinology
Gastroenterology
General Medicine
General Surgery
Interventional Radiology
Neurosciences
Nephrology
Ophthalmology
Orthopaedics
Plastic Surgery
Psychiatry
Pulmonology
Respiratory Medicine
Oncology
Centre of Excellence
Urology

Women and Child Health

20 Aster DM Healthcare Limited

Aster Wayanad Speciality Hospital

Corporate Overview
Specialties

Cardiology
Neurosurgery
Urology
Medical Gastro
Surg. Gastro
Paediatric Surgery
Plastic Surgery
Neurology
Gen. Medicine
Gen. Surgery
Orthopaedics
Obstetrics and Gynecology.
Family Medicine

Ramesh Hospitals Specialties

Anaesthesiology & Critical Care

Aesthetics & Plastic Surgery
Bariatric Surgery
Cardiac Sciences
Dentistry
Dermatology
Endocrinology & Diabetes
ENT
General Medicine
Multi Organ Transplantation
Joint Replacement And Orthopaedics
Laparoscopic Surgery & General
Surgery
Gastroenterology
Urology And Nephrology
Neuro Sciences
Ophthalmology
Pathology
Psychiatry
Pulmonology

Annual Report 2017-18 21

GCC
Aster Al Raffah Hospital in Sohar, Oman Centre of Excellence

Women and Child Care

Specialities

Department of Emergency Medicine,

Gastroenterology, General Medicine,
Obstetrics & Gynecology, Pediatrics
& Neonatology, Dermatology,
ENT, Orthopedics, General
Surgery, Anesthesiology, Urology,
Ophthalmology, Dentistry, Radiology,
Internal Medicine, Cardiology

Centre of Excellence Aster Al Raffah Hospital in Muscat, Oman

Gastroenterology

Specialities

General Surgery, Gastroenterology,

Pathology, Gynaecology & Obstetrics,
Orthopaedics, Spine, Dentistry,
Paediatrics, Anaesthesiology,
Cardiology, ENT, Dietetics, General
Medicine, Ophthalmology, Urology,
Plastic Surgery, Dermatology, Internal
Medicine, Bariatrics, Endocrinology,
Radiology, Emergency Care,
Neurosciences

Aster Hospital at Mankhool in Dubai, UAE  Centre of Excellence

Neonatal Intensive Care Unit (NICU)

Specialities

Dermatology, Cardiology, Laparoscopic

Gynaecology, Obstetrics & Gynaecology,
Paediatrics & Neonatology, Critical
Care Medicine, Nephrology, General
& Laparoscopic Surgery, Dental
Science, Endocrinology, Orthopedics,
Ophthalmology, ENT, Radiology,
Internal Medicine, Gastroenterology &
Hepatology, Urology, Integrated Liver
Care, Pulmonology, Dietetics, Family
Medicine, Neurology, Rheumatology,
Physiotherapy & Rehabilitation, Oncology

22 Aster DM Healthcare Limited

 Corporate Overview
Centre of Excellence Sanad Hospital in Saudi Arabia
Cardiac Sciences, Neurology

Specialities

Bariatric Surgery, Gastroenterology,

General Surgery, Spine Surgery,
Orthopaedics, Obstetrics &
Gynaecology, Laparoscopic Gynaecology,
Urology, Dermatology, ENT, Internal
Medicine, Ophthalmology, Pediatrics,
Rheumatology, Dental, Physiotherapy

Medcare Multispeciality Hospital in Dubai,  UAE  Centre of Excellence

Gastroentrology, Bariatric Surgery

Specialities

Anesthesiology, Audiology, Bariatric

Surgery, Cardiology, Dentistry,
Dermatology, Diet & Nutrition,
ENT, Emergency, Endocrinology,
Gastroenterology, General Surgery,
Hematology, Internal Medicine,
Neurology, Oral & Maxillofacial,
Pulmonology, Radiology, Rhinoplasty,
Urology

Centre of Excellence Medcare Women and Children Hospital in  Dubai, UAE
Neonatal Intensive Care Unit (NICU)

Specialities

Pediatrics, Pediatric Surgery, Radiology,

Emergency, Obstetrics & Gynaecology,
Endocrinology, ENT
Nutrition, General Surgery,
Gastroenterology, Anesthesiology,
Dentistry, Dermatology, Fetal Medicine
Family Medicine, Internal Medicine,
Plastic Surgery, Breast Surgery,
Neonatology

Annual Report 2017-18 23

Clinical Outcomes of
Centre of Excellence

CARDIAC 30 days re-operation rate Percentage of compliance to a

Door to Balloon time Revisions for TKR and THR complete procedure report given to
ACE inhibitors after LVSD the patient
Compliance with appropriate DVT
Aspirin on Arrival Prophylaxis Percentage of compliance to time out
Post-operative stroke after cardiac is conducted and its documentation
Oxford knee score assessed before
surgery operation, post operation, 3 months, 6 Percentage of compliance to
Surgical Re-exploration months, 12 months, for patients who documentary evidence to endoscopy
underwent total knee replacement procedure images
Length of Stay for CABG and CABG
plus Valve surgery
WOMEN AND CHILD CARE
Percent of patients aged 18 years In case of spinal surgery, average
Incidence of Maternal Death
and older undergoing isolated CABG change between lumbar, discectomy,
laminotomy pre operation and three Incidence of still birth
who were discharged on anti-platelet
medication and on beta blockers months post operational status as C-section rate
measured with Oswestry Disability Third and Fourth degree Obstetric
Infections following cardiac
Index Trauma
procedures for MRSA infection post
cardiac procedures and SSI after Percentage of emergency c-section
ONCOLOGY
cardiac surgeries Documented plan for chemotherapy Birth Trauma for children
Compliance to Pathway including dosages, route, time Developed care of children monitoring
interval in neonates
NEUROSCIENCES Compliance with chemotherapy Incidence of neonatal death (Neonatal
Average Length of Stay medication administration Mortality Rate)
Percentage of cases with Baseline Flow Cytometry Number of premature babies who
anticoagulant therapy /fibrinolytic Adherence to various safety received RSV immunoglobulin
therapy after stroke precautions prophylaxis
DVT Prophylaxis The percentage of people with breast
Percentage of readmission post cancer who had a pre-operative
neuro surgery of spines definitive diagnosis
Percentage of re-explorations after Staging documented within one
Craniotomy and Shunt month of first office visit
Percentage of SSI Percentage of invasive carcinoma of
Compliance to Clinical Pathways the cervix diagnosed at stage 1 in a
Patient Education 12-month period
Time taken to perform a CT scan for a
suspected case of acute stroke GASTROENTEROLOGY
Percentage of compliance to airway
Average Door to CT & CT to Needle assessment, plan for sedation, ASA
Puncture Time for Thrombolysis in classification, Medication advised,
Stroke cases Physician signature, date and time.
Percentage of adverse events before
ORTHOPEADIC
or during the procedure
Average length of stay for TKR, THR,
and Arthroscopy Percentage of compliance to the
Compliance to clinical pathways documentation of the use of reversal
agents
30 days readmission for TKR
patients, and total hip arthroplasty

24 Aster DM Healthcare Limited

 Corporate Overview
Care Continuum smooth and the follow up should be
At Aster DM Healthcare, our aim is monitored for better outcomes.
Aster Chronic Care
to provide Continuum of Care to our
patients. Scope Aster Chronic Care@Home
entered into a partnership with
Follow-up based on diagnosis for Novartis, to provide access to the
cases including Acute Myocardial diabetes management tool to
Objectives Infarction, Stroke, COPD on Home patients from various sections
To establish a process in order Oxygen Therapy, Premature Babies, of the society. Aster Chronic
to make it sure that our patients Diabetes Mellitus to prevent Care@Home is an advanced
get continued care for specified complications. personalized technology
conditions. introduced by Aster DM
Based on Procedure or having devices
To see that all the patients are for medical case including CABG, Healthcare to improve individual
diligently followed up after discharge Angioplasty with or without stent, control over chronic conditions
from our hospital or clinic so that Ureteric stents, Indwelling Catheter. like diabetes and hypertension.
they do not face any complications Based on use of certain drugs
due to disease, intervention, drug and including Warfarin, Amiodarone,
devices. Tamoxifen, Methotrexate, Cancer
The transition of care after discharge Chemotherapy, Lithium, Anti
for an out-patient should be Diabetes drugs

Training and
Academics
We provide an enabling environment doctors will be delivered as per the same first collaboration to be initiated is a
to our doctors and paramedics for standard as in the UK, undertaking the multi-organ transplant programme.
providing the best quality care to our same curriculum and assessments. The While availability of good healthcare
patients through enhancing their program is conducted in Aster hospital professionals to meet the growing needs
learning opportunities. One of these is and Medcare hospital. of our institution remains a challenge,
Core medical Training (CMT) which is a Aster DM Healthcare is in a margin
unique new partnership in GCC between Aster Medcity in Kerala has also signed to the same standard as in the UK,
the three UK Colleges of Physicians an MOU with the Thomas Jefferson undertaking the same curriculum and
(London, Edinburgh and Glasgow) and University, USA to provide its doctors assessments. The program is conducted
Aster DM Healthcare hospitals in Dubai. with access to global knowledge, in Aster hospital and Medcare hospital.
Physician training of young graduate research and best practices. The

Annual Report 2017-18 25

Aster Medcity
Aster Medcity, Kochi, Kerala, is a
670-bed JCI and NABH accredited,
multispeciality quaternary care facility
with ten dedicated Centres of Excellence
in Cardiac Sciences, Neurosciences,
Orthopaedics & Rheumatology,
Nephrology & Urology, Oncology,
Women’s Health, Child & Adolescent
Health, Gastroenterology & Integrated
Liver Care, Multi-Organ Transplant and
Minimal Access Robotic Surgery.
What sets Aster Medcity apart is its
exceptional team of 360+ doctors who
take time out to listen to patients
carefully, understand their medical
problem holistically and recommend
the best way forward. Multidisciplinary
in approach, they provide optimal,
evidence-based treatment to patients,
with the help of an award-winning

3rd FIRST
team of nurses, dieticians, rehabilitation
therapists and qualified technicians.
Centre in India to First hospital to undertake
One of India’s most advanced healthcare successfully carry out the
destinations, Aster Medcity offers
Paediatric dual liver and
robotic Trans-vaginal renal kidney transplant from a live
a comprehensive range of medical transplant
technology to facilitate accurate
donor in a 11 months old
diagnosis and efficient treatment.
infant, under 10 kilograms
421
weight
Established in 2014, Aster Medcity is the
first hospital in India to win all relevant Operational Beds First hospital to conduct
accreditations and certifications within
CMT training programme
one year of opening its doors to the
outside Europe
world. This includes the NABH (National
Accreditation Board for Hospitals &
3rd Centre in India to
Healthcare Providers) accreditation,
successfully carry out the
Green Operation Theatre Certification
robotic Trans-vaginal renal
by Bureau Veritas, ISO 9001:2008
transplant
Certification for Quality Management
ISO 22000:2005 (HACCP), Certification
for Food Safety and the first-ever NABH ONE OF INDIA’S
Nursing Excellence Award.
MOST ADVANCED
MEDICAL
DESTINATIONS

26 Aster DM Healthcare Limited

 Corporate Overview
CASE STUDY

When Sleeping Beauty is not rare sleeping disease that is seen in about patient’s medical history. The
just a fairytale one to two people per million people. doctors were successful in saving Liya
Liya was brought in an emergency state and saving her from this rare disease.
Youngest child in the world diagnosed
of unconsciousness during February Before coming to Aster Medcity Liya
with the ultra-rare sleeping disorder
2017, where she was found to have low was taken to 3 different hospitals
was treated at Aster Medcity. Liya
heart rate and breathing and in deep where the doctors were unable to
a four year old girl, who was born
comatose. The disease was diagnosed diagnose the disease and treated
after six years of marriage through
through series of medical diagnosis, her for epilepsy, and started anti
in-vitro fertilization was diagnosed
experience of doctors, and knowledge conclusive medication.
with Kleine-Levin Syndrome. It is a

Annual Report 2017-18 27

Aster CMI companions. Dedicated registration,
billing and nurse station for each 233
The Aster CMI Hospital has department ensure a seamless flow Operational Beds
contemporary state-of-the-art facilities and least waiting time. The Hospital
accommodating over 500 beds and
1ST
has abundant Parking space and
offer comprehensive primary care provides an option of Valet parking.
to quaternary care services through Aster CMI Hospital has some of
Centres of Excellence in Cardiac Sciences, Hospital to conduct Robotic
the renowned and accomplished
Neurosciences, Gastroenterology Mini Gastric Bypass in
doctors, who provide the best quality
Sciences, Surgery and Allied Specialties, Karnataka
medical treatment to patients. These
Integrated Liver Care, Organ Transplant, specialists, backed by the latest state-

HIGHEST
Urology and Nephrology, Orthopaedics, of-the-art technology & protocols,
Women’s Health, and Child & Adolescent are capable of handling the most
Health. Everything at Aster CMI is complex cases and achieve best Number of kidney
designed keeping in mind the comfort of clinical outcomes. This is done through transplants in one year
our patients. The serene environment, a multidisciplinary approach, practicing
spacious interiors and advanced evidence-based medicine with the
facilities to create a positive ambience
that is conducive to healing.
help of ACLS/BLS/ATLS/PALS certified
nurses, dieticians, rehabilitation
ONLY
therapists and qualified technicians. Centre in South India for
The Aster CMI OPD boasts of an awe Aster CMI extends a quality healthcare biofeedback for defecatory
inspiring 90,000 square feet of dedicated experience to people, by designing disorder
space with ample and sufficient accessible and seamless healthcare
waiting space for the patients and services around patient needs.

28 Aster DM Healthcare Limited

 Corporate Overview
FIRST
First EMR for dysplasia in First to perform study with open
Barrett’s in India simultaneous liver and decompression
kidney transplant in the
First laser lithotripsy for same patient without the First centre in Karnataka to
intrahepatic bile duct stone use of blood/blood products do Plasmapheresis for OP
in India in India poisoning
Only NBI training First Cardiac robotic surgery First Faecal Microbiota
centre in India with first in Karnataka transplant in Karnataka
comprehensive NBI and
advanced endoscopic First minimally invasive First Aster hospital to
imaging in India multilevel decompression conduct heart, kidney, and
for degenerative cervical liver transplant from a single
myelopathy- a comparative donor simultaneously
CASE STUDY

A young patient was admitted to transplantation. The heart transplant patient’s smooth recovery. Surgery
Aster CMI after facing a fatal road surgery was conducted by Dr Mahadev. D. took about 6 hours and went on
accident. The patient had a severe Dixit, Lead Consultant - Cardiac Surgery uneventful, the patient was shifted
head injury and was declared brain & Chief Of Cardiac Sciences and his to transplant ICU with minimal life
dead. Parents of the patient gave the team, Dr Anup Charles, Dr Bhaskar, Dr supports which were subsequently
consent for donation of his organs. Shridhar, Chief anaesthetist Dr Raghu gradually weaned and separated
He gave a new lease of life to a heart B, Dr Vidyashankar, Lead Nephrologist, successfully on the same day.
failure patient and 5 other persons and Cardiologist Dr Pradeep Kumar who
who required kidney, liver and corneal contributed in the management of the

Annual Report 2017-18 29

Aster MIMS Kottakkal
Aster MIMS Hospital in Kottakkal is ACHIEVEMENTS
Kozhikode a First NABH and NAEM accredited Renal Transplant
Aster MIMS, Kozhikode is the NABH multi-specialty hospital in Malappuram successfully done through
accredited multi-specialty hospital in District Kerala, that offers a wide range Robotic Surgical System
India offering a comprehensive range of preventive, acute, and outpatient
of preventive, acute and outpatient services. It is a tertiary care level Transcatheter Aortic
services. The doctors at Aster MIMS, hospital that has received the Kerala Valve Implantation (TAVI)
Kozhikode aim to reduce the discomfort State PCB certificate for first place conducted Successfully
of patients by installing a solution among hospitals taking substantial
which is technologically best. Located and sustained efforts towards 7 Kg tumour was removed
in the heart of Kozhikode, the hospital pollution control. Located in the successfully from the
is one of the best with state-of-the- downtown of Kottakkal the hospital pancreas of a 50 year old
art infrastructure and technology. is strategically located making it the lady
With Level IV Trauma Care centre, ideal place for treatment of various
Advanced interventional radiology, diseases. With excellent infrastructure Steel rod pierced though
highly developed intensive care facilities, along with our commitment to skull was successfully
Robotic surgery facilities, Multi Organ maintain highest levels of safety, removed at Aster MIMS
Transplant Centre, at MIMS we aim to cleanliness, integrity, and honesty,
provide the best all round care to our good health of our patients is first
patients. priority at Aster MIMS Kottakkal.

544
Operational Beds in
Aster MIMS Kozhikode

171 CASE STUDY

Operational Beds in
Aster MIMS Kottakkal
In a rare and complicated medical
case, the doctors at Aster MIMS
successfully removed a tumor of 7.1
kg from the pancreas of a 50 year
old lady on 16th September 2017.
The patient who was from Wayanad
went through treatment in various
hospitals for abdominal discomfort
and pain. Distended abdomen was
one of the main reason for her pain.
The CT Scan revealed the presence
of a tumor and then the patient
came to us due to the huge size of
tumor. The surgical team of Aster
MIMS was successful in removing
a 7 kg tumor from a 100 grams
pancreas matching the international
standards of such cases.

30 Aster DM Healthcare Limited

 Corporate Overview
Aster Aadhar to be the most trusted multi-specialty
healthcare facility. Aster Aadhar is a 150
Maharashtra novel byproduct of Aster DM Healthcare Operational Beds
Since its establishment in 1996, Aster and Aadhar. At Aster Aadhar hospital,
Aadhar Hospital has evolved and emphasis is being given to develop our
established itself as one of the premier processes to deliver reliable patient care
medical setup serving the community in by having latest medical technology and
and around Kolhapur district. A desire well qualified and experienced doctors.
to move ahead has led Aadhar hospital

CASE STUDY A 54 years old morbidly obese male was fluids and antibiotics and later on he
referred for progressive breathlessness. was shifted to ICU. He was treated
He was admitted to the Emergency successfully within 14 days with 10
Room of Aster Aadhar Hospital when POD. He maintained his nutrition level,
he was restless and he had signs Therapeutic Bronchoscopy showed
of right moderate to severe pleural clean trachea bronchial tree and had no
effusion. His urgent HRCT Chest plus obvious pus collection or inflammation.
Abdomen showed sponataneous He was followed up continuously for 2
oesophageal rupture 8 cm above GE months with consecutive 2 leak tests
junction with mediastinitis and massive showing negative results.
right pleural effusion. He was given

Annual Report 2017-18 31

GCC Hospitals
We are one of the leading hospital providers
875 CASE STUDY
in UAE, where we have established 5 Capacity Beds in
hospitals, and Oman where we have 2 GCC states Birth defect detected at age 58; British
hospitals. We also have, 1 hospital in Qatar woman undergoes surgery in Dubai
and walks within 24 hours
761
and 1 in Saudi Arabia. Our GCC hospitals
offer a wide range of primary to tertiary A 58 year old British woman
care. Our Medcare Hospitals in Dubai and Al successfully underwent a surgery at
Operational Beds in
Raffah Hospital in Sohar have obtained JCI Aster Hospital Mankhool in Dubai to
GCC states
accreditation, and our Sanad Hospital has correct her birth defect and regain the
obtained CBAHI & JCI accreditation. In GCC, ability to perform day to day activities.
we operate on an asset light business model Through her life, the lady suffered
where most of our hospitals are leased. Al through the problem of mobility, and
Raffah hospital, Muscat has received the found it difficult to perform certain
Patient Safety Friendly Hospital initiative – daily life movements like climbing
by WHO. up the stairs, sitting cross legged
and even crossing her legs. At our
hospital, the lady was diagnosed with
Developmental Dysplasia (dislocation)
of the hip or dysplastic hip on the right
side. Her case was further complicated
as the friction caused by abnormal
and continuous gritting of joint caused
the patient’s right hip center to be
1.6 cms above her left hip. This also
lead to the development of secondary
osteoarthritis. A surgery through
minimally invasive incisions made the
patient walk within 24 hours of the
surgery. A birth defect was removed
with the expertise of doctors at Aster
Hospital Mankhool in Dubai and
helped the lady to live a normal life
thereafter.

32 Aster DM Healthcare Limited

 Corporate Overview
Aster Hospital, Mankhool , Dubai

Aster Hospital, Mankhool is a JCI Hospital, Mankhool is fully equipped to a Day Surgery Centre, conveniently
accredited, 100 bedded medical facility manage primary, secondary and tertiary located in Mankhool, diagonally opposite
where doctors adopt a multidisciplinary level medical cases. to Aster Hospital. The Day Surgery
approach to provide holistic treatment Centre is the combination of cutting
to the community we serve. Equipped We offer a wide range of services edge infrastructure, state of the art
with the most advanced Neonatal across various specialties including technology and exceptionally skilled and
Intensive Care Unit in UAE, Aster Orthopedics, General and Laparoscopic qualified medical practitioners providing
Hospital offers multispecialty medical Surgery, Gynecology & Pediatrics, patient centric care. Patients requiring
and surgical care all under one roof. Oncology, Neonatology, Integrated Liver minor surgery will now be able to avail
Equipped with top class facilities and Care, Gastroenterology and much more. surgical treatment and get discharged
specialized medical teams comprising on the same day.
of consultants, surgeons, nurses, Aster Hospital, Mankhool recently
technicians and ancillary staff, Aster extended its infrastructure and opened

Manned almost entirely by women,

Medcare Women & Children Hospital, Dubai, UAE Medcare is proud to present its Women
& Children Hospital in Dubai that offers
highly specialised and customised
Gynaecology, Neonatal and Paediatric
care, with a holistic approach.

Our medical center in Dubai is a 88-bed

facility spread across 132,500 sq. ft. Every
single element here has been designed
with the patients’ convenience and
comfort in mind. The patient-care spaces
spell pure elegance and provide complete
privacy, creating a warm, positive
ambience that’s conducive to healing.

Our world-class team of doctors holds

an expertise in providing personalised,
protocol-based treatment to patients with

Annual Report 2017-18 33

the support of trained nurses and qualified
technicians. Backed by the best in medical
At Medcare, our healthcare philosophy
is to provide unparalleled care for each CLAIM
technology, they handle the most complex patient and to create warm, patient-
cases with unmatched expertise. friendly environments where they
Medcare Women and Children
can heal better and faster. Whether
Hospital is the first in GCC
Medcare places high value on the you wish to consult with an OB-GYN to offer the most advanced
general health of women and children. specialist or a child specialist doctor, Magseed technology for
As such, we have established a women you can find the most qualified and more accurate detection and
and children’s medical center in Dubai to experienced doctor here at Medcare. Our removal of breast lumps and
provide highly specialised medical care. network of healthcare facilities in Dubai, lesions.The precision offered
We have formed a multispecialty team Sharjah and throughout UAE is meant to by the Magseed system will
of doctors and specialists to address any provide accessible, reliable and on-time enable a safer, faster and
health issue with utmost dedication and medical care. more comfortable patient
attention. With that, our team makes experience.
use of the latest in medical equipment
and technologies to deliver world-class
healthcare to all our patients.

CASE STUDY

Medcare initiated a back, the women felt a lump inside their reduction strategies, and treatment
unique direct engagement shoes, and were compelled to examine of cancer. Women could also seek
campaign to help women the small stone that gave them a simple personal counseling delivered via
in UAE proactively seek yet powerful message “Some Lumps telephone or face- to-face with
guidance for breast cancer are Not Visible, Breast Check Tips at 800 individual specialists at the hospital
checks. Medcare”. for more in-depth discussions
on cancer prevention and early
Breaking the silence and taboo The first phase of the intervention diagnosis.
around breast examination, Medcare was rolled out across various locations
has initiated a ‘discreet’ campaign in Dubai including Barsha, JLT, and Around 8250 pebbles reached women
to help women directly reach out to Discovery Gardens. personally at mosques and 2480
healthcare specialists for screening women came along with their family
and mammography, with an Once a person calls on the 800 Medcare and friends for checks. We were
opportunity to have their questions (8006332273) helpline number, an successful to respond around 33.3%
on the disease answered. As part expert helps the patient get guidance by calling the toll-free number. We
of the effort, a pebble was placed and information on the types and most were also successful in breaking zero
inside the shoes of women who went common forms of breast cancer, risk taboo.
for prayers and attended religious factors, and the importance of screening,
education sessions. Upon coming early detection, prevention, risk-

34 Aster DM Healthcare Limited

 Corporate Overview
Future Plans a National CoE we plan to improve network; organize international outreach
Moving ahead, we aim to have our infrastructure and technology programmes in SAARC, GCC, and Africa;
Group wide CoEs of Interventional through capital expenditures; conduct take joint efforts to build a calendar of
Radiology, Integrated Liver Care, and outreach programmes; introduce national CMEs; and adhering to various
Gastroenterology. With an aim to have second opinion services through digital clinical excellence parameters.

Annual Report 2017-18 35

AWARDS AND ACCREDITATIONS
JCI Accreditation for 6 Hospitals, Dubai Quality Appreciation Aster Pharmacy
1 Clinic and 1 diagnostic centre Award
Received ‘Best Service Performance
Medcare Hospital Dubai, Medcare Aster Hospital Mankhool (2017-18) Brand’ by Dubai service Excellence
Orthopaedics and Spine Hospitals, Aster Scheme (2014)
Mankhool in Dubai, Al Raffa Hospital
Aster and Medcare recognized ‘Dubai Quality Appreciation Award’ by
in Sohar, Sanad Hospital in KSA, Aster
among top 100 World’s Greatest the Govt. of Dubai (2017)
Medcity in India , Jubliee Clinic and
Brands in Asia and GCC
Medinova Diagnostic Centre in Dubai
UAE Innovation Award, 2018
Medcare Women & Child
The Sheikh Khalifa Excellence Hospital received AHPI Award
Sheikh Khalifa Excellence Award, 2017
Award (2018) for nursing excellence Sharjah top 10 Awards

NABH Accreditations Aster Medcity

MIMS Kozhikode, MIMS Kottakal,
Received the ‘Certificate of Honor’ from
Aster Aadhar, Aster Medcity in Kochi,
the NABH for being one of the best &
Dr. Ramesh Hospital in Vijaywada,
safest Hospitals in India (2016)
Dr. Ramesh Hospital in Labbipet and
Dr. Ramesh Hospital in Guntur Received the ‘Quality Beyond
Accreditation Award’ by the Association
Sanad Hospital received of Healthcare Providers 2016 (India)
Accreditation from ‘Saudi Received ‘National Awards for Excellence
Central Board for Accreditation in Healthcare’ for ‘Best Healthcare’
for Healthcare Institutions
(CBAHI)’

36 Aster DM Healthcare Limited

 Corporate Overview

Annual Report 2017-18 37

CORPORATE SOCIAL
RESPONSIBILITY
At Aster DM Healthcare Limited, we
believe that ‘Profit’ is a by-product and
not our purpose in healthcare. Throughout
his career, our Founder Chairman and
Managing Director, Dr. Azad Moopen,
a passionate philanthropist at heart,
has been involved in myriad charitable
activities through Aster DM Foundation,
Dr. Moopen Family Foundation, Aster
MIMS Charitable Trust and others.

38 Aster DM Healthcare Limited

 Corporate Overview
Aster Volunteers is a global CSR
programme that was launched on the
1,22,949 6,147
People trained to provide BLS Benefitted through Medical Camp at
occasion of our 30th Anniversary in
Jordan
2017, with an aim to address the key • Blood Donation Drive- A commitment
challenges that will help make a positive to facilitate the donation of blood
change in the society. Today, it is running units across our countries of operation
successfully across the 9 countries in
which we are present, with the volunteers 9,844
coming from all walks of life and not People assisted through blood donation
exclusively from the medical field. The • Disaster Management and Refugee
multi-layered programme helps to reduce Support Programme - Support given
the gap between people who want to help to the needy and affected victims
and the ones who need help. of humanitarian crisis by providing
essential aid such as food, medical care,

8,217
nutritional supplements, clothes etc.

Volunteers 1,50,000
Food packets distributed in Africa

Major Initiatives of Aster Volunteers 26,400

include: Food packet distributed in Bangladesh

• Recruitment and support of • Free Medical and Wellness Camp-

differently-abled staff- This initiative Supporting communities with
aims at providing equal employment basic medical checkup and further
opportunities and training to the treatment facilities, thus facilitating
differently-abled. wellness to the needy.

64
Differently-abled people recruited during
the year
• Free surgeries and investigations-
Free investigations, treatments and
surgeries offered to patients in need
across all our facilities

17,020
Benefitted through free surgeries and
free investigations
• Basic Life Support (BLS) Awareness-
Collaborating with the local
government, organization and
institutions across all the countries
we are present in, to impart first
responder training

Annual Report 2017-18 39

 Aster DM Foundation is the charitable Key initiatives taken by Aster DM
arm of Aster DM Healthcare Limited, Foundation:
through which we conduct various CSR and We recently reached out to the tribal
charitable activities. Major programmes community in the hilly station at Jubo
initiated by the Foundation includes Panchayat in the state of Odisha,
Establishment of Community Dialysis India, and donated an ambulance and
Centres (CDCs), Early Cancer Detection healthcare services to address the
and Screening Programme (EDDCs), healthcare services gap
Subsidized or free Pediatric Cardiac Surgery We supported NGOs like Al Jalila
Programme, Mobile Clinics, Free Health foundation and Al Noor Foundation in
and Safety awareness programmes and Dubai, UAE on healthcare initiatives. Dr.
regular medical camps, treatment subsidies, Moopen also works as an advisor on
Education and Women Empowerment medical research activities for Al Jalila
Programmes, Disaster Management Foundation
Supports, etc.

40 Aster DM Healthcare Limited

 Corporate Overview

We reached out to various communities

in Africa, Afghanistan, Bangladesh, Nepal,
800 3,00,000
Benefitted through the programme. People benefitted through 3 mobile clinics
Jordan (Syria), and in Indian regions like
Chennai and Kollam to support people
who were affected by humanitarian crisis We have launched mobile clinics across
UAE and India to provide medical care 45,000
Since our inception, we have provided services to people. In India mobile clinic is People benefitted through Early disease
subsidized and free Pediatric Cardiac operational at Jamshedpur in Jharkhand detection and Cancer screening centres in
Surgery programme to children through and Kozhikode in Kerala. In Jamshedpur, Kerala
our facilities the initiative has been operational
since the past 5 years while it has been
recently launched in Kozhikode to cater 4,15,000
to the healthcare needs of 40 remote Free dialysis done through 11 community
villages. dialysis centres in Kerala

Annual Report 2017-18 41

BOARD OF
DIRECTORS

Dr. Azad Moopen T. J. Wilson Alisha Moopen

Chairman & Managing Director Non-Executive Director Non-Executive Director

Anoop Moopen Shamsudheen Bin Mohideen Daniel Robert Mintz

Non-Executive Director Mammu Haji Non-Executive Director
Non-Executive Director

Harsh C Mariwala Suresh M. Kumar M. Madhavan Nambiar

Non-Executive Non-Executive Non-Executive
Independent Director Independent Director Independent Director

Rajagopal Sukumar Ravi Prasad Daniel James Snyder

Non-Executive Non-Executive Non-Executive
Independent Director Independent Director Independent Director

42 Aster DM Healthcare Limited

MANAGEMENT

Corporate Overview
TEAM

Dr. Azad Moopen T. J. Wilson Alisha Moopen

Chairman & Managing Director Group Head – Governance and Chief Executive Officer –
Corporate Affairs, GCC GCC Hospitals & Clinics

Sreenath Reddy Dr. Harish Pillai Jobilal M. Vavachan

Chief Financial Officer Chief Executive Officer – India Chief Executive Officer, Aster
Pharmacies, Aster Clinics – UAE

Kartik Thakrar Dr. Malathi Fara Siddiqi

Financial Controller, GCC Chief Medical Officer Chief Human Resources Officer

Mukta Arora Dalia Aziz

Chief Information Officer Chief Marketing and
Communications Officer

Annual Report 2017-18 43

CORPORATE INFORMATION

Board of Directors Auditors

Dr. Azad Moopen B S R and Associates
T J Wilson Chartered Accountants,
Maruthi Infotech Centre 11/1 and 12/1,
Alisha Moopen East Wing, II Floor, Koramangala,
Anoop Moopen Inner Ring Road,
Bangalore - 560 071
Shamsudheen Bin Mohideen Mammu
Haji
Daniel Robert Mintz Registered Office
Harsh C Mariwala IX/475L, Aster Medcity,
Suresh M Kumar Kuttisahib Road, Near Kothad Bridge,
South Chittoor P.O., Cheranalloor,
Madhavan Nambiar
Kochi- 682027, Ernakulam, Kerala, India
R Sukumar Tel.: +91-484-6699228
Ravi Prasad Fax: +91-484-6699862
Daniel James Snyder
Registrar and Transfer Agent
Chief Financial Officer Link Intime India Pvt Ltd
Surya 35, Mayflower Avenue,
Sreenath Reddy
Behind Senthil Nagar
Sowripalayam Road
Company Secretary Coimbatore – 641028

Rajesh A

Important Communication to Shareholders

The Ministry of Corporate Affairs has taken a “Green Initiative in the Corporate Governance’ by allowing paperless
compliances by the companies and has issued circulars stating that service of notice / documents including Annual
Report can be sent by e-mail to its members. To support this green initiative of the Government in full measure,
members who have not registered their e-mail addresses, so far, are requested to register their e-mail addresses, in
respects of electronic holding with the Depository through their concerned Depository Participants.

44 Aster DM Healthcare Limited

Business Responsibility Report
Introduction

Inclusive development is an integral pillar of the growth of the got listed on 26th February 2018. The Company pursuant to the
Economy by setting up a foundation to the better future. We at provisions of Regulation 34 (2) (f) has incorporated this report
Aster DM Healthcare (the Company), are committed towards since the Company, based on the market capitalisation for the
achieving the larger objective of inclusive development and believe Financial year ended 31st March 2018 appears in the list of top
it as an integral part of the Corporate Governance. Your Company 500 companies.

Section A General Information

Statutory Reports
1. Corporate Identity Number U85110KL2008PLC021703

2. Name of the Company Aster DM Healthcare Limited

3. Registered Address IX/475L, Aster Medcity, Kuttisahib Road,

Near Kothad Bridge, South Chittoor P.O, Cheranalloor,
Kochi, Kerala – 682027

4. Website http://www.asterdmhealthcare.com/

5. Email id [email protected]

6. Financial Year reported Year ended as on 31st March 2018

7. Sector(s) that the Company is engaged in NIC Code – 86100 (Healthcare)

(industrial activity code-wise)

8. List three key products / services that the Hospitals, Pharmacies* and Clinics
Company manufactures / provides (as in balance *Group does not operate any standalone pharmacies in India. All its
sheet) standalone pharmacies are operated by Company’s subsidiaries outside
India

9. Total number of locations where business activity a) Aster DM Healthcare through it’s subsidiaries operates in Seven GCC
is undertaken by the Company states and Philippines
a. Number of International Locations b) Aster DM Healthcare has its registered office situated at Kochi and
b. Number of National Locations operates hospitals/ clinics in Five states vis a vis Kerala, Karnataka,
Telangana, Andhra Pradesh and Maharashtra

10. Markets served by the Company - Local / State / a) Aster DM Healthcare through it’s subsidiaries operates in Seven GCC
National / International states and Philippines
b) Aster DM Healthcare has its registered office situated at Kochi and
operates hospitals/ clinics in Five states vis a vis Kerala, Karnataka,
Telangana, Andhra Pradesh and Maharashtra

Section B Financial Details

1. Paid up capital 50,52,27,345 equity shares of INR 10 each

2. Total turnover 5461.74 mn

3. Total profit after taxes (871.92) mn

4. Total spending on Corporate Social Responsibility The Company has not generated cash profits on a standalone basis during
(CSR) as percentage of average Net Profit of the last three financial years and hence the Company was not statutorily
Company for last 3 financial years. required to expend on CSR activities. However, being a responsible corporate
entity and focusing on a sustainable growth model, the organisation spends
on different CSR activities, details of which are disclosed in the Annual
Report under head “the CSR initiatives of the Group.”

5. List of activities in which expenditure in four above Please refer the disclosure on CSR activities in the Annual Report under the
has been incurred head CSR

Annual Report 2017-18 45

 Section C Other Details

1. Does the Company have Subsidiaries Yes, details are as per AOC 1 which is annexed to the Boards Report

2. Do the subsidiary company participate in the BR Yes, the company has four operating subsidiary companies which are
initiatives of the parent Company? If yes, then focussing on various BR activities within the group.
indicate the number of such subsidiaries

3. Do any other entity/ entities (suppliers and The Company does not mandate its suppliers/distributors to participate in
distributors, among others) that the Company does the Company’s BR initiatives. However, they are encouraged to adopt such
business with, who participate in the Company’s practices and follow the concept of being a responsible business.
BR initiatives, along with the percentage of such
entities (Less than 30%, 30-60%, more than 60%)

Section D Business Responsibility Information

1. Details of Director / Directors responsible for BR:

a. Details of the Director / Directors responsible for implementation of the BR policy / policies

Your Company has a CSR Committee details of which has been mentioned in the Corporate Governance Report, which overlooks
the Business Responsibility. The Board has not specifically provided powers to any individual Directors to look after the Business
Responsibility, however the details of the Chairman of CSR committee is as follows:

DIN Number 00159403

Name Dr. Azad Moopen

Designation Chairman and Managing Director

b. Details of the BR head:

Name Dr. Azad Moopen

Designation Chairman – CSR Committee

Telephone No. 0484 6699999

E mail Id [email protected]

2. Principle-wise BR Policy / policies

Principle 1 Principle 2 Principle 3

Businesses should conduct Businesses should provide Businesses should promote
and govern themselves with goods and services that the well-being of all
Ethics, Transparency and are safe and contribute to employees
sustainability throughout
Accountabilit their life cycle

Principle 4 Principle 5 Principle 6

Businesses should respect the Businesses should respect Businesses should respect,
interests of, and be responsive and promote human rights protect, and make efforts to
towards all stakeholders,
especially those who are restore the environment
disadvantaged, vulnerable and
marginalized

Principle 7 Principle 8 Principle 9

Businesses, when engaged Businesses should support Businesses should engage
in influencing public and inclusive growth and with and provide value to their
regulatory policy, should do equitable development. customers and consumers in a
so in a responsible manner responsible manner

46 Aster DM Healthcare Limited

 No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9

1 Do you have a policy/ policies for √ √ √ √ √ √ √ √ √

2 Has the policy being formulated in √ √ √ √ √ √ √ √ √

consultation with the relevant stakeholders?

3 Does the policy conform to any national / √ √ √ √ √ √ √ √ √

international standards? If yes, specify? (50
words)

4 Has the policy being approved by the Board? X X √ √ X X X √ X

Is yes, has it been signed by MD/ owner/
CEO/ appropriate Board Director?

5 Does the company have a specified √ √ √ √ √ √ √ √ √

Statutory Reports
committee of the Board/ Director/ Official to
oversee the implementation of the policy?

6 Indicate the link for the policy to be viewed NA NA NA1 NA2 NA NA NA NA3 NA
online?

7 Has the policy been formally communicated √ √ √ √ √ √ √ √ √

to all relevant internal and external
stakeholders?

8 Does the company have in-house structure to √ √ √ √ X X √ √ √

implement the policy/ policies?

9 Does the Company have a grievance redressal √ √ √ √ √ X √ √ √

mechanism related to the policy/ policies to
address stakeholders’ grievances related to
the policy/ policies?

10 Has the company carried out independent X X √ X √ √ √ √ √

audit/ evaluation of the working of this policy
by an internal or external agency?

Note 1: http://www.asterdmhealthcare.com/about-us/whistleblower/
Note 2: http://www.asterdmhealthcare.com/csr/
Note 3: http://www.asterdmhealthcare.com/about-us/code-of-conduct-for-directors-senior management/

(a) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)

S l . Questions P1 P2 P3 P4 P5 P6 P7 P8 P9
No.

1 The company has not understood the NA NA NA NA NA NA NA NA NA

Principles

2 The company is not at a stage where NA NA NA NA NA NA NA NA NA

it finds itself in a position to formulate
and implement the policies on specified
principles

3 The company does not have financial or NA NA NA NA NA NA NA NA NA

manpower resources available for the
task

4 It is planned to be done within next 6 NA NA NA NA NA NA NA NA NA

months

5 It is planned to be done within the next NA NA NA NA NA NA NA NA NA

1 year

6 Any other reason (please specify) NA NA NA NA NA NA NA NA NA

Annual Report 2017-18 47

3. Governance related to BR: studied by radiologist and the report is sent back to the
imaging facility. Hence teleradiology helps in providing timely
The frequency with which the Board of Directors, interpretations of images to even remotely placed imaging
Committee of the Board or CEO assess the BR centers at any time.
performance of the Company. (Within 3 months, 3-6
months, annually, more than 1 year). 2. For each such product, provide the following details in respect
of resource use (energy, water, raw material etc.) per unit of
• The Company got listed on 26th February 2018. The product(optional):
review of BR performance will be done on a yearly
basis a. Reduction during sourcing/production/ distribution
achieved since the previous year throughout the value
Details and link of the Company’s Business Responsibility chain?
or Sustainability Report, along with its frequency
b. Reduction during usage by consumers (energy, water)
• The company has qualified under clause (f) of has been achieved since the previous year?
sub regulation (2) of regulation 34 of SEBI (listing
Obligations and Disclosure Requirements) Teleradiology facility helps in immediate diagnosis
Regulations, 2015 during FY 2017-18 and hence this in a remote manner without the creation of multiple
is the first year of publishing this report. This Report expensive facilities across locations thereby substantially
forms part of the Annual Report of the Company reducing the consumption of resources
hosted on the Website of the Company (http://
www.asterdmhealthcare.com/investors/). 3. Does the company have procedures in place for sustainable
sourcing (including transportation)?
Section E: Principle-wise Performance
If yes, what percentage of your inputs was sourced
Principle 1 sustainably? Also, provide details thereof, in about 50 words
or so.
1. Does the policy relating to ethics, bribery and corruption cover
only the company? Yes/ No. Does it extend to the Group/Joint The Company is in the business of providing healthcare
Ventures/ Suppliers/Contractors/NGOs /Others? service in which the products and services as inputs are
regulated by the statutes and hence we procure the products
Currently, the company is governed by principles of ethics and and services from empanelled vendors who are governed by
anti-corruption and we have an internal policy on the same. various statutes. However, the Company has provided for a
This policy extends to the Company and all its operational centralized transport facility for commuting 300 odd staff
subsidiaries. daily and Battery operated buggy service for patients ,staff
and visitors.
2. How many stakeholder complaints have been received in the
past financial year and what percentage was satisfactorily 4. Has the company taken any steps to procure goods and
resolved by the management? If so, provide details thereof, in services from local & small producers, including communities
about 50 words or so. surrounding their place of work? If yes, what steps have been
taken to improve their capacity and capability of local and
NIL
small vendors?
Principle 2
The Company is in the business of providing healthcare
1. List up to 3 of your products or services whose design has service in which the products and services as inputs are
incorporated social or environmental concerns, risks and/or regulated by the statutes and hence we procure the products
opportunities. and services from empanelled vendors who are governed by
various statutes.
The demand for radiology services is increasing exponentially
due to increasing diagnostic services and shortage of 5. Does the company have a mechanism to recycle products and
radiologists at every centre round the clock. These shortages waste? If yes what is the percentage of recycling of products
are being overcome by imaging facilities by using teleradiology and waste (separately as <5%, 5-10%, >10%). Also, provide
services. details thereof, in about 50 words or so.

Teleradiology is a method of sending radiographic images Yes, your Company recycles water and reduces the
in digital form from one point to another using wide area consumption of energy by the following methods:
network (WAN) or local area network (LAN). Images are
Sewage treatment plant with 100 % reuse of treated
captured by imaging modalities and are transferred through
water for irrigation, which prevents use of fresh water
the network in DICOM format. These images are then
for irrigation and improves ground water table through

48 Aster DM Healthcare Limited

 percolation. Additionally, independent plumbing network has been incorporated in recently commissioned areas for reuse of
treated STP water for flushing purpose.

Use of LED lamps which are up to 80% more energy efficient than the traditional lighting. Less energy use decrease greenhouse
gas emissions

Use of Double glazed window glasses for the entire project. Because of thermal insulation benefits, energy consumption in
HVAC is be reduced significantly.

Installation of Variable Frequency Drives with all Air Handling Units to save energy.

Principle 3

1. Please indicate the Total number of employees: 4,163

2. Please indicate the Total number of employees hired on temporary/contractual/casual basis: 1,110

Statutory Reports
3. Please indicate the Number of permanent women employees: 2,085

4. Please indicate the Number of permanent employees with disabilities: 6

5. Do you have an employee association that is recognized by management? No

6. What percentage of your permanent employees is members of this recognized employee association? Not applicable

7. Please indicate the Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last
financial year and pending, as on the end of the financial year.

S l . Category No of complaints filed during the No of complaints pending as on end

No. financial year of the financial year

1 Child labour/forced labour/ involuntary Nil Nil

labour

2 Sexual harassment Nil Nil

3 Discriminatory employment Nil Nil

*The aforementioned details are given for Aster DM Healthcare Limited on a Standalone basis

8. What percentage of your under mentioned employees were given safety & skill up- gradation training in the last year?

Category Safety Skill upgradation

Permanent Employees: 77.50% 73.15%

Permanent Women Employees: 77.00% 70.65%

Casual/Temporary/Contractual Employees 79.10% 71.50%

Employees with Disabilities 100% 100%

*The aforementioned details are given form Aster DM Healthcare Limited

Principle 4 iv. Local community

1. Has the company mapped its internal and external v. Investors and shareholders
stakeholders?
vi. Suppliers
Yes, the Company has mapped its internal and external
stakeholders. They are: 2. Out of the above, has the company identified the
disadvantaged, vulnerable & marginalized stakeholders?
i. Government and regulatory authorities
Yes. The Company has identified various stakeholders
ii. Employees who are less privileged, vulnerable and have taken various
initiatives to address the same.
iii. Customers

Annual Report 2017-18 49

3. Are there any special initiatives taken by the company to the compliance with Clean Development Mechanism is not
engage with the disadvantaged, vulnerable and marginalized applicable. Hence, no projects relating to the same has been
stakeholders. If so, provide details thereof, in about 50 words undertaken by the Company.
or so.
5. Has the company undertaken any other initiatives on – clean
Your Company through various foundations like Aster DM technology, energy efficiency, renewable energy, etc. Y/N. If
Foundation, Dr. Moopens Family Foundation, Aster MIMS yes, please give hyperlink for web page etc.
Charitable Trusts and others carries out various activities
which ensures that the under privileged section of the society No
is benefited. Your Company has launched a programme called
6. Are the Emissions/Waste generated by the company within
Aster Volunteers. Further details on these activities have
the permissible limits given by CPCB/SPCB for the financial
been given under the heading CSR activities.
year being reported?
Principle 5
Yes.
1. Does the policy of the company on human rights cover
7. Number of show cause/ legal notices received from CPCB/
only the company or extend to the Group/Joint Ventures/
SPCB which are pending (i.e. not resolved to satisfaction) as
Suppliers/Contractors/NGOs/Others?
on end of Financial Year.
The policy applies to Company and its Subsidiaries and it also
NIL
extends to the employees/ workers hired from outsourced
agencies. Principle 7

2. How many stakeholder complaints have been received in 1. Is your company a member of any trade and chamber or
the past financial year and what percent was satisfactorily association? If Yes, Name only those major ones that your
resolved by the management? business deals with:

NIL Aster DM Healthcare is a member of the Association of

Healthcare Providers – India (AHPI), NATHEALTH, FICCI,
Principle 6
Confederation of Indian Industry (CII)
1. Does the policy related to Principle 6 cover only the company or
2. Have you advocated/lobbied through above associations
extends to the Group/Joint Ventures/Suppliers/Contractors/
for the advancement or improvement of public good? Yes/
NGOs/others?
No; if yes specify the broad areas ( drop box: Governance and
The policy applies to Company and its Subsidiaries Administration, Economic Reforms, Inclusive Development
Policies, Energy security, Water, Food Security, Sustainable
2. Does the company have strategies/ initiatives to address Business Principles, Others).
global environmental issues such as climate change, global
warming, etc? Y/N. If yes, please give hyperlink for webpage Yes, The Company has lobbied through the aforementioned
etc. associations for the following initiatives:

Your Company has formulated plans and implemented (i) Medical Education Reforms
various measures to ensure that the sustainable growth of
We have been in liaison with the Healthcare Sector
the organisation along with the ecosystem. The Company
Skill Council of India to vastly define and introduce
reuses the treated water and use solar energy as an alternate
new cadres of healthcare workers that will create
source of electricity to meet some of its requirements (details
employment opportunities for our citizens and at
are mentioned in the annexure to the Boards Report under
the same time will help in moderating the healthcare
the head “Energy Conservation”).
costs of the country.
3. Does the company identify and assess potential
We have also collaborated with the Kerala State
environmental risks? Y/N
Healthcare Skill Council to build talent pipelines
Yes
(ii) Healthcare Delivery Systems
4. Does the company have any project related to Clean
We have been involved in discussions with
Development Mechanism? If so, provide details thereof, in
Government entities to implement scientific
about 50 words or so. Also, if Yes, whether any environmental
costing of healthcare services and to change the
compliance report is filed?
reimbursement model of current Government
Since the Company is in the business of providing healthcare schemes (RSBY, ECHS, CGHS, etc.) based on
services and is not engaged in any manufacturing process, published costing models within our country

50 Aster DM Healthcare Limited

 We have actively lobbied to bring about changes in is benefited. Your Company has launched a programme called
policy governing Medical Value Travel (MVT) to India Aster Volunteers. Further details on these activities have
and played a leadership role in the establishment of been given under the heading CSR activities.
new trade summits such as Advantage Healthcare
India over the past three years that has brought 2. Are the programmes /projects undertaken through in-
over 500 delegates to India with an effort to house team/own foundation/external NGO/government
promote India as a leading MVT destination and structures/any other organization?
attract international patients.
The Company through various foundations provides CSR
Interactions with stakeholders on improving Clinical activities, these includes Aster DM Foundation, Dr. Moopens
Governance and to bring about jurisprudence in the Family Foundation, Aster MIMS Charitable Foundation etc.
healthcare sector.
3. Have you done any impact assessment of your initiative?
The company representatives play an active role in
No, the Company has not done a impact analysis of the CSR
the Joint Commission International (JCI) Advisory

Statutory Reports
activities that is being carried out.
Panel for new standards that have brought out the
6th edition and shared inputs for the upcoming 7th 4. What is your company’s direct contribution to community
edition, in addition to the Ambulatory & Primary development projects- Amount in INR and the details of the
Care Standards. projects undertaken?

We have been actively involved in multiple forums The Company had spend 56.6 lakhs on a standalone basis on
with various government agencies in the public various CSR activities
debate regarding the introduction of both, Clinical
Establishments Act across various States as well Principle 9
as the roll out the Minimum Wages for Healthcare
1. What percentage of customer complaints/consumer cases
workers in some States.
are pending as on the end of financial year.
We have been in the forefront for advocacy
The Company had received 7 consumer complaints pending
for defining new methodology for publishing
as on March 31, 2018
healthcare clinical outcome and make it available
for stakeholders with an effort for improving 2. Does the company display product information on the
transparency within the sector. product label, over and above what is mandated as per local
laws? Yes/No/N.A. /Remarks (additional information).
(iii) Information Technology in Healthcare
Company is a healthcare service provider and hence this
We have been active participants in improving the
question is not applicable.
quality assurance while formulating and sharing
inputs with industry bodies for increasing the use of 3. Is there any case filed by any stakeholder against the company
healthcare IT. regarding unfair trade practices, irresponsible advertising
and/or anti-competitive behavior during the last five years
(iv) Public Health Policy
and pending as on end of financial year. If so, provide details
We have been actively involved in various trade thereof, in about 50 words or so
bodies to share inputs on the draft National Health
Your Company is into providing healthcare and hence the
Policy
Company has not received any complaints under the unfair
There have been multiple meetings with stakeholder trade practice however we have received 5 medico legal
to share insights on the practical roll-out of the complaints
National Health Protection Scheme.
4. Did your company carry out any consumer survey/ consumer
Principle 8 satisfaction trends?

1. Does the company have specified programmes/initiatives/ The Company owns and operates hospitals through its
projects in pursuit of the policy related to Principle on subsidiaries and units, these hospitals deliver world class
inclusive growth and equitable development? If yes details faciality without compromising the patient excellence. A
there. feedback is collected from the patients after their visit/
treatment at the hospitals and are considered internally and
Your Company through various foundations like Aster DM the same is discussed in the meetings of the Operational
Foundation, Dr. Moopens Family Foundation, Aster MIMS teams of the respective hospitals. Only those issues which
Charitable Trusts and others carries out various activities couldn’t be resolved and requires a special attention is
which ensures that the under privileged section of the society escalated to a higher authority.

Annual Report 2017-18 51

Management Discussion and Analysis
Global Economic Overview GCC Economic Overview

The effects of economic crisis started to bottom out in last During the year under review, there has been a modest growth
few years resulting in the world gaining strength and sight to in the non-oil economy of the GCC states by 2.6% as compared
incline towards policies for resolution of long-term issues which to 1.8% in the previous year. Driven by the reduction in oil output
constricts sustainable development. In 2017, the growth has under the OPEC+ agreement, the real GDP is estimated to decline
estimated reached to 3% which is indicates a remarkable marginal by 2.3% in 2017 to 0.5%.
growth of 60 bps than the growth of previous year that stood at
Out of six countries, four experienced a downfall in the CPI
2.4%. Such unparalleled growth was unseen post 2011. Labour
inflation due to lower import prices and challenging economic
Markets registered a growth in most of the countries and more
conditions. The huge fiscal deficit has narrowed down, owing to
than 60% of the countries have experienced growth in 2017 as
increasing oil revenues and fiscal consolidation. After a continuous
compared to the previous years.
downfall in the exports till 2016, it is under recovery due to rise in
Although there has been strong economic activities across the demand, leading to improvement in current account balance. The
world, it has been unequal between countries and regions. A government debt has increased from a cumulative 22.0% to 25.5%
majority of acceleration could be attributed to the strong growth of GDP
in the developed nations although East and South Asia accounted
Outlook
a highest level of growth. Developing countries like Brazil, Russia
have experienced a cyclical growth, eventually emerging out of It is expected that the oil output would increase by 1.9% and non-
recession. oil growth would register a downfall to 2.4%.Moreover, there would
be a marginal rise in the inflation due to introduction of value-
There has been improvement in the condition for investment, added tax in some countries or increase in domestic energy prices.
owing to low financial volatility, stabalisation in the banking The fiscal deficit is expected to decrease further over the middle
sectors and slight rebound in commodity sector. Financing costs term and is estimated to be $160 billion during 2018-22. Over
stood low and spreads have slimmed down in the emerging time, the exports are expected to rise consistently. It is expected
markets reflecting a decline in risk. Global trade rebounded in that the government debt would reach up to 29% of GDP in 2018.
2017, starting off growing at an unprecedented rate in the first
eight months, owing to the import demand in East Asia. Several (Source: IMF)
major developed economies saw rebound in the capital goods as
Cumulative CPI Inflation: GCC countries (in %)
firms respond to improving conditions for investment.
4.2
Outlook
2.8 2.9
2.6 2.5
At the global level, it is expected that the growth would take place
at a consistent rate of 3.0% in 2018 and 2019 driven majority by
developing economies. Regions covering nearly 20% of the global
0.8
population are anticipated to see negligible growth in average
incomes in 2018-19. Growth in Least Developed Countries (LDCs)
is expected to rise modestly from an estimated 4.8% in 2017 to 2013 2014 2015 2016 2017 2018
5.4% per cent in 2018 and 2019 respectively due to favourable
external economic conditions and firming commodity prices which (Source: IMF)
would support trade, financial flows and investment in natural
resources projects. Indian Economic Overview
(Source: UN)
India is one of the fastest growing economy among EMDEs and
Growth in World Output (%) across the world. It grew fastest due to strong performance in
3.0 3.0 3.0
2.7 construction and manufacturing. The economy grew at a rate
2.4 of 6.7% from 7.1% in FY17 owing to the short-term effect of
demonetisation and the rollout of GST last year. The country is
outpacing China by nearly a percentage point. As compared to the
last year, the GVA growth rate fell by 60 bps points from 7.1% to
6.5%.
2015 2016 2017E 2018P 2019P
(Source: UN)

52 Aster DM Healthcare Limited

In the fourth quarter, the growth in agriculture, manufacturing and From 2016-2021, it is anticipated that the life expectancy rate
construction stood at 4.5%, 9.1% and 11.5% respectively. While the would shoot up by more than one year thereby registering an
trade, hotel and transportation, communication and services grew average of 74.1 years from 73 years resulting in 11.5% of the
at 8% in FY18 as compared to 7.2% in 2017 thereby rising up by 800 total population being above the age of 65 years. The significant
bps. The public administration, defence and other services grew rise in the life expectancy rate would be result of falling infant
at a CAGR of 10%, marking a downfall from 10.7% growth in the mortality rates being an outcome of initiatives taken to improve
previous year. living conditions and ease in accessibility to health care and
vaccinations.
GST has likely boosted the manufacturing sector which grew
at an average rate of 8.8% during the last two quarters of FY18. Improvement of financial performance and operating margins

Statutory Reports
The growth in the private consumption remain stable at 6.6%, be a major concern. The trend of rise in costs and declining costs
Investments is also showing signs of recovery thereby indicating would persist due to increase in demand, funding limitations, need
the prospects of faster growth in the coming financial years. of upgrades of infrastructure and technology. The future involves
change in pattern of care including increased visits and higher
Outlook quality services being the major cost drivers.

The economy is expected to grow at 7.5% in the fiscal year 2018- However, various strategies are being implemented by the health
19. The growth of the global further would catalyse exports care providers to manage declining margins and rising costs,
from India. The trend in the investment activity is positive with such as shift in pattern from treating patients in the hospitals to
consistent rise and the same is expected with a greater strength outside the hospitals settings to reduce costs. Major health care
in the coming years. Provided inflation does not disrupt, the policy companies are resorting to Mergers and Acquisitions (M&A) to
rate is expected to remain stable. A prospect surge in the oil prices gain economies of scale.
stands a risk to subdue the growth rate of the economy. Moreover
the tightening of the monetary policies of the developed nation Healthcare Expenditure (estimated CAGR)
would slim down the capital inflows in the country and may also
lead to the possibility of financial stress. Overall, there is strong
possibility of higher growth in 2018-19 as compared to the growth
rate of 2017-18.

(Source: Economic Survey of India)

GDP Growth Rate

8.2
7.5
7.1 6.7

2013 FY17 FY18 FY19* (Source: The Economist Intelligence Unit, June 2017)

(Source: Economic Survey)

GCC Health care Industry

Global Health care Industry
GCC is a political and economic alliance of six Middle Eastern
The global health care spending is expected to rise at a CAGR countries, namely Saudi Arabia, Qatar, Kuwait, UAE, Bahrain and
of 4.1% from 2017-2021 from 1.3% in 2012-2016, owing to the Oman. A changing demographic and epidemiologic structure is
consistent surge in aging and increase in population and labour propelling demand in the healthcare services in GCC. Moreover,
costs, expansion of developing economies and advances in the regional authorities played a significant role in accelerating
medical maneuver. It is expected to reach to an estimate of $8.7 the growth in the healthcare sector despite the contraction in the
trillion by 2020 from $7 trillion in 2015.There would be wide gap oil revenues which is suppressing the spending. Encouraged by
in per person health care spending across the world ranging from incentives and mandatory health insurance and other reforms,
$11356 in United States to just $53 in Pakistan in 2021. investments by private sector is surging in the region.

Annual Report 2017-18 53

UAE Current Healthcare Expenditure in KSA

The population of the country is expected to grow at a CAGR of 59.5

63 8%
3.0% from 10.1 million in 2017 to 11.8 million in 2022. Out of which, 6.6%
56 6.3% 6.5% 7%
15% would be around 50 years of age leading to rise in demand for 5.8% 7.3%
49 47.0
healthcare services. The current healthcare expenditure stands 44.3 6%
42 41.0
at around 4.3% of the GDP i.e. $16.1 billion and is expected to 37.7 5%
upswing to $25.6 billion by 2022. The inflation in medical industry 35 3.6%
4%

US$ Billion
is expected to downfall from 9.6% in the current year to 7.6% by 28 24.3
2022. 3%
21
14 2%
With the rise in sedentary lifestyles, there is a rise in risk of
diseases like diabetes, hypertension and cardiovascular problem 7 1%
thereby leading to lengthy treatments which in turn is boosting
0 0%
the healthcare revenue. The implementation of mandatory 2011 2015 2016E 2017E 2018E 2022F
healthcare insurance policy across the country by the government Healthcare expenditure As a % GDP
is leading to better utilization of medical facilities in the country.
(Source: WHO)
The number of hospital beds is expected to touch the mark of
14,969 by 2022 from an estimated 12,900 in 2017. The country Qatar
would register a rise in the inpatient admission from 660.3
thousand in 2017 to 766.2 by 2022 while the outpatient visit is The need of medical services is accelerating due to fast-paced
expected to rise from 36.9 million to 42.7 million during the same growth in the population of the country at an average rate of 8.3%
period. UAE is the one of the fastest growing medical tourism in the last five years to 2017. However, the growth is expected to
hubs globally. It hosted around 3,26,649 medical tourists in 2016, experience a slowdown in the coming years. The current healthcare
increasing annually at a CAGR of 9.9%. The country is also aiming expenditure is expected to downfall in from 4.1% of GDP i.e. $4.9
to promote its medical facilities in countries like Russia, India and billion to 3.5% of GDP i.e. $5.8 billion while the medical inflation is
China and attract around 5 million tourists by 2020. expected to downfall by a slim rate of 0.1% from 1.4% in 2017 to
1.3% in 2022.
KSA
There has been a remarkable growth in the standard of living and
The healthcare industry is poised to grow in the backdrop of rising expansion in the network of international food retailers leading
population which is estimated to cross 35.7 million by 2022. The to a considerable surge in the intake of sugary and calorie-
current healthcare expenditure in the country is estimated to be rich packaged foods resulting in rise in per capita spending on
$44.3 billion i.e. 6.5% of the GDP and is expected to acquire a 7.3% healthcare. The country is reforming its policies to welcome
of the GDP which would be $59.5 billion by 2022. international players in the country for foreign investments and
back up development of sectors, including healthcare.
The country ranks 13th in the world for prevalence of diabetes and
14th in obesity leading to a rise in the spending on regular medical The number of hospital beds stands at 8,547, with an expectation
visits, related medical examinations and its drugs. The growth in to marginally rise to 9,807 by 2022. Additionally, the inpatient
specialized hospitals, polyclinics are expected to meet the rising admission and outpatient visit is expected to rise from 325.1
demand. thousand to 373 thousand and 19.4 million to 22.2 million
respectively.
The number of hospital beds are estimated to be 72,589 in 2017
and is expected to rise up to 79,780 beds by 2022. Moreover the (Source: IMF – October 2017, WHO)
medical inflation is expected to decline from 6.2% in 2017 to 4.5%
in 2018.During the year under review, the inpatient admission Oman
stands at an estimate of 3,502 thousand and is expected to rise
The population of Oman is forecasted to grow at a CAGR of 3.2%
to 3,886.7 thousand by 2022. Additionally, the outpatient visits are
from 4.1 million to 4.8 million, the fastest among the GCC countries,
also expected to surge from 142.5 million the current period to
between 2017 and 2022. Moreover, the prevalence of diabetes is
157.3 million by 2022.
expected to increase from 12.6% in 2017 to 15.4% to 2040, leading
The key challenges for KSA are lower health care spend compared to rise in the healthcare expenditure. The healthcare expenditure
to the western world, acute shortage of manpower and stringent is expected to rise from 4.4% to 5.3% of GDP to $4.9 billion. The
regulations constraining the growth of the sector. medical inflation is anticipated to rise from 5.1% to 6.6% between
2017 and 2022.
(Source: IMF – October 2017, WHO, MOH, WTW)

54 Aster DM Healthcare Limited

There would be an increase in the expenditure on healthcare Kuwait stands at 11th in the world in terms of prevalence of
services due to phase-wise implementation of compulsory health obesity and rising risks of cardiovascular diseases. With such
insurance for the private sector. This would result in more private health profiles, there would be a rising need for long-term
organizations setting up clinics in the country.The number of treatments and high healthcare spending.
hospital beds is expected to surge from 6,793 in 2017 to 7,937
beds in 2022. Similarly, there is an expectation of rise in inpatient (Source: IMF – October 2017, WHO)

admission and outpatient visits from 476 thousand to 556

thousand and 22.2 million to 26 million between 2017 and 2022. .2%
120,000 CAGR: 2 118,295
(Source: IMF – October 2017, WHO) 113,196
110,000 108,298
105,938

Numher of Beds
Bahrain
100,000
The population in Bahrain is expected to grow at a CAGR of 2.0%
from 1.3 million to 1.4 million between 2017 and 2022.About 13% 90,000

Statutory Reports
of the rising population would be above the age of 50 leading to
rise in demand for healthcare services. The healthcare expenditure 80,000
is expected to increase from 5.4% of the GDP to 5.8% of the GDP
between 2017 and 2022. Moreover, there would be remarkable 70,000
2017E 2018F 2020F 2022F
downfall in the medical inflation from 5.7% to 3.2%.

There is a high incidence of NCDs in the country leading to prolonged (Source: WHO, IMF, WTW, MOH )
treatment which results in increase in healthcare expenditure and
need for specialized medical centres. The government is proposing Special traits of GCC healthcare industry
the implementation of compulsory national health insurance
scheme which could encourage expatriates to use private as well Prevalence of primary and secondary healthcare facilities
as public healthcare facilities. Moreover, it government has passed
new laws which allow 100% foreign direct investments across The percentage of old age people in total population is
various sectors including healthcare simulating the development relatively lower than other age groups resulting in a limited
of the sector. requirement for tertiary and quaternary care.

The number of hospital beds is expected to increase from Due to lack of support systems such as families and relatives
2,698 in 2017 to 2,979 in 2022.There would be a considerable rise expat community travel back to their home countries for
in the inpatient admission from 135 thousand to 149 thousand major health issues
and outpatient visits from 7.7 million to 8.5 million in the same
The private healthcare is mainly focused on primary and
period.
secondary healthcare
(Source: IMF – October 2017, WHO)
Recently a trend can be seen in UAE where focus is on
Kuwait selective tertiary care, however it will remain proportionately
lower.
The population of Kuwait is anticipated to grow at a CAGR of 2.8%
from 4.3 million to 5.0 million between 2017 and 2022 , out of Only Saudi Arabia with large population of nationals is
which, nearly 20% of the projected population will age over the age suitable for tertiary and quaternary care facilities.
of 50 resulting in growth in the demand of the healthcare services
Seasonality of Patient Volumes
and need for long-term care centres. The healthcare expenditure
for the same period is expected to rise from $4.9 billion to $5.8 In summer months, from May to August, an increase in
billion. However, this growth could also be seen as a downfall temperature results in a shift of expat population out of GCC
in the share of GDP from 4.1% to 3.5%. Moreover, there would be states
meagre downfall in the medical inflation from 1.4% in 2017 to 1.3%
in 2022. Many of our doctors belonging to expat community also avail
their annual leaves during this period
The number of hospital beds is forecasted to increase from 8,547
to 9,807 between 2017 and 2022. There would be a considerable During this period, there is a decline in in patient volumes
rise in the inpatient admission from 325.1 thousand to 373 across our primary and secondary healthcare facilities.
thousand and also in outpatient visits from 19.4 million to 22.2
million during the same period.

Annual Report 2017-18 55

Population (in Million) Key Growth Drivers
Expat% -> ~80% ~70% ~45% ~30%
Growth in Population: The population of the alliance are expected
35 32 to rise by 2022 from the 6.6 million to 61.6 million. For UAE, the
30
populations of Dubai and Abu Dhabi would upswing the most.
25
Expatriates are an important part of the population of these
20 countries. They don’t have complete access to the public sector
15 hospitals and thus are mostly reliant on the services by the private
9.3
10 sector making a significant impact on the consumption of health
5 2.6 4.4 care services within the respective countries.
0
UAE Qatar Oman Saudi Arabia Evolving Demographics: The population of the GCC states is swiftly
Expat Nationals
moving to a higher age bracket thus increasing the prospect of
growing demand for the health care services. In UAE, population
Source: World Bank
below 35 accounts for more than 50% while the population above
Population Age (in %) 55 years is around 6% in 2016 which is expected to increase to 9%
in future. In KSA, the population bracket of 35-54 years has grown
from 26% to 30% in 2016 and is expected to increase to 41% in 2020
120
while the population above 55 years increased from 7% to 9% in the
1% 1% 2% 3%
100 same period.
80
High Prevalence of non-communicable disease: The rising inactive
60 85% 85% 76% 71% lifestyle of the local population has increased the prospects of
40 diabetes, obesity and hypertension. The prospect is expected to
20 increase due to rise in high calorie food habits.
22% 26%
14% 14%
0
UAE Qatar Oman Saudi Arabia
>=65 (%) 15-64 (%) <=14 (%)

Source: World Bank

Age-Standardised Obesity Estimates (2014) Raised Blood Pressure Estimates (2014)

UAE 37.2% UAE 14.7%

KSA 34.7% KSA 21.8%

Qatar 42.3% Qatar 18.1%

Oman 30.9% Oman 17.2%

Kuwait Kuwait 19.9%

39.7%
Bahrain 19.2%
Bahrain 35.1%
India 23.0%
India 4.9%
China 19.8%
China 6.9%
USA 17.0%
USA 33.7%
UK 20.3%
UK 28.1%

Prevelance of Hypertension (SBP>=140 and DBP>=90

Prevelance of Obesity (BMI>=30 kg/m2) (% of Population)
or on medical (% of Population)

(Source: World Health Organisation Report 2014, Frost & Sullivan Analysis)

56 Aster DM Healthcare Limited

Rise in Government Spending: According to the Sharjah’s Bed Density in India
Investment and Development Authority estimation, the Emirate
health care market is expected to grow by $50 million from 2015 to The bed density in India stands at 10 beds per 10000 people which
2020.In GCC states, more than half of the health care expenditure is significantly lower than the global median of 29 beds. The count
is made by the government. In UAE, the government has allocated is even lower than that of other developing nations such as Brazil
a budget of $1.13 billion to the health care sector in 2017, with which has a bed density of 23 beds per 10000 people, Vietnam
the expectation of growth at a CAGR of 8% in 2016 with a vision to with a bed density of 20 beds and Thailand with a bed density of
provide high quality health care services to public. 21 beds. In order to stand equivalent to the global median, India
would have to add about 3 million beds to its current capacity.
Growth in Medical tourism: Inbound medical tourism is expected
to be a key growth driver for the UAE and the KSA. In UAE stand Medical Personnel
ahead in the medical tourism industry reflecting Dubai as the
In addition to insufficient bed density, the country also faces a
key hub for medical tourism in the country. By 2020, Dubai is
challenge of insufficient medical personnel. India is short by 18
anticipated to attract 500000 tourists, estimated to generate $71
physicians and 10 nursing personnel per 10000 of population to
million in 2020 from $18 million in 2012 thereby marking a CAGR of

Statutory Reports
reach the global median which is 25 physicians and 25 nursing and
about 24% between 2014 and 2020.In KSA, the volume of medical
midwives personnel. Even on this parameter, India below some of
tourists is projected to increase at a CAGR of 15.3% between 2015
the developing nations such as Brazil that has 19 physicians and
and 2020. However, the downfall in oil prices have enforced the
76 nurses, Malaysia which has 12 physicians and 33 nurses and
government to encourage population in getting treated locally
Vietnam which has about 12 physicians per 10000 population.
rather than travelling aboard.
Cost Advantage
Country wise CHE Growth (CAGR: 2010-2015)
The cost of healthcare services in India is quite competitive in
Qatar 17.60% relation to the developed countries and other Asian countries. The
availability of medical facilities for critical treatments like cancer
Saudi Arabia 15.40%
and joint replacement at lower costs, and better care makes India
Bahrain 14.10% an attractive destination for medical tourism for people looking
for advanced treatments at affordable prices without quality
GCC 11.40% compromise. Africa, South and West Asia together accounts for
Oman 10.70%
more than 90% of medical tourist travelling to India.

Kuwait 7.70% (Source: IBEF)

UAE 2.70%
Central Government Health Scheme is a
comprehensive medical care provided to the
(Source: WHO) employees of Central Government and pensioners
who have voluntarily enrolled under the scheme. It
Country No. of Hospitals Year
caters to the employees belonging to the Legislature,
Saudi Arabia 470 2016 Judiciary, Executive and Press domains. It provides
UAE 126 2015 healthcare under the following system of Medicines:
Qatar 14 2016 Allopathic, Homoeopathic, Ayurveda, Unani, Siddha
Oman 74 2016 and Yoga.
Bahrain 25 2015 The regulatory environment for establishing a
Kuwait 33 2016 hospital in India is quite strict and demands several
approvals. Additionally, such establishments are
Indian Healthcare Industry regulated under the purview of policies such as
Clinical Establishment Bill, 2010 which endows it
According to WHO, India’s total healthcare expenditure stood with guidelines for registration and operations and
at 4.2 % of the GDP in 2015, which can be attributed to under- its impact on the environment. In India, hospitals
penetration of healthcare services and lower preferences among are accredited by National Accreditation Board for
people to spend on healthcare. In 2016, the healthcare industry Hospitals and Healthcare Providers (NABH), which
had an estimated valueof $110 billion. The per capita government is compulsory for hospitals to get empanelled under
expenditure on healthcare of India is $68.6in 2015 while in US it is
the Central Government Health Scheme (CGHS).
$4541 and UK it is $2808 as of 2014.

Annual Report 2017-18 57

Government Initiatives Company Overview

With the aim to propel health care in the country, Indian About the Company
government is developing human resource, cutting down out-
of-pocket expenditure and improving the quality of care through Aster DM Medicare Ltd, is one of the largest healthcare services
policies like National Healthcare Policy 2017, Mental Healthcare provider across GCC states and an emerging player in India. The
Policy 2017, Prevention and Control of HIV and AIDS Act 2017 company conducts operations in all GCC states, comprising of UAE,
and Affordable Medicines and Reliable Implants for Treatment KSA, Oman, Bahrain, Kuwait and Qatar as well as in Philippines,
(AMRIT). The primary aims of these policies to develop healthcare Jordan and India with headquarters in Dubai, Kerala and UAE. It
manpower, increase life expectancy rate and reduce mortality provides services under multiple segments of health care industry
rate by surging government healthcare expenditure to 2.5% off such as hospitals, clinics and retail pharmacies serving people
GDP by 2025. It also targets to reduce the costs substantially for across different economic segments through different brand
general population by opening AMRIT stores to provide lifesaving names like “Aster”, “Medcare” and “Access”. Aster and Medcare
drugs and cardiac implants at 60-90% discount to patients and addresses the needs of people belonging to upper and middle
establishing diagnostics centres at public health care hubs for income segments; Access offers pocket-friendly health care
public to avail diagnostics services at no cost. services to working class expatriates and lower income segment
in GCC states. In India, the company conducts business under the
Outlook names of “Aster”, “MIMS”, “Ramesh”, “Prime”, “Aster Aadhar” and
“Aster CMI”.
Indian healthcare market is expected to rise multifold and reach
to a valuation of $280 billion by 2020, growing at a CAGR of 16.5% Key Strengths
from 2008-20, propelled by rising demand for pocket-friendly
healthcare services, growing incidence of lifestyle diseases. Active Presence in GCC states
Increasing healthcare costs, inception of telemedicine, swift
The company is one of the largest health care service provider
processing of health insurance, mergers and acquisitions to reach
across the GCC states, well-settled to capitalise the untapped
the untapped markers and government initiatives are driving
growth in the healthcare sector with the help of first mover
healthcare market in India. The growth of healthcare industry
advantage, strong brand presence and neat track record.
would also gain momentum due to increasing expenditure on
research and development, rising collaborations with foreign Well Diversified Portfolio
institutions.
The company has established itself across multiple geographies,
Healthcare sector growth trend (USD billion)
multiple health care delivery verticals and serving across different
economic segments. After establishing itself across GCC states,
280
% the company is increasing its presence in Southern states of India,
.5
R: 16 offering wide spectrum of services through 9 hospitals in GCC
CAG states and 10 hospitals in India.
160
High quality of health care services
104 110
72.8 81.3 The company never compromises with its well-defined quality
51.7 59.5 68.4
45 and patient safety protocols in patient handling and care since
its inception, quite evident through the quality certifications
2008 2009 2010 2011 2012 2014 2015 2016 2017F 2020F and accreditations obtained from several local and international
agencies including accreditation from the JCI for its units in Dubai.
(Source:IBEF) Other units across the world have also received awards and
Per-capita healthcare expenditure (USD)
recognition from regional boards for uncompromised quality of
the services. It believes in receiving constructive feedback from its
patients through discussions, feedback forms and even through
call centres.
CAGR: 5%
68.6 Ability to attract and retain high quality medical professional
61 58 61 61.9
54
With a workforce of 17335 employees comprising of 1430 full-time
doctors, 5735 nurses and 9970 other employees, the company’s
mission is to provide quality care to patients by attracting and
retaining highly qualified and skilled medical professional.
Approximately 30% of the doctors in our hospitals and clinics
2010 2011 2012 2013 2014 2015 specialise in various clinicalfields such as cardiology, cardio
vascular thoracic surgery, neurovascular surgery, nephrology,
(Source: IBEF) orthopedics, oncology andgastroenterology.

58 Aster DM Healthcare Limited

Business Review dedicated specialized units. They also provide outpatient services
including consultations for a range of issues and preventive health
GCC Hospitals screenings. In addition, the Company has developed ancillary and
diagnostic services which are provided through these facilities to
The Company has 9 hospitals in GCC; 5 in UAE; 2 in Oman; 1 in
complement the clinical services provided by them as well as the
Qatar and 1 in Saudi Arabia with total 761 operationalbeds. These
retail pharmacies business segment which are located inside the
hospitals provide a wide range of services through a number of
hospitals.

Hospitals-GCC Location Commencement or Bed Operational Owned or

Acquisition year Capacity Beds Leased

Medcare Hospital Dubai, UAE 2007 64 55 Leased

Al Raffa Hospital Muscat, Oman 2009 86 74 Leased

Al Raffa Hospital Sohar, Oman 2010 73 63 Leased

Statutory Reports
MedcareOrthopaedics and Spine Hospital Dubai, UAE 2012 33 27 Leased

Aster Hospital Mankhool Dubai, UAE 2015 114 100 Leased

Medcare Women and Child Hospital Dubai, UAE 2016 102 89 Leased

Medcare Hospital Sharjah, UAE 2017 124 110 Leased

Sanad Hospital Riyadh, KSA 2011 218 218 Owned

Aster Hospital Doha, Qatar 2017 61 25 Leased

GCC Clinics the past 5 years, there has been a rapid growth in the number
of pharmacies. It offers branded drugs, generic drugs, over the
The Company has clinics in GCC states which function as counter drugs, along with a wide range of nutritional, lifestyle, and
outpatient medical facilities offering various healthcare services beauty products in its retail pharmacies.
ranging from general medicines to medical specialties. It has 94
clinics in GCC states where 77 clinics in UAE are under Medcare, Indian Hospitals
Access, and Aster, making it one of the largest chains of primary
healthcare providers in UAE. The Company has 10 hospitals in India with total of 2,777
operational beds. It has won various awards and certifications
GCC Retail Pharmacies for its hospitals in India including JCI, NABH, and NABL. There has
been a steady growth in the number of inpatient and outpatient
The Company has 207 retail pharmacies in GCC states, and it is visits in Indian hospitals. The Indian hospitals offer a wide range
one of the largest pharmacy chain operating in UAE. Out of total of medical services including Cardiac, Orthopedic, Neurology,
Aster brand pharmacies in GCC states, 174 are in UAE, 9 are in Oncology, etc.
Kuwait, 12 are in Jordan, 6 are in Qatar and 6 are in Oman. Over

Hospitals - India Location Commencement or Bed Operational Owned or Leased

Acquisition year Capacity Beds

Aster Aadhar Hospital Kolhapur, Maharashtra 2008 175 150 Owned

MIMS Kozhikode Kozhikode, Kerala 2013 678 544 Owned

MIMS Kottakkal Kottakkal, Kerala 2013 229 171 Owned

Aster CMI Bengaluru, Karnataka 2014 509 233 O&M

Aster Medcity Kochi, Kerala 2014 670 421 Owned

Prime Hospitals Ameerpet Hyderabad, Telangana 2014 158 100 Leased

DM WIMS Wayanad Wayanad, Kerala 2016 880 798 O&M

Dr. Ramesh Guntur Guntur, Andhra Pradesh 2016 350 150 Leased

Dr. Ramesh Main Centre Vijaywada, Andhra Pradesh 2016 184 160 Leased

Dr. Ramesh- Labbipet Vijaywada, Andhra Pradesh 2016 54 50 Leased

Annual Report 2017-18 59

Operational Review A comprehensive human resource strategy utilizing our
geographical diversity and catering to future growth:
Beds - The total capacity of beds increased from 4651 in 2016-
17 units to 4762 in 2017-18 units, where there was an increase To create an enabling environment for skill development and
in number of beds in GCC states from 668 units in FY17 to 875 growth of doctors and paramedics, providing quality care to
units in FY18 and number of beds in India stood at 3887 units. The our patients
total number of operational beds also increased from 3451 units
in 2016-17 to 3538 units in 2017-18. Maintain the current high retention of senior doctors across
the group
Hospital Patient Visits- The total number of outpatient visits
increased from 2.4 million in FY17 to 2.9 million in FY18. There was Identify and add to the strong pipeline of doctors for our
an increase in inpatient visits from 1,57,800 in FY17 to 2,11,000 in expansion & replacement requirements; early identification
FY18. is key, especially in GCC countries due to strict licensing
requirements
Financial Review
Selective GCC licensing of doctors from our Indian hospitals –
Revenue - During the year, our revenue grew by 13% from to enable need based transfer to GCC hospitals & clinics
Rs.5,963crore in FY17 to Rs.6,760 crore in FY8. This happened as
the Company experienced a growth on an operational front which Retention of skilled paramedics in Indian operations, by
resulted in a positive financial growth. There was a significant fulfilling aspiration of career growth outside India
amount across all the business segments of the Company.
Scalable systems implementation, tightly integrated with
EBITDA - There was a growth of 79% in EBTDA from Rs.364 crore in operations/market requirements:
2016-17 to Rs.651 crore in 2017-18. Around 23% revenue growth in
Systems implementation with focus on scalability and future
Indian business resulted in an EBITDA growth of around 6 times in
business requirements
Indian operations from Rs.14 crore in FY17 to Rs.99 crore in FY18.
Enhancement of patient experience through technology at
PAT- A strong growth in revenue and EBITDA resulted in a growth
each patient touchpoints
of 189% in Profit After Tax from Rs.98 crore in FY17 to Rs.282 crore
in FY18. Information systems to drive productivity improvement

Expansion Plans Strengthening of our medical tourism network:

The Company plans to invest Rs.650 crore in FY19 and Rs.300 To further strengthen integration of GCC & India operations
crore in FY2020 as capital expenditure to setup new healthcare to provide consistent quality experience to patients across
facilities and upgrade existing facilities in India as well as in GCC geographies
states. The Company plans to open 3 new hospitals with 238 beds
in UAE, expansion of the Saudi Arabia hospital with additional 69 To position our premium segment Medcare hospitals as
beds. It has also planned to open 3 new hospitals and add 923 service provider of choice for affluent international patients
beds in India in Kerala, Karnataka, and Tamil Nadu. travelling to Dubai for medical tourism; Strategy in-line with
Dubai government’s medical tourism strategy with a vision
Strategy & Outlook of making as a globally recognized destination for elective
health and wellness treatments
Moving ahead, the Company will focus towards eight key strategies
given below: Profitability growth & brand positioning using product mix and
technology:
Strengthening of hub and spoke model in GCC:
Focus on margin expansion through sale of own / exclusive
To capitalize on the existing primary care clinics network in
licensed products
GCC by adding secondary tertiary care hospitals
Shift to online ordering of prescription for enhanced patient
In FY18, 65 bed Aster Hospital, Doha commenced operations
experience
to utilize the untapped Aster clinics network in Doha
Building of brand, talent and capability in KSA – a key market:
Planned addition of ~240 beds over next 2 years in UAE to
capitalize on Aster and Access brand clinics, located farther There is significant demand for quality healthcare services in
away from our existing Aster Hospital in Mankhool, Dubai Kingdom of Saudi Arabia (KSA), currently the largest economy
in GCC with the highest population;
Above strategy will enable expansion of our quality services
in middle and low economic segments category of patients, Further, current policy reforms expected to improve the
where there is a supply-demand gap. business environment in KSA

60 Aster DM Healthcare Limited

 Having successfully diversified our revenue streams in KSA, Expansion into tier-II and tier-III cities in partnership with
ADMHL further plans to strengthen our brand, talent pipeline local hospitals by leveraging IT/telemedicine, instead of
and management capability building/leasing hospitals

Specialized, asset-light growth in India: Cost Optimization:

Focus on key centres of excellence - Orthopedics, Medical Back office integration across strategic business units
Oncology, Cardiac Sciences, Neurosciences, Gastroenterology,
Women and Child, Bariatric, Integrated Liver care, Nephrology, Clear demarcation of medical and non-medical activities
Urology, NICU & Dermatology hospitals/clinics and re-allocation of activities accordingly

Growth in addition to the current committed projects to Centralization of purchases utilize our economies of scale
follow an asset-light model in metropolitan and tier-I cities
with large format hospitals (400 to 500 beds each)

Statutory Reports

Annual Report 2017-18 61

Board’s Report
To The Members of
Aster DM Healthcare Limited

Your Directors take pleasure in presenting the 10th Annual Report of the Company together with the audited financial statements for the
year ended March 31, 2018.

1. Results of Operation and State of Affairs

Financial Results

Particulars (INR in Millions)

Standalone Consolidated
Year Ended Year Ended Year Ended Year Ended
31 March 2018 31 March 2017 31 March 2018 31 March 2017
Revenue from Operations 5300.66 3795.12 67211.61 59312.87
Other Income 161.08 306.52 454.35 366.15
Total Income 5461.74 4101.64 67665.96 59679.02
Total Expenditure 6333.66 7226.47 65907.62 62752.10
Profit/(loss) before exceptional items, (871.92) (3124.83) 1758.34 (3073.08)
share of profit/ (loss) of equity accounted
investees and tax
Exceptional Item - 3591.89 1296.42 4159.06
Profit/(loss) before share of profit/ (loss) (871.92) 467.06 3054.76 1085.98
of equity accounted investees and tax
Share of net profit/ (loss) of equity - - 22.87 (2.29)
accounted investees
Profit/(loss) before tax (871.92) 467.06 3077.63 1083.69
Less : Tax expense - - 260.82 108.37
Profit for the year (871.92) 467.06 2816.81 975.32
Other Comprehensive income, net of (0.24) (0.69) 103.90 (323.57)
income tax
Total Comprehensive Income (872.16) 466.37 2920.71 651.75
Profit attributable to
Owners of the Company (871.92) 467.06 2688.76 1017.60
Non-Controlling interest - - 128.05 (42.28)
Total (871.92) 467.06 2816.81 975.32
Total Comprehensive income attributable to
Owners of the Company (872.16) 466.37 2784.92 736.43
Non-Controlling interest - - 135.79 (84.68)
Total (872.16) 466.37 2920.71 651.75
Earnings Per Share
Basic (1.87) 1.01 5.75 2.20
Diluted (1.87) 1.01 5.74 2.19

62 Aster DM Healthcare Limited

Financial position

Particulars (INR in Millions)

Standalone Consolidated
As at As at As at As at
31 March 2018 31 March 2017 31 March 2018 31 March 2017
Cash and Cash equivalents 838.5 146.84 2041.68 1373.21
Trade Receivables 305.31 244.51 15463.93 12876.18
Other Current Assets 1839.71 1623.38 11184.22 10475.17
Total Current Assets 2983.52 2014.73 28689.83 24724.56
Property, plant and equipment
(including capital work in progress) 7873.38 7732.34 33672.23 30565.69
Goodwill - - 7083.39 6739.84

Statutory Reports
Other intangible assets 23.46 40.73 644.38 788.95
Other Non-Current Assets 22057.3 22458.94 4752.55 5253.73
Total Non-Current Assets 29954.14 30232.01 46152.55 43348.21
Total Assets 32937.66 32246.74 74842.38 68072.77
Non-Current Liabilities 1919.76 6969 20707.21 23553.76
Current Liabilities 1758.17 1996.96 22234.85 22012.24
Total Current and Non-Current Liabilities 3677.93 8965.96 42942.06 45566
Equity 5052.29 4032.22 5052.29 4032.22
Other Equity 24207.44 19248.56 23268.65 14721.89
Non-Controlling Interest - - 3579.38 3752.66
Total Equity 29259.73 23280.78 31900.32 22506.77
Total Equity and Liabilities 32937.66 32246.74 74842.38 68072.77

During the year under review our company, on a consolidated favorable case mix and opening of two new hospitals at GCC. The
basis, reported total income from operations of INR 67,211.61 in-patient volumes increased from 1,57,800+ in fiscal 2017 to
million as compared to INR 59,312.87 million registering a year 2,10,000+ in fiscal 2018 (+average figures).
over year growth of 13.31%. Of our total revenues from operations
for fiscal 2018, our hospital segment accounted for INR 32,266.97, During the fiscal 2018, our clinics segment revenue increased
our clinic segment accounted for INR 17,769.22 and our retail 9.48% from INR 16,229.16 million to INR 17,769.22 million, driven
pharmacy segment accounted for INR 17,151.34. Our operations by organic growth through increased patient visits at our clinics.
in India, which primarily consist of hospitals, accounted for The stabilisation of new clinics that had commenced operations
INR 11,665.06 of our total revenues from operations for the year in fiscal 2017 also contributed to the segment growth. During the
ended March 31, 2018. fiscal 2018, our retail pharmacies segment revenue increased by
7.34% from INR 15,977.65 million to INR 17,151.34 million, driven by
Our revenues increased by 13.38% from INR 59,679.02 million in growth in our clinics segment which had a favorable impact on our
fiscal 2017 to INR 67,665.96 million in fiscal 2018. This increase retail pharmacies supporting our clinics. During the fiscal 2018, our
was due to an increase in revenue across all our business other income increased by 24.08% from INR 366.15 million in fiscal
segments largely driven by organic growth. During the fiscal 2017 to INR 454.35 million in fiscal 2018. This increase was primarily
2018, our hospital segment revenue increased by 19.29% from due to value added services at our healthcare facilities and increase
INR 27,047.32 million to INR 32,266.97 million. The growth in our in interest income earned on account of fixed deposits.
hospitals segment was driven by an increase in patient volumes,

Revenue : Business Segment Revenue : Geographical Segment

Hospital 48%
GCC 83%
Clinics 26%
India 17%
Retail Pharmacies 26%

Annual Report 2017-18 63

Our employee benefits expense totaled INR 22,711.30 million 3. Transfer to Reserves
in fiscal 2018, an increase of 10.54% over INR 20,545.01 million
in fiscal 2017, primarily due to an increase in the number of No amount is proposed to be transferred to general reserves
employees to 17,335 employees at the end of fiscal 2018 from for the financial year 2018.
17,240 employees at the end of fiscal 2017 and salary increment
effected for the year which reflects the growth of our business 4. Share Capital
segments and operations. Our finance cost totaled INR 1,846.42
million in fiscal 2018, an decrease of 47.78% over our finance cost Share Capital of the Company as on March 31, 2018 was INR
of INR 3,535.99 million in fiscal 2017, primarily due to decrease in 5052.29 Mn consisting of 505,227,345 equity shares of INR 10
interest expenses on financial liabilities measured at amortised each. During the year under review, your Company has not
cost. issued any shares with differential voting rights or any sweat
equity shares. Details of Employee Stock Options granted by
As a result of all the factors outlined above, our profit for the year the Company are provided separately in the report.
increased from INR 975.32 million in fiscal 2017 to INR 2,816.81
million in fiscal 2018. As of March 31, 2018, we had aggregate As on March 31, 2018, except Dr. Azad Moopen who holds
outstanding indebtedness of INR 23,515.74 million. 525,720 equity shares and Mr. T J Wilson who holds 27,37,210
equity shares and Mr. Shamsudheen Bin Mohideen Mammu
*GCC – Gulf Cooperation Countries Haji who was holds 5,717,829 equity shares and Mr. Anoop
Moopen who holds 482,398 equity shares, no other directors
Strategy
hold any equity shares or preference shares in the Company.
Our mission is to improve the quality of healthcare services
During the financial year under review, your company issued
provided in the communities we serve. We strive to deliver
38,157,894 equity shares of face value INR 10 and at a
comprehensive healthcare services of international standards to
premium of INR 180 through the Initial Public Offer as per the
our patients in order to become their healthcare service provider
prospectus dated February 17, 2018.
of choice. We also provide assistance to the underprivileged
as part of our corporate social responsibility. We are able to do During the year under review, your Company has not issued
this because of our commitment to nurturing a dedicated and any bonus shares or rights shares.
passionate team of healthcare professionals in order to achieve
and maintain excellence in education, research, clinical outcomes
and healthcare. At the same time, we seek to generate strong 5. Public Deposits
financial performance through the execution of a robust business
Your Company has not accepted any public deposits and, as
strategy.
such, no amount on account of principal or interest on public
We expect the private healthcare services sector in the GCC states deposits was outstanding as on the date of Balance Sheet.
to grow based on: favourable healthcare regulatory reforms and Thus no particulars are reported as required under Rule 8 (5)
growth in the privately insured population and premium health (v) of Companies (Accounts) Rules, 2014.
insurance; an increasing incidence of lifestyle related-medical
conditions; a population that is growing and rapidly ageing in the 6. Loans, Guarantee and Investments
GCC states; growth in the inbound and outbound medical value
travel industry; projected shortages in healthcare provision and Particulars of Loans, guarantees and investments form part
infrastructure in the GCC states; and service gaps in the current of the notes to the financial statements provided in this
healthcare market. In Saudi Arabia, we shifted our focus from the Annual Report.
government to the private healthcare sector in order to capitalise
on the significant demand supply gap in private healthcare.
7. Subsidiary, Joint Ventures and Associate Companies
We expect the healthcare services sector in India to grow based
Your Company along with its subsidiaries are engaged in
on: the continued growth of the Indian middle class; an increasing
the business of setting up hospitals, clinics and pharmacies
incident of lifestyle related-medical conditions; increased
in India and GCC. At the beginning of the year your company
spending on medical/healthcare (sick care and preventive care)
had 8 direct subsidiaries, 45 step-down subsidiaries and 4
due to higher disposable income and better awareness; and the
associate companies. As on 31st March 2018 your company
impetus provided by rising demand for medical value travel.
has 9 subsidiaries and 48 stepdown subsidiaries and 4
We aim to achieve our mission, to capitalise on the market associate companies. There has been no material change in
opportunity and to grow our business by pursuing the strategic the nature of the business of the subsidiaries.
goals set out below.
Following entities have become subsidiaries of the Company
during the reporting period:
2. Dividend
1. Aster Ramesh Duhita LLP
Your Board has not recommended any dividend for the
financial year 2018. 2. Dr. Moopens Aster Hospital WLL

64 Aster DM Healthcare Limited

 3. Harley Street Dental LLC launched and implemented the new hire onboarding program.
This new hire onboarding program includes both Clinicians and
4. Aster DCC Pharmacy LLC Non-Clinicians together being inducted from day one as they
join us in any part of business. The objective is to provide them
Pursuant to provisions of section 129(3) of the Act, a
an overview of Aster DM Healthcare as a Group, our culture and
statement containing salient features of the financial
values, our working styles, and our ethos; thus, blend well and
statements of the Company’s subsidiaries in Form AOC-
add value to themselves and the system.
1 is appended as Annexure A to the report.
Considering the volume of information provided and changes
8. Human Resources happening in the organization, we developed our first
employee handbook and its design element. This employee
From the last year’s focused approach towards enhancing our handbook will act as a guide for all the employees and it
“Stakeholder’s delight” through cultivating an atmosphere of contains important information about Aster DM Healthcare.
uncompromised quality and care; this year 2017 - 2018 was The book is classified into four major categories which
about driving a high-performance culture and productivity revolves around: I – Belong, I – Learn, I – Respect and I – Enjoy.

Statutory Reports
across the Group.
The growth and development of our business necessitates
In view of the IPO planned during the year, our core focus for that we develop our employees in their careers, provide for
Human Resources was reviewing what existed to achieve their continuous and on-going professional development
greater internal and external stakeholder’s outcomes and help them achieve their maximum potential. There
both from a talent and business perspective. This was were two key programs that were launched with a common
done strategically by running an HR diagnosis across the intent of cultivating talent. The first was the Aster DM
organization; which gave us our clear HR strategy until the Healthcare Women Leadership Program which began with
year 2020 complimenting the overall long-term business twenty-four high potential middle managers covering the
priorities. learning blended model including business related learning
themes and mentoring programs within the organization to
Our People Strategy has eight key focus areas emerged across make them future ready leaders. The second high potential
the employee life cycle from: Attracting and Recruiting Talent program is the Executive Certificate Course in Healthcare
including New Hire Induction and Onboarding, Workforce Management by XLRI, one of the top leading management
Planning and Organization Design, Learning & Development, institutes in India. This course is exclusively customized and
People and Talent Analytics, Compensation and Benefits, co-created by XLRI and the Aster DM Healthcare team with
Career & Succession Management, Employee Engagement a MBA. A total of thirty high potential young leaders in P&L
& Recognition, HR Operations including Grievance and Exit roles were selected for this one-year journey post which they
Management. All these have been mapped against the will be graduating in Jamshedpur Campus. There was also an
impact on operational outcomes, design and implementation annual learning calendar created based on the needs analysis
challenge to ensure complete business alignment. of the business requirement with a range of unique programs
focused towards management development.
As an outcome of our review, one of the key inputs to
the people strategy was digitization of HR process and While preparing for becoming a public listed company, it
outsourcing some of our manually dependent and non-core becomes a moral responsibility for every Aster member
processes like outsourcing of payroll to Ramco. Digitisation including the Board and the senior leadership team to be
was a key theme this year and the outcomes of which will be transparent and open in sharing information about the
integrated with all other HR process using Oracle HCM cloud company with both internal and external customers. As a
technology. As a pre-requisite to the HCM implementation, result, HR policies were broadly categorized as global, regional
eight major process flows subdivided into sixty-six approval and business level policies revisiting and standardizing sixteen
workflows were created in agreement with HR and Business of our key employee policies across the organisation to ensure
leadership to create the HR Group Approval Matrix or GAM to external competitiveness and internal fairness and parity.
streamline the HR operating model.
To support our strategy of driving a high-performance
As we continue to focus on being able to attract and retain the culture, we also created the Aster DM Healthcare competency
best, we partnered with Willis Towers Watson to conduct our framework and aligned it with our performance management
first formal salary and benefits benchmarking study across system. There was uniform cascade of goals from leadership
GCC. The objective is to create fairness and transparency in to team member level this year and that competency
rewards and benefits programs. Similarly, we partnered with also formed a part of the evaluation to focus on building
other Industry experts for India with E&Y and McKinsey for GCC capabilities.
regions for the Manpower Optimization & Productivity to ensure
an optimal manpower model for our hospitals. The results of To summarize, this year’s efforts were acknowledged very
which will go into the following years’ HR operating plan. well as our Group and our leaders were recognized through
awards globally and regionally. Both our Aster and Medcare
To create alignment which reflects our employer brand, brands and their leaders in India and GCC have been selected
mirrors our values and inducts our employees within Aster DM as one of the World’s Greatest Brands and leaders in Asia and
Healthcare family working towards our common goal, we also

Annual Report 2017-18 65

 GCC for 2017-18. Some notable awards were: World’s Greatest Brands in Asia and GCC for 2017-18 and Dubai Appreciation and
Quality Awards, Dubai Human Development Awards, GCC Best Employer Awards etc. Some key statistics for the year as on March
2018 are as follows:

Attribute Group
Headcount 17,335
Differently Abled Headcount 63
Hiring 6,251
Annualized Attrition (%) 29.66%

Total Employee Grievances 323

Anti – Sexual Harassment (ASH) 8
Code of Conduct (COC) 251
Whistle Blower 26
Involuntary Separation due to Performance Concern 38
Percent of cases closed 90%

9. Particulars of Employees

The statement containing particulars of employees as required under section 197(12) of the Act read with Rule 5(2) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, is provided in Annexure B forming part of this report.

10. Employee Stock Option Scheme

Keeping its promise of value creation for its employees and employees of subsidiary companies, your company had instituted an
ESOP Scheme “DM Healthcare Employee Stock Option Scheme 2013” in the year 2013. Details of ESOPs as required under Rule 12 (9)
of Companies (Share Capital and Debentures) Rules, 2014 as given below:

Date of Grant Grantees Type of Option

Performance Loyalty Incentive Milestone
07-Jun-17 KMP Category - 64,500 6,000 4,500
Non-KMP category - 2,20,500 1,42,000 1,06,500
01-Mar-18 KMP Category 76,218 - - -
Non-KMP category 5,89,811 1,46,800 - -
Total 6,66,029 4,31,800 1,48,000 1,11,000

*KMP includes MD, CFO and CS

Note: Refer note no 41A of Financial Statements forming part of this Annual Report for details of ESOP’s.

11. Quality Control and Initiatives Aster DM Healthcare have implemented Patient Safety
Friendly Hospital Initiatives. The initiative involves the
Our constant endeavour for clinical excellence is our journey implementation of a set of patient safety standards in
of TQM (Total quality management) at Aster DM healthcare. hospitals & medical centers. Compliance with the standards
Our Quality principles provide the foundation for improving ensures that patient safety is accorded the necessary priority
safety and quality of care for patients and families as well and that facilities and staff implement best practice.
as improving the workforce experience. The quality program
at Aster DM is structured to develop a groupwide culture of The goal of the initiative is to improve the level of patient
improvement that inspires , engages and achieves results. safety in hospitals by creating conditions that lead to safer
We aim to simplify and harmonize activities and initiatives care, thus protecting the community from avoidable harm
while we set priorities for groupwide impact which patient and reducing adverse events in hospital settings. Patient
centric. centric processes & protocols take topmost priority such
as implementation, monitoring and maintenance of WHO
Patient safety is a global health concern, affecting patients in guidelines, supporting quality improvement projects like
all health care settings, whether in developed or developing reducing the risk of medication errors, IPSG Goals preventable
countries. Research studies have shown that an estimated strategies with regard to pressure ulcers, falls etc. Special
average of 10% of all inpatient admissions result in a degree emphasis is laid on implementation of clinical pathways &
of unintended patient harm. It is estimated that up to 75% of clinical bundles
these lapses in health care delivery are preventable.
There is monitoring of quality data which is benchmarked
In response to the pressing need for the development of with national & international standards in order to ensure
interventions that address lapses in patient safety, we , at we are on par with the best acceptable standards in the

66 Aster DM Healthcare Limited

 healthcare industry. The Group Quality initiatives for the year excellence. We achieved the reaccreditations from the U.S.-
also include strengthening the implementation & monitoring based Joint Commission International(JCI) for Aster Medcity.
of clinical privileges, procedure-specific informed consents Aster CMI successfully achieved its NABH accreditation.
and OPPE (ongoing physicians professional evaluation) Medcare hospital Duba, Medcity Kochi was appreciated for
across all hospitals in GCC and India. its expansion project on cardiac catheterization Lab and
coronary care unit and was granted the golden seal by JCI
At Aster DM we have identified Center of excellence (CoE), during the extension survey.
an entity that promotes collaboration, provides leadership,
best practices, research, support and/or training to drive Aster Mankool hospital Dubai received the prestigious
clinical outcomes and business growth on a comprehensive Dubai Quality appreciation award from Dubai chamber of
continuum. It is strengthened by implementing standards commerce this year which is based on EFQM model. Attaining
for the centres of excellence and CoE specific clinical quality high compliance with its core measures required a well-
indicators. orchestrated effort across disciplines and departments. We
also participated in the International patient safety congress
The Centers of Excellence are identified for the specialties as well as Global conclave by AHPI in India and won 8 awards

Statutory Reports
Cardiology, Neurosciences, Orthopedics, Women and child, in various categories.
Bariatric, Gastroenterology, Integrated liver care, Oncology,
Nephrology, Neonatal ICU, Urology. Aster Pharmacy keeping pace with the continuing quality
journey has bagged a string of successes this year such as
We have maintained our focus on continuous quality : Dubai Human development award 2018, UAE innovation
improvement and each unit was encouraged to identify award 2017, Sheikh Khalifa Excellence award 2017, Sharjah
areas of improvement and work on quality improvement top 10 Business excellence award 2017, Dubai Quality
projects which benefitted our patients as well as operational appreciation award 2017.

INDIA UNITS Accreditation- 2017-18

Sl# Name of the Accreditation Year achieved

I Name of the Hospital: Aster CMI Hospital
1 ER NABH Jan 2017
2 NABH Nursing Excellence April 2017
3 NABH 2018
II Name of the hospital: Aster Ramesh Hospital - Guntur
1 NABL Reassessment 2018
2 NABH Nursing Excellence 2018
III Name of the hospital: Aster Ramesh Hospital - MG
1 Renewal of NABH (First 2015) 2017
IV Name of the Hospital: DM WIMS Hospital
1 NABH-Certification standards for emergency department. 2017
VI Name of the Hospital: Aster MIMS, Calicut
1 NABL 2018
2 NABH- Nursing Excellence certification 2017
3 NABH- Emergency dept excellence certification 2016
VII Name of the hospital: Aster MIMS Kottakkal
1 NABH- Second Reaccreditation 2017
2 NABH certified Emergency medicine Services in hospital 2017
VIII Name of the Hospital: Aster Medcity
1. ISO 9001:2015 2017
2. NABH – HOSPITAL 2018
3. NABH – Nursing Excellence 2017
4. JCI reaccreditation 2018
5. Green OT Reaccreditation 2018
6. NABH – Emergency Dept. Certification 2016
7. PdQ 2017
8. NABL 2017
9. LEAD Gold Certification - for Hospital Building 2017
IX Name of the Hospital: Aster Prime, Hyderabad
1. NABL Re accreditation 2017

Annual Report 2017-18 67

 GCC UNITS 2017-18

UNIT Accreditations achieved till date

Name of the Accreditation Year achieved
AL RAFFAH HOSPITAL (MUSCAT) PSFHI (Patient Safety Friendly Hospital initiative) 2017
MCH JCI-Cath Lab 2018
SANAD HOSPITAL CBAHI 2017
MEDINOVA JCI-LAB 2017

12. Corproate Social Responsibility actual or suspected fraud or violation of Company’s code of
conduct or ethics policy. During the year under review, none
An obligation to do good is the calling of a good heart that beats of the employees were denied access to Audit and Risk
for humanity. Your Company has been taking initiatives under Management Committee of the Company as required under
Corporate Social Responsibility (CSR) for society at large, well the Whistle Blower Policy.
before it has been prescribed thorough the Companies Act,
2013. The Company has well defined policy on CSR as per the
15. Contracts and Arrangements with Related Parties
requirement of Section 135 of the Companies Act, 2013 which
covers the activities as prescribed under Schedule VII of the All related party transactions that were entered into during
Companies Act 2013. The Company has in-house department the financial year were on an arm’s length basis and were
which is exclusively working CSR activities. Corporate social in the ordinary course of business. There are no maternally
responsibility is an integral part of our operations and part significant related party transactions made by the Company
of our mission is to provide quality healthcare services and with promoters, Directors and Key Managerial Personnel
assistance to the underprivileged. The “average net profit” which may have a potential conflict with the interest of
for the previous three years as required for computing the Company at large. Form AOC – 2 as required under Section
CSR obligation on the Company is negative and hence the 188 is appended as Annexure C to the Board’s Report.
requirement of spending minimum of 2% of the net profits
on identified CSR projects is not applicable as on date on your
16. Statutory Auditors
Company. However, the CSR activities being carried out by the
Company is mentioned in this Annual Report under the head At the Annual General Meeting held on September 12, 2014,
CSR Activities. M/s B S R and Associates., Chartered Accountants, [Firm
Registration No: 128901W] were appointed as the Statutory
Auditor of your Company to hold office till the conclusion of
13. Internal Control Systems
11th Annual General Meeting to be held in the year 2019.
The Board has adopted policies and procedures for ensuring
the orderly and efficient conduct of its business, including 17. Audit Report
adherence to the Company’s policies, the safeguarding
of its assets, the prevention and detection of fraud, error Audit report on the financial statements of the Company for the
reporting mechanisms, the accuracy and completeness of financial year 2017-18 is being circulated to the shareholders
the accounting records and the timely preparation of reliable along with the financial statements. There are no qualifications
financial disclosures. or adverse remarks made by the statutory auditors in their
report for the financial year ended March 31, 2018.
The Head of Internal Audit together with external audit
consultants, reviews the effectiveness and efficiency of The Statutory Auditors have not reported any incident of
these systems and procedures to ensure that all assets are fraud to the Audit and Risk Management Committee of the
protected against loss and that the financial and operational Company in the year under review.
information is accurate and complete in all respects. Audits
As required under the SEBI (Listing Obligation and Disclosure
are conducted on an on-going basis and significant deviations
Requirement) Regulations, 2015 the auditors certificate
are brought to the Board of Directors following which
on corporate governance is enclosed as Annexure D to the
corrective action is taken. All these measures facilitate timely
Boards Report.
detection of any irregularities and early remedial steps.

18. Secretarial Auditor

14. Vigil Mechanism
Mr. Sunil Sankar, Practising Company Secretary was
Your Company has established a whistle blower mechanism appointed to conduct the secretarial audit of the Company
/ vigil mechanism that enables the Directors and Employees for the financial year 2017-18, as required under Section
to report genuine concerns. The mechanism enables the 204 of the Companies Act, 2013 and Rules thereunder. The
Company to deal with instances of unethical behaviour, secretarial audit report for FY 2017-18 forms part of the

68 Aster DM Healthcare Limited

 Annual Report as Annexure E to the Board’s Report. The 22. Committees of Directors
Secretarial Audit Report does not contain any qualification,
reservation or adverse remark. Your Board has constituted committees required under the
Companies Act, 2013 and the SEBI Regulations for meeting
the operational conveniences. Details of various committees
19. Cost Auditors of the Board are provided in the Corporate Governance Report.
Your Directors, on the recommendations made by the
Audit and Risk Management Committee had approved the 23. Board Evaluation
appointment of M/s BBS & Associates Cost Accountants,
Kochi [Firm Registration No: 00273] as the Cost Auditor of The Board of Directors has carried out an annual evaluation
your Company to conduct the audit of cost records for the of its own performance, board committees, and individual
financial year 2017–18. directors pursuant to the provisions of the Act and the
corporate governance requirements as prescribed by the
Your Company has received consent from M/s BBS & Securities and Exchange Board of India (Listing Obligations

Statutory Reports
Associates Cost Accountants, to act as the Cost Auditor and Disclosure Requirements), Regulations 2015 (‘SEBI
for conducting audit of the cost records for the financial Listing Regulations’).
year 2017–18 along with a certificate confirming their
independence and arm’s length relationship. Board has The performance of the board was evaluated by the board after
approved their appointment as Cost Auditors for the Financial seeking inputs from all the directors on the basis of criteria
year 2018-19 as well. such as the board composition and structure, effectiveness of
board processes, information and functioning, etc. as provided
by the Guidance Note on Board Evaluation issued by the
20. Declaration by Independent Directors Securities and Exchange Board of India on January 5, 2017.
Your Company has received declarations from all the
The performance of the committees was evaluated by the
Independent Directors confirming that they meet the
board after seeking inputs from the committee members on
criteria of independence as prescribed under the provisions
the basis of criteria such as the composition of committees,
of Section 149 (7) of the Companies Act, 2013 read with
effectiveness of committee meetings, etc.
the Schedules and Rules issued thereunder (including any
statutory modification(s) or re–enactment(s) for the time The Board and the Nomination and Remuneration Committee
being in force). reviewed the performance of individual directors on the basis
of criteria such as the contribution of the individual director
21. Directors and Key Managerial Personnel to the board and committee meetings like preparedness
on the issues to be discussed, meaningful and constructive
In accordance with Articles of Association, Mr. T J Wilson contribution and inputs in meetings, etc.
and Mr. Shamsudheen Bin Mohideen Haji, Directors retire
by rotation at the ensuing Annual General Meeting. Mr. T In a separate meeting of independent directors, performance
J Wilson and Mr. Shamsudheen Bin Mohideen Haji being of non-independent directors and the board as a whole was
eligible seek re-appointment at the Annual General Meeting. evaluated, taking into account the views of executive directors
and non-executive directors. The same was discussed in the
Key Managerial Personnel board meeting that followed the meeting of the independent
directors, at which the performance of the board, its committees,
Pursuant to the provisions of Section 203 of the Companies and individual directors was also discussed. Performance
Act, 2013, your Company has appointed the following Key evaluation of independent directors was done by the entire
Managerial Personnel: board, excluding the independent director being evaluated.

(i) Dr. Azad Moopen - Managing Director

(ii) Sreenath Reddy - Chief Financial Officer 24. Policy on Appointment of Directors and Remuneration
(iii) Rajesh A - Company Secretary
The Company’s policy on directors’ appointment and
Dr. Azad Moopen was appointed as our Chairman and Managing remuneration and other matters provided in Section 178 (3)
Director, pursuant to a Board resolution dated November of the Act has been disclosed in the Corporate Governance
19, 2014 with effect from December 1, 2014 for a period of Report, which is part of this report. The same can also be
five years. Dr. Azad Moopen is a non-resident Indian and in accessed in the website of the Company (http://www.
accordance with the provisions of the Companies Act. 2013. asterdmhealthcare.com/investors/)
Shareholders of the Company had approved the appointment
of Managing Director vide special resolution passed at the
25. Board Meetings and Annual General Meeting
meeting held at the extraordinary general meeting held on
18th February 2015 and approval of the Central Government Your board of directors met 4 times during the financial
was obtained for the appointment vide letter reference no. year viz 07th June 2017, 25th July 2017, 20th November
C36259455/2014-CL-VII dated February 27, 2015. 2017 and 08th February 2018. The intervening gap between

Annual Report 2017-18 69

 the meetings was within the period prescribed under the 29. Conservation of Energy, Technology Absorption,
Companies Act, 2013, details of which forms part of the Foreign Exchange Earnings and Outgo
Corporate Governance Report forming part of this report
Particulars required under Section 134 (3 (m) read with Rule 8 of
The annual general meeting for the financial year 2016-17 Companies (Accounts) Rules, 2014 is enclosed as Annexure F,
was held on 20th September 2017 at the registered office of forming part of this report.
the Company.

30. Significant and Material Orders

26. Secretarial Standards
There are no significant or material orders passed by any
Your Company observes all applicable Secretarial Standards regulators or courts or tribunals impacting the going concern
issued by the Institute of Company Secretaries of India (“ICSI”) status and Company’s operations in future.
as required under section 118 (10) of the Companies Act, 2013.

31. Extract of Annual Return

27. Listing on Stock Exchanges
In accordance with Section 134 (3) (a) of the Companies Act,
The Company’s shares are listed on both BSE Limited and 2013, an extract of the annual return in prescribed format
National Stock Exchange of India Limited. Your company’s is appended in Form MGT 9 as Annexure G to the Board’s
shares are listed on both stock exchanges with effect from Report.
26th of February 2018.

32. General Matters, Confirmations and Disclossure

28. Directors’ Responsibility Statement Requirements
Pursuant to section 134 (5) of the Act, the Board of Directors As per SEBI Listing Regulations, the Corporate Governance
to the best of its knowledge and ability, confirm that: Report with Auditor’s Certificate thereon and the Management
Discussion and Analysis are attached, which form part of this
a) in the preparation of the annual accounts, the applicable
report.
accounting standards have been followed and there has
been no material departures; As per Regulation 34 of the SEBI Listing Regulations, a
Business Responsibility Report is attached and is a part of
b) the directors have selected such accounting policies and
the annual report. As per Regulation 43A of the SEBI Listing
applied them consistently and made judgments and
Regulations, the Dividend Distribution Policy is disclosed
estimates that are reasonable and prudent so as to give
in the Corporate Governance Report and web site of the
a true and fair view of the state of affairs of the company
Company.
at the end of the financial year and of the profit and loss
of the company for that period; Your Directors state that no disclosure or reporting is
required in respect of the following items as there were no
c) the directors have taken proper and sufficient care
transactions on these items during the year under review:
for the maintenance of adequate accounting records
in accordance with the provisions of this Act for a. Your board confirms that there has been no material
safeguarding the assets of the company and for changes and commitments affecting the financial
preventing and detecting fraud and other irregularities; position of the Company which have occurred between
the end of the financial year and the date of this report.
d) the directors have prepared the annual accounts on a
going concern basis; b. Your company is in the process of assessing the various
risk parameters and preparing a comprehensive risk
e) they have laid down internal financial controls to be
management policy.
followed by the Company, which are adequate and are
operating effectively; c. Your Board has accepted all recommendations made
by the Audit and Risk Management Committee during
f) they have devised proper systems to ensure compliance
the year.
with the provisions of all applicable laws and such
systems are adequate and operating effectively

70 Aster DM Healthcare Limited

 d. No remuneration or commission was paid by any 33. Acknowledgement
subsidiary company in India to Managing Director of the
Company; Your Directors thank the Company’s shareholders, customers,
banks, financial institutions, and well-wishers for their
e. As per the objects clause of the Memorandum of continued support during the year. Your Directors place on
Association of the Company, your company is into the record their appreciation of the contribution made by the
business of setting up and running of hospitals and employees at all levels. Your Company’s consistent growth
healthcare centres. There has been no change in the was made possible by their hard work, solidarity, cooperation
nature of business during the last financial year. and support. The Board sincerely expresses its gratitude to
Government of India, Ministry of Corporate Affairs, Reserve
f. Your Directors further state that during the year
Bank of India, Foreign Investment Promotion Board,
under review, there were no cases filed pursuant
Securities and Exchange Board of India, BSE Limited, National
to the Sexual Harassment of Women at Workplace
Stock Exchange of India Limited and Governments of Kerala,
(Prevention, Prohibition and Redressal) Act, 2013. Details
Karnataka, Andra Pradesh, Telengana and Maharashtra
of complaints received by the internal compliance

Statutory Reports
for the guidance and support received from them including
committee are separately reported in the report.
officials thereat from time to time.

For and On Behalf of the Board of Directors

Dr. Azad Moopen

Place: Dubai Chairman & Managing Director
Date: 21st May 2018 DIN: 00159403

Annual Report 2017-18 71

Declaration on Code of Conduct
To,
The Member (s) of,
Aster DM Healthcare Limited

I Dr. Azad Moopen, Chairman and Managing Director of the company declare that all the members of the Board of Directors and Senior
Managerial Personnel’s of the Company have affirmed compliance with the Code of Conduct for the Financial Year 2017-18.

For Aster DM Healthcare Limited

Dr. Azad Moopen

Place: Dubai Chairman & Managing Director
Date: 21st May 2018 DIN: 00159403

72 Aster DM Healthcare Limited

 Annexure A
AOC -1

(INR in Millions)
Name of Subsidiary/ Step down subsidiary Currency Exchange Rate Share Other Total Total Liabilities Investments Turnover (2) Profit before Profit after Beneficial % of Legal % of Country
Company Capital equity Assets (excluding share capital (1) taxation (2) taxation (2) shareholding shareholding
and other equity)

India
Aster DM Healthcare (Trivandrum) Private INR 1.00 80.10 (146.26) 834.92 901.09 - 1.80 (2.18) (2.18) 100% 100% India
Limited
DM Med City Hospitals India Private Limited INR 1.00 0.10 676.00 1,141.26 465.16 - 17.23 (4.54) (1.25) 100% 100% India
Prerana Hospital Limited INR 1.00 47.81 113.02 783.88 623.05 0.01 679.00 13.36 13.36 81% 81% India
Ambady Infrastructure Private Limited INR 1.00 150.10 554.93 918.49 213.46 - 1.20 1.07 1.07 100% 100% India
Sri Sainatha Multispeciality Hospitals INR 1.00 70.16 274.10 577.99 233.73 - 526.64 (4.89) (4.89) 58% 58% India
Private Limited
Malabar Institute of Medical Sciences INR 1.00 908.29 2,847.28 5,985.56 2,229.99 92.91 3,276.80 205.54 126.30 71% 71% India
Limited
Ramesh Cardiac and Multispeciality INR 1.00 107.86 1,021.69 1,880.64 751.09 249.42 1,930.30 113.49 106.93 51% 51% India
Hospitals Private Limited
Aster Ramesh Duhita LLP INR 1.00 5.05 (1.10) 4.41 0.46 - 0.68 (1.10) (1.10) 50% 50% India

Foreign
Affinity Holdings Private Limited USD 1 USD = 64.82 0.06 15,741.56 18,118.19 2,376.57 18,078.51 - (1.19) (1.19) 100% 100% Mauritius
Dar Al Shifa Medical Centre LLC AED 1 AED = 17.65 5.29 7.56 112.23 99.37 - 87.40 (10.94) (10.94) 51% 40% UAE
Al Rafa Medical Centre, LLC AED 1 AED = 17.65 5.29 (160.48) 157.67 312.85 - 201.79 2.83 2.83 51% 40% Oman
Dr. Moopen's Medical Clinic LLC AED 1 AED = 17.65 5.29 (11.86) 45.69 52.25 - 61.87 4.91 4.91 71% 40% UAE
Union Pharmacy LLC AED 1 AED = 17.65 5.29 71.24 350.10 273.56 - 30.44 (18.23) (18.23) 75% 37% UAE
Shindaga Pharmacy LLC AED 1 AED = 17.65 5.29 13.78 53.85 34.77 - 81.93 (9.24) (9.24) 90% 49% UAE
Asma Pharmacy LLC AED 1 AED = 17.65 5.29 10.50 45.93 30.14 - 61.61 4.32 4.32 50% 0% UAE
Rafa Pharmacy LLC AED 1 AED = 17.65 5.29 (17.89) 28.74 41.33 - 69.97 (0.49) (0.49) 100% 49% UAE
Modern Dar Al Shifa Pharmacy LLC AED 1 AED = 17.65 5.29 48.97 94.41 40.14 - 331.14 (21.34) (21.34) 51% 40% UAE
Medshop Garden Pharmacy LLC AED 1 AED = 17.65 5.29 96.87 166.93 64.77 - 355.51 22.75 22.75 100% 49% UAE
Aster Pharmacy LLC, AUH AED 1 AED = 17.65 5.29 (0.72) 32.56 27.99 - 103.38 (9.95) (9.95) 100% 49% UAE
Dr. Moopens Healthcare Management AED 1 AED = 17.65 5.29 (65.92) 816.35 876.97 - 849.05 (61.80) (61.80) 100% 49% UAE
Services LLC
DM Healthcare LLC AED 1 AED = 17.65 52.95 968.26 8,075.15 7,053.94 9.00 9,887.76 1,101.45 1,101.45 100% 49% UAE
DM Pharmacies LLC AED 1 AED = 17.65 5.29 116.58 318.10 196.22 - 1,097.55 25.18 25.18 100% 49% UAE
Med Shop Drugs Store LLC AED 1 AED = 17.65 5.29 587.60 6,364.65 5,771.76 - 1,130.34 187.56 187.56 100% 49% UAE

Annual Report 2017-18

Eurohealth Systems FZ LLC AED 1 AED = 17.65 1.76 75.00 133.80 57.03 - 78.08 12.45 12.45 100% 95% UAE
Aster DM Healthcare FZC AED 1 AED = 17.65 18,075.70 2,081.30 45,791.92 25,634.93 3,556.24 6,870.05 1,956.42 1,929.36 100% 100% UAE

73
Statutory Reports
 (INR in Millions)

74
Name of Subsidiary/ Step down subsidiary Currency Exchange Rate Share Other Total Total Liabilities Investments Turnover (2) Profit before Profit after Beneficial % of Legal % of Country
Company Capital equity Assets (excluding share capital (1) taxation (2) taxation (2) shareholding shareholding
and other equity)

Medcare Hospital LLC AED 1 AED = 17.65 88.24 6,607.58 12,048.07 5,352.24 - 13,628.02 631.76 631.76 80% 30% UAE
Aster Day Surgery Centre LLC (formerly AED 1 AED = 17.65 5.29 (102.45) 372.11 469.26 - 2.46 (63.48) (63.48) 82% 49% UAE
known as Aster IVF and Women Clinic LLC )
Al Raffah Hospital LLC AED 1 AED = 17.65 50.83 324.40 2,472.70 2,097.47 - 3,490.89 258.13 187.42 100% 70% Oman
Dr. Moopen's Healthcare Management AED 1 AED = 17.65 30.00 1,587.11 2,896.79 1,279.68 5.29 2,194.68 237.42 237.42 99% 49% Qatar
Services WLL
Welcare Polyclinic W.L.L AED 1 AED = 17.65 3.53 (7.69) 90.50 94.66 - 177.01 11.09 11.09 50% 45% Qatar

Aster DM Healthcare Limited

Sanad Al Rahma for Medical Care LLC AED 1 AED = 17.65 432.23 4,592.18 6,163.80 1,139.39 - 3,565.72 1,087.45 1,049.10 97% 97% Kingdom
of Saudi
Arabia
New Aster Pharmacy DMCC AED 1 AED = 17.65 3.53 31.40 52.85 17.92 - 135.48 13.12 13.12 100% 100% UAE
Zabeel Pharmacy LLC ** AED 1 AED = 17.65 5.29 (4.82) 1.87 1.40 - - - - 51% 49% UAE
Aster Al Shafar Pharmacies Group LLC AED 1 AED = 17.65 52.95 53.13 323.28 217.20 - 838.39 2.19 2.19 51% 49% UAE
Symphony Healthcare Management AED 1 AED = 17.65 5.29 (82.85) 972.34 1,049.89 - 1,698.21 175.98 175.98 100% 0% UAE
Services LLC
Aster Pharmacies Group LLC AED 1 AED = 17.65 5.29 2,887.36 7,218.35 4,325.69 - 12,720.30 1,171.21 1,171.21 100% 49% UAE
Alfa Drug Store LLC AED 1 AED = 17.65 5.29 360.09 614.39 249.00 - 1,057.09 234.16 234.16 100% 49% UAE
Al Raffah Medical Centre LLC AED 1 AED = 17.65 25.41 (74.70) 75.15 124.44 - 115.57 6.90 5.48 100% 70% Oman
Aster Kuwait for Medicine and Medical AED 1 AED = 17.65 137.66 (314.30) 214.99 391.63 - 388.26 (94.04) (94.04) 54% 2% Kuwait
Supplies Company W.L.L
Al Shafar Pharmacy LLC, AUH ** AED 1 AED = 17.65 5.29 (13.84) 0.60 9.14 - 0.16 (2.41) (2.41) 51% 49% UAE
Orange Pharmacies LLC AED 1 AED = 17.65 2.75 (181.90) 201.23 380.38 - 462.26 (37.37) (38.05) 51% 0% Jordan
Aster DM Healthcare SPC AED 1 AED = 17.65 8.82 (376.49) 189.37 557.04 - 261.31 (68.10) (68.10) 100% 100% Bahrain
Aster DM Healthcare INC AED 1 AED = 17.65 70.60 (168.70) 198.21 296.31 - 40.48 (55.11) (55.11) 90% 90% Philippines
Aster Opticals LLC AED 1 AED = 17.65 5.29 (51.74) 175.75 222.19 - 73.48 (40.09) (40.09) 60% 49% UAE
Al Rafa Investments Limited AED 1 AED = 17.65 3.24 (10.92) 7.38 15.05 3.24 - (3.75) (3.75) 100% 0% UAE
Al Rafa Holdings Limited AED 1 AED = 17.65 3.24 (5.49) 4.03 6.28 - - (1.68) (1.68) 100% 0% UAE
Aster Grace Nursing and Physiotherapy LLC AED 1 AED = 17.65 5.29 (0.19) 113.14 108.03 - 118.36 25.69 25.69 60% 29% UAE
Aster Medical Centre LLC** AED 1 AED = 17.65 5.29 (175.10) 87.96 257.77 - - (43.39) (43.39) 90% 39% UAE
Harley Street Medical Centre LLC AED 1 AED = 17.65 2.65 206.52 844.27 635.10 - 914.01 31.49 31.49 60% 9% UAE
Harley street Pharmacy LLC AED 1 AED = 17.65 2.65 (19.57) 37.10 54.03 - 84.17 1.38 1.38 60% 9% UAE
Harley Street LLC AED 1 AED = 17.65 2.65 (0.97) 6.23 4.56 - - - - 60% 9% UAE
Dr. Moopens Aster Hospital WLL AED 1 AED = 17.65 3.53 (623.67) 2,327.08 2,947.22 - 194.42 (623.67) (623.67) 99% 49% Qatar
Harley Street Dental LLC AED 1 AED = 17.65 2.65 (31.61) 56.72 85.69 - 41.93 3.06 3.06 50% 74% UAE
Al Raffah Pharmacies Group LLC AED 1 AED = 17.65 - 0.32 4.28 3.96 - 2.98 0.32 0.32 100% 70% Oman
Aster DCC Pharmacy LLC AED 1 AED = 17.65 5.29 (21.49) 136.19 152.39 - - (21.49) (21.49) 70% 70% UAE
Ibn Alhaitham Pharmacy LLC AED 1 AED = 17.65 - - - - - - - - 100% 49% UAE
Maryam Pharmacy LLC AED 1 AED = 17.65 - - - - - - - - 100% 0% UAE
** represents subsidiaries which are in the process of being wound-up
(1) Investment includes investment in subsidiaries and associates
(2) With respect to entities acquired during the year, turnover, profit before taxation and profit after taxation have been considered for post acquisition period only. For AOC-1, information relating to statement of Profit and loss (with
respect to foreign subsidiaries) have been disclosed at closing exchange rate as on 31 March 2017
Annexure B
Particulars of Employees

Your Company is a leading provider of healthcare services across India and GCC states. The remuneration and perquisites of the employees
are on par with the Industrial standards. The Nomination and Remuneration Committee reviews the compensation paid to Managing
Director and other KMP’s.

The details of remuneration paid to KMP’s mentioned in table (a) and (b) below are in compliance with provisions of Chapter XIII of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

(a) Remuneration to Managing Director / Whole time Directors

Statutory Reports
(INR in Millions)
Name of the Director Director Title Remuneration Remuneration %increase in Ratio of
Identification in Fiscal 2018 (in in Fiscal 2017 (in remuneration remuneration to
Number (DIN) millions) millions) MRE
Dr. Azad Moopen 00159403 Chairman and 6* 6 Nil 37.3:1
Managing
Director
* 1. Other Allowance and Benefits: Use of Company’s car, chauffer and telephone for official purposes
2. He is entitled to gratuity payments and leave encashments as per our Company’s policies.
3. Dr. Azad Moopen also receives remuneration from DM Healthcare Services to the extent of INR 159.51 mn

(b) Remuneration to other Key Managerial Personnel (KMP)

(INR in Millions)
Name of the KMP Title Remuneration in Remuneration in % increase in Ratio of No of ESOP’s
Fiscal 2018 Fiscal 2017 remuneration remuneration to granted in Fiscal
(in millions) (in millions) MRE 2018
Sreenath P Reddy CFO 13.66 12.66 7.9 60.76:1 136,218
Rajesh A CS 2.66 2.16 23.15 12.78:1 15,000

(c) Remuneration to Non- Executive / Independent Directors

(INR in Millions)
Name of the Director Director Identification Remuneration in Fiscal Remuneration in Fiscal % increase of
Number (DIN) 2018 (in million) 2017 (in millions) remuneration#
Harsh Charandas Mariwala 00210342 0.6 0.9 Nil
Suresh Muthukrishna Kumar 00494479 0.8 1.2 Nil
Daniel James Snyder 02298099 0.5 0.9 Nil
Maniedath Madavan Nambiar 03487311 0.8 1.5 Nil
Ravi Prasad 07022310 0.8 1.1 Nil
Rajagopal Sukumar 07049894 0.4 0.8 Nil
#There is no increase in the remuneration paid to independent Directors (INR 1,00,000 only). However the total remuneration received tends to change based
on the meeting attended.
Additionally, Independent Directors are reimbursed for their expenses incurred in performance of official duties
The remuneration mentioned is gross of TDS

(d) Information as per Rule 5(2) of Chapter XIII, the companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014

(d) (i) Top ten employees in terms of remuneration drawn during the Financial Year.
(INR in Millions)
Name Designation Educational Age Experience Date of joining Gross Previous
Qualification in years remuneration paid Employment
Dr. Harish Pillai Chief Executive MBA - 2007, MHA 50 19 27-05-2013 23.5 As Salam
Officer - Aster -1998, MBBS - International
Hospitals & 1993 Hospital, Cairo,
Clinics, India Egypt
Sreenath Reddy CFO CA, LLB 45 20 15-Nov-12 13.66 NH Hospitals -
Group CFO
Vinod Ramanunni Chief Business BSc Chemistry 52 28 12-12-2013 8.6 Vice President,
Development Apollo Hospitals
Officer

Annual Report 2017-18 75

 Name Designation Educational Age Experience Date of joining Gross Previous
Qualification in years remuneration paid Employment
Dr. Nitish Shetty CEO-Aster CMI MBBS, MD 47 18 24-Oct-14 8.21 BGS Global - CEO
Hospital
Administration
Edmond Paul Head - M. App. Sc. 44 20 15-May-12 6.34 Wockhardt
Biomedical Hospitals - GM
& Material
Management
Dr. Cherian Aakkarappatty Consultant & MBBS + MD 37 7 05-Nov-15 6 *Appollo Mascot
HOD (Medicine)+ DM Heart Centre,
(Cardiology) Gwalior * Incharge
of Cardiac unit
Manoj V.C Head – Human Master of 45 23 14-08-2015 5.1 Entrepreneur
Resources Personnel ( Nov 2012 to
Management August 2015) , Vice
president Human
Resources (Nov
2003 to Oct 2012)
Dr. Chandil Kumar CEO-Aster MBBS, MHA, PGD. 41 13 18-Apr-15 4.09 Rhea Healthcare
Gunashekara Aadhar Med. Law & Ethics Pvt. Ltd., - VP -
Group operations
Srinath Metla General B. Pharma, MBA 40 16 14-Oct-15 3.69 Apollo Hospital,
Manager Marketing Channai, - GM -
Group Marketing
Dr. Akhil Mohandas Senior MBBS + MS 33 1 01-Mar-17 3.6 NA
Specialist (General Surgery)
+ MCH (Neuro
Surgery)

(d) (ii) Employees drawing a remuneration of 1.02 crore (10.2 million) or above per annum.
(INR in Millions)
Name Designation Educational Age Experience Date of joining Gross Previous
Qualification in years remuneration paid Employment
Dr. Harish Pillai Chief Executive MBBS, MHM and 50 19 May 27, 2013 23.50 As Salam
Officer - Aster MBA International
Hospitals & Hospital, Cairo,
Clinics, India Egypt
Sreenath P Reddy CFO B.Com, LLB, CA 45 20 November 15, 13.66 Narayana Hrudalaya
2012 Limited

(d) (iii) Employed during the part of the year with an average salary of above 8.5 crore (85 million).

Name Designation Educational Age Experience Date of joining Gross Previous

Qualification in years remuneration paid Employment
NA

76 Aster DM Healthcare Limited

Annexure C
Particulars of contracts/ arrangements made with related parties
(Pursuant to Section 134 (3) (h) of the Companies Act, 2013 and Rule 8 (2) of the Companies (Accounts) Rules, 2014 – AOC – 2)

This Form pertains to the disclosure of particulras of contracts/ arrangements entered into by the Company with related parties referred
to in Section 188 (1) of the Companies Act 2013, including certain arm’s length transactions under third proviso thereto.

As per Section 188 of the Companies Act, 2013, whenever a company avails or renders service directly or through agents amounting to the
prescribed limits, prior approval of the shareholders is required. However, shareholders approval need not be sought for such transactions
between the holding company and its wholly owned subsidiaries whose accounts are consolidated with the holding company and placed
for shareholders’ approval.

Statutory Reports
1. Details of Contracts or Arrangements or Transactions not at Arm’s Length Basis

SL Name (s) of the related party & nature Sl Nature of contracts/ Duration of the contracts/ Board Salient terms of the contracts
of relationship No arrangements/ arrangements/ approval date or arrangements or transaction
transaction transaction including the value, if any
I Nil Nil Nil Nil Nil Nil

2. Details of Contracts or Arrangements or Transactions at Arm’s Length

SL Name (s) of the related party Sl Nature of contracts/ Duration of the contracts/ Board Salient terms of the contracts or
& nature of relationship No arrangements/ arrangements/ approval date arrangements or transaction including
transaction transaction the value, if any
I DM Med City Hospitals (India) 1 Lease Deed 15 Years from 02 Mar 2013 Annual Lease Rental of INR 0.4 million
Private Limited, a subsidiary 31/03/2013
Company. (Lessor of Property) 2 Tripartite Agreement No defenitive term is 02 Mar 2013 Aster DM and DM Med City grants rights
between Aster DM defined in the contract to use properties owned by respective
Healthcare, DM Med companies by other companies for
City and Ambady meeting their mutually Benefield interest
infrastruture to of carrying out business operations in the
share right of way state of Kerala.
Value: INR 9.98 million
3 Guarantee NA 16 Aug 2016 Aster DM pays a guarantee commission
Commission for the Corporate Guarantee extended
by DM Med City for the loans extended
by banks to Aster DM. As per the agreed
terms, the guarantee commission
shall not exceed 1% of the loan amount
guaranteed by DM Med City
Value: INR 1.60 million
II Ambady Infrastructure 1 Agreement for NA 02 Mar 2013 Aster DM grants rights to use properties
Private Limited sharing of right of owned by it in Kochi to Ambady for
way meeting their mutually beneficial interest
of carrying out business operations in the
state of Kerala.
2 Guarantee NA 16 Aug 2016 Aster DM pays a guarantee commission
Commission for the Corporate Guarantee extended
by Ambady Infrastructure for the loans
extended by banks to Aster DM. As
per the agreed terms, the guarantee
commission shall not exceed 1% of the
loan amount guaranteed by Ambady
Infratstuture
Value: INR 1.18 million

Annual Report 2017-18 77

 SL Name (s) of the related party Sl Nature of contracts/ Duration of the contracts/ Board Salient terms of the contracts or
& nature of relationship No arrangements/ arrangements/ approval date arrangements or transaction including
transaction transaction the value, if any
III DM Education and Research 1 Providing Medical 10 years from the 21 Oct 2015 1. Agreement for providing Medical
Foundation Services, as defined Execution Date (14th Services by Aster DM Healthcare in
in the agreement March, 2016) the hospital owned by DM Education
dated 14th March, and Research Foundation, a Trust
2016 on a revenue
share basis. 2. DM Education and Research
Foundation, shall be entitled to a
revenue of 5% of Net Revenue on a
monthly basis

3. On execution of the agreement, Aster

DM to pay a refundable security
deposit of INR 150 million to DM
Education and Research Foundation.
Value: INR 12.68 million

2 Operation & 5 Years from Effective 21 Oct 2015 1. With effect from 1st April 2016, Aster
Management Date (4th March, 2016) as DM shall provide operation and
Services Agreement defined in the agreement. management services to the general
dated 4th March hospital run by DM Education and
2016 for receiving Research Foundation.2. Aster DM is
operational and entitled to a service fee in the manner
management to be calculated as per clause 3 of the
support for agreement.
hospital run by Value: INR 11.80 million
DM Education
and Research
Foundation.
IV EMED Human Resources 1 Payment of NA 21 Jul 2015 Recruitment charges to be paid to EMED
(India) Private Limited recruitment charges Human Resources (India) Private Limited
for the recruitment are as under:
services rendered For Jr Doctors/Technical Staff - 6% of CTC
by EMED Human Very Senior Doctors- 6% of CTC
Resources (India) Nurses- INR 2000/- per candidate
Private Limited. Value: INR 2.66 million
V Prerana Hospital Limited 1 Income from NA 02 Mar 2008 To cover various indirect expenses like
consultancy services salaries and common expenses by
charging a annual charge equal to 2% of
annual revenues
Value: INR 13.48 million
VI Dr.Moopen’s HMS W.L.L, 1 Income from NA 13 Jun 2016 Diagnostic services carried out in
Quatar hospital and medical connection with recruitment of employees
services for Quatar Hospital
Value: INR 0.08 million

78 Aster DM Healthcare Limited

Annexure D
Auditors Certificate on Corporate Governance

This certificate is issued in accordance with the terms of our We have complied with the relevant applicable requirements of the
engagement letter dated 15 May 2018. Standard on Quality Control (SQC) 1, Quality Control for Firms that
Perform Audits and Reviews of Historical Financial Information,
This report contains details of compliance of conditions of Corporate and Other Assurance and Related Services Engagements.
Governance by Aster DM Healthcare Limited (‘the Company’) for
the year ended 31 March 2018, as stipulated in Regulations 17-27,
clauses (b) to (i) of Regulation 46 (2) and paragraphs C, D and E of Opinion

Statutory Reports
Schedule V of the Securities and Exchange Board of India (Listing
In our opinion, and to the best of our information and according to
Obligations and Disclosure Requirements) Regulations, 2015
explanations given to us and the representation provided by the
(‘SEBI Listing Regulations’), pursuant to the Listing Agreement of
Management, we certify that the Company has complied with the
the Company with Stock exchanges.
conditions of Corporate Governance as stipulated in the above-
mentioned SEBI Listing Regulations.
Management’s Responsibility for compliance with the
conditions of SEBI Listing Regulations We state that such compliance is neither an assurance as to
the future viability of the Company nor as to the efficiency or
The compliance with the conditions of Corporate Governance is effectiveness with which the Management has conducted the
the responsibility of the management of the Company, including affairs of the Company.
the preparation and maintenance of all relevant supporting
records and documents. This responsibility includes the design,
Restriction on use
implementation and maintenance of internal control and
procedures to ensure the compliance with the conditions of the The certificate is addressed and provided to the members of the
Corporate Governance stipulated in SEBI Listing Regulations. Company solely for the purpose to enable the Company to comply
with the requirement of the SEBI Listing Regulations, and it
Auditor’s Responsibility should not be used by any other person or for any other purpose.
Accordingly, we do not accept or assume any liability or any duty
Our examination was limited to procedures and implementation of care for any other purpose or to any other person to whom this
thereof, adopted by the Company for ensuring the compliance certificate is shown or into whose hands it may come without our
of the conditions of Corporate Governance. It is neither an audit prior consent in writing.
nor an expression of opinion on the financial statements of the
Company.

Pursuant to the requirements of the SEBI Listing Regulations, it for B S R and Associates
is our responsibility to provide a reasonable assurance whether Chartered Accountants
the Company has complied with the conditions of Corporate Firm registration number: 128901W
Governance as stipulated in SEBI Listing Regulations for the year
ended 31 March 2018. Rushank Muthreja
Partner
We conducted our examination in accordance with the Guidance
Membership number: 211386
Note on Reports or Certificates for Special Purposes, Guidance
Note on Certification of Corporate Governance, both issued by
the Institute of Chartered Accountants of India (‘ICAI’) and the Place: Bangalore
Standards on Auditing specified under Section 143(10) of the 21 May 2018
Companies Act, 2013, in so far as applicable for the purpose of this
certificate. The Guidance Note on Reports or Certificates for Special
Purposes requires that we comply with the ethical requirements
of the Code of Ethics issued by the ICAI.

Annual Report 2017-18 79

Annexure E
Secretarial Audit Report
FOR THE FINANCIAL YEAR ENDED 31st March, 2018
[Pursuant to section 204 (1) of the Companies Act 2013 and rule No.9 of the Companies (Appointment and Remuneration of Personnel)
Rules, 2014]

The Members,
Aster DM Healthcare Limited
CIN U85110KL2008PLC021703
Aster Medcity, Kuttisahib Road
Near Kothad Bridge, South Chittoor P O
Kochi 682 027, Kerala.

We have conducted the secretarial audit of the compliances of of Insider Trading) Regulations, 2015;
applicable statutory provisions and the adherence to good corporate
practices by Aster DM Healthcare Limited (hereinafter called “the c. The Securities and Exchange Board of India (Issue of
Company”). Secretarial Audit was conducted in a manner that Capital and Disclosure Requirements) Regulations, 2009;
provided us a reasonable basis for evaluating the corporate conducts/
d. The Securities and Exchange Board of India (Share Based
statutory compliances and expressing our opinion thereon.
Employee Benefits) Regulations, 2014;
Based on our verification of the Company’s books, papers, minute
e. The Securities and Exchange Board of India (Issue
books, forms and returns filed and other records maintained by
and Listing of Debt Securities) Regulations, 2008 [Not
the company and also the information provided by the company,
Applicable as the Company has not issued and listed any
its officers, agents and authorized representatives during the
debt securities during the financial year under review];
conduct of secretarial audit, we hereby report that in our own
opinion, the company has, during the audit period covering the f. The Securities and Exchange Board of India (Registrars to
financial year ended on 31st March, 2018 complied with the an Issue and Share Transfer Agents) Regulations, 1993
statutory provisions listed hereunder and also that the company regarding the Companies Act and dealing with client [Not
has proper Board – processes and compliance mechanism in place Applicable as the Company is not registered as Registrar
to the extent, in the manner and subject to the reporting made to Issue and Share Transfer Agent during the financial
hereinafter: year under review];
We have examined the books, papers, minute books, forms and g. The Securities and Exchange Board of India (Delisting of
returns filed and other records maintained by the company for Equity Shares) Regulations, 2009 [Not applicable as the
the financial year ended on 31st March, 2018, according to the Company has not delisted I proposed to delist its equity
provisions of: shares from any Stock Exchange during the financial
year under review];
(i) The Companies Act, 2013 (the Act) and the rules made
thereunder; h. The Securities and Exchange Board of India (Buyback
of Securities) Regulations, 1998 [Not applicable as the
(ii) The securities Contracts (Regulation) Act, 1956 (‘SCRA’) and
Company has not bought back I proposed to buy-back any
the rules made thereunder;
of its securities during the financial year under review].
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws
(vi) The Management has identified and confirmed the following
framed thereunder.
laws as specifically applicable to the Company:
(iv) Foreign Exchange Management Act, 1999 and the Rules
a. Ear Drums And Ear Bones (Authority For Use For
and Regulation made thereunder to the extent of Foreign
Therapeutic Purposes) Act, 1982
Direct Investment, Overseas Direct Investment and External
Commercial Borrowings; b. Eyes (Authority For Use For Therapeutic Purposes) Act, 1982

(v) The following Regulations and Guidelines prescribed under the c. Biomedical Medical Waste Management Handling Rules, 1998
Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): -
d. Karnataka Private Medical Establishments Act, 2007
a. The Securities and Exchange Board of India (Substantial
e. The Delhi Nursing Homes Registration Act, 1953
Acquisition of Shares and Takeovers) Regulations, 2011;
f. The Bombay Nursing Homes Registration Act, 1949
b. The Securities and Exchange Board of India (Prohibition

80 Aster DM Healthcare Limited

 g. Kerala Panchayat Raj – Transplantation Of Human jj. Employees Provident Fund And Misc. Provisions Act,
Organs Act, 1994 1952

h. Kerala Panchayat Raj (Registration Of Private Hospitals kk. Employers State Insurance Act,1948
And Paramedical Establishments) Rules
ll. The Payment of Bonus Act, 1965
i. Narcotic Drugs And Psychotropic Substances Act, 1985
mm. The Environment (Protection) Act, 1986
j. Atomic Energy Act, 1962
nn. Electricity Act 2003
k. Atomic Energy (Radiation Protection) Rules, 2004

l. Code Of Ethics For Doctors And Nurses We have also examined compliance with the applicable
clauses of the following:
m. The Drugs And Magic Remedies (Objectionable
Advertisements) Act, 1954 (i) Secretarial standards issued by The Institute of Company
Secretaries of India.

Statutory Reports
n. Medical Termination Of Pregnancy Act
(ii) The Listing Agreements entered into by the Company
o. Transplantation Of Human Organ Act with BSE Limited and National Stock Exchange of India
p. Indian Medical Degree Act, 1916 Limited and SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015;
q. Indian Medical Council (Professional Conduct, Etiquette
During the period under review the Company has
And Ethics) Regulations, 2002
complied with the provisions of the Act, Rules,
r. Indian Nursing Council Act, 1947 Regulations, Guidelines, Standards, etc. mentioned
above subject to the following observations: NIL
s. Pre-Conception And Pre-Natal Diagnostic Techniques
(Prohibition Of Sex Selection) Act, 1994
I further report that
t. Pre-Conception And Pre-Natal Diagnostic Techniques
(Prohibition Of Sex Selection Rule A. the Board of Directors of the company is duly constituted
with proper balance of Executive Directors, Non-Executive
u. Radiation Protection Rules, 1971
Directors and Independent Directors.
v. Radiation Surveillance Procedures For Medical
B. The changes in the composition of Board of Directors that
Application Of Radiation, 1989
took place during the period under review were carried out in
w. The Safety Code For Medical Diagnostic X-Ray Equipment compliance with the provisions of the Act.
And Installations, 2001
C. Adequate notice is given to all directors to schedule the Board
x. Guidelines For Clinical Management Of HIV / Aids Meetings, agenda and detailed notes on agenda were sent at
least seven days in advance.
y. Birth & Death And Marriage Registration Act
D. A system exists for seeking and obtaining further information
z. The Sexual Harassment of Women at Workplace and clarifications on the agenda items before the meeting
(Prevention, Prohibition and Redressal) Act, 2013. and for meaningful participation at the meeting.
aa. Food Safety and Standards Act, 2006 and Rules 2011 E. All decisions of Board and Committees were carried with
along with regulations. requisite majority.
bb. The Legal Metrology Act, 2009 and Rules made I further report that, based on review of compliance mechanism
thereunder. established by the Company, and on the basis of Compliance
cc. Goods and Service Act, 2014 Certificate(s) issued by the Company Secretary taken on record
by the Board of Directors at their meeting(s) and as per the
dd. Indian Stamp Act,1999 representation and explanations provided, I am of the opinion
that there are adequate systems and processes in the company
ee. Income Tax Act 1961 and Indirect Tax Law
commensurate with the size and operations of the company
ff. Water (Prevention & Control of Pollution) Act 1974 and to monitor and ensure compliance with applicable laws, rules,
rules thereunder regulations and guidelines, provided, company employ competent
external agency to monitor the compliance related to labour,
gg. Air (Prevention & Control of Pollution) Act 1981 and rules
industry specific and local law.
thereunder

hh. The Payment of Wages Act, 1936 As informed, the Company has responded appropriately to notices
received from various statutory /regulatory authorities including
ii. The Minimum Wages Act, 1948 initiating actions for corrective measures, wherever found
necessary.

Annual Report 2017-18 81

I further report that during the audit period the company has undertaken following major events in its members meeting:

Sr# Particulars of Corporate Actions EGM / AGM Date of Meeting

1 Approval for Initial Public Offer EGM 27 Jul 17
2 Appointment of M/s BBS Associates as Cost Auditor AGM 20 Sep 17
3 Appointment of Me. Daniel Robert Mintz as Director of the Company AGM 20 Sep 17
4 Approval of remuneration to Mr. Azad Moopen , Managing Director AGM 20 Sep 17
5 Authority to Board for providing security/guarantee for borrowing by subsidiaries or to invest the EGM 18 Jan 18
funds of the company

CS SUNIL SANKAR & Associates

Place: Ernakulam ACS No. :: 20171
Date: 01/05/2018 C P NO. :: 10613

The Members,
Aster DM Healthcare Limited
CIN U85110KL2008PLC021703
Aster Medcity, Kuttisahib Road
Near Kothad Bridge, South Chittoor P O
Kochi 682 027, Kerala.

Our Secretarial Audit Report for the financial year 31st March, 2018 is to be read along with this letter.

1. Management’s Responsibility

1.1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systems to ensure
compliance with the provisions of all applicable laws and regulations and to ensure that the systems are adequate and operate
effectively.

2. Auditor’s Responsibility

2.1 Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the Company with
respect to secretarial compliances.

2.2 We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate for us
to provide a basis for our opinion.

2.3 Wherever required, we have obtained the management’s representation about the compliance of laws, rules and regulations
and happening of events etc.

3. Disclaimer

3.1 The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the Company.

3.2 We have not verified the correctness and appropriateness of financial records and books of account of the Company.

CS SUNIL SANKAR & Associates

Place: Ernakulam ACS No. :: 20171
Date: 01/05/2018 C P NO. :: 10613

82 Aster DM Healthcare Limited

Annexure F
Conservation Of Energy, Technology Absorption, Foreign Exchange Earnings And Outgo
(Information As Per Rule 8 Of Companies (Accounts) Rules, 2014 And Forming Part Of Directors Report For The Financial Year Ended On 31.03.2018)

(A) Conservation of Energy OT AHUs are operated in low frequency for energy saving during
night timings and holidays whenever there no procedures.
Steps taken or impact on conservation of energy
Light Control: Have identified areas of light control required:
Maintaining Power Factor:
a. Switching off lights during nights in non-operational areas
At Aster Medcity Kochi, Electrical Installation power factor is
maintained above 0.99 month on month. This is achieved by b. Switching off lights in areas taking advantage of natural

Statutory Reports
having Automatic Power Factor Controller connected to the Panel. illumination during day.

And at Aster CMI Hospital, Bangalore our Electrical Installation c. Installation of Occupancy/movement sensors planned for
power factor maintained at above 0.99 month and month. This is all consulting rooms/Conf rooms/ Cabins as part of energy
achieved by having Automatic Power Factor Controller connected savings initiative.
to the Panel. BMS Control: Control of AHUs are on BMS for temperature control
and Switching ON/ OFF and Scheduling AHUs for minimal use .
Solar Street lights: At Aster Medcity Kochi, there are 26 Nos of
Solar streetlights are installed in Car Parking area Alternate Energy :

Landscaping Water: At Aster Medcity Kochi, the entire water to Aster Medcity : Steps taken by the company for utilizing alternate
the Landscaping of the hospital are catered by Treated water from energy sources:
the Sewage Treatment Plant (STP).
Agreement has been signed off for offsite solar power purchase
Use of Water resistors in water taps: Tap aerators 750 Nos and 150 for entire hospital power requirement ie.35,000 KWH per day. The
Nos at Aster Medcity and Aster CMI Hospital respectively are in vendor will setup solar photo voltaic power station for 9 MW capacity
place for the Washbasin taps in common area toilets and in patient in roughly 40-45 acres land near Palakad (offsite). This power
room toilets. This has reduced water consumption of in the hospital. purchase proposal will bring down the power cost by 25 % annually.
The project is delayed from vendor side for implementation.
Dual flush lever: All toilet Western Commode flushing cisterns
are with dual flush lever duly marked with FULL and HALF option Parallely working for open access power purchase through Energy
to select the lever for minimal use of water according to the exchange by bidding process, this will save minimum 10 % energy
requirement .This gives significant reduction in water consumption. expenditure. Expected date of commissioning and power purchase
by Sep 18
Flush tank adjustment: Float level switch in the flushing system
of the toilets are adjusted to the minimum level to reduce the Solar Energy: @Aster CMI hospital solar energy is implemented
water consumption. effective April 2018 which will be an alternate to the BESCOM
power with a reduced tariff of Rs 4.75/unit as against the BESCOM
RO Reject water: Good quality RO reject water going waste is
tariff of Rs 8.75/unit. Effective savings of Rs 4.00/Unit which will
being reused by routing to main raw water tank for hospital water
amount to Rs 7.5 L/month savings. This will get implemented
requirements.
effective April 2018.
Urinals: Stink free deodorant urinal pads are used in common
toilet urinals saving consumption of water in toilets. B. Technology Absorption
Reuse of Water: a. Efforts made towards technology adoption

Aster Medcity: Independent plumbing network has been Pneumatic Shoot System (PTS) has been installed to transfer
incorporated in recently commissioned area (Tower-3 2nd ,3rd samples and medicines from patient areas to lab, pharmacy,
,4th ,and 5th floor) for reuse of treated STP water for flushing nursing stations etc.
purpose.
Robotic Pharmacy has been installed in the main OP
Air curtains in main entrances: Air curtains are fixed in entrance pharmacy. Aster Medcity at Kochi is the first health facility in
doors to save cold air going out through the entrances. India to offer fully automated pharmacy robot.

Operation of AHUs: Air Handing Units (AHUs) are fitted with i. Aster Medcity at Kochi has completely paperless ICUs
VFDs( Variable Frequency Device) to regulate the blower speed with Philips - Intellispace Critical care and Anesthesia.
to save energy .

Annual Report 2017-18 83

 Apart from digital ICU the facility also has digital OT, v. Treated water used for reducing water consumption
CTVS, CICU and CATHLAB
vi. Aster Medcity houses advanced 3 Tesla MRI, world’s
ii. The Medcity is using OR1 Fusion in its 9 operation fastest 256 CT scanner, advanced Hybrid Vascular Cath
theatres which is the Asia Pacific’s first complete lab & Advanced SPECT/CT.
digital integration system provided by Karl Storz. KARL
STORZ OR1 FUSION is combination of various disparate vii. Aster Medcity is the first sports medicine center in
applications into a sole source solution providing Kerala.
exceptional image management with documentation and
b. Benefits derived like product improvement, cost
safety. The first fully digital IP based platform available
reduction, product development, import substitution
with robust feature sets and an enhanced graphical user
interface for all current as well as future clinical needs. i. As a result of using PTS, usages of man movement and
The KARL STORZ OR1 FUSION platform is based on 5 lifts have been reduced. This has also resulted in improved
unique core technologies. Each core represents a unique patient experience;
capacity or functionality
ii. The Advanced Cath Lab has unique differentiating
iii. The Aster Medcity is South India’s first health facility to features like two large detectors to cover large organs and
offer the Digital ICU and OR1 Fusion at such a large scale. major circulatory anatomy for better visualization and
accurate procedure. The Cath Lab with Aster Medcity is the
iv. Aster Medcity at Kochi is Kerala’s first facility to have
first vascular biplane hybrid lab with large high resolution
DaVinci Surgical Robot, ECMO, Flat Panel Biplane Hybrid
monitors for better visibility of small vessels in India
Cath Lab, and True Beam Machine for Teletherapy
(Radiation Oncology) under one roof. iii. Above steps have been helping us in reducing the cost
and improving the service quality delivery.

c. In case of imported technology (imported during the year):

Details of technology imported Year of import Whether technology If not fully absorbed, areas
has been fully where absorption has not
absorbed taken place and reasons
Minor Surgical Lights 2017-18 Yes NA
Auxiliary Lens for OPMI Vario S88 and Dovetail 2017-18 Yes NA
Mount
Laparoscopic Instruments 2017-18 Yes NA
Paediatric Surgical Instrument 2017-18 Yes NA
Allen Spine System Premium 2017-18 Yes NA
Trump OT Table 2017-18 Yes NA
Zeissoperating Microscope 2017-18 Yes NA
Mayfield Skull Clamp System 2017-18 Yes NA
Varaian Linear Accelerator 2017-18 Yes NA

d. Expenditure incurred on R&D - Nil

FOREIGN EXCHANGE EARNINGS AND OUTGO

(INR in millions)
2018 2017
Earnings 265.83 259.66
Expenditure 93.89 174.78
Net foreign exchange earnings (NFE) 171.94 84.88
NFE/ earnings (%) 64.68% 32.69%

84 Aster DM Healthcare Limited

Annexure G
FORM NO. MGT 9
Extract of Annual Return
As on financial year ended on 31.03.2017
[Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company (Management & Administration) Rules, 2014]

I. Registration & other Details:

1. CIN U85110KL2008PLC021703
2. Registration Date 18.01.2008
3. Name of the Company Aster DM Healthcare Limited
4. Category/Sub-category of the Company Company limited by shares/ Indian non-government company
5. Address of the Registered office & contact IX/475L, Aster Medcity, Kuttisahib Road, Near Kothad Bridge, South Chittoor

Statutory Reports
details P.O, Cheranalloor, Kochi, Kerala – 682027
6. Whether listed company Yes
7. Name, Address & contact details of the Link Intime India (P) Ltd C-101,1st Floor, 247 Park, Lal Bahadur Shastri. Marg,
Registrar & Transfer Agent, if any. Vikhroli (West), Mumbai - 400 083 Maharashtra, India. Tel: +91 22 4918 6200

II. Principal Business Activities of The Company (All the Business Activities Contributing 10 % or more of the total turnover of the
Company shall be Stated)

Sl. Name and Description of main products / services NIC Code of the Product/ service % to total turnover of the company
No.
1 Healthcare activities 86110 97.88

III. Particulars of Holding, Subsidiary and Associate Companies

Sl Entity Country of incorporation Ownership interest held by Group

No 31 March 2018
Beneficial Legal *
Direct subsidiaries
1 Aster DM Healthcare (Trivandrum) Private Limited India 100% 100%
2 DM Med City Hospitals India Private Limited India 100% 100%
3 Prerana Hospital Limited India 81% 81%
4 Ambady Infrastructure Private Limited India 100% 100%
5 Affinity Holdings Private Limited Mauritius 100% 100%
6 Sri Sainatha Multispeciality Hospitals Private Limited India 58% 58%
7 Malabar Institute of Medical Sciences Limited India 71% 71%
8 Dr. Ramesh Cardiac and Multispeciality Hospitals Private India 51% 51%
Limited

Step down subsidiaries

9 Aster Ramesh Duhita LLP India 50% 50%
10 Aster DM Healthcare FZC UAE 100% 100%
11 Aster Day Surgery Centre LLC (formerly known as Aster IVF UAE 82% 49%
and Women Clinic LLC )
12 Al Rafa Medical Centre LLC UAE 51% 40%
13 Asma Pharmacy LLC UAE 50% 0%
14 Dar Al Shifa Medical Centre LLC UAE 51% 40%
15 DM Healthcare LLC UAE 100% 49%
16 DM Pharmacies LLC UAE 100% 49%
17 Dr. Moopens Healthcare Management Services LLC UAE 100% 49%
18 Dr. Moopens Medical Clinic LLC UAE 71% 40%
19 Eurohealth Systems FZ LLC UAE 100% 95%
20 Ibn Alhaitham Pharmacy LLC UAE 100% 49%
21 Maryam Pharmacy LLC UAE 100% 0%
22 Med Shop Drugs Store LLC UAE 100% 49%

Annual Report 2017-18 85

 Sl Entity Country of incorporation Ownership interest held by Group
No 31 March 2018
Beneficial Legal *
23 Medcare Hospital LLC UAE 80% 30%
24 Medshop Garden Pharmacy LLC UAE 100% 49%
25 Modern Dar Al Shifa Pharmacy LLC UAE 51% 40%
26 Rafa Pharmacy LLC UAE 100% 49%
27 Shindagha Pharmacy LLC UAE 90% 49%
28 Union Pharmacy LLC UAE 75% 37%
29 Aster Pharmacies Group LLC UAE 100% 49%
30 Alfa Drug Store LLC UAE 100% 49%
31 Aster Al Shafar Pharmacies Group LLC UAE 51% 49%
32 New Aster Pharmacy DMCC UAE 100% 100%
33 Symphony Healthcare Management Services LLC UAE 100% 0%
34 Zabeel Pharmacy LLC ** UAE 51% 49%
35 Aster Pharmacy LLC, AUH UAE 100% 49%
36 Al Shafar Pharmacy LLC, AUH ** UAE 51% 49%
37 Aster Grace Nursing and Physiotherapy LLC UAE 60% 29%
38 Aster Medical Centre LLC** UAE 90% 39%
39 Aster Opticals LLC UAE 60% 49%
40 Al Rafa Investments Limited UAE 100% 0%
41 Al Rafa Holdings Limited UAE 100% 0%
42 Harley Street LLC UAE 60% 9%
43 Harley Street Pharmacy LLC UAE 60% 9%
44 Harley Street Medical Centre LLC UAE 60% 9%
45 Al Raffah Hospital LLC Oman 100% 70%
46 Al Raffah Medical Centre LLC Oman 100% 70%
47 Dr. Moopen's Healthcare Management Services WLL Qatar 99% 49%
48 Welcare Polyclinic W.L.L Qatar 50% 45%
49 Dr. Moopens Aster Hospital WLL Qatar 99% 49%
50 Sanad Al Rahma for Medical Care LLC Kingdom of Saudi Arabia 97% 97%
51 Aster Kuwait for Medicine and Medical Supplies Company W.L.L Kuwait 54% 2%
(formerly known as Aster Kuwait General Trading Co WLL)
52 Orange Pharmacies LLC Jordan 51% 0%
53 Aster DM Healthcare SPC Bahrain 100% 100%
54 Aster DM Healthcare INC Philippines 90% 90%
55 Al Raffah Pharmacies Group LLC Oman 100% 70%
56 Harley Street Dental LLC UAE 50% 74%
57 Aster DCC Pharmacy LLC UAE 70% 70%
* Although the percentage of voting rights as a result of legal holding by the Company is not more than 50% in certain entities listed above, the Company has
the power to appoint majority of the Board of Directors of those entities as to obtain susbstantially all the returns related to their operations and net assets
and has the ability to direct that activities that most significantly affect these returns. Consequently, all the entities listed above have been consolidated for the
purposes of the preparation of this consolidated financial information.

** represents subsidiaries which are in the process of being wound-up.

(b) Associates
The consolidated Ind AS financial statements of the Group includes associates listed in the table below:
Sl Entity Country of incorporation % equity interest
No 31 March 2018
Beneficial Legal *
1 EMED Human Resources (India) Private Limited India 33% 33%
2 MIMS Infrastructure and Properties Private Limited* India 35% 35%
3 Aries Holdings FZC UAE 25% 25%
4 AAQ Healthcare Investments LLC UAE 33% 33%

86 Aster DM Healthcare Limited

IV. Share Holding Pattern (Equity Share Capital Breakup as percentage of Total Equity)

i. Category-wise Share Holding

Sr Category of Shareholders Shareholding at the beginning of the year - 2017 Shareholding at the end of the year - 2018 %
No Demat Physical Total % of Demat Physical Total % of Change
Total Total during
Shares Shares the year
(A) Shareholding of Promoter
and Promoter Group
[1] Indian
(a) Individuals / Hindu - - - - - - - - -
Undivided Family
(b) Central Government / State - - - - - - - - -
Government(s)
(c) Financial Institutions / - - - - - - - - -

Statutory Reports
Banks
(d) Any Other (Specify) - - - - - -
Sub Total (A)(1) - - - - - - - - -
[2] Foreign - - - - -
(a) Individuals (Non-Resident - - - - 5,25,720 - 5,25,720 0.10% (0.10%)
Individuals / Foreign
Individuals)
(b) Government - - - - - - - - -
(c) Institutions - - - - - - - - -
(d) Foreign Portfolio Investor - - - - - - - - -
(e) Any Other (Specify) - - - - - - - - -
Bodies Corporate 20,15,48,034 60,07,008 20,75,55,042 51.47% 18,87,06,090 - 18,87,06,090 37.35% 14.12%
Sub Total (A)(2) 20,15,48,034 60,07,008 20,75,55,042 51.47% 18,92,31,810 - 18,92,31,810 37.45% 14.02%
Total Shareholding of 20,15,48,034 60,07,008 20,75,55,042 51.47% 18,92,31,810 - 18,92,31,810 37.45% 14.02%
Promoter and Promoter
Group(A)=(A)(1)+(A)(2)
(B) Public Shareholding
[1] Institutions - - - - - - - - -
(a) Mutual Funds / UTI - - - - 92,19,639 - 92,19,639 1.82% (1.82%)
(b) Venture Capital Funds 4,65,37,491 - 4,65,37,491 11.54% - - - - 11.54%
(c) Alternate Investment Funds - - 47,89,044 - 47,89,044 0.95% (0.95%)
(d) Foreign Venture Capital 63,69,878 - 63,69,878 1.58% 1,49,46,222 - 1,49,46,222 2.96% (1.38%)
Investors
(e) Foreign Portfolio Investor - - - - 1,96,00,955 - 1,96,00,955 3.88% (3.88%)
(f) Financial Institutions / - - - - - - - - -
Banks
(g) Insurance Companies - - - - - - - - -
(h) Provident Funds/ Pension - - - - - - - - -
Funds
(i) Any Other (Specify) - - - - - - - - -
Sub Total (B)(1) 5,29,07,369 - 5,29,07,369 13.12% 4,85,55,860 - 4,85,55,860 9.61% 3.51%
[2] Central Government/ State - - - - - - - - -
Government(s)/ President
of India
Sub Total (B)(2) - - - - - - - - -
[3] Non-Institutions
(a) Individuals - - - - - - - - -
(i) Individual shareholders - 43,089 43,089 0.01% 1,30,32,385 46,878 1,30,79,263 2.59% (2.58%)
holding nominal share
capital upto INR 1 lakh.
(ii) Individual shareholders 35,14,643 3,12,79,043 3,47,93,686 8.63% 17,13,575 3,04,91,831 3,22,05,406 6.37% 2.25%
holding nominal share
capital in excess of INR 1
lakh
(b) NBFCs registered with RBI - - - - - - - - -
(c) Employee Trusts - - - - - - - - -
(d) Overseas - - - - - - - - -
Depositories(holding DRs)
(balancing figure)

Annual Report 2017-18 87

 Sr Category of Shareholders Shareholding at the beginning of the year - 2017 Shareholding at the end of the year - 2018 %
No Demat Physical Total % of Demat Physical Total % of Change
Total Total during
Shares Shares the year
(e) Any Other (Specify) - - - - - - - - -
Trusts - - - - 1,25,000 - 0.02% (0.02%)
1,25,000
Hindu Undivided Family - - - - 6,03,363 - 0.12% (0.12%
6,03,363
Foreign Companies 10,41,84,387 1 10,41,84,388 25.84% 16,48,77,871 - 16,48,77,871 32.63% (6.80%)
Non Resident Indians (Non - - - - 5,47,370 - 5,47,370 0.11% (0.11%)
Repat)
Non Resident Indians (Repat) - - - - 47,31,490 - 47,31,490 0.94% (0.94%)
Clearing Member - - - - 3,14,901 - 3,14,901 0.06% (0.06%)
Bodies Corporate - - - - 4,72,50,449 - 4,72,50,449 9.35% (9.35%)
Sub Total (B)(3) 10,76,99,030 3,13,22,133 13,90,21,163 34.48% 23,31,96,404 3,05,38,709 26,37,35,113 52.20% (17.72%)
Total Public 16,06,06,399 3,13,22,133 19,19,28,532 47.60% 28,17,52,264 3,05,38,709 31,22,90,973 61.81% (14.21%)
Shareholding(B)=(B)(1)+(B)
(2)+(B)(3)
Total (A)+(B) 36,21,54,433 3,73,29,141 39,94,83,574 99.07% 47,09,84,074 3,05,38,709 50,15,22,783 99.27% (0.19%)
(C) Non Promoter - Non Public -
[1] Custodian/DR Holder - - - - - - - - -
[2] Employee Benefit Trust - 37,36,750 37,36,750 0.93% - 37,04,562 37,04,562 0.73% 0.19%
(under SEBI (Share
based Employee Benefit)
Regulations, 2014)
Sub Total C - 37,36,750 37,36,750 0.93% - 37,04,562 37,04,562 0.73% 0.19%
Total (A)+(B)+(C) 36,21,54,433 4,10,65,891 40,32,20,324 100.00% 47,09,84,074 3,42,43,271 50,52,27,345 100.00% 0.00%

a. Shareholding of Promoter

Sr Category of Shareholders Shareholding at the beginning of the year Shareholding at the end of the year
No No. of % of total %of Shares No. of % of total %of Shares % change in
shares held Shares Pledged shares held Shares Pledged shareholding
of the encumbered to of the encumbered to during the
company total shares company total shares year
1 Union Investments Private Limited 20,75,55,042 51.47% - 18,87,06,090 37.35% - (14.12%)
2 Azad Moopen Mandayapurath - 0.00% - 5,25,720 0.10% - 0.10%
Total 20,75,55,042 51.47% - 18,92,31,810 37.45% - (14.02%)

ii. Change in promoters Shareholding

Sr Name & Type of Transactionm Shareholding at the beginning of Transactions during the year Cumulative Shareholding at the
No. the year end of the year - 2018
No. of shares % of total Date of No. of shares No of Shares % Of total
held Shares of the Transaction held Held Shares of The
company Company
1 UNION INVESTMENTS PRIVATE 20,75,55,042 51.47%
LIMITED
Transfer - - 29-Dec-17 (36,42,711) - -
Transfer - - 29-Dec-17 (17,77,990) - -
Transfer - - 22-Feb-18 (1,34,28,251) - -
AT THE END OF THE YEAR - - - - 18,87,06,090 37.35%
2 AZAD MOOPEN MANDAYAPURATH - 0.00% - - - -
Purchase from Secondary Market - - 23-Mar-18 5,25,720 5,25,720 0.10%
AT THE END OF THE YEAR - - - - 5,25,720 0.10%
Note:
1. Paid up Share Capital of the Company (Face Value INR 10.00) at the end of the year is 505227345 Shares.
2. The details of holding has been clubbed based on PAN.
3. % of total Shares of the Company is based on the paid up Capital of the Company at the end of the Year.

88 Aster DM Healthcare Limited

 iii. Top ten shareholders

Sr Name & Type of Transactionm Shareholding at the beginning of Transactions during the year Cumulative Shareholding at the
No. the year end of the year
No. of shares % of total Date of No. of shares No of Shares % Of total
held Shares of the Transaction held Held Shares of The
company Company
1 OLYMPUS CAPITAL ASIA 105575558 26.18% - - - -
INVESTMENTS LIMITED

Conversion of CCPS - - 20-Nov-17 85,76,344 11,41,51,902 22.59%

Transfer from Union Investments - - 29-Dec-17 36,42,711 11,77,94,613 23.32%
Private Limited
AT THE END OF THE YEAR - - - - 11,77,94,613 23.32%
2 RIMCO (MAURITIUS) LIMITED 1 - - - - -

Statutory Reports
Conversion of CCPS - - 20-Nov-17 5,10,86,710 5,10,86,711 10.11%
AT THE END OF THE YEAR - - - - 5,10,86,711 10.11%
3 IVF TRUSTEE COMPANY PVT LTD 46537491 11.54% - - 46537491 9.21%
Transfers - - - - - -
AT THE END OF THE YEAR - - - - 46537491 9.21%
4 RASHID ASLAM BIN MOHIDEEN 11225214 2.78% - - 11225214 2.22%
MAMMU HAJI
Transfers - - - - - -
AT THE END OF THE YEAR - - - - 11225214 2.22%
5 INDIUM IV MAURITIUS HOLDINGS 4978707 1.23% - - 4978707 0.99%
LIMITED
Conversion of CCPS - - 20-Nov-17 41,86,073 91,64,780 1.81%
Transfer from Union Investments - - 29-Dec-17 17,77,990 1,09,42,770 2.17%
Private Limited
AT THE END OF THE YEAR - - - - 1,09,42,770 2.17%
6 SBI MAGNUM TAXGAIN SCHEME - - - - - 0.00%
IPO Allotment - - 22 Feb 2018 42,84,111 42,84,111 0.85%
Transfer - - 02 Mar 2018 12,00,000 54,84,111 1.09%
Transfer - - 16 Mar 2018 56,855 55,40,966 1.10%
Transfer - - 23 Mar 2018 73,527 56,14,493 1.11%
AT THE END OF THE YEAR - - - - 56,14,493 1.11%
7 TRUE NORTH FUND V LLP - - - - - 0.00%
IPO Allotment - - 22 Feb 2018 46,19,344 46,19,344 0.91%
AT THE END OF THE YEAR - - - - 46,19,344 0.91%
8 OLYMPUS ACF PTE. LTD. - - - - - -
IPO Allotment - - 22 Feb 2018 46,19,297 46,19,297 0.91%
AT THE END OF THE YEAR - - - - 46,19,297 0.91%
9 KARST PEAK ASIA MASTER FUND - - - - - -
IPO Allotment - - 22 Feb 2018 31,18,709 31,18,709 0.62%
Transfer - - 02 Mar 2018 3,59,426 34,78,135 0.69%
Transfer - - 09 Mar 2018 3,70,791 38,48,926 0.76%
Transfer - - 16 Mar 2018 1,08,000 39,56,926 0.78%
AT THE END OF THE YEAR - - 39,56,926 0.78%
10 DM Healthcare Employees Welfare 37,36,750 0.93% - - - -
Trust
Transfer to Employees pursuant to - - - 32,188 - -
ESOP
AT THE END OF THE YEAR - - - - 3704562 0.73%

Annual Report 2017-18 89

 iv. Shareholding Pattern of Directors and KMP

Sr Name & Type of Transactionm Shareholding at the beginning of Transactions during the year Cumulative Shareholding at the
No. the year end of the year
No. of shares % of total Date of No. of shares No of Shares % Of total
held Shares of the Transaction held Held Shares of The
company Company
1 SHAMSUDHEEN BIN MOHIDEEN 5612607 1.39% - - - -
MAMMU HAJI
IPO Allotment - - 22 Feb 2018 1,05,222 57,17,829 1.13%
AT THE END OF THE YEAR - - - - 57,17,829 1.13%
2 THADATHIL JOSEPH WILSON 2737210 0.68% - - 2525532 0.50%
Transfers - - NA - - -
3 AT THE END OF THE YEAR - - - - 2737210 0.54%
ANOOP MOOPEN MANDAYAPURATH
VADAKKETHIL
IPO Allotment - - 22 Feb 2018 1,05,300 1,05,300 0.02%
Transfers - - 16 Mar 2018 1,29,964 2,35,264 0.05%
Transfers - - 23 Mar 2018 1,85,992 4,21,256 0.08%
Transfers - - 31 Mar 2018 61,142 4,82,398 0.10%
AT THE END OF THE YEAR - - - - 4,82,398 0.10%
4 Sreenath Pocha Reddy - - - - - -
IPO Allotment - - NA - 5850 -
AT THE END OF THE YEAR - - - - 5850 -
5 Rajesh Achutha Warrier - - - - -
IPO Allotment - - NA - 78 -
AT THE END OF THE YEAR - - - - 78 -

V. Indebtedness

(INR in Millions)
Particulars Secured Loans excluding Unsecured Loans Deposits Total Indebtedness
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount 5,822.42 630.91 - 6,453.33
ii) Interest due but not paid -
iii) Interest accrued but not due 37.84 - - 37.84
Total (i+ii+iii) 5,860.26 630.91 - 6,491.17
Change in Indebtedness during the financial year
* Addition 575.19 946.66 - 1,521.85
* Reduction 5,683.67 1,229.88 - 6,913.55
Net Change (5,108.48) (283.22) - (5,391.70)
Indebtedness at the end of the financial year
i) Principal Amount# 751.05 347.69 - -

ii) Interest due but not paid - - - -

iii) Interest accrued but not due 0.73 - - 0.73

Total (i+ii+iii) 751.78 347.69 - 1,099.47

90 Aster DM Healthcare Limited

Vi. Remuneration of Directors and Key Managerial Personnel-

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

(INR in Millions)
Sl Particulars of Remuneration Name of Managing Director Total Amount

No.
Dr. Azad Moopen
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the 6 6
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - -
(c) Profits in lieu of salary under section 17(3) Income- tax - -
Act, 1961

Statutory Reports
2 Stock Option - -
3 Sweat Equity - -
4 Commission
- as % of profit
- others, specify…
5 Others, please specify - -
Total (A) 6 6
Ceiling as per the Act 6

B. Remuneration to other directors

(INR in Millions)
Particulars of Name of Directors Total
Remuneration Amount
Daniel Harsh C Rajagopal Ravi Prasad Madhavan Suresh M
James Mariwala Sukumar Nambiar Kumar
Snyder
Independent Directors
Fee for attending board, 0.5 0.6 0.4 0.8 0.8 0.8 3.9
committee meetings*
Commission Nil Nil Nil Nil Nil Nil Nil
Others, please specify Nil Nil Nil Nil Nil Nil Nil
Total (1) 0.5 0.6 0.4 0.8 0.8 0.8 3.9
Other Non-Executive Nil Nil Nil Nil Nil Nil Nil
Directors
Fee for attending board Nil Nil Nil Nil Nil Nil Nil
committee meetings
Commission Nil Nil Nil Nil Nil Nil Nil
Others, please specify Nil Nil Nil Nil Nil Nil Nil
Total (2) Nil Nil Nil Nil Nil Nil Nil
Total (B)=(1+2) 0.5 0.6 0.4 0.8 0.8 0.8 3.9
Total Managerial 0.5 0.6 0.4 0.8 0.8 0.8 3.9
Remuneration
Overall Ceiling as per the INR 1,00,000 per meeting for each individual Directors
Act
*The figures indicated are gross of TDS
*The travel expenses for attending meetings of the Board of Directors or a committee thereof, site visits and other Company related expenses are borne by the
Company from time to time.

Annual Report 2017-18 91

 C. Remuneration to Key Managerial Personnel other than Md/Manager/Wtd

(INR in Millions)
Sl. Particulars of Remuneration Key Managerial Personnel
No
Company CFO Total
Secretary
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the 2.67 13.66 16.32
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - - -
(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - - -
2 Stock Option - 6.34 6.34
3 Sweat Equity - - -
4 Commission - - -
- as % of profit - - -
others, specify… - - -
5 Others, please specify - - -
Total 2.67 20.00 22.66

VII. Penalties / Punishment/ Compounding of Offences:

The Company, its Directors or other officers were not subject to penalties/ punishments/ compounding of offences during the fiscal
2018

92 Aster DM Healthcare Limited

Corporate Governance Report for the year 2017-18

Company’s Philosophy on Corporate Governance

Our corporate governance is a reflection of our value system Directors out of which 6 directors (i.e. 54.55%) are Independent
encompassing our culture, policies, and relationships with our Directors. The profiles of Directors are available on the website
stakeholders. Integrity and transparency are key to our corporate of the Company: (http://www.asterdmhealthcare.com/
governance practices to ensure that we gain and retain the investors/). The composition of the Board is in conformity
trust of our stakeholders at all times. Our corporate governance with Regulation 17 of the SEBI Listing Regulations read with

Statutory Reports
framework ensures that we make timely disclosures and share Section 149 of Companies Act, 2013 (“the Act”).
accurate information regarding our financials and performance, as
well as disclosures related to the leadership and governance of iii. None of the Directors on the Board hold directorships in
Aster DM Healthcare (‘the Company’). We believe that an active, more than 10 public companies. Further none of them is a
well-informed and independent board is necessary to ensure the member of more than 10 committees or chairman of more
highest standards of corporate governance. The Board of Directors than 5 committees across all the public companies in which
(‘the Board’) is at the core of our corporate governance practice. he is a Director. Necessary disclosures regarding Committee
The Board oversees the Management’s functions and protects the positions in other public companies as on March 31, 2018 have
long-term interests of our stakeholders. been made by the Directors. None of the Directors are related
to each other except Ms. Alisha Moopen, Mr. Anoop Moopen
The Company is in compliance with the requirements stipulated and Dr. Azad Moopen. Ms. Alisha Moopen is daughter of Dr.
under Regulation 17 to 27 reach with Schedule V and clauses (b) to Azad Moopen and Mr. Anoop Moopen is son in law of Dr. Azad
(i) of sub-regulation (2) of Regulation 46 of Securities and Exchange Moopen. The Company is in compliance with the Uday Kotak
Board of India (Listing Obligations and Disclosure Requirements) Committee recommendations on the maximum number of
Regulations, 2015 (“SEBI Listing Regulations”), as applicable, with Directorships which comes into effect from 01st April 2019.
regard to Corporate Governance.
iv. Four Board Meetings were held during the year and the gap
Our Company’s shares got listed in BSE Limited and National between two meetings did not exceed one hundred and
Stock Exchange of India Limited with effect from February 26, twenty days. The dates on which the said meetings were held
2018. Hence, various governance and compliance requirements are as follows:
under the SEBI Listing Regulations became applicable from the
said date of listing of equity shares only. 07 June 2017; 25 July 2017; 20 November 2017; and 08
February 2018. The necessary quorum was present at all
meetings.
Board of Directors
v. The names and categories of the Directors on the Board, their
i. A detailed agenda and notes thereon are sent to each Director attendance at Board Meetings held during the year and at
in advance of Board and Committee Meetings. All material the last Annual General Meeting (AGM) and the number of
information is incorporated in the agenda for facilitating Directorships and Committee Chairmanships / Memberships
meaningful and focused discussions at the meeting. Where held by them in other public limited companies as on March
it is not practicable to attach any documents with the 31, 2018 are given herein below. Other directorships do not
agenda, the same is been circulated through the “meeting include directorships of private limited companies, foreign
pro” software where each of the Director receives the pop-up companies and companies under Section 8 of the Act. For the
notification of the Agenda and the attachments. purpose of determination of limit of the Board Committees,
chairpersonship and membership of the Audit Committee and
ii. As on March 31, 2018, the Company has 12 Directors. Of the
Stakeholders’ Relationship Committee has been considered
12 Directors, 11 directors (i.e. 91.67%) are Non-Executive
as per Regulation 26(1)(b) of SEBI Listing Regulations.

Annual Report 2017-18 93

Name of the Director Category Number of Whether Number of Number of Committee
Meetings attended last Directorships in Public positions held in
attended during AGM held on Companies* Public Companies*
the FY 2018 September 20 Chairman Director Chairman Member
Dr. Azad Moopen Chairman and 4 No 1 2 Nil Nil
Managing Director
Alisha Moopen Non-Independent, 4 No Nil 1 Nil Nil
Non-Executive
T J Wilson Non-Independent, 4 Yes Nil 3 Nil 2
Non-Executive
Anoop Moopen Non-Independent, 4 No Nil 2 Nil 1
Non-Executive
Daniel Robert Mintz Non-Independent, 3 No Nil 1 Nil Nil
Non-Executive
Shamsudheen Bin Non-Independent, 3 No Nil 1 Nil Nil
Mohideen Mammu Haji Non-Executive
Daniel James Snyder Independent, Non- 3 No Nil 1 Nil Nil
Executive
Madhavan Nambiar Independent, Non- 4 No Nil 6 1 1
Executive
Ravi Prasad Independent, Non- 4 No Nil 1 Nil Nil
Executive
Harsh C Mariwala Independent, Non- 4 No 2 8 Nil Nil
Executive
R Sukumar Independent, Non- 4 No Nil 1 1 Nil
Executive
Suresh M Kumar Independent, Non- 4 No Nil 4 Nil 1
Executive
*including Aster DM Healthcare Limited

vi. Provisions of SEBI Listing Regulations became applicable heads upon their induction to the Board. The details of the
to the Company with effect from February 26, 2018 only familiarization programme of the Independent Directors
consequent to the listing of equity shares from that date. are captured in the Policy on Nomination, Remuneration &
Hence, requirements to place necessary information as Evaluation which is available on the website of the Company
mentioned in Part A of Schedule II of the SEBI Listing (http://www.asterdmhealthcare.com/investors/)
Regulations, were not applicable for the board meetings held
during the financial year 2017-18. xi. Details of equity shares of the Company held by the Directors
as on March 31, 2018 are given below:
vii. The terms and conditions of appointment of the Independent
Name Category Number of
Directors are disclosed on the website of the Company equity shares
(http://www.asterdmhealthcare.com/investors/)
Dr. Azad Moopen Chairman and 525,720
Managing Director
viii. During the year 2017-18, one meeting of the Independent
Directors was held on 08th February 2018. Mr. T J Wilson Non-Independent, 27,37,210
Non-Executive
ix. Audit & Risk Management Committee periodically reviews Mr. Anoop Moopen Non-Independent, 482,398
the compliance reports of various laws applicable to the Non-Executive
Company. Mr. Shamsudheen Non-Independent, 5,717,829
Bin Mohideen Non-Executive
x. All Independent directors of the Company are provided with Mammu Haji
a detailed presentation at the time of induction to the Board.
Independent Directors are introduced to different segments xii. As on March 31, 2018 Company has not issued any convertible
and strategic business units by respective CEO’s/ Vertical instruments.

94 Aster DM Healthcare Limited

Committees of the Board The Audit and Risk Management Committee is required to
meet at least four times in a year and not more than 120
i. Board has constituted five committees comprising of four days are permitted to elapse between two meetings under
statutory committees as required under the SEBI Listing the terms of the Listing Regulations. The Committee met four
Regulations and Companies Act, 2013 and one committee times during the Financial Year 2017-18. The said meetings
that has been constituted considering the needs of the were held on June 06, 2017; July 25, 2017; November 19, 2017
Company and best practices in Corporate Governance as on and February 08, 2018. The necessary quorum was present
March 31, 2018. Details of various committees and its terms
for all the meeting.
of reference are as follows:
Nomination and Remuneration Committee
Audit and Risk Managemen t Committee
The members of the Nomination and Remuneration
The members of the Audit and Risk Management Committee
Committee are:
are:
Sl. Name of the Director Category Sl. Name of the Director Category

Statutory Reports
No. No.
1. Madhavan Nambiar Non-Executive, 1. Harsh C. Mariwala Non-Executive,
(Chairman) Independent Director (Chairman) Independent Director
2. Ravi Prasad Non-Executive, 2. Daniel James Snyder Non-Executive,
Independent Director Independent Director
3. Suresh M. Kumar Non-Executive, 3. Daniel Robert Mintz Non-Executive,
Independent Director Independent Director
4. T. J. Wilson Non-Executive, 4. Alisha Moopen Non-Executive,
Independent Director Independent Director
The Audit and Risk Management Committee was constituted The Nomination and Remuneration Committee was
by a meeting of the Board of Directors held on June 25, 2014 constituted by a meeting of the Board of Directors held
and re-constituted by a meeting of the Board of Directors on November 19, 2014 and reconstituted by our Board of
held on May 18, 2016. The scope and function of the Audit and Directors at their meetings held on April 21, 2015, September
Risk Management Committee is in accordance with Section 16, 2015, October 21, 2015 and November 22, 2016. The terms
177 of the Companies Act, 2013 read with Regulation 18 and of reference was revised by our Board of Directors at their
23 of SEBI (Listing Obligations and Disclosure Requirements) meeting held on May 18, 2016. The scope and function of the
Regulations, 2015. Nomination and Remuneration Committee is in accordance
with Section 178 of the Companies Act, 2013 and the
An extract of the Terms of Reference of Audit and Risk
Listing Regulations.
management Committee are broadly as follows:
An extract of the Terms of Reference of the Committee are
The Audit and Risk Committee provides direction to the as follows:
audit function and monitors the quality of internal and
statutory audit. with an objective of moving towards a Determination/review the Company’s policy on specific
regime of unqualified financial statements. The Committee remuneration packages for the Executive Directors including
functions as per the provisions of SEBI Listing Regualtions pension rights and any compensation payment, oversee
and the provisions of Companies Act. The responsibilities of the framing, review and implementation of compensation
the Committee include review of the quarterly and annual policy of the Company on behalf of the Board, form a policy,
financial statements before submission to Board, review and procedures and schemes and to undertake overall supervision
approval of related party transactions, review of compliance and administration of Employee Stock Option Plan (ESOP) of
of internal control system, overseeing the financial reporting the Company and to review the Board structure, size and
process to ensure transparency, sufficiency, fairness and composition and make recommendation for any change. The
credibility of financial statements etc. The Committee also committee also formulate evaluation criteria for directors and
reviews the functioning of whistle blower mechanism, the board.
adequacy and effectiveness of internal audit function, risk The Committee met two times during the Financial Year 2017-
management and control systems, review of management 18. The said meetings were held on June 07, 2017 and February
discussion and analysis of financial condition and results 08, 2018. The necessary quorum was present for all the meeting.
of operation.

Annual Report 2017-18 95

 Stakeholders’ Relationship Committee An extract of the Terms of Reference of the Committee are as
follows:
The members of the Stakeholders’ Relationship Committee
are: Formation of a corporate social responsibility policy of the
Company and recommendation of the same to the Board
Sl. Name of the Director Category for approval. Identification of corporate social responsibility
No. activities and recommendation of the same to the Board
1. Rajagopal Sukumar Non-Executive, for approval. Monitoring of corporate social responsibility
(Chairman) Independent Director expenditure and activities by the Company. Presenting of
2. Anoop Moopen Non-Executive, annual report on corporate social responsibility activities to
Independent Director the Board to enable the Board to present the annual report on
3. T. J. Wilson Non-Executive,
corporate social responsibility activities to the shareholders.
Independent Director

An extract of the Terms of Reference of the Committee are as No meeting of the Corporate Social Responsibility Committee
follows: was held during the Financial year 2017-18

The Stakeholders’ Relationship Committee was constituted IPO Committee

by our Board of Directors at their meeting held on November
The members of the IPO Committee are:
19, 2014 and reconstituted by our Board of Directors at their
meeting held on April 21, 2015. The scope and function of
Sl. Name of the Director Category
the Stakeholders’ Relationship Committee is in accordance
No.
with Section 178 of the Companies Act, 2013 and the Listing
1. Dr. Azad Moopen Executive, Non-
Regulations. The terms of reference of the Stakeholders’
(Chairman) Independent Director
Relationship Committee of our Company include effectively 2. Alisha Moopen Non-Executive,
resolving the grievances of the security holders of the company Independent Director
including complaints related to transfer of shares, non-receipt
of annual reports, non-receipt of declared dividends, resolving The IPO Committee was constituted by our Board of Directors
investors’ complaints pertaining to share transfers, issue of on January 20, 2015 and reconstituted on September 16, 2015
duplicate share certificates, transmission of shares and other and subsequently on June 7, 2017. The terms of reference
shareholder related queries, complaints etc. were amended on July 25, 2017. The IPO Committee has been
authorized to approve and decide upon all activities in connection
No meeting of the Stakeholders’ Relationship Committee was with the Offer, including, but not limited to, to approve the
held during the Financial year 2017-18 Draft Red Herring Prospectus, the Red Herring Prospectus
and this Prospectus, to decide the terms and conditions of the
Corporate Social Responsibility Committee
Offer, including the Price Band and the Offer Price, to appoint
The members of the Corporate Social Responsibility various intermediaries, negotiating and executing Offer related
Committee are: agreements and to submit applications and documents to
relevant statutory and other authorities from time to time.
Sl. Name of the Director Category
ii. Stakeholders relationship other details:
No.
1. Dr. Azad Moopen Executive, Non- a. Name, designation and address of Compliance Officer:
(Chairman) Independent Director
2. Harsh C. Mariwala Non-Executive, Rajesh A
Independent Director Company Secretary and Compliance Officer
3. M. Madhavan Nambiar Non-Executive,
Aster DM Healthcare Limited
Independent Director
IX/475L, Aster Medcity,
4. Daniel R. Mintz Non-Executive,
Kuttisahib Road, Near Kothad Bridge,
Independent Director
South Chittoor P.O., Cheranalloor,
The Corporate Social Responsibility Committee was constituted Kochi- 682027, Ernakulam, Kerala, India
by our Board of Directors at their meeting held on June 25, 2014 Tel.: +91-484-6699228
and reconstituted by the Board of Directors at their meeting Fax: +91-484-6699862
held on September 16, 2015 and subsequently on June 7, 2017. Email: [email protected]
The terms of reference of the Corporate Social Responsibility
Committee of our Company include the following:

96 Aster DM Healthcare Limited

 b. Details of investor complaints received and redressed of INR 500,000 per month as stipulated under the statute and
during the year 2017-18 are as follows: which was agreed by the shareholders through a resolution
passed in the Annual General Meeting of the Company held
Opening Received Resolved Closing
on 20th September 2017.
Balance during the year during the year Balance
00 04 04 00 iv. Details of the remuneration paid to the Directors for the year
ended March 31, 2018:
iii. Nomination and Remuneration Committee – Other details
(INR in Millions)
Performance Evaluation criteria of for Independent Directors: Name Category Sitting Fee/
Managerial
The performance evaluation criteria for independent directors Remuneration*
is determined by the Nomination and Remuneration Executive Director
Committee. An indicative list of factors on which the Dr. Azad Moopen Chairman and 6.0**
evaluation was carried out includes participation and Managing

Statutory Reports
contribution by Director, commitment, effective deployment Director
of knowledge and expertise, integrity and maintenance of Independent, Non-Executive
confidentiality of behaviour and judgement. Daniel James Snyder Independent, 0.5
Non-Executive
Remuneration Policy: Madhavan Nambiar Independent, 0.8
Remuneration policy of the Company is designed to create Non-Executive
a high-performance culture, through which your company Ravi Prasad Independent, 0.8
retains, motivates and attracts employees to achieve Non-Executive
Harsh C Mariwala Independent, 0.6
results. In each country where the Company operates, the
Non-Executive
remuneration structure is tailored to the regulations, practices
R Sukumar Independent, 0.4
and benchmarks prevalent in the Healthcare industry.
Non-Executive
The remuneration/ sitting fee paid to Executive/ Non- Suresh M Kumar Independent, 0.8
Executive Directors includes only fixed pay. During the Non-Executive
Financial year under review the Company paid sitting fees *None of the Directors are given a variable pay.

of INR 100,000 per sitting to each director for attending the ** 1. Other Allowance and Benefits: Use of Company’s car, chauffer and

meetings of Board/ committees of the Board. The company telephone for official purposes

also reimburses the out of pocket expenses incurred by the 2. He is entitled to gratuity payments and leave encashments as per our

Directors. In the inadequacy of profit on a standalone basis Company’s policies.

your Chairman and Managing Director is entitled to a fixed pay 3. Dr. Azad Moopen also receives remuneration from DM Healthcare
Services to the extent of INR 159.51 mn

v. Number of meetings held and Attendance record

Sl Name of Director Attendance
No No. of Board Audit and Risk Nomination and
Meetings Management Remuneration
attended Committee Committee
Total Meetings in the Financial Year 4 4 2
1. Dr. Azad Moopen 4 NA NA
2. Alisha Moopen 4 NA 2
3. T J Wilson 4 4 NA
4. Anoop Moopen 4 NA NA
5. Daniel Robert Mintz 3 NA 2
6. Shamsudheen Bin Mohideen Mammu Haji 3 NA NA
7. Daniel James Snyder 3 NA 2
8. Madhavan Nambiar 4 4 NA
9. Ravi Prasad 4 4 NA
10. Harsh C Mariwala 4 NA 2
11. R Sukumar 4 NA NA
12. Suresh M Kumar 4 4 NA
Quorum The necessary quorum was present throughout the
above meetings
*No meetings of Stakeholders Relationship Committee and Corporate Social Responsibility Committee were held during the financial
year 2017-18.

Annual Report 2017-18 97

General Body Meetings

i. General Meeting

a. Annual General Meeting (“AGM”)

Details of AGMs held during the last 3 years are as under:

Financial Year Date Time Venue
2014-15 21.12.2015 09:30 AM -10:30 AM Registered office at Aster
2015-16 30.09.2016 09:30 AM -10:30 AM Medcity, Kochi, Kerala,
2016-17 20.09.2017 11:00 AM -12:30 PM 682027

b. Extra Ordinary General Meeting (“EGM”)

Two EGMs were held during the financial year 2017-18, details of which are as under:
Date Time Venue
27.07.2017 05:00 PM - 05:30 PM
Registered office at Aster Medcity, Kochi, Kerala, 682027
18.01.2018 11:00 AM - 11:30 AM

c. No special resolution (s) were passed through postal ballot.

ii. No special resolution is proposed to be conducted through postal ballot at the AGM proposed to be held on August 16, 2018

iii. Details of special resolutions passed during the last 3 AGMs are as under:

Financial Year Date Special Resolution passed

2014-15 21.12.2015 Nil
2015-16 30.09.2016 Nil
2016-17 20.09.2017 Approval of remuneration to Managing Director

Other Disclosures

Particulars Regulations Details Web link to details/

policy
Related party transactions Regulation 23 of SEBI All material transactions entered into with related parties http://www.
Listing Regulations during the financial year were in the ordinary course of asterdmhealthcare.
and as defined under business and approved by the Audit Committee. The board com/investors/
the Act approved policy for related party transactions is uploaded
on the website of the Company. Also please refer to the
Form AOC 2 which forms part of the Boards Report
Details of Non - compliance Schedule V (c) 10(b) There were no cases of non-compliance during the last
by the Company, penalty, to the SEBI Listing three years.
strictures imposed on the Regulations
Company by the stock
exchange, or Securities and
Exchange Board of India
('SEBI') or any statutory
authority on any matter
related to capital markets
Whistle Blower Policy and Regulation 22 of SEBI The Company has adopted a Whistle Blower Policy and has http://www.
Vigil Mechanism Listing Regulations established the necessary vigil mechanism for directors asterdmhealthcare.
and employees to report concerns about unethical com/investors/
behavior. No person has been denied access to the
Chairman of the Audit and Risk Management Committee.
The said policy has been uploaded on the website of the
Company.

98 Aster DM Healthcare Limited

Particulars Regulations Details Web link to details/
policy
Policy on Determination of Regulation 23 of SEBI The Company has adopted a Policy on Determination of http://www.
Materiality for Disclosures Listing Regulations Materiality for Disclosures asterdmhealthcare.
com/investors/
Policy on Archival and Regulation 9 of SEBI The Company has adopted a Policy on Archival and http://www.
Preservation of Documents Listing Regulations Preservation of Documents asterdmhealthcare.
com/investors/
Reconciliation of share A qualified practicing Company Secretary carried out a
capital audit share capital audit to reconcile the total admitted equity
share capital with the National Securities Depository
Limited (“NSDL”) and the Central Depository Services
(India) Limited (“CDSL”) and the total issued and listed
equity share capital. The audit report confirms that the

Statutory Reports
total issued / paid-up capital is in agreement with the total
number of shares in physical form and the total number of
dematerialised shares held with NSDL and CDSL.
Code of Conduct Regulation 17 of SEBI The members of the board and senior management http://www.
Listing Regulations personnel have affirmed compliance with the Code of asterdmhealthcare.
Conduct applicable to them during the year ended March com/investors/
31, 2018. The annual report of the Company contains a
certificate by the Managing Director, on the compliance
declarations received from Independent Directors, Non-
executive Directors and Senior Management
Subsidiary Companies Regulation 24 of SEBI The audit committee reviews the consolidated financial
Listing Regulations statements of the Company and the investments made
by its unlisted subsidiary companies. The minutes of
the Board meetings along with a report on significant
developments of the unlisted subsidiary companies are
periodically placed before the Board of Directors of the
Company. The Company does not have any material non-
listed Indian subsidiary company. Since the Company was
listed from 26th February 2018, the requirement to place
subsidiary financials was not applicable for FY 18.
Dividend Distribution Policy Regulation 43A of Company has adopted a dividend distribution policy as http://www.
the SEBI Listing required under the Regulation 43A of the SEBI Listing asterdmhealthcare.
Regulations Regulations. com/investors/

Means of communication General shareholder information

The quarterly, half-yearly and annual results of the Company will be i. Annual General Meeting of the Company for the FY 2017-18
published in various newspapers. The results will also be displayed Date 16th August 2018
on the Company’s website “http://www.asterdmhealthcare.com”.
Time 10:00 A M
Press Releases made by the Company from time to time will also
Venue Knowledge Hub, Aster Medcity,
be displayed on the Company’s website. Presentations made to
Kochi-682027, Kerala
the institutional investors and analysts after the declaration of
the quarterly, half-yearly and annual results will be displayed on As required under Regulation 36(3) of the SEBI Listing Regulations,
the Company’s website. A Management Discussion and Analysis particulars of Directors seeking appointment/re-appointment at
Report is a part of the Company’s Annual Report. Company the ensuing AGM are given herein and in the Annexure to the
regularly updates various stakeholders regarding Financial results Notice of the AGM to be held on 16t h August 2018
and other material developments by publishing the same with the
stock exchanges. ii. Financial Calendar
Year Ending March 31
AGM in 16th August 2018
Divided payment No dividend is proposed

Annual Report 2017-18 99

iii. Date of Book 09th August 2018 (Record Date)* viii. Performance of the share price of the Company in comparison
Closure / Record to the BSE Sensex:
*Record date for the purpose of determining
Date shareholders entitled to cast their vote 105
100
95
iv. Listing on Stock National Stock Exchange of India 90
Exchanges Limited (“NSE”) 85
80
Exchange Plaza, C-1, Block G 75
Bandra Kurla Complex

02-Mar-18
04-Mar-18
06-Mar-18
08-Mar-18
10-Mar-18
12-Mar-18
14-Mar-18
16-Mar-18
18-Mar-18
20-Mar-18
22-Mar-18
24-Mar-18
26-Mar-18
28-Mar-18
26-Feb-18
28-Feb-18
Bandra (East), Mumbai 400 051
Stock Code: ASTERDM
BSE Limited (“BSE”)
Aster DM BSE
25th floor, P. J. Towers, Dalal Street
Base 100= Feb 26, 2018
Mumbai 400 001
Scrip Code: 540975
ix. Registrars and Transfer Agents:
Applicable listing fees have been paid.
Name and Link Intime India Pvt Ltd
Address Surya 35, Mayflower Avenue,
v. CIN U85110KL2008PLC021703 Behind Senthil Nagar
Sowripalayam Road
vi. ISIN INE914M01019 Coimbatore – 641028
Telephone +91 422 2314792
vii. Market Price Data: Fax +91 422 2314792
High, Low (based on daily closing prices) and number of E-mail [email protected]
equity shares traded during each month in the year 2017-18 Webiste https://www.linkintime.co.in/
on NSE and BSE:
x. Places for Documents will be accepted at
acceptance of
BSE NSE
documents
Month High Low Month High Low
Link Intime India Pvt Ltd
Price Price Price Price
Surya 35, Mayflower Avenue,
Feb-18 187.8 169.95 Feb-18 188 170.1
Behind Senthil Nagar
Mar-18 176.4 140.1 Mar-18 176.3 140 Sowripalayam Road
*Company got listed on 26th of February 2018 Coimbatore – 641028
Time During Office hours

xi. Share Transfer System

Trading in equity shares of the Company through recognized Stock Exchanges is permitted only in dematerialized form. Shares sent
for transfer in physical form are registered and returned within a period of 30 days from the date of receipt of documents, provided the
documents are complete and valid in all respects.

xii. Shareholding as on March 31, 2018

a) Distribution of shareholdings as on March 31, 2018

Number of shares Holding Percentage to capital Number of accounts Percentage to total accounts
1 – 100 1,04,71,648 2.073% 1,36,851 91.564%
101 – 500 20,38,880 0.404% 10,815 7.236%
501 – 1000 9,08,829 0.180% 1,360 0.910%
1001 – 5000 5,04,481 0.100% 258 0.173%
5001 – 10000 3,15,749 0.062% 48 0.032%
10001 – 20000 4,01,769 0.080% 32 0.021%
20001 – 30000 1,02,762 0.020% 4 0.003%
30001 – 40000 1,41,132 0.028% 4 0.003%
40001- 50000 93,076 0.018% 2 0.001%
50001 -100000 4,25,529 0.084% 6 0.004%
100001 – above 48,98,23,490 96.951% 80 0.054%
Grand Total 50,52,27,345 100.000% 1,49,460 100.000%

100 Aster DM Healthcare Limited

 b) Category of Equity Shareholders as on March 31, 2018

Category Number of equity shares held Percentage of holding

Promters 18,92,31,810 37.45%
Mutual Fund 92,19,639 1.82%
Alternate Investment Funds 47,89,044 0.95%
Foreign Venture Capital Investors 1,49,46,222 2.96%
Foreign Portfolio Investors 1,96,00,955 3.88%
Individuals 4,52,84,669 8.96%
Trusts 1,25,000 0.02%
HUF 6,03,363 0.12%
Overseas Corporate Bodies 16,48,77,871 32.63%
Non-Resident Indian (NRI) 52,78,860 1.04%
Clearing Members 3,14,901 0.06%
Bodies Corporate 4,72,50,449 9.35%

Statutory Reports
Employee Benefit Trust 37,04,562 0.73%
Total 50,52,27,345 100.00%

c) Top ten shareholders as on March 31, 2018

Sl No Name of the Shareholder Shares Percentage

1 Union Investments Private Limited 18,87,06,090 37.35%
2 Olympus Capital Asia Investments Limited 11,77,94,613 23.32%
3 Rimco (Mauritius) Limited 5,10,86,711 10.11%
4 IVF Trustee Company Private Limited 4,65,37,491 9.21%
5 Rashid Aslam Bin Mohideen Mammu Haji 1,12,25,214 2.22%
6 Indium IV Mauritius Holdings Limited 1,09,42,770 2.17%
7 Shamsudheen Bin Mohideen Mammu Haji 57,17,829 1.13%
8 True North Fund V LLP 46,19,344 0.91%
9 Olympus ACF PTE. LTD. 46,19,297 0.91%
10 Karst Peak Asia Master Fund 39,56,926 0.78%

xiii. Auditors Certificate on Corporate Governance

A certificate from the Statutory Auditors of the Company on Corporate Governance forms part of the Boards Report. Please refer Annexure
D of the Boards Report.

xiv. Unit Locations

Your Company operates various hospitals and clinics in India. It also operates hospitals, clinics and pharmacies through various
subsidiaries in GCC Countries. Details of various hospitals are available in the MDA report as well as the website of the Company

xv. Address for correspondence

Aster DM Healthcare Limited

IX/475L, Aster Medcity, Kuttisahib Road,
South Chittoor P.O., Cheranalloore,
Kochi – 333682027, India
Tel: 0484 6699228
E-mail: [email protected]
Website: www.asterdmhealthcare.com

Annual Report 2017-18 101

CEO and CFO Compliance Certificate

We, Dr. Azad Moopen, Chairman and Managing Director and Mr. Sreenath Reddy, Chief Financial Officer hereby certify that:

a) We have reviewed the financial statements and cash flow statement for the year ended 31st March 2018 and to the best of our
knowledge and belief:

i) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might
be misleading;

ii) these statements together present a true and fair view of the Company’s affairs and are in compliance with existing Accounting
Standards, applicable laws and regulations.

b) To the best of our knowledge and belief, no transactions entered into by the Company during the year ended 31st March 2018 are
fraudulent, illegal or violative of the Company’s code of conduct.

c) We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the
effectiveness of internal control systems of the Company pertaining to financial reporting. Deficiencies in the design or operation of
such internal controls, if any, of which we are aware have been disclosed to the auditors and the Audit Committee and steps have
been taken to rectify these deficiencies.

d) i) There has not been any significant change in internal control over financial reporting during the year under reference;

ii) There has not been any significant change in accounting policies during the year requiring disclosure in the notes to the financial
statements; and

iii) We are not aware of any instance during the year of significant fraud with involvement therein of the management or any
employee having a significant role in the Company’s internal control system over financial reporting.

This certificate is being given to the Board pursuant to Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015.

Thank You,

Dr. Azad Moopen Sreenath Reddy

Chairman and Managing Director Chief Financial Officer

Place : Dubai
Date : 21st May 2018

102 Aster DM Healthcare Limited

Independent Auditors’ Report
To the Members of Aster DM Healthcare Limited

Report on the Audit of the Standalone Ind AS Financial

Statements

We have audited the accompanying standalone Ind AS financial We conducted our audit of the standalone Ind AS financial
statements of Aster DM Healthcare Limited (“the Company”), statements in accordance with the Standards on Auditing specified
which comprise the balance sheet as at 31 March 2018, the under Section 143(10) of the Act. Those Standards require that we
statement of profit and loss, the statement of changes in equity comply with ethical requirements and plan and perform the audit
and the statement of cash flows for the year then ended and to obtain reasonable assurance about whether the standalone Ind
a summary of the significant accounting policies and other AS financial statements are free from material misstatement.
explanatory information (herein after referred to as “standalone
An audit involves performing procedures to obtain audit evidence
Ind AS financial statements”).
about the amounts and the disclosures in the standalone Ind
AS financial statements. The procedures selected depend on
Management’s responsibility for the Standalone Ind AS the auditor’s judgment, including the assessment of the risks
Financial Statements of material misstatement of the standalone Ind AS financial
statements, whether due to fraud or error. In making those risk
The Company’s Board of Directors is responsible for the matters
assessments, the auditor considers internal financial control
stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with
relevant to the Company’s preparation of the standalone Ind AS
respect to the preparation of these standalone Ind AS financial
financial statements that give a true and fair view in order to

Financial Statements
statements that give a true and fair view of the state of affairs,
design audit procedures that are appropriate in the circumstances.
profit/ loss and other comprehensive income, changes in equity
An audit also includes evaluating the appropriateness of
and cash flows of the Company in accordance with the accounting
the accounting policies used and the reasonableness of the
principles generally accepted in India, including the Indian Accounting
accounting estimates made by the Company’s Directors, as well
Standards (Ind AS) prescribed under section 133 of the Act.
as evaluating the overall presentation of the standalone Ind AS
This responsibility also includes maintenance of adequate financial statements.
accounting records in accordance with the provisions of the Act
We are also responsible to conclude on the appropriateness
for safeguarding the assets of the Company and for preventing
of management’s use of the going concern basis of accounting
and detecting frauds and other irregularities; selection and
and based on the audit evidence obtained, whether a material
application of appropriate accounting policies; making judgments
uncertainty exists related to events or conditions that may cast
and estimates that are reasonable and prudent; and design,
significant doubt on the entity’s ability to continue as a going
implementation and maintenance of adequate internal financial
concern. If we conclude that a material uncertainty exists, we are
controls, that were operating effectively for ensuring the accuracy
required to draw attention in the auditor’s report to the related
and completeness of the accounting records, relevant to the
disclosures in the financial statements or, if such disclosures are
preparation and presentation of the standalone Ind AS financial
inadequate, to modify the opinion. Our conclusions are based on
statements that give a true and fair view and are free from
the audit evidence obtained up to the date of the auditor’s report.
material misstatement, whether due to fraud or error.
However, future events or conditions may cause an entity to cease
In preparing the financial statements, management is responsible to continue as a going concern.
for assessing the Company’s ability to continue as a going concern,
We believe that the audit evidence we have obtained is sufficient
disclosing, as applicable, matters related to going concern and
and appropriate to provide a basis for our audit opinion on the
using the going concern basis of accounting unless management
standalone Ind AS financial statements.
either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
Opinion
Auditors’ responsibility In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone Ind AS
Our responsibility is to express an opinion on these standalone
financial statements give the information required by the Act in
Ind AS financial statements based on our audit.
the manner so required and give a true and fair view in conformity
We have taken into account the provisions of the Act, the with the accounting principles generally accepted in India, of the
accounting and auditing standards and matters which are state of affairs of the Company as at 31 March 2018, and its loss
required to be included in the audit report under the provisions of and other comprehensive income, the changes in equity and its
the Act and the Rules made thereunder. cash flows for the year ended on that date.

Annual Report 2017-18 103

Report on Other Legal and Regulatory Requirements g) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
1. As required by the Companies (Auditor’s Report) Order, 2016 Companies (Audit and Auditors) Rules, 2014, in our
(‘the Order’) issued by the Central Government of India in opinion and to the best of our information and according
terms of sub-section (11) of Section 143 of the Act, we give to the explanations given to us:
in the Annexure A a statement on the matters specified in
paragraphs 3 and 4 of the said Order. a. the Company has disclosed the impact of pending
litigations on its financial position in its standalone
2. As required by Section 143 (3) of the Act, we report that: Ind AS financial statements - Refer Note 30 to the
standalone Ind AS financial statements;
a) we have sought and obtained all the information and
explanations which to the best of our knowledge and b. The Company did not have any long–term contracts
belief were necessary for the purposes of our audit; including derivative contracts for which there were
material foreseeable losses ; and
b) in our opinion proper books of account as required by
law have been kept by the Company so far as it appears c. There were no amounts which were required to be
from our examination of those books; transferred to the Investor Education and Protection
Fund by the Company.
c) the balance sheet, the statement of profit and loss, the
cash flow statement and the statement of changes in d. The disclosures in the financial statements
equity dealt with by this Report are in agreement with regarding holdings as well as dealings in specified
the books of account; bank notes during the period from 8 November 2016
to 30 December 2016 have not been made since they
d) in our opinion, the aforesaid standalone Ind AS financial
do not pertain to the financial year ended 31 March
statements comply with the Indian Accounting
2018. However amounts as appearing in the audited
Standards specified under Section 133 of the Act;
Standalone Ind AS financial statements for the
e) on the basis of the written representations received from period ended 31 March 2017 have been disclosed.
the directors as on 31 March 2018 taken on record by the
Board of Directors, none of the directors is disqualified
as on 31 March 2018 from being appointed as a director for B S R and Associates
in terms of Section 164 (2) of the Act; Chartered Accountants
Firm’s registration number: 128901W
f) with respect to the adequacy of the internal financial
controls with reference to financial statements of Rushank Muthreja
the Company and the operating effectiveness of such Bangalore Partner
controls, refer to our separate report in “Annexure B”; and 21 May 2018 Membership number: 211386

104 Aster DM Healthcare Limited

Annexure - A to the Independent Auditors’ Report
The Annexure referred to in our Independent Auditors’ Report to (iv) In our opinion and according to the information and
the members of the Company on the standalone Ind AS financial explanations given to us, based on the legal opinion obtained
statements for the year ended 31 March 2018. We report that: by the management the Company has complied with the
provisions of section 185 and 186 of the Act, with respect to
(i) (a) The Company has maintained proper records showing the loans, investments and guarantees made.
full particulars, including quantitative details and
situation of fixed assets. (v) According to information and explanations given to us, the
Company has not accepted any deposits from the public.
(b) The Company has a regular programme of physical Accordingly, paragraph 3(v) of the Order is not applicable to
verification of its fixed assets by which all fixed assets the Company.
are verified in a phased manner over a period of two
years. In accordance with this programme, certain fixed (vi) We have broadly reviewed the books of accounts maintained
assets were verified during the year and no material by the Company pursuant to the Companies (Cost Records
discrepancies were noticed on such verification. In and Audit) Rules, 2014 as amended, prescribed by the Central
our opinion, this periodicity of physical verification is Government under Section 148 of the Act and are of the
reasonable having regard to the size of the Company and opinion that, prima facie, the prescribed accounts and records
the nature of its assets. have been made and maintained. However we have not made
a detailed examination of such records.
(c) According to the information and explanations given to
us and on the basis of our examination of the records (vii) (a) According to the information and explanations given to
of the Company, the title deeds of immovable properties us and on the basis of our examination of the records of
are held in the name of the Company. the Company, amounts deducted / accrued in the books

Financial Statements
of account in respect of undisputed statutory dues
(ii) The inventory has been physically verified by the management including provident fund, employees’ state insurance,
during the year and no material discrepancies were noticed income tax, sales tax, value added tax, service tax, goods
on such verification. In our opinion, the frequency of such and services tax, customs duty, cess and other material
verification is reasonable. statutory dues have generally been regularly deposited
during the year by the Company with the appropriate
(iii) The Company has granted unsecured loans to four parties
authorities. As explained to us, the Company did not
covered in the register maintained under section 189 of the
have any dues on account of excise duty.
Companies Act, 2013 (‘the Act)
According to the information and explanations given to us,
(a) In our opinion, the rate of interest and other terms and
no undisputed amounts payable in respect of provident
conditions on which the loans had been granted to the
fund, employees’ state insurance, income tax, sales tax,
parties listed in the register maintained under Section
service tax, goods and services tax, customs duty, value
189 of the Act were not, prima facie, prejudicial to the
added tax, cess and other material statutory dues were in
interest of the Company.
arrears as at 31 March 2018 for a period of more than six
(b) The terms of the loan arrangements do not stipulate months from the date they became payable.
any repayment terms of principle / interest and are
(b) According to the information and explanations given to
repayable on demand. As the repayment has not been
us, there are no dues of service tax, customs duty, goods
demanded as at the year end, paragraph 3(iii)(b) of the
and services tax, sales tax and cess which have not been
Order is not applicable.
deposited with the appropriate authorities on account
(c) Since the terms of the agreement do not stipulate of any dispute. However, according to information and
repayment terms of principle / interest and as no explanations given to us, the following dues of income
demand has been made, there are no overdue amounts tax and value added tax have not been deposited by the
for more than 90 days. Accordingly, paragraph 3(iii)(c) of Company on account of disputes:
the Order is not applicable.

Name of the statute Nature of dues Nature of dues Period to which Forum where dispute is pending
the amount relates
Income tax Act, 1961 Income tax and interest 172,186,780 FY 2013-14 Commissioner of Income Tax,
Appeals
Income tax Act, 1961 Income tax and interest 28,581,158 FY 2014-15 Commissioner of Income Tax,
Appeals
Kerala Value Added Tax, 2003 Sales tax and interest 12,803,286 FY 2014-15 Deputy Commissioner (Appeals)

Annual Report 2017-18 105

(viii) In our opinion and according to the information and Sections 177 and 188 of the Act where applicable and details
explanations give to us, the Company does not have of such transactions have been disclosed in the Ind AS financial
defaults existing as at the balance sheet date in repayment statements as required by the applicable accounting standards.
of borrowings to banks. The Company did not have any
borrowings during the year by way of debentures, loans from (xiv) During the year the Company has not made any preferential
financial institutions or loan from the Government. allotment or private placement of shares or fully or partly
convertible debentures. Thus, paragraph 3(xiv) of the Order is
(ix) In our opinion and according to the information and explanations not applicable.
given to us, money raised by way of initial public offer and the
term loans have been applied by the Company during the (xv) According to the information and explanations given to us and
year for the purposes for which they were raised, other than based on our examination of the records of the Company, the
temporary deployment pending application of proceeds. Company has not entered into non-cash transactions with
directors or persons connected with him. Thus, paragraph
(x) According to the information and explanations given to us, 3(xv) of the Order is not applicable.
no material fraud by the Company or on the Company by its
officers or employees has been noticed or reported during the (xvi) According to the information and explanation given to us and
course of our audit. in our opinion, the Company is not required to be registered
under Section 45-IA of the Reserve Bank of India Act, 1934.
(xi) According to the information and explanations give to us and
based on our examination of the records of the Company, the
Company has paid/provided for managerial remuneration
in accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Act.
for B S R and Associates
(xii) In our opinion and according to the information and
Chartered Accountants
explanations given to us, the Company is not a nidhi company.
Firm’s registration number: 128901W
Thus, paragraph 3(xii) of the Order is not applicable.
Rushank Muthreja
(xiii) According to the information and explanations given to us
Bangalore Partner
and based on our examination of the records of the Company,
21 May 2018 Membership number: 211386
transactions with the related parties are in compliance with

106 Aster DM Healthcare Limited

Annexure - B to the Independent Auditors’ Report
Report on the Internal Financial Controls under Clause We believe that the audit evidence we have obtained is sufficient
(i) of Sub-section 3 of Section 143 of the Companies Act, and appropriate to provide a basis for our audit opinion on the
2013 (‘the Act’) Company’s internal financial controls with reference to financial
statements.
We have audited the internal financial controls with reference
to financial statements of Aster DM Healthcare Limited (‘the
Company’) as of 31 March 2018 in conjunction with our audit of Meaning of Internal Financial Controls with reference to
the standalone Ind AS financial statements of the Company for Financial Statements
the year ended on that date.
A company’s internal financial controls with reference to financial
statements is a process designed to provide reasonable assurance
Management’s Responsibility for Internal Financial regarding the reliability of financial reporting and the preparation
Controls of Ind AS financial statements for external purposes in accordance
with generally accepted accounting principles. A company’s internal
The Company’s management is responsible for establishing and financial controls with reference to financial statements includes
maintaining internal financial controls based on the internal those policies and procedures that (1) pertain to the maintenance
financial controls with reference to financial statements criteria of records that, in reasonable detail, accurately and fairly reflect
established by the Company considering the essential components the transactions and dispositions of the assets of the company; (2)
of internal control stated in the Guidance Note on Audit of Internal provide reasonable assurance that transactions are recorded as
Financial Controls over Financial Reporting issued by the Institute necessary to permit preparation of Ind AS financial statements in
of Chartered Accountants of India (‘ICAI’). These responsibilities accordance with generally accepted accounting principles, and that
include the design, implementation and maintenance of adequate receipts and expenditures of the company are being made only
internal financial controls that were operating effectively for in accordance with authorisations of management and directors
ensuring the orderly and efficient conduct of its business, of the company; and (3) provide reasonable assurance regarding

Financial Statements
including adherence to company’s policies, the safeguarding of prevention or timely detection of unauthorised acquisition, use,
its assets, the prevention and detection of frauds and errors, the or disposition of the company’s assets that could have a material
accuracy and completeness of the accounting records, and the effect on the Ind AS financial statements.
timely preparation of reliable financial information, as required
under the Companies Act, 2013.
Inherent Limitations of Internal Financial Controls with
reference to Financial Statements
Auditors’ Responsibility
Because of the inherent limitations of internal financial controls
Our responsibility is to express an opinion on the Company’s with reference to financial statements, including the possibility
internal financial controls with reference to financial statements of collusion or improper management override of controls,
based on our audit. We conducted our audit in accordance with material misstatements due to error or fraud may occur and not
the Guidance Note on Audit of Internal Financial Controls over be detected. Also, projections of any evaluation of the internal
Financial Reporting (the “Guidance Note”) and the Standards financial controls with reference to financial statements to future
on Auditing, issued by the ICAI and deemed to be prescribed periods are subject to the risk that the internal financial controls
under section 143(10) of the Companies Act, 2013, to the extent with reference to financial statements may become inadequate
applicable to an audit of internal financial controls, both applicable because of changes in conditions, or that the degree of compliance
to an audit of Internal Financial Controls and, both issued by with the policies or procedures may deteriorate.
the ICAI. Those Standards and the Guidance Note require that
we comply with ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether adequate Opinion
internal financial controls with reference to financial statements
In our opinion, the Company has, in all material respects, an internal
was established and maintained and if such controls operated
financial controls with reference to financial statements and such
effectively in all material respects.
internal financial controls with reference to financial statements
Our audit involves performing procedures to obtain audit evidence were operating effectively as at 31 March 2018, based on the internal
about the adequacy of the internal financial controls with reference financial controls with reference to financial statements criteria
to financial statements and their operating effectiveness. Our established by the Company considering the essential components
audit of internal financial controls with reference to financial of internal control stated in the Guidance Note on Audit of Internal
statements included obtaining an understanding of internal Financial Controls Over Financial Reporting issued by the ICAI.
financial controls with reference to financial statements, for B S R and Associates
assessing the risk that a material weakness exists, and testing Chartered Accountants
and evaluating the design and operating effectiveness of internal Firm’s registration number: 128901W
control based on the assessed risk. The procedures selected
depend on the auditor’s judgment, including the assessment Rushank Muthreja
of the risks of material misstatement of the Ind AS financial Bangalore Partner
statements, whether due to fraud or error. 21 May 2018 Membership number: 211386

Annual Report 2017-18 107

Balance Sheet as at 31 March 2018

H in Millions
Note As at As at
31 March 2018 31 March 2017
Assets
Non-current assets
Property, plant and equipment 4 7,699.81 7,102.71
Capital work-in-progress 4 173.57 629.63
Intangible assets 5 23.46 40.73
Financial assets
Investments 6 20,858.56 21,374.90
Other financial assets 7 396.65 421.65
Deferred tax assets 29 7.39 7.39
Income tax assets (net) 29 264.94 143.97
Other non-current assets 8 529.76 511.03
Total non-current assets 29,954.14 30,232.01
Current assets
Inventories 9 169.35 206.86
Financial assets
Trade receivables 10 305.31 244.51
Cash and cash equivalents 11 838.50 146.84
Other bank balances 12 795.10 43.42
Loans 13 638.40 563.01
Other financial assets 7 100.67 538.51
Other current assets 8 136.19 271.58
Total current assets 2,983.52 2,014.73
Total assets 32,937.66 32,246.74
Equity and liabilities
Equity
Equity share capital 14 5,052.29 4,032.22
Other equity 24,207.44 19,248.56
Equity attributable to owners of company 29,259.73 23,280.78
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 15 266.17 5,470.63
Derivatives 35 863.00 861.30
Provisions 17 58.60 33.98
Deferred tax liabilities (net) 29 158.99 158.99
Other non-current liabilities 18 573.00 444.10
Total non-current liabilities 1,919.76 6,969.00
Current liabilities
Financial liabilities
Borrowings 15 832.57 972.70
Trade payables 19 231.95 320.25
Other financial liabilities 16 532.73 582.82
Provisions 17 9.99 6.33
Other current liabilities 18 150.93 114.86
Total current liabilities 1,758.17 1,996.96
Total equity and liabilities 32,937.66 32,246.74
Significant accounting policies 3

The accompanying notes form an integral part of the balance sheet

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108

Dubai Dubai
21 May 2018 21 May 2018

Sreenath Reddy Rajesh A

Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

108 Aster DM Healthcare Limited

Statement of Profit and Loss for the year ended 31 March 2018

H in Millions
Note Year ended Year ended
31 March 2018 31 March 2017
Income
Revenue from operations 20 5,300.66 3,795.12
Other income 21 161.08 306.52
Total income 5,461.74 4,101.64
Expenses
Purchases of medicines and consumables 22 1,440.81 1,203.76
Change in inventories 23 37.51 (56.74)
Employee benefits expense 24 1,060.77 821.03
Finance costs 25 539.54 2,283.30
Depreciation and amortisation expense 26 590.77 675.74
Other expenses 27 2,664.26 2,299.38
Total expenses 6,333.66 7,226.47
Loss before exceptional item and tax (871.92) (3,124.83)
Exceptional item 28 - 3,591.89
(Loss)/profit before tax (871.92) 467.06
Tax expense
Current tax : MAT for the year 29 - 7.39
Deferred tax (including MAT credit entitlement) 29 - (7.39)

Financial Statements
(Loss)/profit for the year (871.92) 467.06
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of net defined benefit liability/ (asset), net of tax (0.24) (0.69)
Total comprehensive income for the year (872.16) 466.37
(Loss)/profit per share (equity share of face value of INR 10 each) 31
Basic (1.87) 1.01
Diluted (1.87) 1.01
Significant accounting policies 3

The accompanying notes form an integral part of the statement of profit and loss

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108

Dubai Dubai
21 May 2018 21 May 2018

Sreenath Reddy Rajesh A

Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

Annual Report 2017-18 109

110
Statement of Changes in Equity for the year ended 31 March 2018

A. Equity share capital

H in Millions
Note Equity shares Amount
Balance as at 31 March 2016 403.05 4,030.52
Changes in equity share capital during 2016-17 14 0.17 1.70
As at 31 March 2017 403.22 4,032.22
Changes in equity share capital during 2017-18 14 102.01 1,020.07
As at 31 March 2018 505.23 5,052.29

Aster DM Healthcare Limited

B. Other equity
H in Millions
Particulars Compulsory Other Reserves and surplus Items of other Total other equity
convertible components of Comprehensive Income attributable to
preference equity Securities Treasury General Share options Retained earnings Remeasurement of net equity holders of the
shares premium shares reserve outstanding defined benefit liability/ Company
account (asset),net of tax
Balance as at 1 April 2016 - 3,743.76 4,065.68 (280.44) 70.40 140.70 (2,390.42) - 5,349.68
Total comprehensive income for the year ended 31 March 2017
Profit for the year - - - - - - 467.06 - 467.06
Other comprehensive income, net of tax - - - - - - - (0.69) (0.69)
Total comprehensive income - - - - - - 467.06 (0.69) 466.37
Transferred to retained earnings (0.69) 0.69
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Shares issued for cash - - 52.31 - - - - - 52.31
Share based payment expense - - - - - 50.66 - - 50.66
Share options exercised - - 35.81 - - (54.63) - - (18.82)
Change in reserve of ESOP Trust - - - 43.78 - - - - 43.78
Conversion of financial liability to equity 638.62 - 12,665.96 - - - - - 13,304.58
Share based payment - - - - - - - - -
Total contributions by and distributions to owners 638.62 - 12,754.08 43.78 - (3.97) (0.69) 0.69 13,432.51
Balance as at 31 March 2017 638.62 3,743.76 16,819.76 (236.66) 70.40 136.73 (1,924.05) - 19,248.56
Balance as at 1 April 2017 638.62 3,743.76 16,819.76 (236.66) 70.40 136.73 (1,924.05) - 19,248.56
Total comprehensive income for the year ended 31 March 2018
Loss for the year - - - - - - (871.92) - (871.92)
Other comprehensive income, net of tax - - - - - - - (0.24) (0.24)
Total comprehensive income - - - - - - (871.92) (0.24) (872.16)
Transferred to Retained earnings (0.24) 0.24
Transactions with owners, recorded directly in equity
Contributions by and distributions to owners
Shares issued for cash (refer to note 42) - - 6,868.42 - - - - - 6,868.42
Share based payment expense - - - - - 43.44 - - 43.44
Change in reserve of ESOP Trust - - - 2.04 - - - - 2.04
Share issue expenses - - (443.11) - - - - - (443.11)
Share options exercised - - 2.14 - - (3.40) - - (1.26)
Conversion of CCPS to equity (638.62) - 0.13 - - - - - (638.49)
Total contributions by and distributions to owners (638.62) - 6,427.58 2.04 - 40.04 (0.24) 0.24 5,831.04
Balance as at 31 March 2018 - 3,743.76 23,247.34 (234.62) 70.40 176.77 (2,796.21) - 24,207.44
 Statement of Changes in Equity for the year ended 31 March 2018

B. Other equity (contd..)

The description of the nature and purpose of each reserve within equity is as follows:

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.During the year ended 31 March 2018, the Company had completed the initial
public offer (IPO, pursuant to which fresh issue related expenses has been adjusted against securities premium.

The Company has established share based payment for eligible employees of the Company and its subsidiaries Also refer note 39 for further details on these plans.

General reserve is used from time to time to transfer profits from retained earnings for appropriate purposes.

Treasury Shares

The Company has created the DM Healthcare Employees Welfare Trust (“the Trust”) for providing share based payment to its employees. The Company treats the Trust as its extension and shares held by the Trust are treated as treasury
shares. When the treasury shares are issued to the employees by the Trust, the amount received is recognised as an increase in equity and the resultant gain / (loss) is transferred to / from securities premium.

The accompanying notes are an integral part of these standalone financial statements.

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108

Dubai Dubai
21 May 2018 21 May 2018

Sreenath Reddy Rajesh A

Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

Annual Report 2017-18

111
Financial Statements
Cash Flow Statement for the year ended 31 March 2018

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Cash flows from operating activities
Loss before exceptional item and tax (871.92) (3,124.83)
Adjustments for
Depreciation and amortisation 590.77 675.74
Finance costs 539.54 2,283.30
Loss on fair valuation of put option 1.70 -
Dividend income from mutual funds - (4.16)
Dividend on non-current investments (32.10) (64.16)
Interest income under the effective interest method (23.41) (18.43)
Interest income (18.49) (13.88)
Allowances for credit losses on financial assets 6.92 13.50
Unrealised foreign exchange loss (0.08) (0.52)
Equity settled share based payments 26.75 2.22
Gain on sale of property, plant and equipment (net) (1.94) -
Loss/(gain) on sale of Investment (net) 18.16 (186.08)
Operating loss before working capital changes 235.90 (437.30)
Increase in trade receivables (67.72) (115.06)
Decrease/(increase) in inventories 37.51 (51.65)
Increase in loans and advances (231.77) (295.33)
Increase in liabilities and provisions 117.35 494.50
Cash used in operations 91.27 (404.84)
Taxes paid, net of refund received (120.97) (101.88)
Net cash used in operating activities (A) (29.70) (506.72)
Cash flows from investing activities
Investments in subsidiaries - (2,403.71)
Proceeds from sale of investments in subsidiaries 578.24 1,614.95
Investments in liquid mutual fund units - (190.00)
Disposal of liquid mutual fund units - 571.59
Interest received 17.24 9.75
Dividend received 32.10 64.16
Acquisition of intangible assets (11.44) (13.34)
Acquisition of property, plant and equipment (799.93) (2,166.24)
Proceeds from sale of property, plant and equipment 1.94 -
Net cash generated from/(used) in investing activities (B) (181.85) (2,512.84)

112 Aster DM Healthcare Limited

Cash Flow Statement for the year ended 31 March 2018

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Cash flows from financing activities
Proceeds from issue of equity share capital 7,250.78 78.95
Share issue expenses paid during the year (328.11) -
Interest paid (including borrowing cost capitalised) (662.25) (275.50)
Long term secured loans repaid during the year (5,646.56) -
Long term secured loans availed 429.29 -
Short term secured loans (repaid)/availed, net (92.64) 2,414.30
Net cash generated from financing activities ( C ) 950.51 2,217.75
Net increase/(decrease) in cash and cash equivalents (A+B+C) 738.96 (801.81)
Effect of exchange rate differences on translation of foreign currency cash and cash (0.01) (0.08)
equivalents
Cash and cash equivalents at the beginning of the year 99.55 901.44
Cash and cash equivalents at the end of the year 838.50 99.55
(Refer to note 11 - Cash and cash equivalents)

The accompanying notes form an integral part of the standalone cash flow statement

Financial Statements
As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108

Dubai Dubai
21 May 2018 21 May 2018

Sreenath Reddy Rajesh A

Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

Annual Report 2017-18 113

Notes to the Standalone Financial Statements
1. Company overview D. Use of estimates and judgements

Aster DM Healthcare Limited (“the Company”) primarily carries In preparing these financial statements, management
on the business of rendering healthcare and allied services in has made judgements, estimates and assumptions
India. The Company was converted into a public limited company that affect the application of accounting policies and
with effect from 1 January 2015. The Company is a subsidiary of the reported amounts of assets, liabilities, income and
Union Investments Private Limited, Mauritius Which is also the expenses. Actual results may differ from these estimates.
ultimate holding Company (till 22 February 2018). The Company
Estimates and underlying assumptions are reviewed on
listed its shares in Bombay Stock Exchange Limited and National
an ongoing basis. Revisions to accounting estimates are
Stock Exchange Limited in India on 26 February 2018.
recognised prospectively.
The Company owns and operates certain hospitals and also
Judgements
enters into management agreements with hospitals under
which the Company acquires the operating control of the Information about judgements made in applying
hospitals. The Company has subsidiaries in United Arab accounting policies that have the most significant effects
Emirates (‘UAE’), Oman, Kingdom of Saudi Arabia (‘KSA’), on the amounts recognised in the financial statements
Bahrain, Qatar, Kuwait, Jordan, Philippines and India. is included in the notes:

- Note 37- lease classification

2. Basis of preparation
Assumptions and estimation uncertainties
A. Statement of compliance
Information about assumptions and estimation
These standalone financial statements have been prepared
uncertainties that have a significant risk of resulting in a
in accordance with the Indian Accounting Standards (“Ind
material adjustment in the year ending 31 March 2018 is
AS”) as per the Companies (Indian Accounting Standards)
included in the following notes:
Rules, 2015, as amended, and the relevant amended rules
prescribed under Section 133 of the Companies Act, 2013, - Note 4 and 5 - measurement of useful life and
read with relevant rules issued thereunder. residual value of property, plant and equipment and
intangible assets;
The standalone financial statements were authorised for
issue by the Company’s Board of Directors on 21 May 2018. - Note 36 – measurement of defined benefit
obligations: key actuarial assumptions;
Details of the Company’s accounting policies are included
in Note 3. - Note 29 – recognition of deferred tax asset:
availability of future taxable profit against which tax
B. Functional and presentation currency
losses carried forward can be used;
These standalone financial statements are presented in
- Note 30 – recognition and measurement of provisions
Indian Rupees (INR), which is also the Company’s functional
and contingencies: key assumptions about the
currency. All amounts are presented in Indian Rupees in
likelihood and magnitude of an outflow of resources;
millions, except share data, unless otherwise stated.
- Note 35 – impairment of financial assets.
C. Basis of measurement
E. Measurement of fair values
The standalone financial statements have been prepared
on the historical cost basis except for the following items: A number of the Company’s accounting policies and
disclosures require the measurement of fair values, for
Items Measurement basis
both financial and non-financial assets and liabilities. The
Certain financial assets and Fair value
Company has an established control framework with respect
liabilities (including derivatives
to the measurement of fair values. Significant valuation
instruments)
Liabilities for equity-settled Fair value issues are reported to the Company’s audit committee.
share-based payment
Fair values are categorised into different levels in a fair
arrangements
value hierarchy based on the inputs used in the valuation
Net defined benefit liability Present value of
techniques as follows:
defined benefit
obligations - Level 1: quoted prices (unadjusted) in active markets
for identical assets or liabilities.

114 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
- Level 2: inputs other than quoted prices included in The company will adopt the standard on 1 April 2018
Level 1 that are observable for the asset or liability, by using cumulative catch up transition method and
either directly (i.e. as prices) or indirectly (i.e. derived accordingly, comparatives for the year ending or ended
from prices). 31 March 2018 will not be retrospectively adjusted. The
effect of adoption of Ind AS 115 is not expected to be
- Level 3: inputs for the asset or liability that are not material.
based on observable market data (unobservable
inputs).
3. Significant accounting policies
When measuring the fair value of an asset or a liability,
the Company uses observable market data as far as 3.1 Property, plant and equipment
possible. If the inputs used to measure the fair value
i. Recognition and measurement
of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement Items of property, plant and equipment are
is categorised in its entirety in the same level of the measured at cost, which includes capitalised
fair value hierarchy as the lowest level input that is borrowing costs, less accumulated depreciation and
significant to the entire measurement. accumulated impairment losses, if any

The Company recognises transfers between levels of the Cost of an item of property, plant and equipment
e fair value hierarchy at the end of the reporting period comprises its purchase price, including import
during which the change has occurred. duties and non-refundable purchase taxes, after
deducting trade discounts and rebates, any directly
Further information about the assumptions made in

Financial Statements
attributable cost of bringing the item to its working
measuring fair values is included in the following notes:
condition for its intended use and estimated costs
- Note 39: share-based payment arrangements. of dismantling and removing the item and restoring
the site on which it is located.
- Note 35: financial instruments.
The cost of a self-constructed item of property, plant
F. Recent Accounting Pronouncements and equipment comprises the cost of materials and
direct labor, any other costs directly attributable
Ind AS 115, Revenue from Contract with Customers to bringing the item to working condition for its
intended use, and estimated costs of dismantling
On 28 March 2018, the MCA notified the Ind AS 115.
and removing the item and restoring the site on
The core principle of the new standard is that an entity
which it is located.
should recognise revenue to depict the transfer of
promised goods or services to customers in an amount If significant parts of an item of property, plant
that reflects the consideration to which the entity and equipment have different useful lives, then
expects to be entitled in exchange for those goods or they are accounted for as separate items (major
services. Further, the new standard requires enhanced components) of property, plant and equipment.
disclosures about the nature, amount, timing and
uncertainty of revenue and cash flows arising from the Any gain or loss on disposal of an item of property,
entity’s contracts with customers. plant and equipment is recognised in profit or loss.

The standard permits two methods of transition: Advances paid towards the acquisition of fixed
assets, outstanding at each balance sheet date
• Retrospective approach – Under this approach the are shown under other non-current assets. The
standard will be applied retrospectively to each cost of property, plant and equipment not ready
prior reporting period presented in accordance with for its intended use at each balance sheet date are
Ind AS 8, Accounting Policies, Changes in Accounting disclosed as capital work-in-progress.
Estimates and Errors.
ii. Subsequent expenditure
• Retrospectively with cumulative effect of initially
applying the standard recognised at the date of Subsequent expenditure is capitalised only if it
initial application (Cumulative catch up approach). is probable that the future economic benefits
associated with the expenditure will flow to the
The effective date for adoption of Ind AS 115 is financial Company.
period beginning on or after 1 April 2018.

Annual Report 2017-18 115

Notes to the Standalone Financial Statements
iii.
Depreciation The estimated useful lives are as follows:

Depreciation is calculated on cost of items of Class of assets Years

property, plant and equipment less their estimated Software 3
residual values over their estimated useful lives Trademarks 3
using the straight-line method, and is generally
recognised in the profit or loss. Leasehold Amortisation method, useful lives and residual values
improvements are amortized over the lease term are reviewed at the end of each financial year and
or useful lives of assets, whichever is lower. The adjusted if appropriate.
estimated useful lives of items of property, plant
Subsequent expenditure is capitalised only when it
and equipment for the current and comparative
increases the future economic benefits embodied in the
periods are as follows:
specific asset to which it relates. All other expenditure is
Class of assets Previous Revised recognised in profit or loss as incurred.
useful life useful life
3.3 Inventories
Buildings 60 60
Plant and equipment 5 15 Inventories are measured at the lower of cost and net
Medical equipment* 10 10-13 realisable value. The cost of inventories comprises
Motor vehicles * 5 5 purchase price, cost of conversion and other cost incurred
Computer equipment 3 3 in bringing the inventories to their present location and
Servers and networks 6 6 condition. The Company uses the weighted average
Furniture and fixtures * 5 5-10 method to determine the cost of inventory consisting of
Electrical equipment 5 10 medicines and medical consumables.

* For the above mentioned classes of assets, based Net realisable value is the estimated selling price in the
on technical evaluation and consequent advice, the ordinary course of business less the estimated costs of
management believes that its estimates of useful completion and the estimated costs necessary to make
lives as given above best represent the period over the sale. The comparison of cost and net realisable
which management expects to use these assets, values is made on an item-by-item basis.
which is different from the useful lives as prescribed
under Part C of Schedule II of the Companies Act, 2013. 3.4 Impairment

Change in estimated useful life: With effect from i. Impairment of financial instruments
1 April 2017, based on the technical evaluation,
the Company has revised the estimated useful The Company recognises loss allowances for
lives of certain categories of property, plant and expected credit losses on financial assets measured
equipment. The change in accounting estimate at amortised cost.
is applied prospectively in accordance with Ind
At each reporting date, the Company assesses
AS 8, ‘Accounting policies, changes in accounting
whether financial assets carried at amortised
estimates and errors’ and has an impact on the
cost are credit impaired. A financial asset is ‘credit
depreciation expense. The financial impact due
impaired’ when one or more events that have a
to the change in the estimate is disclosed in Note
detrimental impact on the estimated future cash
4. Depreciation method, useful lives and residual
flows of the financial asset have occurred.
values are reviewed at each financial year-end and
adjusted if appropriate. Loss allowances for trade receivables are always
measured at an amount equal to lifetime expected
3.2 Intangible assets
credit losses. Lifetime expected credit losses are the
Intangibles assets are stated at cost less accumulated expected credit losses that result from all possible
amortization and impairment. Intangible assets are default events over the expected life of a financial
amortised over their respective individual estimated instrument.
useful lives on a straight-line basis, commencing from
In all cases, the maximum period considered when
the date the asset is available to the Company for its
estimating expected credit losses is the maximum
use and is included in depreciation and amortisation in
contractual period over which the Company is
profit or loss.
exposed to credit risk.

116 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
Measurement of expected credit losses any indication that the loss has decreased or no
longer exists. An impairment loss is reversed if
Expected credit losses are a probability weighted there has been a change in the estimates used to
estimate of credit losses. Credit losses are determine the recoverable amount. Such a reversal
measured as the present value of all cash is made only to the extent that the asset’s carrying
shortfalls (i.e. the difference between the cash amount does not exceed the carrying amount that
flows due to the Company in accordance with the would have been determined, net of depreciation
contract and the cash flows that the Company or amortisation, if no impairment loss had been
expects to receive). recognised.
Presentation of allowance for expected credit losses 3.5 Employee benefits
in the balance sheet
Short-term employee benefits
Loss allowances for financial assets measured
at amortised cost are deducted from the gross Employee benefits payable wholly within twelve months
carrying amount of the assets. of receiving employee services are classified as short-
term employee benefits. These benefits include salaries
Write-off and wages, bonus and ex-gratia. Short-term employee
benefit obligations are measured on an undiscounted
The gross carrying amount of a financial asset is
basis and are expensed as the related service is provided.
written off (either partially or in full) to the extent
A liability is recognised for the amount expected to be paid
that there is no realistic prospect of recovery. This is
e.g., under short-term cash bonus, if the Company has a
generally the case when the Company determines
present legal or constructive obligation to pay this amount

Financial Statements
that the debtor does not have assets or sources of
as a result of past service provided by the employee and
income that could generate sufficient cash flows to
the amount of obligation can be estimated reliably.
repay the amounts subject to the write off.
Post-employment benefits
ii. Impairment of non- financial assets
A defined benefit plan is a post-employment benefit
The Company’s non-financial assets, other than
plan other than a defined contribution plan. The
inventories and deferred tax assets, are reviewed at
Company’s net obligation in respect of defined benefit
each reporting date to determine whether there is any
plan is calculated by estimating the amount of future
indication of impairment. If any such indication exists,
benefit that employees have earned in the current and
then the asset’s recoverable amount is estimated.
prior periods and discounting that amount.
For impairment testing, assets that do not generate
The calculation of defined benefit obligation is performed
independent cash inflows are grouped together into
annually by a qualified actuary using the projected unit
cash-generating units (CGUs). Each CGU represents
credit method.
the smallest group of assets that generates cash
inflows that are largely independent of the cash Re-measurements of the net defined benefit liability,
inflows of other assets or CGUs. which comprise actuarial gains and losses are recognised
in other comprehensive income (OCI). The Company
The recoverable amount of a CGU (or an individual
determines the net interest expense on the net defined
asset) is the higher of its value in use and its fair value
benefit liability for the period by applying the discount
less costs to sell. Value in use is based on the estimated
rate used to measure the defined benefit obligation
future cash flows, discounted to their present value
at the beginning of the annual period to the then-net
using a pre-tax discount rate that reflects current
defined benefit liability, taking into account any changes
market assessments of the time value of money and
in the net defined benefit liability during the period as
the risks specific to the CGU (or the asset).
a result of contributions and benefit payments. Net
An impairment loss is recognised if the carrying interest expense and other expenses related to defined
amount of an asset or CGU exceeds its estimated benefit plans are recognised in profit or loss.
recoverable amount. Impairment losses are
Other long term employee benefits
recognised in profit or loss.
The Company’s net obligation in respect of long-term
In respect of assets for which impairment loss
employee benefits other than post-employment
has been recognised in prior periods, the Company
benefits is the amount of future benefit that employees
reviews at each reporting date whether there is
have earned in return for their service in the current and

Annual Report 2017-18 117

Notes to the Standalone Financial Statements
prior periods; that benefit is discounted to determine its 3.7 Revenue
present value, and the fair value of any related assets
is deducted. The obligation is measured on the basis Revenue from medical and healthcare services to patients
of an annual independent actuarial valuation using the is recognised as revenue when the related services are
projected unit credit method. Remeasurement gains or rendered unless significant future uncertainties exist.
losses are recognised in other comprehensive income in Revenue is also recognised in relation to the services
the period in which they arise. rendered to the patients who are undergoing treatment/
observation on the balance sheet date to the extent of
Share- based payment transactions services rendered.

The grant date fair value of equity settled share-based Revenue is recognised net of discounts given to the
payment awards granted to employees is recognised patients.
as an employee expense, with a corresponding
increase in equity, over the period that the employees Revenue from sale of medical consumables and drugs
unconditionally become entitled to the awards. The within the hospital premises is recognised when
amount recognised as expense is based on the estimate property in the goods or all significant risks and rewards
of the number of awards for which the related service of their ownership are transferred to the customer and
and non-market vesting conditions are expected to be no significant uncertainty exists regarding the amount
met, such that the amount ultimately recognised as an of the consideration that will be derived from the sale of
expense is based on the number of awards that do meet the goods and regarding its collection.
the related service and non-market vesting conditions
‘Unbilled revenue’ represents value to the extent
at the vesting date. For share-based payment awards
of medical and healthcare services rendered to the
with non-vesting conditions, the grant date fair value
patients who are undergoing treatment/ observation on
of the share-based payment is measured to reflect
the balance sheet date and is not billed as at the balance
such conditions and there is no true-up for differences
sheet date.
between expected and actual outcomes.
Income from services rendered is recognised based on
3.6 Provisions (other than employee benefits)
agreements / arrangements with the customers as
A provision is recognised if, as a result of a past event, the the service is performed in proportion to the stage of
Company has a present legal or constructive obligation completion of the transaction at the reporting date and
that can be estimated reliably, and it is probable that an the amount of revenue can be measured reliably.
outflow of economic benefits will be required to settle
3.8 Foreign currency transactions
the obligation. Provisions are determined by discounting
the expected future cash flows (representing the best Transactions in foreign currencies are translated into
estimate of the expenditure required to settle the present the functional currency of the Company at the exchange
obligation at the balance sheet date) at a pre-tax rate rates at the dates of the transactions or an average rate
that reflects current market assessments of the time if the average rate approximates the actual rate at the
value of money and the risks specific to the liability. The date of the transaction.
unwinding of the discount is recognised as finance cost.
Expected future operating losses are not provided for. Monetary assets and liabilities denominated in foreign
currencies are translated into the functional currency at
A contract is considered to be onerous when the expected the exchange rate at the reporting date. Non-monetary
economic benefits to be derived by the Company from assets and liabilities that are measured at fair value
the contract are lower than the unavoidable cost of in a foreign currency are translated into the functional
meeting its obligations under the contract. The provision currency at the exchange rate when the fair value was
for an onerous contract is measured at the present determined. Non-monetary assets and liabilities that
value of the lower of the expected cost of terminating are measured based on historical cost in a foreign
the contract and the expected net cost of continuing currency are translated at the exchange rate at the date
with the contract. Before such a provision is made, the of the transaction. Exchange differences are recognised
Company recognises any impairment loss on the assets in profit or loss.
associated with that contract.

118 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
3.9 Leases i. Current tax

i. Determining whether an arrangement contains a Current tax comprises the expected tax payable or
lease receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
At inception of an arrangement, it is determined in respect of previous years. Minimum Alternative
whether the arrangement is or contains a lease. At Tax (‘MAT’) under the provisions of the Income-tax
inception or on reassessment of the arrangement Act, 1961 is recognised as current tax in the profit
that contains a lease, the payments and other or loss. The amount of current tax reflects the best
consideration required by such an arrangement estimate of the tax amount expected to be paid
are separated into those for the lease and those or received after considering the uncertainty, if
for other elements on the basis of their relative fair any, related to income taxes. It is measured using
values. tax rates (and tax laws) enacted or substantively
enacted by the reporting date.
ii. Assets held under leases
Current tax assets and current tax liabilities are
Assets held under leases that do not transfer to the
offset only if there is a legally enforceable right to
Company substantially all the risks and rewards of
set off the recognised amounts, and it is intended
ownership (i.e. operating leases) are not recognised
to realise the asset and settle the liability on a net
in the Balance Sheet.
basis or simultaneously.
iii.
Lease payments
ii. Deferred tax

Financial Statements
Payments made under operating leases are
Deferred tax is recognised in respect of temporary
generally recognised in profit or loss on a straight-
differences between the carrying amounts of assets
line basis over the term of the lease unless such
and liabilities for financial reporting purposes and
payments are structured to increase in line with
the corresponding amounts used for taxation
expected general inflation to compensate for the
purposes. Deferred tax is also recognised in respect
lessor’s expected inflationary cost increases. Lease
of carried forward tax losses and tax credits.
incentives received are recognised as an integral
part of the total lease expense over the term of the Deferred tax assets are recognised to the extent
lease. that it is probable that future taxable profits will
be available against which they can be used. The
3.10 Recognition of dividend income, interest income or
existence of unused tax losses is strong evidence
interest expense
that future taxable profit may not be available.
Dividend income is recognised in profit or loss on the date Therefore, in case of a history of recent losses, the
on which the right to receive payment is established. Company recognises a deferred tax asset only to
the extent that it has sufficient taxable temporary
Interest income or expense is recognised using the differences or there is convincing other evidence
effective interest method. that sufficient taxable profit will be available
against which such deferred tax asset can be
The ‘effective interest rate’ is the rate that exactly
realised. Deferred tax assets – unrecognised or
discounts estimated future cash payments or receipts
recognised, are reviewed at each reporting date
through the expected life of the financial instrument to
and are recognised/ reduced to the extent that it is
the gross carrying amount of the financial asset or the
probable/ no longer probable respectively that the
amortised cost of the financial liability.
related tax benefit will be realised.
In calculating interest income and expense, the effective
Deferred tax is measured at the tax rates that are
interest rate is applied to the gross carrying amount of
expected to apply to the period when the asset is
the asset (when the asset is not credit-impaired) or to
realised or the liability is settled, based on the laws
the amortised cost of the liability.
that have been enacted or substantively enacted by
3.11 Income tax the reporting date. The measurement of deferred
tax reflects the tax consequences that would follow
Income tax comprises current and deferred tax. It is from the manner in which the Company expects, at
recognised in profit or loss except to the extent that it the reporting date, to recover or settle the carrying
relates to an item recognised directly in equity or in other amount of its assets and liabilities.
comprehensive income.

Annual Report 2017-18 119

Notes to the Standalone Financial Statements
Deferred tax assets and liabilities are offset if there - the contractual terms of the financial asset
is a legally enforceable right to offset current tax give rise on specified dates to cash flows that
liabilities and assets, and they relate to income are solely payments of principal and interest
taxes levied by the same tax authority on the same on the principal amount outstanding.
taxable entity, or on different tax entities, but they
intend to settle current tax liabilities and assets on On initial recognition of an equity investment that
a net basis or their tax assets and liabilities will be is not held for trading, the Company may irrevocably
realised simultaneously. elect to present subsequent changes in the
investment’s fair value in OCI (designated as FVOCI
3.12 Borrowing cost – equity investment). This election is made on an
investment by investment basis.
Borrowing costs are interest and other costs (including
exchange differences relating to foreign currency All financial assets not classified as measured at
borrowings to the extent that they are regarded as an amortised cost or FVOCI as described above are
adjustment to interest costs) incurred in connection measured at FVTPL. This includes all derivative
with the borrowing of funds. Borrowing costs directly financial assets. On initial recognition, the Company
attributable to acquisition or construction of an asset may irrevocably designate a financial asset that
which necessarily take a substantial period of time to get otherwise meets the requirements to be measured
ready for their intended use are capitalised as part of the at amortised cost or at FVOCI as at FVTPL if doing
cost of that asset. Other borrowing costs are recognised so eliminates or significantly reduces an accounting
as an expense in the period in which they are incurred. mismatch that would otherwise arise.

3.13 Financial instruments Financial assets: Business model assessment

i. Recognition and initial measurement The Company makes an assessment of the objective
of the business model in which a financial asset is
Trade receivables and debt securities issued are held at investment level because this best reflects
initially recognised when they are originated. All the way the business is managed and information
other financial assets and financial liabilities are is provided to management. The information
initially recognised when the Company becomes considered includes:
a party to the contractual provisions of the
instrument. - the stated policies and objectives for each of
such investments and the operation of those
A financial asset or financial liability is initially policies in practice.
measured at fair value plus, for an item not at fair
value through profit and loss (FVTPL), transaction - the risks that affect the performance of the
costs that are directly attributable to its acquisition business model (and the financial assets held
or issue. within that business model) and how those
risks are managed;
ii. Classification and subsequent measurement
- the frequency, volume and timing of sales of
Financial assets financial assets in prior periods, the reasons
for such sales and expectations about future
On initial recognition, a financial asset is classified
sales activity.
as measured at either at amortised cost, FVTPL or
fair value in other comprehensive income (FVOCI). Transfers of financial assets to third parties in
transactions that do not qualify for derecognition are
Financial assets are not reclassified subsequent to
not considered sales for this purpose, consistent with
their initial recognition, except if and in the period
the Company’s continuing recognition of the assets.
the Company changes its business model for
managing financial assets. Financial assets that are held for trading or are
managed and whose performance is evaluated on
A financial asset is measured at amortised cost if
a fair value basis are measured at FVTPL.
it meets both of the following conditions and is not
designated as at FVTPL: Financial assets: Assessment whether contractual
cash flows are solely payments of principal and
- the asset is held within a business model
interest
whose objective is to hold assets to collect
contractual cash flows; and

120 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
For the purposes of this assessment, ‘principal’ Financial liabilities: Classification, subsequent
is defined as the fair value of the financial asset measurement and gains and losses
on initial recognition. ‘Interest’ is defined as
consideration for the time value of money and for Financial liabilities are classified as measured at
the credit risk associated with the principal amount amortised cost or FVTPL. A financial liability is
outstanding during a particular period of time and for classified as at FVTPL if it is classified as held for
other basic lending risks and costs (e.g. liquidity risk trading, or it is a derivative or it is designated as
and administrative costs), as well as a profit margin. such on initial recognition. Financial liabilities at
FVTPL are measured at fair value and net gains
In assessing whether the contractual cash flows and losses, including any interest expense, are
are solely payments of principal and interest, the recognised in profit or loss. Other financial liabilities
Company considers the contractual terms of the are subsequently measured at amortised cost using
instrument. This includes assessing whether the the effective interest method. Interest expense and
financial asset contains a contractual term that could foreign exchange gains and losses are recognised in
change the timing or amount of contractual cash profit or loss. Any gain or loss on derecognition is
flows such that it would not meet this condition. In also recognised in profit or loss.
making this assessment, the Company considers:
iii.
Derecognition
- contingent events that would change the
Financial assets
amount or timing of cash flows;
The Company derecognises a financial asset when
- terms that may adjust the contractual coupon
the contractual rights to the cash flows from the
rate, including variable interest rate features;

Financial Statements
financial asset expire, or it transfers the rights to
- prepayment and extension features; and receive the contractual cash flows in a transaction
in which substantially all of the risks and rewards
- terms that limit the Company’s claim to cash of ownership of the financial asset are transferred
flows from specified assets (e.g. non recourse or in which the Company neither transfers nor
features). retains substantially all of the risks and rewards
of ownership and does not retain control of the
Financial assets: Subsequent measurement and financial asset.
gains and losses
If the Company enters into transactions whereby
Financial These assets are subsequently it transfers assets recognised on its balance sheet,
assets at measured at fair value. Net gains but retains either all or substantially all of the
FVTPL and losses, including any interest or risks and rewards of the transferred assets, the
dividend income, are recognised in transferred assets are not derecognised.
profit or loss.
Financial These assets are subsequently Financial liabilities
assets at measured at amortised cost using
The Company derecognises a financial liability
amortised the effective interest method.
when its contractual obligations are discharged or
cost The amortised cost is reduced by
cancelled, or expire.
impairment losses. Interest income,
foreign exchange gains and losses The Company also derecognises a financial liability
and impairment are recognised in when its terms are modified and the cash flows under
profit or loss. Any gain or loss on the modified terms are substantially different. In this
derecognition is recognised in profit case, a new financial liability based on the modified
or loss. terms is recognised at fair value. The difference
Equity These assets are subsequently between the carrying amount of the financial liability
investments measured at fair value. Dividends extinguished and the new financial liability with
at FVOCI are recognised as income in profit modified terms is recognised in profit or loss.
or loss unless the dividend clearly
represents a recovery of part of the iv. Offsetting
cost of the investment. Other net
gains and losses are recognised in Financial assets and financial liabilities are offset
OCI and are not reclassified to profit and the net amount presented in the balance sheet
or loss. when, and only when, the Company currently has

Annual Report 2017-18 121

Notes to the Standalone Financial Statements
a legally enforceable right to set off the amounts equity shares are deemed converted as of the beginning
and it intends either to settle them on a net basis of the period unless issued at a later date. In computing
or to realise the asset and settle the liability dilutive earning per share, only potential equity shares
simultaneously. that are dilutive i.e. which reduces earnings per share or
increases loss per share are included.
v. Derivative financial instruments
3.15 Cash-flow statement
The Company holds derivative financial instruments
to hedge its foreign currency and interest rate risk Cash flows are reported using the indirect method,
exposures. Derivatives are initially measured at fair whereby profit before tax is adjusted for the effects of
value. Subsequent to initial recognition, derivatives transactions of a non-cash nature and any deferrals or
are measured at fair value, and changes therein are accruals of past or future cash receipts or payments. The
recognised in profit or loss. cash flows from regular revenue generating, investing
and financing activities of the Company are segregated.
3.14 Earnings / (loss) per share
3.16 Government Grants
The basic earnings / (loss) per share (‘EPS’) is computed
by dividing the net profit / (loss) after tax for the year Government grants are recognised where there is
attributable to equity shareholders by the weighted average reasonable assurance that the grant will be received and
number of equity shares outstanding during the year. all attached conditions will be complied with. Where the
Company receives non-monetary grants, the asset and
The number of shares used in computing diluted earnings the grant are accounted at fair value and recognised in
per share comprises the weighted average number the statement of profit and loss over the expected useful
of shares considered for deriving basic earnings per life of the asset.
share and also the weighted average number of equity
shares that could have been issued on the conversion
of all dilutive potential equity shares. Dilutive potential

122 Aster DM Healthcare Limited

 Notes to the Standalone Financial Statements
4. Property, plant and equipment and capital work-in-progress
H in Millions
Particulars Freehold Buildings * Leasehold Furniture Electrical Plant and Computer Medical Servers and Motor Total (A) Capital Total
land improvements and fixtures equipment equipment Equipment equipment Networks Vehicles work- in (A+B)
-progess (B)
Gross carrying value
Balance at 1 April 2016 1,057.77 1,713.92 - 417.46 268.19 459.75 56.14 2,012.02 78.05 40.13 6,103.43 1,304.87 7,408.30
Additions/(transfers) 21.55 96.61 839.81 52.23 14.22 69.32 33.47 1,209.62 1.00 2.17 2,340.00 (675.24) 1,664.76
Disposals - - - - - - - - - - - - -
Balance at 31 March 2017 1,079.32 1,810.53 839.81 469.69 282.41 529.07 89.61 3,221.64 79.05 42.30 8,443.43 629.63 9,073.06
Balance at 1 April 2017 1,079.32 1,810.53 839.81 469.69 282.41 529.07 89.61 3,221.64 79.05 42.30 8,443.43 629.63 9,073.06
Additions/(transfers) 2.24 745.18 5.15 47.01 28.91 62.69 11.75 249.44 6.46 0.33 1,159.16 (456.06) 703.10
Disposals - - - - - - - - - 9.31 9.31 - 9.31
Balance at 31 March 2018 1,081.56 2,555.71 844.96 516.70 311.32 591.76 101.36 3,471.08 85.51 33.32 9,593.28 173.57 9,766.85
Accumulated Depreciation
Balance at 1 April 2016 - 36.96 - 112.38 89.09 124.34 22.74 273.65 20.16 14.59 693.91 - 693.91
Depreciation for the year 28.99 53.25 88.63 54.75 95.79 23.74 282.51 13.10 6.05 646.81 - 646.81
Disposals - - - - - - - - - - - - -
Balance at 31 March 2017 - 65.95 53.25 201.01 143.84 220.13 46.48 556.16 33.26 20.64 1,340.72 - 1,340.72
Balance at 1 April 2017 - 65.95 53.25 201.01 143.84 220.13 46.48 556.16 33.26 20.64 1,340.72 - 1,340.72
Depreciation for the year - 32.35 108.86 47.46 19.84 30.89 24.45 278.22 13.69 6.30 562.06 - 562.06
Disposals - - - - - - - - - 9.31 9.31 - 9.31
Balance at 31 March 2018 - 98.30 162.11 248.47 163.68 251.02 70.93 834.38 46.95 17.63 1,893.47 - 1,893.47
Carrying amounts (net)
At 31 March 2018 1,081.56 2,457.41 682.85 268.23 147.64 340.74 30.43 2,636.70 38.56 15.69 7,699.81 173.57 7,873.38
At 31 March 2017 1,079.32 1,744.58 786.56 268.68 138.57 308.94 43.13 2,665.48 45.79 21.66 7,102.71 629.63 7,732.34

a) Property, plant and equipment and capital work-in-progress includes borrowing cost capitalised in accordance with Ind AS 23 - Borrowing cost aggregating INR 26.82 (31 March 2017 INR 133.14).

b) Capital work in progress represents expenditure towards construction of hospitals at Kochi and Bangalore

c) For details of property, plant and equipment pledged, refer Note 15

d) With effect from 1 April 2017, the Group has revised the useful lives of certain property, plant and equipment. The change in accounting estimate is applied prospectively in accordance with
Ind AS 8; ‘Accounting policies, changes in accounting estimates and errors. The effect of these changes on the depreciation charge in the current and future years is as follows:

For the year ended 31 March 2018 31 March 2019 31 March 2020 31 March 2021 31 March 2022
Decrease in depreciation charge 291.28 305.15 198.24 98.53 10.00

Annual Report 2017-18

* Includes buildings constructed on land pursuant to the arrangement described in Note 41

123
Financial Statements
Notes to the Standalone Financial Statements
5. Intangible assets
H in Millions
Computer software Trade Marks Total
Gross carrying value
Balance at 1 April 2016 81.98 0.98 82.96
Additions 13.20 0.14 13.34
Disposals - - -
Balance at 31 March 2017 95.18 1.12 96.30
Balance at 1 April 2017 95.18 1.12 96.30
Additions/transfers -
Additions 11.40 0.04 11.44
Disposals - - -
Balance at 31 March 2018 106.58 1.16 107.74
Accumulated amortisation
Balance at 1 April 2016 26.07 0.57 26.64
Amortisation for the year 28.75 0.18 28.93
Balance at 31 March 2017 54.82 0.75 55.57
Balance at 1 April 2017 54.82 0.75 55.57
Amortisation for the year 28.55 0.16 28.71
Balance at 31 March 2018 83.37 0.91 84.28
Carrying amounts (net)
At 31 March 2018 23.21 0.25 23.46
At 31 March 2017 40.36 0.37 40.73

6. Investments
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current investments, unquoted
Investments in equity instruments of subsidiaries(at cost)
Aster DM Healthcare (Trivandrum) Private Limited, India 80.10 80.10
8,009,999 (31 March 2017: 8,009,999) equity shares of INR 10 each
DM Med City Hospitals India Private Limited, India 0.10 0.10
9,999 (31 March 2017: 9,999) equity shares of INR 10 each
Prerana Hospital Limited, India 231.93 231.93
2,626,100 (31 March 2017: 2,626,100) equity shares of INR 10 each
Ambady Infrastructure Private Limited, India 191.67 191.67
1,501,000 (31 March 2017: 1,501,000) equity shares of INR 100 each
Affinity Holdings Private Limited, Mauritius 0.05 0.05
1,000 (31 March 2017 : 1,000) equity shares of USD 1 each
Sri Sainatha Multi-Speciality Hospital Private Limited, India 0.10 0.10
1,000 (31 March 2017 : 1,000) Class A Equity shares of INR 10 each
Sri Sainatha Multi-Speciality Hospital Private Limited, India 421.58 341.51
4,071,188 (31 March 2017 : 3,289,938) Class B Equity shares of INR 10 each
Malabar Institute Of Medical Sciences Limited, India 2,111.70 2,111.70
64,198,863 (31 March 2017 : 64,198,863) equity shares of INR 10 each
Dr.Ramesh Cardiac and Multi- Speciality Hospital Private Limited, India 2,726.78 2,726.79
5,500,771 (31 March 2017 : 5,500,771) equity shares of INR 10 each
Investments in preference shares of subsidiaries at amortised cost
Affinity Holdings Private Limited, Mauritius 14,975.07 15,571.47
225,604,675 (31 March 2017 : 234,589,675) non-cumulative redeemable preference
shares of USD 1 each
Prerana Hospital Limited, India 119.43 119.43
1,531,167 (31 March 2017 : 1,531,167) compulsory covertable preference shares of INR 10
each
EMED Human Resources (India) Private Limited, India 0.05 0.05
5,000 (31 March 2017 : 5,000) equity shares of INR 10 each
20,858.56 21,374.90
Aggregate book value of unquoted investments 20,858.56 21,374.90

124 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
7. Other financial assets
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Unsecured, considered good
Rent and other deposits 387.26 354.53
Restricted deposits 9.39 67.12
396.65 421.65
Current
Unsecured, considered good
Unbilled revenue 61.24 76.38
Interest accrued on fixed deposits with banks 9.43 8.18
Receivable from a subsidiary - 453.95
Security Deposit* 30.00 -
100.67 538.51
497.32 960.16
*Represents amount deposited with the stock exchange as per Regulation 7 of SEBI ICDR Regulations.

8. Other assets

Financial Statements
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Deferred lease expenses 415.90 451.68
Advances for capital goods 113.86 59.35
529.76 511.03
Current
Prepaid expenses 38.88 26.43
Deferred lease expenses 36.21 36.05
Balance with statutory / government authorities 3.15 5.08
Advance against investment in subsidiaries* - 79.80
Payment to vendors for supply of goods and services 49.85 23.12
Other loans and advances 8.10 101.10
136.19 271.58
665.95 782.61
* Represents advance given for investment in Sri Sainatha Multi-Speciality Hospital Private Limited in financial year 2015 deposited in an escrow account jointly held
by the directors of Sri Sainatha Multi-Speciality Hospital Private Limited and the Company. The Company has received equity shares against the amount during the
current financial year.

Annual Report 2017-18 125

Notes to the Standalone Financial Statements
9. Inventories
H in Millions
As at As at
31 March 2018 31 March 2017
(Valued at lower of cost and realisable value)
Stock in trade including medical consumables 153.92 197.91
Stores and spares 15.43 8.95
169.35 206.86
* for details of inventories pledged, refer Note 15

10. Trade receivables

H in Millions
As at As at
31 March 2018 31 March 2017
Current
Unsecured
considered good 306.66 245.85
considered doubtful 20.54 13.63
327.20 259.48
Allowances for expected credit loss (21.89) (14.97)
Net trade receivables 305.31 244.51

Of the above , trade receivables from related parties are as below:

H in Millions
As at As at
31 March 2018 31 March 2017
Total trade receivables from related parties 39.36 26.10
Loss allowance - -
Net trade receivables 39.36 26.10

For details of trade receivables pledged, refer note 15

The Company’s exposure to credit and currency risks and loss allowances related to trade receivables are disclosed in Note 35

11. Cash and cash equivalents

H in Millions
As at As at
31 March 2018 31 March 2017
Balance with banks
- in current accounts 218.48 128.78
- in deposit accounts 609.40 4.05
Cash on hand 10.62 14.01
Cash and cash equivalents in balance sheet 838.50 146.84
Book overdrafts used for cash management purposes - 47.29
Cash and cash equivalents in the statement of cash flows 838.50 99.55
(Also refer note 42)

126 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
12. Bank balances
H in Millions
As at As at
31 March 2018 31 March 2017
Balance in banks for margin money 216.77 43.42
In deposit accounts (with original maturity of more than 3 months) 578.33 -
795.10 43.42
(Also refer note 42)

13. Loans
H in Millions
As at As at
31 March 2018 31 March 2017
Current
Unsecured, considered good
Dues from related parties 638.40 563.01
Considered doubtful, unsecured
Dues from related parties 134.82 134.82
Less : loss allowance (134.82) (134.82)
638.40 563.01

Financial Statements
14. Share capital
As at 31 March 2018 As at 31 March 2017
Number of shares Amount Number of shares Amount
(in millions) (in millions)
Authorised
Equity shares of INR 10 each 550.00 5,500.00 550.00 5,500.00
Compulsory convertible preference shares (CCPS) of INR 10 each 66.20 662.00 66.20 662.00
616.20 6,162.00 616.20 6,162.00
Issued, subscribed and paid-up
Equity shares of INR 10 each 505.23 5,052.29 403.22 4,032.22
Compulsory convertible preference shares (CCPS) of INR 10 each - - 64.01 640.10
505.23 5,052.29 467.23 4,672.32
Reconcilation of shares outstanding at the beginning and at the end of the reporting period
Equity shares of INR.10 each fully paid-up
At the beginning of the year 403.22 4,032.22 403.05 4,030.52
Conversion of CCPS to equity (Refer Note (a) below) 63.85 638.49 - -
Shares issued for cash 38.16 381.58 0.17 1.70
At the end of the year 505.23 5,052.29 403.22 4,032.22
Preference shares of INR 10 each fully paid-up
Series A compulsory convertible preference share capital
At the beginning of the year 12.76 127.63 - -
Conversion of financial liability to equity - - 12.76 127.63
Conversion of CCPS to equity (Refer Note (a) below) (12.76) (127.63) - -
At the end of the year - - 12.76 127.63
RAR compulsory convertible preference share capital
At the beginning of the year 51.10 510.99 - -
Conversion of financial liability to equity - - 51.10 510.99
Conversion of CCPS to equity (Refer Note (a) below) (51.10) (510.99) - -
At the end of the year - - 51.10 510.99
Total 505.23 5,052.29 467.08 4,670.84

Annual Report 2017-18 127

Notes to the Standalone Financial Statements
14. Share capital (contd..)
(a) 13.85 Series A compulsory convertible preference shares of INR 10 each and 50.16 RAR compulsory convertible preference shares
of INR 10 each (aggregate face value of INR 640.10) were issued during the year 2014-15 and 2015-16 respectively, were initially
classified as financial liabilities (See Note 15). However, modification to the terms of these instruments in March 2017 led to the
extinguishment of the related financial liabilities and the recognition of the same as equity. Subsequently, on 20 November 2017, the
Series A and RAR compulsory convertible preference shares have been converted into 12.76 and 51.09 equity shares respectively, in
the Company.

(b) Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. All equity shares rank equally with regard to dividends and share in the Company’s
residual assets. The equity shares are entitled to receive dividend as declared from time to time and subject to dividend payable
to preference shareholdeINR The voting rights of an equity shareholder on a poll (not on show of hands) is in proportion to the
shareholders’ share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which
any call or other sums presently payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining
after distribution of all preferential amounts in proportion to the number of equity shares held.

(c) Rights, preferences and restrictions attached to series A compulsory convertible preference shares

0.00001% Series A, compulsory convertible preference shares (Series A CCPS) of INR 10 each.

Upon expiry of the 9th anniversary of the Completion Date, the Series A CCPS shall be compulsorily converted in to equity shares of
the Company as per the manner mentioned in the share subscription agreement.

The Series A CCPS shall confer on the holder the right to receive, in priority to the holders of any other class of shares in the capital
of the Company, a preference dividend on the face value of the Series A CCPS, such dividend to be apportioned and paid up on the
Series A CCPS during any portion or portions of the period in respect of which the preference dividend is paid.

Rights to receive preference dividend shall be cumulative, and the right to receive the preference dividend shall accrue to the holders
of the Series A CCPS whether the preference dividend is declared or not in any year.

The holder of Series A CCPS shall also be entitled to any dividend declared on the equity shares of the Company by the Board on an
accrual basis with respect to the Series A CCPS held by such holder on an as if converted basis, ie. based on the actual number of
equity shares which the Series A CCPS will be entitled to upon conversion.

On distribution of capital in the event of liquidation, dissolution or winding up of the Company, the distributable amount shall be
applied first in paying to the preference shareholders, an amount equal to the sum of subscription price (less any amount that may
have been received by the preference shareholders on sale of any of their securities) , the preference shareholders purchase price
(less any amount that may have been received by preference shareholders on sale of any of their sale shares) and any arrears and
accruals of the unpaid preference dividend on the CCPS, dividend on the CCPS on as if converted basis and dividend on the shares
and liquidation preference amount subject to the conditions mentioned.

Each holder of a Series A CCPS shall be entitled to convert the Series A CCPS into shares as per the terms mentioned in the agreement.
The conversion price will be adjusted based on future bonus issue, issuances arising from exercise of any stock options, share
splits, consolidation, reorganization and other situations mentioned in the agreement. The right to convert Series A CCPS shall be
exercisable by the holder at any time prior to the expiry of the Series A CCPS term by delivering to the Company a notice in writing of
its desire to convert any Series A CCPS, provided that such notice shall specify the number of Series A CCPS that the holder desires
to convert.

(d) “Rights, preferences and restrictions attached to RAR compulsorily convertible preference shares (RAR CCPS)

0.00001% RAR, compulsorily convertible preference shares (RAR CCPS) of INR 10 each were issued during the year ended 31 March
2016.

128 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
14. Share capital (contd..)
The RAR CCPS will compulsorily be converted on the earlier of
- the date upon which the final conversion of outstanding Series A CCPS into equity shares occurs and
- the expiration of the RAR CCPS Term as per the agreement

The right to receive the preference dividend shall accrue to the holders of the RAR CCPS whether the preference dividend is declared
or not in any year.

The RAR CCPS shall confer on the holder the right to receive a preference dividend of 0.00001% per annum on the face value of
the RAR CCPS. The right to receive preference dividend shall be cumulative. The holders of RAR CCPS shall also be entitled to any
dividend declared on the equity shares of the Company by the Board on an accrual basis with respect to the RAR CCPS held by such
holder on an as if converted basis, i.e. based on the actual number of equity shares which the RAR CCPS will be entitled to upon
conversion. It is clarified that the dividend rights of the holders of RAR CCPS shall be pari-passu to the dividend rights enjoyed by the
holders of the Series A CCPS.

On distribution of capital in the event of liquidation, dissolution or winding up of the Company, the distributable amount shall be
applied first in paying to the preference shareholders, an amount equal to the sum of subscription price (less any amount that may
have been received by the preference shareholders on sale of any of their securities) the preference shareholders purchase price
(less any amount that may have been received by preference shareholders on sale of any of their sale shares) and any arrears and
accruals of the unpaid preference dividend on the CCPS, dividend on the CCPS on as if converted basis and dividend on the shares
and liquidation preference amount subject to the conditions mentioned.

Each holder of a RAR CCPS shall be entitled to convert the RAR CCPS into equity shares as per the terms mentioned in the agreement.

Financial Statements
The conversion price will be adjusted based on future bonus issue, issuances arising from exercise of any stock options, share splits,
consolidation, reorganization and other situations mentioned in the agreement. The right to convert RAR CCPS shall be exercisable
by the holder at any time prior to the expiry of the RAR CCPS term by delivering to the Company a notice in writing of its desire to
convert any RAR CCPS, provided that such notice shall specify the number of RAR CCPS that the holder desires to convert.

(e) Employee stock options

Terms attached to stock options granted to employees are described in note 39 regarding employee share based payments.

(f) Shares held by ultimate holding company/ holding company and their subsidiaries/ associates
As at 31 March 2018 As at 31 March 2017
Number of shares Amount Number of shares Amount
(in millions) (in millions)
Equity shares of INR 10 each fully paid-up held by
Union Investment Private Limited, Mauritius, ultimate holding
company (till 22 february 2018) 188.71 1,887.06 207.56 2,075.55

(g) Details of shareholders holding more than 5% shares of the Company

As at 31 March 2018 As at 31 March 2017

Number of shares % Number of shares %
(in millions) (in millions)
Equity shares of INR 10 each fully paid -up held by
Union Investments Private Limited, Mauritius 188.71 37.35% 207.56 51.48%
Olympus Capital Asia Investments Limited, Mauritius 117.79 23.31% 105.58 26.18%
IVF Trustee Company Private Limited 46.54 9.21% 46.54 11.54%
Rimco (Mauritius) Limited 51.09 10.11%
Compulsory Convertible Preference shares of INR 10 each fully
paid up held by
Olympus Capital Asia Investments Limited, Mauritius - - 9.31 67.20%
Indium IV (Mauritius) Holdings Limited - - 4.54 32.80%

RAR Compulsory Convertible Preference shares of INR 10 each fully

paid up held by
Rimco (Mauritius) Limited, Mauritius - - 50.16 100.00%

Annual Report 2017-18 129

Notes to the Standalone Financial Statements
14. Share capital (contd..)
(h) Shares reserved for issue under options and contracts

As at 31 March 2018 As at 31 March 2017

Number of shares Amount Number of shares Amount
(in millions) (in millions)
Under Employee Stock Option Scheme, 2013 :1,368,232 equity shares
of INR10 each, at an exercise price of INR 50 per share (See Note 39) 1.09 54.50 1.37 68.50
Under Employee Stock Option Scheme, 2013 :3,23,000 equity shares
of INR 10 each, at an exercise price of INR 10 per share (See Note 39) 0.68 6.80 0.32 3.20
Under Employee Stock Option Scheme, 2013 :3,23,000 equity shares
of INR 10 each, at an exercise price of INR 175 per share (See Note 39) 0.24 42.00 - -
Under Employee Stock Option Scheme, 2013 :3,23,000 equity shares
of INR 10 each, at an exercise price of INR 142 per share (See Note 39) 0.48 68.16 - -
For compulsorily convertible Series A preference shares: 12,763,021
equity shares of INR 10 each - - 12.76 127.63
For compulsorily convertible RAR preference shares: 51,098,785
equity shares of INR 10 each - - 51.10 510.99

(i) Details of bonus shares issued for consideration other than for cash during the past 5 years

- During the financial year 2013-14, 249.68 million equity shares and during the financial year 2012-13, 124.72 million equity
shares of INR 10 each, fully paid-up, have been allotted as bonus shares by capitalisation of securities premium.

(j) Details of shares issued for consideration other than for cash during the past 5 years

- During the year 2015-16, 4.91 million shares have been allotted as consideration for swap of shares with the shareholders of
Malabar Institute of Medical Science Limited.

- During the year 2015-16, 7.03 million shares have been allotted as per the scheme of amalgamation with Indogulf Hospitals
India Private Limited.

(k) Details of buyback for consideration other than for cash during the past 5 years

- The Company has not bought back any class of equity shares during the period of five years immediately preceding the balance
sheet date.

15. Borrowings
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Secured
Term loans from banks 266.17 5,470.63
266.17 5,470.63
Current
Unsecured
Temporary overdraft from a bank - 47.29
Cash credit and overdraft facilities from banks 347.69 489.35
Commercial paper - 94.27
Secured
Cash credit and overdraft facilities from banks 402.45 341.79
Short term loans 82.43 -
Current portion of bank term loans - 10.00
832.57 982.70
Less: Amount included under ‘other financials liabilities’ - 10.00
832.57 972.70
1,098.74 6,443.33
Information about the Company’s exposure to interest rate and liquidity risks are included in Note 35

130 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
15. Borrowings (contd..)
A Secured bank loans

Note 1: The term loans from bank (including current portion) includes Indian rupee term loan taken from Federal Bank, which carries
interest at 9.30% p.a (linked to 1 year MCLR). These loans are repayable in 96 installments. The term loan is secured by:

a) First charge on movable properties (comprising plant and machinery, furniture and fittings, vehicles and other movable assets),
present and future, of the Company;

b) Equitable mortgage of 8.50 acres of landed property of the Company and 8.81 acres of landed property of DM Med City Hospitals
India Private Limited, a wholly owned subsidiary of the Company;

c) First charge on entire cashflows of the Aster Medcity project

d) Assignment of contractor guarantees, liquidated damages, letter of credit, guarantee or performance bonds that may be
provided by any counter party under project agreement or contract and insurance policies in favour of the borrower, related to
Aster Medcity Kochi.

Note 2: Term loans from bank includes Indian rupee term loan taken from HDFC Bank which carries interest at applicable base rate
plus 1.40% p.a. The loan is repayable in 32 quarterly installments commencing from quarter ending September 2019. The loan is
secured by:

a) The immovable properties of Ambady Infrastructure Private Limited measuring approximately 11.68 acres at Kochi.

Financial Statements
b) All movable properties including movable equipment, machinery spares, tools and accessories, furniture, fixtures, vehicles and
all other movable assets present at Aster CMI, Bangalore, funded through this facility and equity brought in for supporting the
facility.

c) Current assets, operating cash flows, receivable, commissions, revenues of whatsoever nature and wherever arising, present
and future, intangible, goodwill, uncalled capital, present and future, pertaining to Aster CMI, Bangalore.

d) Subservient charge on immovable and movable fixed assets, current assets, operating cash flows, receivables, commissions,
revenues of whatsoever nature and whatever arising, present and future, intangibles, goodwill, uncalled capital, present and
future, pertaining to Aster Medcity, Kochi.

e) Corporate guarantee of Ambady Infrastructure Private Limited.

Note 3: There are no continuing defaults in the repayment of the principal loan and interest amounts.

Secured overdraft facilities from bank :

Overdraft facilities from banks carry interest ranging between 9.00% -10.70% computed on a monthly basis on the actual amount
utilised and are repayable on demand. These are secured by pari passu charge by way of hypothecation of stock and book debts .

B Changes in liabilities and financial assets arising from financing activities

Particulars As at Cash flows Non cash changes As at

31March 2017 Acquisition Exchange Fair Value 31 March 2018
Movement changes
Non-current borrowings 5,470.63 (5,204.46) - - - 266.17
Current borrowings 972.70 (140.13) - - - 832.57
Total 6,443.33 (5,344.59) - - - 1,098.74

Annual Report 2017-18 131

Notes to the Standalone Financial Statements
16. Other financial liabilties
H in Millions
As at As at
31 March 2018 31 March 2017
Current
Current maturities of long-term borrowings * - 10.00
Interest accrued but not due on borrowings* 0.73 37.84
Dues to holding company 26.99 10.37
Accrued salaries and benefits 5.64 24.34
Dues to subsidiaries and step-down subsidiaries 42.07 40.02
Dues to creditors for expenses and others 381.40 226.95
Dues to creditors for capital goods 75.90 171.71
Loan pre-closure charges payable - 61.59
532.73 582.82
* The details of interest rates, repayment and other terms are disclosed in Note 15
The Company’s exposure to currency and liquidity risk related to the above financial liabilities is disclosed in Note 35

17. Provisions
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Provision for employee benefits
Net defined benefit liability - Gratuity * 28.44 15.78
Compensated absences 30.16 18.20
58.60 33.98
Current
Provision for employee benefits
Net defined benefit liability - Gratuity * 0.62 0.15
Compensated absences 9.37 6.18
9.99 6.33
68.59 40.31
* Also refer Note 36

18. Other liabilities

H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Lease equalization 550.43 444.10
Deferred government grant * 22.57 -
573.00 444.10
Current
Advances from patients 92.92 83.67
Statutory dues payables 55.95 31.19
Deferred government grant * 2.06 -
150.93 114.86
723.93 558.96
* Represents government grant under Export Promotion Capital Goods (EPCG) accounted at fair value as per Ind AS 20 – Accounting for Government Grants and
Disclosure of Government Assistance.

132 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
19. Trade payables
H in Millions
As at As at
31 March 2018 31 March 2017
Trade payables 231.95 320.25
231.95 320.25

All trade payables are ‘current’.

The Company’s exposure to currency and liquidity risks related to trade payables is disclosed in Note 35

Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006 (“the Act”) based on the information
available with the Company are given below:

H in Millions
As at / year ended As at /year nded
31 March 2018 31 March 2017
The principal amount remaining unpaid to any supplier as at the end of the year - -
The interest due on the principal remaining outstanding as at the end of the year - -
The amount of interest paid under the Act, along with the amounts of the payment made
beyond the appointed day during the year - -

Financial Statements
The amount of interest due and payable for the period of delay in making payment
(which have been paid but beyond the appointed day during the year) but without adding
the interest specified under the Act - -
The amount of interest accrued and remaining unpaid at the end of the year - -
The amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues as above are actually paid to the small enterprise,
for the purpose of disallowance as a deductible expenditure under the Act - -

20. Revenue from operations

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Income from hospital services 5,082.46 3,576.73
Income from consultancy services 25.28 23.58
Sale of medicines 113.02 113.00
Other operating income 79.90 81.81
5,300.66 3,795.12

21. Other income

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Interest on loan to related parties 0.65 1.02
Interest income under the effective interest method
Lease deposits 23.41 18.43
Fixed deposits with banks 17.84 12.86
Dividend income from mutual funds - 4.16
Dividend on non-current investments 32.10 64.16
Gain on sale of investment (net) - 186.08
Creditors written back 19.33 -
Gain on sale of fixed asset (net) 1.94 -
Other non-operating income 65.81 19.81
161.08 306.52

Annual Report 2017-18 133

Notes to the Standalone Financial Statements
22. Purchases of stock-in-trade
H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Medicines and consumables 1,440.81 1,203.76
1,440.81 1,203.76

23. Change in inventories of stock-in-trade

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Medicines and medical consumables:
Opening stock 206.86 150.12
Closing stock 169.35 206.86
37.51 (56.74)

24. Employee benefits expense

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Salaries and allowances 915.47 706.20
Contribution to provident and other funds 74.90 63.78
Staff welfare expense 43.65 48.83
Equity settled share based payments 26.75 2.22
1,060.77 821.03

25. Finance cost

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Interest on bank borrowings 559.14 568.26
Less : Borrowing cost capitalized 26.82 (133.14)
532.32 435.12
Interest expense on financial liabilities measured at amortised cost - 1,783.46
Other borrowing costs 7.22 64.72
539.54 2,283.30

26. Depreciation and amortisation

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Depreciation on property, plant and equipment 562.06 646.81
Amortisation on intangible assets 28.71 28.93
590.77 675.74

134 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
27. Other expenses
H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Lab outsourcing charges 43.44 45.13
Housekeeping and security 210.40 163.77
Professional fee paid to doctors 1,343.81 1,044.73
Food and beverage 68.50 64.47
Power, water and fuel 151.82 124.18
Rent 52.97 38.77
Operating lease- Hospital operational and management fees 199.19 139.63
Loss on fair valuation of put option 1.70 -
Insurance 10.93 7.58
Repairs and maintenance - plant and machinery 125.53 75.74
Communication 14.03 12.25
Advertising and promotional 117.57 217.23
Rates and taxes 11.32 8.81
Legal, professional and other consultancy 66.97 42.84
Allowances for credit losses on financial assets 6.92 13.50
Travelling and conveyance 42.26 48.52
Water charges 22.15 18.51

Financial Statements
Donation and charity 5.66 11.33
Net loss on account of foreign exchange fluctuations 1.33 0.22
Staff recruitment 2.53 10.68
Office expenses 59.14 53.33
Non-recoverable advances written-off - 44.48
Loss on sale of Investment 18.16 -
Miscellaneous expenses 87.93 113.68
2,664.26 2,299.38

28. Exceptional item

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Gain on extinguishment of financial liabilities * - 3,591.89
* Modification of the terms of Series A and RAR Compulsorily Convertible Preference Shares in March 2017 has led to the extinguishment of the related financial
liabilities and recognition of equity at the balance sheet date. The difference between the carrying value of the liability and the fair value of the equity instrument at
the date of modification, amounting to INR 3,591.81 million has been recognized in statement of profit and loss for the year ended 31 March 2017.

29. Income taxes

H in Millions
As at As at
31 March 2018 31 March 2017
Income tax assets/(liability)
Income tax assets 264.94 143.97
Current income tax liabilities - -
Net income tax assets/(liability) at the end 264.94 143.97

Annual Report 2017-18 135

Notes to the Standalone Financial Statements
29. Income taxes (contd..)
(a) Amount recognised in statement of profit and loss

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Current tax : MAT for the year - 7.39
Deferred tax (including MAT credit entitlement) - (7.39)
Tax expense for the year - -

(b) Amount recognised in other comprehensive income

H in Millions
Year ended 31 March 2018 Year ended 31 March 2017
Before tax Tax (expense) Net of tax Before tax Tax (expense) Net of tax
benefit benefit
Re-measurement on defined benefit liability 0.36 (0.12) 0.24 1.06 (0.37) 0.69
0.36 (0.12) 0.24 1.06 (0.37) 0.69

(c) Reconciliation of effective tax rate

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Profit before tax (871.92) 467.06
Statutory income tax rate 34.61% 34.61%
Tax expenses /(asset) (301.77) 161.65
Income chargeable at special rates 301.77 (161.65)
Incomes exempt from tax (11.11) (23.65)
Non-deductable expenses/ permanent differences (28.14) (571.18)
Additional deduction on investment allowance (186.93) (154.64)
Other temporary differences 94.60 190.48
Un-recognised deferred tax assets 131.58 558.99
Income tax expense - -

(d) Recognised deferred tax assets and liabilities

(i) Deferred tax assets and liabilities are attributable to the followings:

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Deferred tax asset
MAT credit entitlement receivable 7.39 7.39
Unabsorbed business loss including from specified business 1,543.35 1,411.19
Total deferred tax asset 1,550.74 1,418.58
Deferred tax liability
On account of fair valuation of land * (158.99) (158.99)
Excess of depreciation on property, plant and equipment under Income Tax Act, 1961 (1,543.35) (1,411.19)
over depreciation under Companies Act.
Total deferred tax liability (1,702.34) (1,570.18)
Deferred tax liability (net) (158.99) (158.99)
Deferred tax assets 7.39 7.39
* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

136 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
29. Income taxes (contd..)
The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. Company has
recognised deferred tax assets arising out of tax losses (unabsorbed depreciation) to the extent of net deferred tax liability on account of
taxable temporary differences.

(ii) Movement in temporary differences

H in Millions
Particulars Balances Recognised Recognised Balances Recognised Recognised Balances
as at 1 in Profit and in OCI as at 31 in Profit and in OCI as at 31
April 2016 loss during during March 2017 loss during during March 2018
2016-17 2016-17 2017-18 2017-18
Unabsorbed business loss including 1,447.15 (35.96) - 1,411.19 132.16 - 1,543.35
from specified business
Excess of depreciation on property, (1,447.15) 35.96 - (1,411.19) (132.16) - (1,543.35)
plant and equipment under Income
Tax Act, 1961 over depreciation under
Companies Act.
MAT credit entitlement receivable - 7.39 - 7.39 - - 7.39
On account of fair valuation of land * (158.99) - - (158.99) - - (158.99)

Financial Statements
Provision for employee benefits - 0.37 (0.37) - 0.12 (0.12) -
Net deferred tax (liabilities) / assets (158.99) 7.76 (0.37) (151.60) 0.12 (0.12) (151.60)
* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

(iii) Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will
be available against which the Company can use the benefits there from:

H in Millions
Particulars 31 March 2018 31 March 2017
Gross amount Unrecognised Gross amount nrecognised
tax effect tax effect
Deferred tax asset
Tax losses (business loss) 7,042.82 2,437.52 6,029.66 2,086.87
Tax losses (Long tem capital loss) 62.49 12.87 368.01 83.39
Tax losses (unabsorbed depreciation) 738.64 255.64 332.90 115.22
Total deferred tax asset 7,843.95 2,706.03 6,730.57 2,285.48

(iv) Tax losses carried forward

H in Millions
Particulars As at Expiry date As at Expiry date
31 March 2018 31 March 2017
Brought forward losses - allowed to carry forward for 1,569.52 Various dates 1,234.62 Various dates
specified period
Brought forward losses from specified business - allowed 5,535.79 5,163.05
to carry forward for infinite period
Brought forward losses - allowed to carry forward for 738.64 332.90
infinite period
Total deferred tax asset 7,843.95 - 6,730.57 -
Deferred tax assets have not recognized in respect of the above items, because it is not probable that future taxable profit will be available against which the Company
can use the benefits. The above is arrived basis the balances as on date. The deductible temporary difference do not expire under the current tax legislation.

Annual Report 2017-18 137

Notes to the Standalone Financial Statements
30. Contingent liabilities and commitments
H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Contingent liabilities
Claims against the Company not acknowledged as debts
- Income tax related matters (Note 1) 200.77 172.19
- KVAT related matters (Note 2) 12.80 12.80
Export commitments under EPCG scheme (Note 3) 871.58 991.04
Corporate guarantees 1,010.85 1,007.98
Letter of Credit 5.30 -
Bank guarantees 328.43 255.30
Commitments
Estimated amount of contracts remaining to be executed on capital account
(net of advances) and not provided for. 88.36 209.81

Note 1 : The Company has received income tax assessment orders for AY 2014-15 & 2015-16 wherein the assessing officer has
disallowed Foreign Tax Credit claimed amounting to INR 200.77 million as per provisions of Section 90/90A of Income Tax Act 1961
and the disallowance under section 14A. The management believes that the position taken by it on the matter is tenable and hence, no
adjustment has been made on the financial statements. The Company has filed an appeal against the demand received.

Note 2 : The Company has received a Kerala Value Added Tax (KVAT) demand for the FY 2014-15 wherein the assessing officer raised a
demand for INR 12.80 million against the Company, on account of difference in returns filed with audited acccounts / report. Management
believes that the position taken by it on the matter is tenable and hence, no adjustment has been made to the financial statements. The
Company has filed an appeal against the demand received.

Note 3 : The Company has obtained duty free / concessional duty licenses for import of capital goods by undertaking export obligations
under the EPCG scheme.  As at 31 March 2018, export obligations remaining to be fulfilled amounts to INR 871.58 (31 March 2017:
INR.991.04).  In the event that export obligations are not fulfilled, the Company would be liable to pay the levies.The Company’s bankers
have provided bank guarantees aggregating INR 251.68 (31 March 2017 INR 245.83) to the customs authorities in this regard.

Note 4 : The company has reviewed all its pending litigations and proceedings and has adeqately provided for where provisions are
required and disclosed as contingent liability where applicable, in its financial statements. The company does not expect the outcome
of these proceedings to have a materially advesre effect on its financial position. The company doesnot expect any reimbursement in
respect of the above contingent liabilities.

Note 5 : The group has given bank guarantee in respect of certain contingent liabilities listed above.

31. Earnings/(loss) per share

A. Basic earnings/(loss) per share

The calculation of profit/loss attributable to equity share holders and weighted average number of equity shares outstanding for the
purpose of basic earnings per share calculaitons are as follows:

i) Net profit/(loss) attributable to equity share holders (basic)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
(Loss)/profit for the year, attributable to the equity share holders (871.92) 467.06

138 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
31. Earnings/(loss) per share (Contd..)
ii) Weighted average number of equity shares (basic)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Opening balance (Refer note 14) 399.48 398.62
Effect of share options exercised 0.03 0.38
Effect of fresh issue of shares for cash 3.97 0.16
Convertible preference shares (Refer Note 14 and Note 15) 63.85 63.86
Weighted average number of equity shares of INR 10 each for the year 467.33 463.02
Earnings / (loss) per share, basic (1.87) 1.01

B. Diluted earnings/(loss) per share

The calculation of profit/loss attributable to equity share holders and weighted average number of equity shares outstanding, after
adjustment for the effects of all dilutive potential equity shares is as follows:

i) Net profit/(loss) attributable to equity share holders diluted

H in Millions
Particulars Year ended Year ended

Financial Statements
31 March 2018 31 March 2017
Net profit/(loss) for the year, attributable to the equity share holders (871.92) 467.06

ii) Weighted average number of equity shares (basic)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Weighted average number of equity shares of INR 10 each for the year (basic) 467.33 463.02
Effect of exercise of share options - 0.93
Weighted average number of equity shares of INR 10 each for the year (diluted) 467.33 463.95
Earnings / (loss) per share, basic (1.87) 1.01

The conversion of employee stock options outstanding under the scheme, if made, would have the effect of reducing the loss per share
for the year ended 31 March 2018 and would therefore be anti-dilutive. Hence, such conversion has not been considered for the purpose
of calculating dilutive earnings per share.

32. Auditors’ remuneration (included under legal and professional charges, net of service tax)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Statutory audit 2.30 1.60
Tax audit 0.15 0.10
Other matters 9.60 12.75
12.05 14.45

Annual Report 2017-18 139

Notes to the Standalone Financial Statements
33. Related parties
A. Related Party relationships

Names of related parties and description of relationship with the Company:

I) Enterprises where control exist

(a) Holding and ultimate holding Company Union Investments Private Limited, Mauritius (till 22 February
2018)
(b) Subsidiaries and step down subsidiaries
1 Ambady Infrastructure Private Limited, India 30 Eurohealth Systems FZ LLC, UAE
2 Aster DM Healthcare (Trivandrum) Private Limited 31 IBN Alhaitham Pharmacy LLC, UAE*
(formerly known as DM Eye Care (Delhi) Private Limited,
India)
3 DM Medcity Hospitals India Private Limited, India 32 Aster Ramesh Duhita LLP
4 Malabar Institute of Medical Sciences Limited, India 33 Maryam Pharmacy LLC, UAE*
5 Prerana Hospital Limited, India 34 Medcare Hospital LLC, UAE
6 Sri Sainatha Multi Speciality Hospital Private Limited, India 35 Aster DCC Pharmacy LLC
7 Harley Street LLC 36 Medshop Garden Pharmacy LLC, UAE
8 Harley Street Pharmacy LLC 37 Med Shop Drugs Store LLC, UAE
9 Harley Street Medical Centre LLC 38 Modern Dar Al Shifa Pharmacy LLC, UAE
10 Alfa Drug Stores LLC, UAE 39 New Aster Pharmacy DMCC, UAE
11 Al Rafa Holdings Limited, UAE 40 Rafa Pharmacy LLC, UAE
12 Aster IVF and Women Clinic LLC 41 Shindagha Pharmacy LLC, UAE
(formerly known as Aster Milann Fertility & Women Care
Centre LLC, UAE)
13 Al Rafa Investments Limited, UAE 42 Symphony Healthcare Management Services LLC, UAE
14 Al Rafa Medical Centre LLC , UAE 43 Union Pharmacy LLC, UAE
15 Al Shafar Pharmacy LLC (AUH), UAE 44 Harley Street Dental LLC
16 Asma Pharmacy LLC, UAE 45 Zabeel Pharmacy LLC, UAE*
17 Aster Al Shafar Pharmacies Group LLC, UAE 46 Affinity Holdings Private Limited, Mauritius
18 Aster DM Healthcare FZC , UAE 47 Orange Pharmacies LLC, Jordan
19 Aster Grace Nursing and Physiotherapy LLC, UAE 48 Aster Kuwait for medicine and Medical Supplies Company
W.L.L (Formerly known as Aster Kuwait General Trading
Co LLC, Kuwait)
20 Aster Medical Centre Khalidiya LLC, UAE * 49 Aster DM Healthcare SPC, Bahrain
21 Aster Opticals LLC, UAE 50 Dr. Moopens Healthcare Management Services WLL,
Qatar
22 Aster Pharmacies Group LLC, UAE 51 Welcare Polyclinic WLL, Qatar
23 Aster Pharmacy LLC, AUH, UAE 52 Aster DM Healthcare INC, Philippines
24 Dar Al Shifa Medical Centre LLC, UAE 53 Al Raffah Hospital LLC, Oman
25 Al Raffah Pharmacies Group LLC 54 Al Raffah Medical Centre LLC, Oman
26 DM Pharmacies LLC, UAE 55 Sanad Al Rahma for Medical Care LLC, Kingdom of Saudi
Arabia
27 DM Healthcare LLC, UAE 56 Dr.Ramesh Cardiac & Multi Speciality Hospital Private
Limited
28 Dr. Moopens Healthcare Management Services LLC, UAE 57 Dr.Moopen’s Aster Hospital W.L.L
29 Dr. Moopens Medical Clinic LLC, UAE
(formerly known as Dr.Moopen’s Medical Poly Clinic LLC)
* represents subsidiaries which are in the process of being wound up.

Although the percentage of voting rights as a result of legal holding by the Company is not more than 50% in certain entities listed above,
the Company controls the composition of the board of directors or equivalent of those entities so as to obtain economic benefits from
their activities.

140 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
33. Related parties (Contd..)
(c) Associates EMED Human Resources (India) Private Limited, India
MIMS Infrastructure and Properties Private Limited, India
Aries Holdings FZC, UAE
AAQ Healthcare Investment LLC
II) Other related parties with whom the Company had transactions during the year
(a) Entities under common control/ Entities over which the DM Education & Research Foundation (also known as DM
Company has significant influence (Others) Foundation, India)
Aster DM Foundation India
(b) Key managerial personnel and their relatives (KMP) Dr. Azad Moopen ( Chairman and Managing Director)
Mr. Sreenath Reddy (Chief Financial Officer)
Mr. Rajesh A ( Company Secretary )
Daniel James Snyder (Independent Director)
Harsh C Mariwala (Independent Director)
M Madhavan Nambiar (Independent Director)
Ravi Prasad (Independent Director)
Rajagopal Sukumar (Independent Director)
Suresh M. Kumar (Independent Director)

a) Related party transactions

Financial Statements
H in Millions
Nature of transactions Related party transactions
Year ended Year ended
31 March 2018 31 March 2017
Short term loans and advance repayment received
Sri Sainatha Multi-Specialty Hospital Private Limited - 0.16
Aster DM Healthcare (Trivandrum) Private Limited 1.97 507.08
Ambady Infrastructure Private Limited 0.16 49.83
DM Med City Hospitals India Private Limited 6.36 159.45
EMED Human Resources (India) Private Limited 6.19 4.28
Short-term loans and advances given
Ambady Infrastructure Private Limited - 52.79
DM Med City Hospitals India Private Limited 21.19 171.44
EMED Human Resources (India) Private Limited 0.30 3.61
Aster DM Healthcare (Trivandrum) Private Limited 32.83 582.65
Expenses incurred on behalf of subsidiaries / associates
DM Med City Hospitals India Private Limited 2.32 0.33
Ambady Infrastructure Private Limited 0.40 0.20
Aster DM Healthcare FZC 0.65 1.29
Aster DM Healthcare (Trivandrum) Private Limited 5.64 1.72
EMED Human Resources (India) Private Limited 1.77 1.61
Dr. Moopens Healthcare Management Services LLC 1.16 5.11
Aster Pharmacies Group LLC - 3.92
Dr.Ramesh Cardiac and Multi- Speciality Hospital Private Limited 0.03 -
Sri Sainatha Multi-Specialty Hospital Private Limited 0.80 -
Prerana Hospital Limited 1.05 -
Malabar Institute of Medical Sciences Limited 4.00 0.03
Expenses incurred by subsidiaries / associates on behalf of company
Dr. Moopens Healthcare Management Services LLC 2.47 9.84
AL Raffah Hospital LLC 1.32 6.32
Aster DM Healthcare FZC 0.66 -
Sri Sainatha Multi-Specialty Hospital Private Limited 0.05 -
DM Education & Research Foundation 0.60 -
Wayanad Infrastructure Private Limited 0.65 -

Annual Report 2017-18 141

Notes to the Standalone Financial Statements
33. Related parties (contd..)
a) Related party transactions (contd..)

H in Millions
Nature of transactions Related party transactions
Year ended Year ended
31 March 2018 31 March 2017
Malabar Institute of Medical Sciences Limited 0.24 0.11
Collection by subsidiaries on behalf of company
Dr. Moopens Healthcare Management Services LLC 0.69 -
DM Education & Research Foundation 18.68 -
Received from subsidiary
Affinity Holdings Private Limited, Mauritius 453.95 -
Investments / advance against investments
Affinity Holdings Private Limited, Mauritius - 467.26
Malabar institute of Medical Sciences Limited - 3.34
Aster DM Healthcare (Trivandrum) Private Limited - 80.00
Dr.Ramesh Cardiac & Multi Speciality Hospital Private Limited - 1,855.33
Sale of Investments
Affinity Holdings Private Limited, Mauritius 578.24 2,068.90
Income from consultancy services
Prerana Hospital Limited 13.48 12.64
DM Education & Research Foundation 11.80 10.95
Income from hospital services
DM Education & Research Foundation 12.68 44.97
Dr.Moopen's Healthcare Management Services W.L.L, Qatar 0.08 -
Aster DM Foundation 5.97 1.04
Dividend received
Malabar Institute of Medical Sciences Limited 32.10 64.16
Managerial remuneration
Short Term Employee benefits 26.22 27.68
Donation given
Aster DM Foundation 4.21 8.75
Lease rental for land
DM Med City Hospitals India Private Limited 9.98 9.98
DM Education & Research Foundation 7.37 7.37
Guarantee commission expense
Ambady Infrastructure Private Limited 1.18 1.25
DM Med City Hospitals India Private Limited 1.54 1.61
Guarantee commission received
Prerana Hospital Limited 1.87 1.92
Aster DM Healthcare (Trivandrum) Private Limited 3.23 1.95
Interest on loan to related parties
EMED Human Resources (India) Private Limited 0.65 1.02
Other expenses
EMED Human Resources (India) Private Limited 2.66 3.52
DM Education & Research Foundation 54.93 86.23
Interest income under the effective interest method on lease deposit
DM Education & Research Foundation 5.74 5.36
DM Med City Hospitals India Private Limited 6.95 6.44
Employee stock option expense recharged
Aster DM Healthcare FZC 16.69 48.44

142 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
33. Related parties (contd..)
b) Balance receivable / (payable) as at the year end

H in Millions
Nature of transactions 31 March 2018 31 March 2017
Financial assets- loans (current)- Dues from related parties
Aster DM Healthcare (Trivandrum) Private Limited 284.58 244.26
Prerana Hospital Limited 4.81 1.72
Aster DM Healthcare FZC 221.77 205.08
Aster Pharmacies Group LLC 3.92 3.92
Sri Sainatha Multi-Specialty Hospital Private Limited 0.76 -
Dr.Ramesh Cardiac and Multi- Speciality Hospital Private Limited 0.03 -
DM Med City Hospitals India Private Limited 186.63 171.46
Ambady Infrastructure Private Limited 61.92 62.86
EMED Human Resources (India) Private Limited 5.06 8.53
Malabar Institute of Medical Science Limited 3.74 -
Other financial liabilities (current)-Dues to holding company
Union Investments Private Limited (26.99) (10.37)
Other financial liabilities (current) - Dues to subsidiaries
Dr. Moopens Healthcare Management Services LLC (29.15) (28.49)
AL Raffah Hospital LLC (12.92) (11.54)
Malabar Institute of Medical Science Limited - (0.01)

Financial Statements
Other financial liabilities (current) - Dues to creditors for expenses
DM Education & Research Foundation (3.01) (3.45)
Wayanad Infrastructure Private Limited (0.65) -
EMED Human Resources (India) Private Limited (0.12) (3.23)
Other financial assets (current) - Receivable from subsidiary
Affinity Holdings Private Limited - 453.95
Trade receivables
Prerana Hospital Limited 39.02 24.81
Dr.Moopen's Healthcare Management Services W.L.L, Qatar 0.34 0.26
Aster DM Foundation, India - 1.03
Other non current assets - Deferred lease expenses
DM Education & Research Foundation 51.09 58.46
DM Med City Hospitals India Private Limited 95.48 105.02
Other current assets - Deferred lease expenses
DM Education & Research Foundation 7.37 7.37
DM Med City Hospitals India Private Limited 9.54 9.54
Other financial assets- (non current) Rent and other deposits
DM Education & Research Foundation 87.72 81.98
DM Med City Hospitals India Private Limited 86.38 79.43
Guarantee given
Prerana Hospital Limited 373.45 377.85
Aster DM Healthcare (Trivandrum) Private Limited 637.40 630.13
Guarantee received
Ambady Infrastructure Private Limited 1,746.67 1,746.67
DM Med City Hospitals India Private Limited 1,006.81 1,006.81

Annual Report 2017-18 143

Notes to the Standalone Financial Statements
34. Segmental reporting

Ind AS 108 “Operating Segment” (“Ind AS 108”) establishes standards for the way that public business enterprises report information
about operating segments and related disclosures about products and services, geographic areas, and major customers. Based on the
“management approach” as defined in Ind AS 108, Operating segments are to be reported in a manner consistent with the internal
reporting provided to the Chief Operating Decision Maker (CODM).All operating segments’ operating results are reviewed regularly by the
Company’s CODM to make decisions about resources to be allocated to the segments and assess their performance.

The Company has structured its business broadly into two verticals – Hospitals and others. The accounting principles consistently used
in the preparation of the financial statements are also consistently applied to record income and expenditure in individual segments.

Income and direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment, while
the remainder of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual segments as
the underlying services are used interchangeably. The Company there-fore believes that it is not practical to provide segment disclosures
relating to such expenses and accordingly such expenses are separately disclosed as unallocable and directly charged against total
income. The assets of the Company are used interchangeably between segments, and the management believes that it is currently not
practical to provide segment disclosures relating to total assets and liabilities since a meaningful segregation is not possible.

A. Business segments

The business segments of the Company are as follows:

i) Hospitals

iii) Others - Comprising consultancy division which is into providing healthcare consultancy and clinics.

H in Millions
Particulars As at / year ended 31 March 2018 As at / year ended 31 March 2017
Hospital Others Total Hospital Others Total
A. Business segment information
Segment revenue
External revenue 5,220.06 80.60 5,300.66 3,750.90 44.22 3,795.12
Total segment revenue 5,220.06 80.60 5,300.66 3,750.90 44.22 3,795.12
Segment profit (loss) before income tax (182.60) (13.39) (195.99) (947.36) (16.97) (964.33)
Segment profit (loss) before income tax includes :
Other income, excluding finance income 80.04 - 80.04 15.95 - 15.95
Depreciation and amortisation 569.48 7.01 576.49 658.23 5.42 663.65
Segment Assets 9,167.72 71.78 9,239.50 9,028.77 58.65 9,087.42
Segment asset include :
Capital expenditure during the year 842.52 10.39 852.91 1,622.66 33.78 1,656.44
Segment Liabilities 2,101.90 1.82 2,103.72 7,426.73 4.63 7,431.36

144 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
34. Segmental reporting (contd..)

B. Reconciliation of information on reportable segments to Ind AS measures

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
i) Profit before tax
Total (loss) before tax for reportable segments (182.60) (947.36)
Profit (loss) before tax for other segments (13.39) (16.97)
(195.99) (964.33)
Unallocated amounts :
Other income, Excluding finance income 39.15 258.26
Interest income 11.20 32.31
Interest expense (539.54) (2,283.30)
Depreciation and amortisation (14.27) (12.10)
Gain on extinguishment of financial liability - 3,591.89
Other expenses (172.47) (155.67)
Profit (loss) before tax (871.92) 467.06
ii) Assets
Total assets of reportable segments 9,167.72 9,028.77
Assets of other segments 71.78 58.65
Unallocated Assets 23,698.16 23,159.32

Financial Statements
Total assets 32,937.66 32,246.74

iii) Liabilities
Total liabilities of reportable segments 2,101.90 7,426.73
Liabilities of other segments 1.82 4.63
Unallocated Liabilities 1,574.21 1,534.60
Total liabilities 3,677.93 8,965.96

C. Geographical segments

Geographical information analyses the company’s revenue and non current assets by the Company’s country of domicile (i.e. India)
and other countries. In presenting the geographical information, segment revenue has been based on the geographical location of the
customers and segment assets which have been based on the geographical location of the assets.

(i) Revenue from operations

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
India 5,300.66 3,795.12
Others - -
5,300.66 3,795.12

(ii)Total Assets
H in Millions
As at As at
31 March 2018 31 March 2017
India 32,937.03 32,246.10
Others 0.63 0.64
32,937.66 32,246.74

D. Major customer

No major customer has contributed more than 10% of the Group’s total revenue.

Annual Report 2017-18 145

146
Notes to the Standalone Financial Statements
35. Financial Instruments- Fair values and risk management
A Accounting classifications and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

31 March 2018

Aster DM Healthcare Limited

H in Millions
Particulars Note Carrying amount Fair value
Financial Mandatorily Other financial Total Level 1 Level 2 Level 3 Total
assets at at FVTPL liabilities at Carrying
amortised cost amortised cost value
Assets
Financial assets not measured at fair value
Cash and Cash equivalents 11 838.50 - - 838.50 - - - -
Other bank balances 12 795.10 - - 795.10 - - - -
Investments 6 20,858.56 - - 20,858.56 - - - -
Trade receivables 10 305.31 - - 305.31 - - - -
Loans 13 638.40 - - 638.40 - - - -
Other financial assets 7 497.32 - - 497.32 - - - -
Total 23,933.19 - - 23,933.19 - - - -
Liabilities -
Financial liabilities measured at fair value
Derivatives - 863.00 - 863.00 - - 863.00 863.00
Financial liabilities not measured at fair value
Trade payables 19 - - 231.95 231.95 - - - -
Borrowings 29 - - 1,098.74 1,098.74 - - - -
Other financial liabilities 16 - - 532.73 532.73 - - - -
Total - 863.00 1,863.42 2,726.42 - - 863.00 863.00
 Notes to the Standalone Financial Statements
35. Financial Instruments- Fair values and risk management (contd..)
31 March 2017

H in Millions
Particulars Note Carrying amount Fair value
Financial Mandatorily Other financial Total Level 1 Level 2 Level 3 Total
assets at at FVTPL liabilities at Carrying
amortised cost amortised cost value
Assets
Financial assets not measured at fair value
Cash and Cash equivalents 11 146.84 - - 146.84 - - - -
Other bank balances 12 43.42 - - 43.42 - - - -
Investments 6 15,690.90 - - 15,690.90 - - - -
Trade receivables 10 244.51 - - 244.51 - - - -
Loans 13 563.01 - - 563.01 - - - -
Other financial assets 7 960.16 - - 960.16 - - - -
Total 17,648.84 - - 17,648.84 - - - -
Liabilities -
Financial liabilities measured at fair value
Derivatives - 861.30 - 861.30 - - 861.30 861.30
Financial liabilities not measured at fair value
Trade payables 19 - - 320.25 320.25 - - - -
Borrowings 15 - - 6,453.33 6,453.33 - - - -
Other financial liabilities 16 - - 572.82 572.82 - - - -
Total - 861.30 7,346.40 8,207.70 - - 861.30 861.30

Annual Report 2017-18

147
Financial Statements
Notes to the Standalone Financial Statements
35. Financial Instruments- Fair values and risk management (contd..)
B Measurement of fair values

The following methods and assumptions were used to estimate the fair values:

a) The fair values of the units of mutual fund schemes are based on net asset value at the reporting date.

b)The fair value of forward foreign exchange contracts is calculated as the present value determined using forward exchange rates and
interest rate curve of the respective currencies.

c) The fair value of the derivative put option is determined using Monte Carlo simulation. The significant unobservable inputs used in the
fair value measurement are risk free rate, volatility and management projected EBITDA growth rates.

d) The fair value of the remaining financial instruments is determined using discounted cash flow analysis. The discount rates used is
based on management estimates.

Reconciliation of Level 3 fair values

The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values of derivative put
option.

H in Millions
Balance as at 31 March 2017 861.30
Net change in fair value (unrealised) 1.70
Balance as at 31 March 2018 863.00

Sensitivity analysis

For the fair values of put option, reasonably possible changes at the reporting date to one of the significant unobservable inputs, holding
other inputs constant, would have the following effects.

H in Millions
As at 31 March 2018 Profit or loss
Increase Decrease
Volatility (5% movement) 2.30 4.00
EBITDA growth rates (10% movement) 174.60 (161.40)
Risk free rate (1% movement) (47.70) 65.60

H in Millions
As at 31 March 2017 Profit or loss
Increase Decrease
Volatility (5% movement) 7.30 (11.90)
EBITDA growth rates (10% movement) 260.40 (220.90)
Risk free rate (1% movement) (74.50) 75.30

148 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
35. Financial Instruments- Fair values and risk management (contd..)
C Financial risk management

The Company’s activities expose it to a variety of financial risks: credit risk, market risk and liquidity risk.

i) Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the risk management framework.
The Company’s audit and risk management committee oversees how management monitors compliance with the risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad-hoc reviews of risk
management controls and procedures, the results of which are reported to the audit and risk management committee.

ii) Credit risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to
financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities,
including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been
granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by
the receivables team.

Financial Statements
The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables
based on the past and the recent collection trend. The maximum exposure to the credit risk at the reporting date is primarily from trade
receivables amounting to 305.31 million (31 March 2017: 244.51 million) and unbilled revenue amounting to 61.24 million (31 March 2017:
76.38 million) . The movement in allowance for credit loss in respect of trade and other receivables during the year was as follows:

H in Millions
Allowance for credit loss As at As at
31 March 2018 31 March 2017
Balance at the beginning 14.97 1.47
Impairment loss recognised 6.92 13.50
Balance at the end 21.89 14.97

No single customer accounted for more than 10% of the revenue as of 31 March 2018 and 31 March 2017. There is no significant
concentration of credit risk.

Credit risk on cash and cash equivalent and other bank balances is limited as the Company generally transacts with banks and financial
institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include
investment in liquid mutual fund units.

iii) Liquidity risk

Liquidity risk is the risk that the company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation.

The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

Annual Report 2017-18 149

Notes to the Standalone Financial Statements
35. Financial Instruments- Fair values and risk management (contd..)
iii) Liquidity risk (contd..)
The table below provides details regarding the undiscounted contractual maturities of significant financial liabilities as of 31 March 2018:

H in Millions
Particulars Less than 1 year More than 1 year Total
Trade payables 231.95 - 231.95
Current borrowings 832.57 - 832.57
Non current borrowings (including current maturities) - 266.17 266.17
Derivatives - 863.00 863.00
Other financial liabilities 532.73 - 532.73
Total 1,597.25 1,129.17 2,726.42

The table below provides details regarding the undiscounted contractual maturities of significant financial liabilities as of 31 March 2017:

H in Millions
Particulars Less than 1 year More than 1 year Total
Trade payables 320.25 - 320.25
Current borrowings 972.70 - 972.70
Non current borrowings (including current maturities) 10.00 5,470.63 5,480.63
Derivatives - 861.30 861.30
Other financial liabilities 582.82 - 582.82
Total 1,885.77 6,331.93 8,217.70

iv) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices,
such as foreign exchange rates, interest rates and equity prices.

Foreign currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which transactions are
denominated and the functional currency of the Company. The functional currency of company is INR. The currencies in which these
transactions are primarily denominated is AED, EUR, OMR and US dollar

The summary quantitative data about the Company’s exposure to currency risk (based on notional amounts) as reported to the
management is as follows.

H in Millions
As at 31 March 2018 AED EUR OMR USD
Other current financial liabilities 29.15 15.81 12.92 77.37
Other financial assets - - - -
Cash and cash equivalents 0.63 - - -
Net assets/(liabilities) (28.52) (15.81) (12.92) (77.37)

H in Millions
As at 31 March 2017 AED EUR OMR USD
Other current financial liabilities 28.19 - 11.57 -
Other financial assets - - - 453.23
Cash and cash equivalents 0.63 - - 1.06
Net assets/(liabilities) (27.56) - (11.57) 454.29

150 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
35. Financial Instruments- Fair values and risk management (contd..)
iv) Market risk (contd..)
Sensitivity analysis

The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated financial instruments.

H in Millions
Particulars Impact on profit or (loss) Impact on equity, net of tax
As at As at As at As at
31 March 2018 31 March 2017 31 March 2018 31 March 2017
AED Sensitivity
INR/ AED - Increase by 1% (0.29) (0.29) (0.29) (0.29)
INR/ AED - Decrease by 1% 0.29 0.29 0.29 0.29
EUR Sensitivity
INR/ EUR - Increase by 1% (0.16) - (0.16) -
INR/ EUR - Decrease by 1% 0.16 - 0.16 -
OMR Sensitivity
INR/ OMR - Increase by 1% 0.13 0.12 0.13 0.12
INR/ OMR - Decrease by 1% (0.13) (0.12) (0.13) (0.12)
USD Sensitivity
INR/ USD - Increase by 1% (0.77) 4.54 (0.77) 4.54
INR/ USD - Decrease by 1% 0.77 (4.54) 0.77 (4.54)

Financial Statements
Cash flow and fair value interest rate risk

The Company’s main interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow
interest rate risk. The interest rate on the Company’s financial instruments is based on market rates. The Company monitors the
movement in interest rates on an ongoing basis.

(a) Interest rate risk exposure

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows:

H in Millions
Financial liabilities (bank borrowings) As at As at
31 March 2018 31 March 2017
Variable rate long term borrowing including current maturities 266.17 5,480.63

Sensitivity

H in Millions
Particulars Impact on profit or (loss) Impact on equity, net of tax
As at As at As at As at
31 March 2018 31 March 2017 31 March 2018 31 March 2017
Sensitivity
1% increase in MCLR rate (2.66) (54.81) (2.66) (54.81)
1% decrease in MCLR rate 2.66 54.81 2.66 54.81

The interest rate sensitivity is based on the closing balance of secured term loans from banks.

Annual Report 2017-18 151

Notes to the Standalone Financial Statements
36. Employee benefits

The Company has a defined benefit gratuity plan as per the Payment of Gratuity Act, 1972 (‘Gratuity Act’). Under the Gratuity Act, employee
who has completed five years of service is entitled to specific benefit. The level of benefit provided depends on the employee’s length of
service and salary at retirement/termination age.

A Based on an actuarial valuation, the following table sets out the status of the gratuity plan and the amounts recognised in the
Company’s financial statements as at balance sheet date:

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Defined benefit obligation liability 29.06 15.93
Plan assets - -
Net defined benefit liability 29.06 15.93
Leave encashment 39.53 24.38
Total employee benefit liability 68.59 40.31

B Reconcilation of present value of defined benefit obligaiton

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Balance at beginning of the year 15.93 8.12
Benefit paid (0.01) (0.35)
Current service cost (10.56) (6.50)
Past Service Cost (1.30) -
Interest cost (1.04) (0.60)
Actuarial gain/(loss) recognised in other comprehensive income
- changes in demographic assumptions - 0.28
- changes in financial assumptions (0.49) (2.33)
- experience adjustments 0.25 0.99
Balance at the end of the year 29.06 15.93
Net Defined Benefit liability 29.06 15.93

C (i) Expenses recognised in the Profit & Loss Account

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Current Service cost 10.56 6.50
Past Service Cost 1.30 -
Interest cost 1.04 0.60
Net gratuity cost 12.90 7.10

(ii) Remeasurements recognised in other comprehensive income

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Acturial gain/ (loss) on defined benefit obligation (0.24) (1.06)
(0.24) (1.06)

152 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
36. Employee benefits
D Defined Benefit Obligation

(i) Assumptions used to determine benefit obligations:

Principal acturial assumptions at the reporting date (expressed as weighted average)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Discount rate 7.30% 6.50%
Future salary growth 8.00% 7.00%
Attrition rate Below 35 years : Below 35 years :
35% p.a 35% p.a
35 yrs & above : 35 yrs & above :
6% p.a. 6% p.a.

The weighted-average assumptions used to determine net periodic benefit cost for the year ended 31 March 2018 and year ended 31
March 2017 as set out below

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017

Financial Statements
Discount rate 7.30% 6.50%
Future salary growth 8.00% 7.00%
Weighted average duration of defined benefit obligaiton 5 3

Assumptions regarding future mortality experience are set in accordance with the published statistics by the Life Insurance Corporation
of India.

The Company assesses these assumptions with its projected long-term plans of growth and prevalent industry standards. The discount
rate is based on the government securities yield.

Gratuity is applicable only to employees drawing a salary in Indian rupees and there are no other foreign defined benefit gratuity plans.

(ii) Sensitivity analysis

Reasonably possible changes at the reporting date to one of the acturial assumptions, holding other assumptions constant, would have
affected the defined benefit obligation by the amounts shown below

H in Millions
Particulars As at 31 March 2018 As at 31 March 2017
Increase Decrease Increase Decrease
Discount rate (1% movement) (2.22) 2.35 (1.26) 1.46
Future salary growth (1% movement) 2.45 (2.23) 1.44 (1.27)
Withdrawal rate (1% movement) (0.72) 0.75 (0.46) 0.48

Although the analysis does not take account of the full distribution of the cash flows expected under the plan, it does provide an
approximation of the sensitivity of the assumption shown.

Annual Report 2017-18 153

Notes to the Standalone Financial Statements
37. Operating leases

The Company is obligated under cancellable operating leases for office, hospital premises and residential premises which are renewable
at the option of both the lessor and lessee.

The Company is obliged under non-cancellable operating leases for hospital operations and management fees (revenue share) and
operating leases for office and residential premises . Future minimum lease payments due under non-cancellable operating leases are
as follows:

H in Millions
Particulars 31 March 2018 31 March 2017
Payable in less than one year 67.85 61.69
Payable between one to five years 307.77 290.03
Payable after more than five years 3,869.78 3,949.52

Amounts recognised in profit or loss

H in Millions
Particulars 31 March 2018 31 March 2017
Cancellable lease 3.91 8.76
Non-cancellable lease 248.25 169.64

38. Capital management

The Company's policy is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity ratio.

For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprise of issued
share capital and all other equity reserves.

The capital structure as of 31 March 2018 and 31 March 2017 was as follows:

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Total equity attributable to the equity shareholders of the Company 29,259.73 23,280.78
As a percentage of total capital 96% 78%
Long-term borrowings including current maturities* 266.17 5,480.63
Short-term borrowings 832.57 972.70
Total borrowings 1,098.74 6,453.33
As a percentage of total capital 4% 22%
Total capital (Equity and Borrowings) 30,358.47 29,734.11

154 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
39. Share based payments

A Description of share-based payment arrangements- Share option plans (equity-settled)

The Company has issued stock options under the DM Healthcare Employees Stock Option Plan 2013 (“DM Healthcare ESOP 2013” or
“2013 Plan”) during the financial year ended 31 March 2013. The 2013 Plan covers all non- promoter directors and employees of the
Company and its subsidiaries (collectively referred to as “eligible employees”). Under this plan, holders of vested options are entitled
to purchase shares at the market price of the shares at respective date of grant of options. The Compensation Committee granted the
options on the basis of performance, criticality and potential of the employees as identified by the management.

The Company has issued different categories of options on 2 March 2013, 1 April 2014, 1 April 2015, 22 November 2016, 6 June 2017 and
01 March 2018 on different terms viz; incentive options, milestone options, performance options and loyalty options.

The Company has computed the fair value of the options for the purpose of accounting of employee compensation cost/ expense over
the vesting period of the options.

The fair value of the option is calculated using the Black-Scholes Option Pricing model. Accordingly fair value of the various options
granted is stated below:

H in Millions
Option Type Grant date Number of Exercise Vesting conditions Contractual life
instruments price of options
Incentive option 2 March 2013 344,280 50

Financial Statements
Incentive option 1 April 2014 344,280 50 At the end of 1 year based on performance
Incentive option 1 April 2015 360,526 50

Incentive option 22 November 2016 410,385 50 50% at the end of first year and 25% each
at the end of second & third year based
on performance.
Incentive option 7 June 2017 148,000 174.75 25% at the end of each financial year over
a period of 4 years based on performance.
Milestone option 2 March 2013 715,986 50
25% at the end of each financial year over
Milestone option 1 April 2014 254,537 50
a period of 4 years based on performance.
Milestone option 1 April 2015 27,493 50

Milestone option 22 November 2016 138,000 50 50% at the end of first year and 25% each
at the end of second & third year each
based on performance.
Milestone option 7 June 2017 111,000 175 25% at the end of each financial year over
5 years from the
a period of 4 years based on performance.
date of grant
Performance 1 March 2018 482,200 142 25% at the end of each financial year over
options a period of 4 years based on performance.
Performance 1 March 2018 183,829 50 25% at the end of each financial year over
options a period of 4 years based on performance.
Loyalty option 2 March 2013 420,000 10
100% vesting at the end of 1 year from
Loyalty option 1 April 2014 9,000 10
date of grant.
Loyalty option 1 April 2015 15,000 10

Loyalty option 22 November 2016 176,000 10 80% vesting on completion of 6 years’

Loyalty option 7 June 2017 285,000 10 service and 20% vesting on completion of 9
years’ service subject to minimum vesting
period of 1 year from date of grant.

Loyalty option 1 March 2018 146,800 10 75% vesting on completion of 6 years’

service and 25% vesting on completion of 9
years’ service subject to minimum vesting
period of 1 year from date of grant.

Annual Report 2017-18 155

Notes to the Standalone Financial Statements
39. Share based payments (contd..)
B Measurement of fair value

The Company has computed the fair value of the options for the purpose of accounting of employee compensation cost/ expense
over the vesting period of the options. The fair value of the option is calculated using the Black-Scholes Option Pricing model.
The fair value of the options and the inputs used in the measurement of the grant-date fair values of the equity-settled share based
payment plans are as follows:

Option Type Incentive option

Date of grant 7 June 2017 22 November 2016 1 April 2015 1 April 2014 2 March 2013
Fair value at grant date Rs 87.20 Rs 173.09 Rs 216.86 Rs 77.07 Rs 40.90
Share price at grant date Rs 233.00 Rs 216.71 Rs 259.65 Rs 132.56 Rs 170.00
Exercise Price Rs 174.75 Rs 50.00 Rs 50.00 Rs 50.00 Rs 50.00
Expected volatility 0.001% 0.001% 0.001% 0.001% Nil
Expected life 2.75 years 2.25 years 2 years 2 years 1.96 years
Expected dividends Nil Nil Nil Nil Nil
Risk- free interest rate 6.64% 6.08% 7.79% 8.89% 7.95%

Option Type Milestone option

Date of grant 7 June 2017 22 November 2016 1 April 2015 1 April 2014 2 March 2013
Fair value at grant date Rs 87.20 Rs 173.31 Rs 219.21 Rs 78.50 Rs 48.68
Share price at grant date Rs 232.75 Rs 216.71 Rs 259.65 Rs 132.56 Rs 170.00
Exercise Price Rs 175.00 Rs 50.00 Rs 50.00 Rs 50.00 Rs 50.00
Expected volatility 0.001% 0.001% 0.001% 0.001% Nil
Expected life 2.75 years 2.23 years 2.75 years 2.80 years 2.80 years
Expected dividends Nil Nil Nil Nil Nil
Risk- free interest rate 6.64% 6.08% 7.79% 8.89% 7.95%

Option Type Performance options

Date of grant 1 March 2018 1 March 2018
Fair value at grant date Rs 133.44 Rs 61.55
Share price at grant date Rs 173.10 Rs 173.10
Exercise Price Rs 50.00 Rs 142.00
Expected volatility 16.380% 16.380%
Expected life 2.50 years 2.50 years
Expected dividends Nil Nil
Risk- free interest rate 7.76% 7.76%

Option Type Loyalty option

Date of grant 1 March 2018 7 June 2017 22 November 2016 1 April 2015 1 April 2014 2 March 2013
Fair value at grant date Rs 165.47 Rs 226.89 Rs 208.88 Rs 251.09 Rs 124.19 Rs 161.42
Share price at grant date Rs 173.10 Rs 233.00 Rs 216.71 Rs 259.65 Rs 132.56 Rs 170.00
Exercise Price Rs 10.00 Rs 10.00 Rs 10.00 Rs 10.00 Rs 10.00 Rs 10.00
Expected volatility 16.380% 0.001% 0.001% 0.001% 0.001% Nil
Expected life 4.50 years 2.61 years 3.14 years 2 years 2 years 2 years
Expected dividends Nil Nil Nil Nil Nil Nil
Risk- free interest rate 6.64% 6.64% 6.08% 7.79% 8.89% 7.95%

156 Aster DM Healthcare Limited

Notes to the Standalone Financial Statements
39. Share based payments (contd..)
Expected volatility has been based on an evaluation of the historical volatility of the Company’s share price, particularly over the historical
period commensurate with the expected term. The expected term of the instruments has been based on historical experience and
general option holder behaviour.
C Reconcilation of outstanding share options

The number and weighted-average exercise prices of share options under the share option plans are as follows. H in Millions
Particulars 31 March 2018 31 March 2017
Outstanding as on 1 April 1.69 1.83
Granted during the year 1.36 0.72
Lapsed / forfeited during the year 0.51 0.08
Exercised during the year 0.03 0.69
Expired during the year 0.02 0.09
Options outstanding at the end of the year 2.49 1.69
Options exercisable at the end of the year 0.99 0.98
Weighted average share price at the date of exercise 68.60 36.01

The options outstanding at 31 March 2018 have an exercise price in the range of INR 10 to INR 175 (31 March 2017: INR 10 to INR 50) and
a weighted average remaining contractual life of 3.60 years (31 March 2017: 2.75 years).

D Expense recognised in statement of profit and loss

Financial Statements
For details on the employee benefits expense, see Note 24.

40 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer
pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and
documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international
transactions entered into with associated enterprises during the financial period and expects such records to be existence latest by the
date of filing its income tax return as required by the law. The management is of the opinion that its international transactions are at
arm’s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax
expense and that of provision for taxation.

41 The Company has entered into joint development agreement on 1 April 2014, with its subsidiary, DM Medcity Hospitals (India) Private
Limited (‘DM Medcity’), for construction and development of its Medcity hospital project (Phase I and Phase II). Under the agreement the
Company is required to make certain payments / deposits to the subsidiary based on which the Company has been given the right to
enter into and construct part of the Phase I of the project on lands owned by DM Medcity. The agreement also states that DM Medcity
is required to make certain payments / deposits to the Company based on which DM Medcity has been given the right to enter into and
construct part of the Phase II of the project on lands owned by the Company. The agreement envisages that Phase I of the project will be
owned by the Company and Phase II of the project will be owned by DM Medcity.

42 During the year ended 31 March 2018, the Company had completed the initial public offer (IPO), pursuant to which 51,586,145 equity
shares having face value of INR 10 each were allotted/ allocated, at an issue price of INR 190 , consisting of fresh issue of 38,157,894
equity shares and an offer for sale of 13,428,251 equity shares by selling shareholders. The equity shares of the Company were listed on
National Stock Exchange of India Limited (NSE) via Symbol ASTERDM and BSE Limited (BSE) via Scrip Code 540975 on 26 February 2018.

The gross proceeds of fresh issue of equity shares from IPO amounts to INR 7,250 million. The Company's share of fresh issue related
expenses of INR 443.11 million has been adjusted against securities premium. Details of utilisaiton of IPO proceeds are as follows:

H in Millions
Particulars Objects of issue as Utilised upto Unutilised amount
per prospectus 31 March 2018 as at 31 March 2018
Repayment/ prepayment of debt 5,641.56 5,641.56 -
Purchase of medical equipment 1,103.11 - 1,103.11
Fresh issue related expenses 490.10 328.12 161.98
General corporate purposes* 15.23 21.33 (6.10)
Total 7,250.00 5,991.01 1,258.99
*The excess utilised has been adjusted against fresh issue related expenses.

Annual Report 2017-18 157

Notes to the Standalone Financial Statements
43. Disclosure on Specified Bank Notes (SBNs
During the year, the Company had specified bank notes or other denomination currency notes as defined in the Ministry of Corporate
Affairs notification G.S.R. 308(E) dated March 31, 2017 on the details of Specified Bank Notes (SBN) held and transacted during the period
from November 8, 2016 to December, 30 2016, the denomination wise SBNs and other notes as per the notification is given below:

H in Millions
Particulars Specified bank Other denomination   Total
notes* notes
Closing cash in hand as on 8 November 2016 8.81 0.62 9.43
(+) Permitted receipts 0.19 81.65 81.84
(-) Permitted payments - 2.10 2.10
(+) Not permitted receipts 4.11 - 4.11
(-) Not permitted payments - - -
(-) Amount deposited in Banks 13.11 75.82 88.93
Closing cash in hand as on 30 December 2016 - 4.35 4.35
* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry
of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November, 2016.

44. The previous year figures have been reclassified/ regrouped whereever neessary.

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108

Dubai Dubai
21 May 2018 21 May 2018

Sreenath Reddy Rajesh A

Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

158 Aster DM Healthcare Limited

Consolidated Independent Auditor’s Report
To The Members of Aster DM Healthcare Limited

Report on the Audit of consolidated Ind AS financial Auditors’ responsibility

statements
Our responsibility is to express an opinion on these consolidated
We have audited the accompanying consolidated Ind AS financial Ind AS financial statements based on our audit. While conducting
statements of Aster DM Healthcare Limited (hereinafter referred the audit, we have taken into account the provisions of the Act,
to as “the Holding Company”), and its subsidiaries (collectively the accounting and auditing standards and matters which are
referred to as “the Group”) and associates, which comprise the required to be included in the audit report under the provisions of
consolidated balance sheet as at 31 March 2018, the consolidated the Act and the Rules made thereunder.
statement of profit and loss and the consolidated statement of
changes in equity and the consolidated statement of cash flows for We conducted our audit in accordance with the Standards on
the year then ended and a summary of the significant accounting Auditing specified under Section 143 (10) of the Act. Those
policies and other explanatory information (herein after referred Standards require that we comply with ethical requirements and
to as “the consolidated Ind AS financial statements”). plan and perform the audit to obtain reasonable assurance about
whether the consolidated Ind AS financial statements are free
from material misstatement.
Management’s responsibility for the consolidated Ind
AS financial statements An audit involves performing procedures to obtain audit evidence
about the amounts and the disclosures in the consolidated Ind
The Holding Company’s Board of Directors is responsible for the AS financial statements. The procedures selected depend on

Financial Statements
preparation of these consolidated Ind AS financial statements the auditor’s judgment, including the assessment of the risks
in terms of the requirements of the Companies Act, 2013 of material misstatement of the consolidated Ind AS financial
(hereinafter referred to as “the Act”) that give a true and fair view statements, whether due to fraud or error. In making those risk
of the consolidated state of affairs, consolidated profit/ loss and
assessments, the auditor considers internal financial control
other comprehensive income, consolidated statement of changes
relevant to the Holding Company’s preparation of the consolidated
in equity and consolidated cash flows of the Group including its
Ind AS financial statements that give a true and fair view in order to
associates in accordance with the accounting principles generally
design audit procedures that are appropriate in the circumstances.
accepted in India, including the Indian Accounting Standards
An audit also includes evaluating the appropriateness of the
(Ind AS) specified under section 133 of the Act. The respective
accounting policies used and the reasonableness of the accounting
Board of Directors of the companies included in the Group and
estimates made, as well as evaluating the overall presentation of
of its associates are responsible for maintenance of adequate
the consolidated Ind AS financial statements.
accounting records in accordance with the provisions of the Act,
for safeguarding the assets of the Group and its associates and We are also responsible to conclude on the appropriateness
for preventing and detecting frauds and other irregularities; the of management’s use of the going concern basis of accounting
selection and application of appropriate accounting policies; and, based on the audit evidence obtained, whether a material
making judgments and estimates that are reasonable and uncertainty exists related to events or conditions that may cast
prudent; and the design, implementation and maintenance significant doubt on the ability of Group and of its associates
of adequate internal financial controls that were operating to continue as a going concern. If we conclude that a material
effectively for ensuring the accuracy and completeness of the uncertainty exists, we are required to draw attention in the
accounting records, relevant to the preparation and presentation auditor’s report to the related disclosures in the consolidated Ind
of the consolidated Ind AS financial statements that give a true AS financial statements or, if such disclosures are inadequate,
and fair view and are free from material misstatement, whether to modify our opinion. Our conclusions are based on the audit
due to fraud or error, which have been used for the purpose of evidence obtained up to the date of our auditor’s report. However,
preparation of the Ind AS consolidated financial statements by future events or conditions may cause Group and its associates to
the Directors of the Holding Company, as aforesaid. cease to continue as a going concern.
In preparing the Ind AS consolidated financial statements, the We believe that the audit evidence obtained by us and the audit
respective Board of Directors of the companies included in the evidence obtained by the other auditors in terms of their reports
Group and of its associates are responsible for assessing the referred to in sub-paragraph 1 of the Other Matters paragraph
ability of the Group and of its associates to continue as a going below, is sufficient and appropriate to provide a basis for our audit
concern, disclosing, as applicable, matters related to going opinion on the consolidated Ind AS financial statements.
concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.

Annual Report 2017-18 159

Opinion The reporting packages made for this purpose have been
audited by the other auditors and the audit reports of those
In our opinion and to the best of our information and according other auditors have been furnished to us. Our opinion in so far
to the explanations given to us and based on the consideration of as it relates to the balances and affairs of such subsidiaries is
reports of other auditors on separate financial statements and on based on the report of other auditors.
the other financial information of the subsidiaries and associates,
the aforesaid consolidated Ind AS financial statements give Further, for certain other subsidiaries located outside India,
the information required by the Act in the manner so required the financial statements and other financial information
and give a true and fair view in conformity with the accounting have been prepared in accordance with local GAAP which
principles generally accepted in India, of the consolidated state have been audited by other auditors under generally accepted
of affairs of the Group and its associates as at 31 March 2018, auditing standards applicable in their respective countries.
and their consolidated profit and other comprehensive income, The Company’s management has converted the financial
consolidated statement of changes in equity and consolidated statements of such subsidiaries from local GAAP to accounting
cash flows for the year ended on that date. principles generally accepted in India. We have audited these
conversion adjustments made by the Company’s management.
Our opinion in so far as it relates to the balances and affairs of
Other Matters
such subsidiaries is based on the report of other auditors and
1. We did not audit the financial statements and other financial the conversion adjustments prepared by the management of
information of 39 subsidiaries, whose financial statements the Company and audited by us.
reflect total assets of H84,138.01 million as at 31 March
2. We did not audit the financial statements/ financial
2018 (H48,065.12 million after giving effect to consolidation
information of 14 subsidiaries whose financial statements/
adjustments), total revenues of H65,502.67 million (H61,078.24
financial information reflect total assets of H972.11 million
million after giving effect to consolidation adjustments) and
as at 31 March 2018 (H752.83 million after giving effect
net cash inflows amounting to H4.32 million for the year
to consolidation adjustments), total revenues of H176.12
ended on that date, as considered in the consolidated Ind
million (H175.06 million after giving effect to consolidation
AS financial statements. The consolidated Ind AS financial
adjustments) and net cash outflows amounting to H5.08
statements also include the Group’s share of net profit of
million for the year ended on that date, as considered in the
H2.95 million for the year ended 31 March 2018, as considered
consolidated Ind AS financial statements. The consolidated
in the consolidated Ind AS financial statements, in respect
Ind AS financial statements also include the Group’s share of
of an associate, whose financial statements/ financial
net profit of H19.92 million as considered in the consolidated
information have not been audited by us. These financial
Ind AS financial statements, in respect of 3 associates,
statements / financial information have been audited by
whose financial statements/ financial information have not
other auditors whose reports have been furnished to us by
been audited by us. These financial statements/ financial
the Management and our opinion on the consolidated Ind AS
information are unaudited and have been furnished to us by
financial statements, in so far as it relates to the amounts
the Management and our opinion on the consolidated Ind AS
and disclosures included in respect of these subsidiaries
financial statements, in so far as it relates to the amounts
and associates and our report in terms of sub-section (3) of
and disclosures included in respect of these subsidiaries
Section 143 of the Act, insofar as it relates to the aforesaid
and associates, and our report in terms of sub-sections
subsidiaries and associates is based solely on the reports of
(3) of Section 143 of the Act in so far as it relates to the
the other auditors.
aforesaid subsidiaries and associates, is based solely on such
Certain of these subsidiaries are located outside India whose unaudited financial statements/ financial information. In our
financial statements and other financial information have opinion and according to the information and explanations
been prepared in accordance with accounting principles given to us by the Management, these financial statements/
generally accepted in their respective countries (‘local GAAP’). financial information are not material to the Group.
The Company’s management has converted the financial
Our opinion on the consolidated Ind AS financial statements, and
statements of such subsidiaries from local GAAP to accounting
our report on other legal and regulatory requirements below, is
principles generally accepted in India. This has been done on
not modified in respect of the above matters with respect to our
the basis of a reporting package prepared by the Company
reliance on the work done and the reports of the other auditors
which covers accounting and disclosure requirements
and the financial statements/ financial information certified by
applicable to the consolidated Ind AS financial statements
the Management.
under the generally accepted accounting principles in India.

160 Aster DM Healthcare Limited

Report on other legal and regulatory requirements (g) with respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
1. As required by Section 143 (3) of the Act, based on our audit and the Companies (Audit and Auditors) Rules, 2014, in
on consideration of the reports of the other auditors on the our opinion and to the best of our information and
separate financial statements and other financial information according to the explanations given to us and based on
of subsidiaries and associates, as noted in the ‘Other Matters’ the consideration of the report of the other auditors on
paragraph, we report, to the extent applicable, that: separate financial statements as also the other financial
information of the subsidiaries and associates, as noted
(a) we have sought and obtained all the information and
in the ‘Other Matters’ paragraph:
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit of i. The consolidated Ind AS financial statements
the aforesaid consolidated Ind AS financial statements; disclose the impact of pending litigations on the
consolidated financial position of the Group and its
(b) in our opinion, proper books of account as required by
associates - Refer Note 33 to the consolidated Ind
law relating to preparation of the aforesaid consolidated
AS financial statements;
Ind AS financial statements have been kept so far as it
appears from our examination of those books and the ii. The Group and its associates did not have any
reports of the other auditors; material foreseeable losses on long-term contracts
including derivative contracts during the year ended
(c) the consolidated balance sheet, the consolidated
31 March 2018;
statement of profit and loss and other comprehensive
income, the consolidated statement of cash flows and the iii. There has been no delay in transferring amounts
consolidated statement of changes in equity dealt with to the Investor Education and Protection Fund by
by this report are in agreement with the relevant books the Holding Company and its subsidiary companies
of account maintained for the purpose of preparation of and associates incorporated in India during the year
the consolidated Ind AS financial statements; ended 31 March 2018; and

Financial Statements
(d) in our opinion, the aforesaid consolidated Ind AS iv. The disclosures in the consolidated Ind AS financial
financial statements comply with the Indian Accounting statements regarding holdings as well as dealings
Standards specified under Section 133 of the Act, read in specified bank notes during the period from
with relevant rules issued thereunder; 8 November 2016 to 30 December 2016 have
not been made since they do not pertain to the
(e) on the basis of the written representations received from
financial year ended 31 March 2018. However,
the directors of the Holding Company as on 31 March 2018
amounts as appearing in the audited consolidated
taken on record by the Board of Directors of the Holding
Ind AS financial statements for the period ended 31
Company and the reports of the statutory auditors of the
March 2017 have been disclosed in Note 44 to the
subsidiary companies and associates incorporated in
consolidated Ind AS financial statements.
India, none of the directors of the Holding Company and
its subsidiaries and associates incorporated in India, is
disqualified as on 31 March 2018 from being appointed
as a director in terms of Section 164 (2) of the Act;
for B S R and Associates
(f) with respect to the adequacy of the internal financial Chartered Accountants
controls with reference to the financial statements of Firm’s registration number: 128901W
the Holding company and its subsidiary companies
and associate incorporated in India and the operating Rushank Muthreja
effectiveness of such controls, refer to our separate Bangalore Partner
report in “Annexure A”; and 21 May 2018 Membership number: 211386

Annual Report 2017-18 161

Annexure - A to the Independent Auditors’ Report
Report on the internal financial controls under clause effectiveness. Our audit of internal financial controls with reference
(i) of sub-section 3 of Section 143 of the Companies Act, to financial statements included obtaining an understanding of
2013 (“the Act”) internal financial controls with reference to financial statements,
assessing the risk that a material weakness exists, and testing
In conjunction with our audit of the consolidated Ind AS financial and evaluating the design and operating effectiveness of internal
statement of Aster DM Healthcare Limited (“the Holding control based on the assessed risk. The procedures selected
Company”), its subsidiaries and associates as at and for the year depend on the auditor’s judgment, including the assessment of
ended 31 March 2018, we have audited the internal financial the risks of material misstatement of the consolidated Ind AS
controls with reference to financial statements of the Holding financial statements, whether due to fraud or error.
Company, its subsidiaries and associates which are companies
incorporated in India, as of that date. We believe that the audit evidence we have obtained and the
audit evidence obtained by the other auditors in terms of their
reports referred to in the ‘Other Matters’ paragraph below, is
Management’s responsibility for internal financial
sufficient and appropriate to provide a basis for our audit opinion
controls
on the internal financial controls system with reference to
The respective Board of Directors of the Holding Company, its financial statements of the Holding Company, its subsidiaries and
subsidiaries and the associates, which are incorporated in India, associates incorporated in India.
are responsible for establishing and maintaining internal financial
controls based on the internal control with reference to financial Meaning of internal financial controls with reference to
statements criteria established by the Holding Company, its financial statements
subsidiaries and associates incorporated in India considering the
essential components of internal control stated in the Guidance A company’s internal financial control with reference to financial
Note on Audit of Internal Financial Controls over Financial statements is a process designed to provide reasonable assurance
Reporting (‘Guidance Note’) issued by the Institute of Chartered regarding the reliability of financial reporting and the preparation
Accountants of India (“ICAI”). These responsibilities include the of financial statements for external purposes in accordance with
design, implementation and maintenance of adequate internal generally accepted accounting principles. A company’s internal
financial controls that were operating effectively for ensuring the financial control with reference to financial statements includes
orderly and efficient conduct of its business, including adherence those policies and procedures that: (1) pertain to the maintenance
to the respective company’s policies, the safeguarding of its of records that, in reasonable detail, accurately and fairly reflect
assets, the prevention and detection of frauds and errors, the the transactions and dispositions of the assets of the company;
accuracy and completeness of the accounting records, and the (2) provide reasonable assurance that transactions are recorded
timely preparation of reliable financial information, as required as necessary to permit preparation financial statements in
under the Companies Act, 2013 (“ the Act”). accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only
in accordance with authorisations of management and directors
Auditor’s responsibility
of the company; and (3) provide reasonable assurance regarding
Our responsibility is to express an opinion on the Holding prevention or timely detection of unauthorised acquisition, use,
Company’s and its subsidiaries and associates incorporated or disposition of the company’s assets that could have a material
in India, internal financial controls with reference to financial effect on the financial statements.
statements, based on our audit. We conducted our audit in
accordance with the Guidance Note and the Standards on Inherent limitations of internal financial controls with
Auditing, issued by the ICAI and deemed to be prescribed under reference to financial statements
Section 143 (10) of the Act, to the extent applicable to an audit
of internal financial controls. Those Standards and the Guidance Because of the inherent limitations of internal financial controls
Note require that we comply with ethical requirements and plan with reference to financial statements, including the possibility
and perform the audit to obtain reasonable assurance about of collusion or improper management override of controls,
whether adequate internal financial controls with reference to material misstatements due to error or fraud may occur and not
financial statements was established and maintained and if such be detected. Also, projections of any evaluation of the internal
controls operated effectively in all material respects. financial controls with reference to financial statements to future
periods are subject to the risk that the internal financial control
Our audit involves performing procedures to obtain audit evidence with reference to financial statements may become inadequate
about the adequacy of the internal financial controls system because of changes in conditions, or that the degree of compliance
with reference to financial statements and their operating with the policies or procedures may deteriorate.

162 Aster DM Healthcare Limited

Opinion Other matter

In our opinion and to the best of our information and according Our aforesaid report under sub section (3)(i) of Section 143 of the
to the explanations given to us and based on consideration of Act on the adequacy and operating effectiveness of the internal
the reports of the other auditors referred to in the Other Matters financial controls with reference to financial statements in so far
paragraph below, the Holding Company, its subsidiaries and as it relates to four subsidiaries and two associates, which are
associates, which are companies incorporated in India, have, in all companies incorporated in India, is based on the corresponding
material respects, an adequate internal financial controls system reports of the statutory auditors of such companies incorporated
with reference to financial statements and such internal financial in India.
controls with reference to financial statements were operating
for B S R and Associates
effectively as at 31 March 2018, based on the internal control
Chartered Accountants
with reference to financial statements criteria established by the
Firm’s registration number: 128901W
Holding Company, its subsidiaries and associates incorporated
in India considering the essential components of internal control Rushank Muthreja
stated in the Guidance Note issued by the ICAI. Bangalore Partner
21 May 2018 Membership number: 211386

Financial Statements

Annual Report 2017-18 163

Consolidated Balance Sheet as at 31 March 2018

H in Millions
Note As at As at
31 March 2018 31 March 2017
Assets
Non-current assets
Property, plant and equipment 4 29,654.88 27,668.09
Capital work-in-progress 4 4,017.35 2,897.60
Goodwill 5 7,083.39 6,739.84
Other intangible assets 5 644.38 788.95
Equity accounted investees 40 130.48 107.60
Financial assets
Investments 6 0.01 0.01
Other financial assets 7 1,935.71 2,219.97
Deferred tax assets 28 49.00 30.30
Income tax assets 29 500.55 372.57
Other non-current assets 8 2,136.80 2,523.28
Total non-current assets 46,152.55 43,348.21
Current assets
Inventories 9 6,270.25 5,255.39
Financial assets
Investments 6 246.87 215.61
Trade receivables 10 15,463.93 12,876.18
Cash and cash equivalents 11 2,041.68 1,373.21
Other bank balances 12 956.08 147.48
Other financial assets 7 642.22 2,328.60
Other current assets 8 3,068.80 2,528.09
Total current assets 28,689.83 24,724.56
Total assets 74,842.38 68,072.77
Equity and liabilities
Equity
Equity share capital 13 5,052.29 4,032.22
Other equity 23,268.65 14,721.89
Equity attributable to owners of company 28,320.94 18,754.11
Non-controlling interest 3,579.38 3,752.66
Total equity 31,900.32 22,506.77
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 14 15,778.52 18,905.06
Derivatives 36 863.00 861.30
Other financial liabilities 15 181.41 158.56
Provisions 16 1,910.51 1,748.13
Deferred tax liabilities 28 1,423.34 1,436.61
Other non-current liabilities 17 550.43 444.10
Total non-current liabilities 20,707.21 23,553.76
Current liabilities
Financial liabilities
Borrowings 14 6,345.21 8,304.44
Trade payables 18 8,456.87 7,824.95
Other financial liabilities 15 6,419.98 5,003.08
Provisions 16 461.49 297.16
Income tax liabilities 29 118.50 253.03
Other current liabilities 17 432.80 329.58
Total current liabilities 22,234.85 22,012.24
Total equity and liabilities 74,842.38 68,072.77
Significant accounting policies 3

The accompanying notes form an integral part of the consolidated balance sheet

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108
Sreenath Reddy Rajesh A
Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

164 Aster DM Healthcare Limited

Consolidated Statement of Profit and Loss
for the year ended 31 March 2018
H in Millions
Note Year ended Year ended
31 March 2018 31 March 2017
Revenue
Revenue from operations 19 67,211.61 59,312.87
Other income 20 454.35 366.15
Total income 67,665.96 59,679.02
Expenses
Purchase of medicines and consumables 21 21,604.30 20,021.63
Changes in inventories 22 (1,014.86) (1,148.36)
Employee benefits expenses 23 22,711.30 20,545.01
Finance costs 24 1,846.42 3,535.99
Depreciation and amortisation expense 25 2,977.44 3,224.44
Other expenses 26 17,783.02 16,573.39
Total expenses 65,907.62 62,752.10
Profit/ (loss) before exceptional items, share of profit/ (loss) of equity accounted investees and tax 1,758.34 (3,073.08)
Exceptional items 27 1,296.42 4,159.06
Profit before share of profit/ (loss) of equity accounted investees and tax 3,054.76 1,085.98
Share of profit/ (loss) of equity accounted investees 40 22.87 (2.29)
Profit before tax 3,077.63 1,083.69
Current tax (including MAT) 29 292.33 106.04
Deferred tax charge/ (credit) (including MAT credit entitlement) 28 (31.51) 2.33
Profit for the year 2,816.81 975.32
Other comprehensive income

Financial Statements
Items that will not be reclassified to profit or loss
Remeasurement of net defined benefit liability/ (asset), net of tax 82.20 (61.53)
Items that will be reclassified subsequently to profit or loss
Exchange difference in translating financial statements of foreign operations 21.70 (262.04)
Other comprehensive income / (loss) for the year, net of income tax 103.90 (323.57)
Total comprehensive income for the year 2,920.71 651.75
Profit attributable to
Owners of the Company 2,688.76 1,017.60
Non-controlling interests 128.05 (42.28)
Profit for the year 2,816.81 975.32
Other comprehensive income / (loss) attributable to
Owners of the Company 96.16 (281.17)
Non-controlling interests 7.74 (42.40)
Other comprehensive income / (loss) for the year 103.90 (323.57)
Total comprehensive income attributable to
Owners of the Company 2,784.92 736.43
Non-controlling interests 135.79 (84.68)
Total comprehensive income for the year 2,920.71 651.75
Earnings per share (equity share of face value of Rs.10 each) 32
Basic earnings per share 5.75 2.20
Diluted earnings per share 5.74 2.19
Significant accounting policies 3

The accompanying notes form an integral part of the consolidated balance sheet

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108
Sreenath Reddy Rajesh A
Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

Annual Report 2017-18 165

166
Consolidated Statement of Changes in Equity for the year ended 31 March 2018

A. Equity share capital

H in Millions
Note Equity shares Amount
Balance as at 1 April 2016 13 403.05 4,030.52
Changes in equity share capital during 2016-17 0.17 1.70
Balance As at 31 March 2017 403.22 4,032.22
Changes in equity share capital during 2017-18 102.01 1,020.07
Balance As at 31 March 2018 505.23 5,052.29

Aster DM Healthcare Limited

B. Other equity
H in Millions
Particulars Attributable to owners of the Company Attributable to Total
Compulsory Other Reserves and surplus Items of other comprehensive income Total non-controlling
convertible components interest
Securities Capital General Treasury Other Retained Exchange difference Remeasurement attributable
preference of equity Premium Reserve Reserve shares Reserves earnings in translating of net defined to owners of
shares financial statements benefit plan the Company
of foreign operations
Balance as at 1 April 2016 - 3,743.76 4,065.69 1,006.32 70.40 (280.44) 552.10 (8,478.41) 455.61 - 1,135.03 2,493.23 3,628.26
Total comprehensive income for the year
ended 31 March 2017 - -
Profit/ (loss) for the year - - - - - - 1,017.60 - - 1,017.60 (42.28) 975.32
Other comprehensive income, net of tax - - - (7.40) - - (219.62) (54.15) (281.17) (42.40) (323.57)
Total comprehensive income - 3,743.76 4,065.69 998.92 70.40 (280.44) 552.10 (7,460.81) 235.99 (54.15) 1,871.46 2,408.55 4,280.01
Transferred to retained earnings - - - - - - - (54.15) - 54.15 - - -
Transactions with owners, recorded
directly in equity
Contributions by and distributions to owners
Conversion of financial liability to equity
[refer Note 13 A(a) ] 638.62 - 12,665.97 - - - - - - - 13,304.59 - 13,304.59
Shares issued for cash - - 52.31 - - - - - - - 52.31 - 52.31
Addition/ transfer during the year - - - - - - 6.80 (6.80) - - - - -
Share based payment - - - - - - 50.66 - - - 50.66 - 50.66
Share options exercised - - 35.79 - - - (54.64) - - - (18.85) - (18.85)
Change in reserve of ESOP Trust - - - - - 43.78 - - - - 43.78 - 43.78
Changes in ownership interests without
loss of control
Acquisition of NCI (refer note 39) - - - - - - - (563.57) - - (563.57) 1,428.82 865.25
Dividend paid to NCI shareholders
by subsidiaries (including dividend
distribution tax) - - - - - - - (18.49) - - (18.49) (84.71) (103.20)
Total contributions by and distributions
to owners 638.62 - 12,754.07 - - 43.78 2.82 (643.01) - 54.15 12,850.43 1,344.11 14,194.54
Balance as at 31 March 2017 638.62 3,743.76 16,819.76 998.92 70.40 (236.66) 554.92 (8,103.82) 235.99 - 14,721.89 3,752.66 18,474.55
 Consolidated Statement of Changes in Equity for the year ended 31 March 2018

B. Other equity (contd..)

H in Millions
Particulars Attributable to owners of the Company Attributable to Total
Compulsory Other Reserves and surplus Items of other comprehensive income Total non-controlling
convertible components interest
Securities Capital General Treasury Other Retained Exchange difference Remeasurement attributable
preference of equity Premium Reserve Reserve shares Reserves earnings in translating of net defined to owners of
shares financial statements benefit plan the Company
of foreign operations
Balance as at 1 April 2017 638.62 3,743.76 16,819.76 998.92 70.40 (236.66) 554.92 (8,103.82) 235.99 - 14,721.89 3,752.66 18,474.55
Total comprehensive income for the year
ended 31 March 2018
Profit/ (loss) for the year - - - - - - 2,688.76 - - 2,688.76 128.05 2,816.81
Other comprehensive income, net of tax - - - 0.62 - - - 19.82 75.72 96.16 7.74 103.90
Total comprehensive income 638.62 3,743.76 16,819.76 999.54 70.40 (236.66) 554.92 (5,415.06) 255.81 75.72 17,506.81 3,888.45 21,395.26
Transferred to retained earnings - - - - - - - 75.72 - (75.72) - - -
Transactions with owners, recorded
directly in equity
Contributions by and distributions to owners
Shares issued for cash (refer note 43) - - 6,868.42 - - - - - - - 6,868.42 - 6,868.42
Change in reserve of ESOP Trust - - - - - 2.04 - - - - 2.04 - 2.04
Conversion of CCPS to equity (638.62) - 0.13 - - - - - - - (638.49) - (638.49)
Share based payment - - - - - - 43.44 - - - 43.44 - 43.44
Share options exercised - - 2.14 - - - (3.40) - - - (1.26) - (1.26)
Share issue expenses (refer note 43) - - (443.11) - - - - - - - (443.11) - (443.11)
Changes in ownership interests without
loss of control
Acquisition of NCI (refer Note 39) - - - - - - - (59.95) - - (59.95) (38.70) (98.65)
Acquisition of subsidiaries (refer Note 39) - - - - - - - - - - - 20.22 20.22
Dividend paid to NCI shareholders
by subsidiaries (including dividend
distribution tax) - - - - - - - (9.25) - - (9.25) (290.59) (299.84)
Total contributions by and distributions
to owners (638.62) - 6,427.58 - - 2.04 40.04 6.52 - (75.72) 5,761.84 (309.07) 5,452.77
Balance as at 31 March 2018 - 3,743.76 23,247.34 999.54 70.40 (234.62) 594.96 (5,408.54) 255.81 - 23,268.65 3,579.38 26,848.03

The description of the nature and purpose of each reserve within equity is as follows:

Securities premium

Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013. During the year ended 31 March 2018,
the Company had completed the initial public offer (IPO), pursuant to which fresh issue related expenses has been adjusted against securities premium (refer note 43).

Capital reserve

Annual Report 2017-18

This reserve represents the difference between the value of net asset transferred to the Group in the course of business combinations and the consideration paid for such business combinations.

167
Financial Statements
168
Consolidated Statement of Changes in Equity for the year ended 31 March 2018

B. Other equity (contd..)

General reserve

General reserve is used from time to time to transfer profits from retained earnings for appropriate purposes.

Exchange difference in translating financial statements of foreign operations

In accordance with Ind AS 101, the Group has elected to deem foreign currency translation differences that arose prior to the date of transition to Ind AS, (1 April 2015), in respect of all foreign

Aster DM Healthcare Limited

operations to be nil at the date of transition. From 1 April 2015 onwards such exchange differences are recognised through other comprehensive income.

Treasury shares

The Company has created the DM Healthcare Employees Welfare Trust (“the Trust”) for providing share based payment to its employees. The Company treats the Trust as its extension and
shares held by the Trust are treated as treasury shares. When the treasury shares are issued to the employees by the Trust, the amount received is recognised as an increase in equity and the
resultant gain / (loss) is transferred to / from securities premium.

Other reserves include :

Share options outstanding account

The Company has established share based payment for eligible employees of the Company and its subsidiaries Also refer note 41 for further details on these plans.

Statutory reserve

The statutory reserve represents the statutory reserves of the LLC / WLL companies in the Group created according to Article 255 of the UAE Commercial Companies Law, Qatar Commercial
Companies Law No. 5 of 2002, Article (176) of Kingdom of Saudi Arabia Companies System, The Bahrain Commercial Companies Law 2001 and Article 154 of the Sultanate of Oman’s Commercial
Law of 1974. (31 March 2018: H418.20 ; 31 March 2017: H418.20).

The accompanying notes form an integral part of these consolidated statement of changes in equity.

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703
Rushank Muthreja Dr. Azad Moopen T J Wilson
Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108
Sreenath Reddy Rajesh A
Chief Financial Officer Company Secretary
Membership no. : F7106
Bangalore Dubai Kochi
21 May 2018 21 May 2018 21 May 2018
Consolidated Statement of Cash Flow
for the year ended 31 March 2018

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Cash flows from operating activities
Profit/ (loss) before exceptional items, share of profit/ (loss) of equity accounted
investees and tax 1,758.34 (3,073.08)
Adjustments for
Depreciation and amortisation 2,977.44 3,224.44
Impairment loss on non-current assets - 4.56
Profit on sale of property, plant and equipment (13.37) (0.72)
Gain on sale of investment (7.96) (1.82)
Allowance for credit loss on financial assets 1,095.83 1,947.68
Dividend income - (7.34)
Equity settled share based payments 43.44 50.66
Finance costs 1,846.42 3,535.99
Unrealised foreign exchange loss 9.92 0.22
Interest income under the effective interest method on lease deposit (23.03) (16.63)
Interest income on bank deposits (25.01) (23.00)
Operating profit before working capital changes 7,662.02 5,640.96
Working capital changes

Financial Statements
Increase in inventories (999.08) (1,240.43)
Increase in trade receivable (1,252.56) (2,164.11)
(Increase)/decrease in loans and advances (1,507.58) 107.32
Increase in liabilities and provisions 1,995.50 1,706.83
Cash generated from operations 5,898.30 4,050.57
Income tax paid, net (524.78) (442.66)
Net cash generated from operating activities (A) 5,373.52 3,607.91
Cash flows from investing activities
Acquisition of property, plant and equipment (5,170.68) (9,246.26)
Acquisition of other intangible assets (25.38) (73.24)
Proceeds from sale of property, plant and equipment 49.14 58.94
Interest received 24.60 39.00
Investments in liquid mutual fund units (653.30) (368.59)
Proceeds from sale of liquid mutual fund units 630.00 571.59
Investment/ advance for investment in shares of associates and others 199.88 (887.43)
Dividend received - 3.18
Acquisition of subsidiary, net of cash and cash equivalents acquired (279.54) (1,624.52)
Net cash used in investing activities (B) (5,225.28) (11,527.33)

Annual Report 2017-18 169

Consolidated Statement of Cash Flow
for the year ended 31 March 2018

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Cash flows from financing activities
Proceeds from issue of equity share capital (net of share issue expenses) 6,806.89 78.10
Secured loans availed/ (repaid), net (4,176.71) 8,763.97
Acquisition of non-controlling interest (98.65) (456.60)
Dividend paid to non-controlling interest by subsidiaries, including tax (299.84) (103.20)
Finance charges paid (1,774.89) (1,744.29)
Net cash generated from financing activities ( C ) 456.80 6,537.98
Net increase/ (decrease) in cash and cash equivalents (A+B+C) 605.04 (1,381.44)
Cash and cash equivalents at the beginning of the year* 1,310.12 2,526.71
Effect of exchange rate changes on cash and cash equivalents 1.25 164.85
Cash and cash equivalents at the end of the year* 1,916.41 1,310.12
(refer note 11- Cash and cash equivalents)
Significant accounting policies 3
* Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of Group’s cash management.

The accompanying notes form an integral part of the consolidated balance sheet

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108
Sreenath Reddy Rajesh A
Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

170 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
1. Company overview D. Use of estimates and judgements

Aster DM Healthcare Limited (“the Company”) primarily carries In preparing these consolidated financial statements,
on the business of rendering healthcare and allied services in management has made judgements, estimates and
India. The Company was converted into a public limited company assumptions that affect the application of accounting
with effect from 1 January 2015. The Company is a subsidiary of policies and the reported amounts of assets, liabilities,
Union Investments Private Limited, Mauritius which is also the income and expenses. Actual results may differ from
ultimate holding company (till 22 February 2018). The Company these estimates.
listed its shares in Bombay Stock Exchange Limited and National
Stock Exchange Limited in India 26 February 2018. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
These consolidated financial statements of the Company as at recognised prospectively.
and for the year ended 31 March 2018 comprise the Company
and its subsidiaries (collectively referred to as “Group”) and the Judgements
Group’s interest in Associates. The group is primarily involved
Information about judgements made in applying
in the operations of healthcare facilities, retail pharmacies,
accounting policies that have the most significant effects
and providing consultancy in areas relating to healthcare. The
on the amounts recognised in the financial statements
group has operations in UAE, Oman, Kingdom of Saudi Arabia
is included in the notes:
(KSA), Qatar, Kuwait, Jordan, Philippines, Bahrain and India.
- Note 34- lease classification
2. Basis of preparation
- Note 38– consolidation: whether the Group has de
A. Statement of compliance

Financial Statements
facto control over an investee

These consolidated financial statements have been Assumptions and estimation uncertainties
prepared in accordance with Indian Accounting Standards
(Ind AS) as per the Companies (Indian Accounting Standards) Information about assumptions and estimation
Rules, 2015, notified under Section 133 of Companies Act, uncertainties that have a significant risk of resulting in a
2013, (the ‘Act’), read with relevant rules issued thereunder. material adjustment in the year ending 31 March 2018 is
included in the following notes:
The consolidated financial statements were authorised for
issue by the Company’s Board of Directors on 21 May 2018. - Note 4 and 5 - measurement of useful life and
residual value of property, plant and equipment and
Details of the Group’s accounting policies are included in
intangible assets;
note 3.
- Note 5 – Impairment of non-financial assets;
B. Functional and presentation currency

These consolidated financial statements are presented in - Note 26 – Impairment of non-financial assets.
Indian Rupees (H), which is also the Company’s functional
- Note 28 – recognition of deferred tax asset:
currency, and have been rounded off to nearest millions,
availability of future taxable profit against which tax
unless otherwise indicated.
losses carried forward can be used;
C. Basis of measurement
- Note 31 – measurement of defined benefit
The consolidated financial statements have been prepared obligations: key actuarial assumptions;
on the historical cost basis except for the following items:
- Note 33 – recognition and measurement of
Items Measurement basis provisions and contingencies: key assumptions
Certain financial assets and Fair value about the likelihood and magnitude of an outflow of
liabilities (including derivatives resources;
instruments)
Contingent consideration in Fair value - Note 36 – impairment of financial assets;
business combination
Liabilities for equity-settled share- Fair value - Note 39 – acquisition of subsidiary: fair value of
based payment arrange-ments consideration transferred (including contingent
Net defined benefit liability Fair value of plan consideration)
asset less present
value of defined
benefit obligations

Annual Report 2017-18 171

Notes to the Consolidated Financial Statements
E. Measurement of fair values expects to be entitled in exchange for those goods or
services. Further, the new standard requires enhanced
A number of the Group’s accounting policies and disclosures disclosures about the nature, amount, timing and
require the measurement of fair values, for both financial uncertainty of revenue and cash flows arising from the
and non-financial assets and liabilities. The Group has entity’s contracts with customers.
an established control framework with respect to the
measurement of fair values. Significant valuation issues are The standard permits two methods of transition:
reported to the Group’s audit committee.
• Retrospective approach – Under this approach the
Fair values are categorised into different levels in a fair standard will be applied retrospectively to each
value hierarchy based on the inputs used in the valuation prior reporting period presented in accordance with
techniques as follows. Ind AS 8, Accounting Policies, Changes in Accounting
Estimates and Errors.
- Level 1: quoted prices (unadjusted) in active markets
for identical assets or liabilities. • Retrospectively with cumulative effect of initially
applying the standard recognised at the date of
- Level 2: inputs other than quoted prices included in initial application (Cumulative catch up approach).
Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived The effective date for adoption of Ind AS 115 is financial
from prices). period beginning on or after 1 April 2018.

- Level 3: inputs for the asset or liability that are not The Group will adopt the standard on 1 April 2018 by using
based on observable market data (unobservable cumulative catch up transition method and accordingly,
inputs). comparatives for the year ending or ended 31 March
2018 will not be retrospectively adjusted. The effect of
When measuring the fair value of an asset or a liability, adoption of Ind AS 115 is not expected to be material.
the Company uses observable market data as far as
possible. If the inputs used to measure the fair value
of an asset or a liability fall into different levels of the 3. Significant accounting policies
fair value hierarchy, then the fair value measurement
3.1 Basis of consolidation
is categorised in its entirety in the same level of the
fair value hierarchy as the lowest level input that is i. Business Combination:
significant to the entire measurement.
Business combinations (other than common control
The Group recognises transfers between levels of the business combinations) on or after 1 April 2015
fair value hierarchy at the end of the reporting period
during which the change has occurred. As part of transition to Ind AS, the Group has
elected to apply the relevant Ind AS, viz. Ind AS 103,
Further information about the assumptions made in Business Combinations, to only those business
measuring fair values is included in the following notes: combinations that occurred after 1 April 2015. In
accordance with Ind AS 103, the Group accounts for
- Note 41: share-based payment arrangements
these business combinations using the acquisition
- Note 36: financial instruments method when control is transferred to the Group
(see Note 3.1 (ii)). The consideration transferred for
- Note 39: acquisition of subsidiary the business combination is generally measured
at fair value as at the date the control is acquired
- Note 4: fair value of property, plant and equipment (acquisition date), as are the net identifiable assets
and intangible assets acquired. Any goodwill that arises is tested annually
for impairment. Any gain on bargain purchase is
F. Recent accounting pronouncements
recognised in OCI and accumulated in equity as
Ind AS 115, Revenue from contracts with customers: capital reserve if there exist clear evidence of the
underlying reason for classifying the business
On 28 March 2018, the MCA notified the Ind AS 115. combination as resulting in bargain purchase;
The core principle of the new standard is that an entity otherwise the gain is recognised directly in equity
should recognise revenue to depict the transfer of as capital reserve. Transaction cost are expensed
promised goods or services to customers in an amount as incurred, except to the extent related to debt or
that reflects the consideration to which the entity equity securities.

172 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
The consideration transferred does not include former subsidiary is measured at fair value at the
amounts related to the settlement of pre-existing date the control is lost. Any resulting gain or loss is
relationships with the acquiree. Such amounts recognised in the statement of profit and loss.
are generally recognised in the statement of
profit and loss. v. Equity accounted investees:

Any contingent consideration is measured at fair The Group’s interest in equity accounted investees
value at the date of acquisition. If an obligation comprise interest in associates.
to pay contingent consideration that meets the
An associate is an entity in which the Group has
definition of a financial instrument is classified as
significant influence, but not control or joint control,
equity, then it is not remeasured subsequently and
over the financial and operating policies.
settlement is accounted for within equity. Other
contingent consideration is remeasured at fair value Interest in associates are accounted for using the
at each reporting date and changes in the fair value equity method. They are initially recognised at
of the contingent consideration are recognised in cost which includes transaction costs. Subsequent
the statement of profit and loss. to initial recognition, the consolidated financial
statements include the Group’s share of profit or
If business combination is achieved in stages, any
loss and OCI of equity accounted investment.
previous held equity interest in the acquiree is re-
measured to its acquisition date fair value and any vi. Transactions eliminated on consolidation:
resulting gain or loss is recognised in the statement
of profit or loss or OCI, as appropriate. Intra group balances and transactions, and any

Financial Statements
unrealised income and expenses arising from intra
Business combination prior to 1 April 2015. group transactions are eliminated. Unrealised gain
arising from transaction with equity accounted
In respect of such business combinations, goodwill
investees are eliminated against the investment
represents the amount recognised under the
to the extent the Group’s interest in the investee.
Group’s previous accounting framework under
Unrealised losses are eliminated in the same way
Indian GAAP.
as unrealised gains, but only to the extent that
ii. Subsidiaries: there is no evidence of impairment.

Subsidiaries are entities controlled by the Group. The subsidiaries and associates consolidated under
The Group controls an entity when it is exposed to, the Group comprise the entities listed in Note 38.
or has right to, variable returns from its involvement
3.2 Foreign currency
with the entity and has the ability to affect those
returns through its power over the entity. The i. Foreign currency transactions:
financial statements of subsidiaries are included
in the consolidated financial statements from the Transactions in foreign currencies are translated into
date on which control commences until the date on the functional currency of the Group companies at
which control ceases. the exchange rates at the dates of the transactions
or an average rate if the average rate approximates
iii. Non-controlling interests (NCI) the actual rate at the date of the transaction.

NCI are measured at their proportionate share of Monetary assets and liabilities denominated in
the acquiree’s net identifiable assets at the date of foreign currencies are translated into the functional
acquisition. currency at the exchange rate at the reporting
date. Non-monetary assets and liabilities that
Changes in the Group’s equity interest in a
are measured at fair value in a foreign currency
subsidiary that do not result in a loss of control are
are translated into the functional currency at the
accounted for as equity transactions.
exchange rate when the fair value was determined.
iv. Loss of control: Non-monetary assets and liabilities that are
measured based on historical cost in a foreign
When the Group loses control over a subsidiary, currency are translated at the exchange rate at the
it derecognises the assets and liabilities of date of the transaction. Exchange differences are
the subsidiary, and any related NCI and other recognised in statement of profit and loss.
component of equity. Any interest retained in the

Annual Report 2017-18 173

Notes to the Consolidated Financial Statements
ii. Foreign operations: intended use, and estimated costs of dismantling
and removing the item and restoring the site on
The assets and liabilities of foreign operations which it is located.
(subsidiaries and associates), including goodwill
and fair value adjustments arising on acquisition, If significant parts of an item of property, plant
are translated into at the exchange rates at the and equipment have different useful lives, then
reporting date. The income and expenses of foreign they are accounted for as separate items (major
operations are translated into at the exchange rates components) of property, plant and equipment.
at the dates of the transactions.
Any gain or loss on disposal of an item of property,
In accordance with Ind AS 101, the Group has elected plant and equipment is recognised in the statement
to deem foreign currency translation differences of profit and loss.
that arose prior to the date of transition to Ind AS,
Advances paid towards the acquisition of property,
i.e. 1 April 2015, in respect of all foreign operations
plant and equipment, outstanding at each balance
to be nil at the date of transition. From 1 April 2015
sheet date are shown under other non-current
onwards, such exchange differences are recognised
assets. The cost of property, plant and equipment
in OCI and accumulated in equity (as exchange
not ready for its intended use at each balance sheet
difference on translating the financial statements
date are disclosed as capital work-in-progress.
of foreign operations), except to the extent that the
exchange differences are allocated to NCI. ii. Subsequent expenditure

When a foreign operation is disposed off in its Subsequent expenditure is capitalised only if it is
entirety or partially such that control or significant probable that the future economic benefits associated
influence is lost, the cumulative amount in the with the expenditure will flow to the Group.
translation reserve related to that foreign operation
iii.
Depreciation
is reclassified to the statement of profit and loss
as part of the gain or loss on disposal. If the Group Depreciation on property, plant and equipment are
disposes off part of its interest in a subsidiary but provided on the straight-line method over the useful
retains control, then the relevant proportion of the lives of the assets estimated by the Management.
cumulative amount is reattributed to NCI. When Depreciation for assets purchased / sold during
the Group disposes off only part of an associate a period is proportionately charged. Leasehold
while retaining significant influence, the relevant improvements are amortized over the lease term or
proportion of the cumulative amount is reclassified useful lives of assets, whichever is lower. Freehold
to the statement of profit and loss. land is not depreciated.

3.3 Property, plant and equipment Change in estimated useful life: With effect from
1 April 2017, based on the technical evaluation,
i. Recognition and measurement the Group has revised the estimated useful
lives of certain categories of property, plant and
Items of property, plant and equipment are
equipment. The change in accounting estimate
measured at cost, which includes capitalised
is applied prospectively in accordance with Ind
borrowing costs, less accumulated depreciation and
AS 8, ‘Accounting policies, changes in accounting
accumulated impairment losses, if any
estimates and errors’ and has an impact on the
Cost of an item of property, plant and equipment depreciation expense. The financial impact due to
comprises its purchase price, including import the change in the estimate is disclosed in note 4.
duties and non-refundable purchase taxes, after
The estimated useful lives of items of property, plant
deducting trade discounts and rebates, any directly
and equipment for the current and comparative
attributable cost of bringing the item to its working
periods are as follows:
condition for its intended use and estimated costs
of dismantling and removing the item and restoring Class of assets Previous Revised
the site on which it is located. useful life useful life
Buildings 3 to 60 3 to 60
The cost of a self-constructed item of property, plant Plant and machinery 5 to 15 5 to 15
and equipment comprises the cost of materials and Medical equipment* 5 to 10 8 to 13
direct labour, any other costs directly attributable Motor vehicles * 5 to 8 5 to 8
Computer equipment 3 3
to bringing the item to working condition for its
Furniture and fixtures* 5 to 10 5 to 10

174 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
*For the above mentioned classes of assets, the incurred in bringing the inventories to their present
Group believes that the useful lives as given above location and condition. The Group uses the weighted
best represent the useful lives of these assets average method to determine the cost of inventory
based on internal assessment and supported by consisting of medicines and medical consumables.
technical advice, where necessary, which is different
from the useful lives as prescribed under Part C of Net realisable value is the estimated selling price in the
Schedule II of the Companies Act, 2013. ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make
Depreciation method, useful lives and residual the sale. The comparison of cost and net realisable
values are reviewed at each financial year end and values is made on an item-by-item basis.
adjusted if appropriate.
3.6 Impairment
3.4 Goodwill and Intangible assets
i. Impairment of financial instruments
Intangible assets other than goodwill:
The Group recognises loss allowances for expected
Intangibles assets are stated at cost less accumulated credit losses on financial assets measured at
amortisation and impairment. Intangible assets are amortised cost.
amortised over their respective individual estimated
At each reporting date, the Group assesses whether
useful lives on a straight-line basis, commencing from
financial assets carried at amortised cost are credit
the date the asset is available for its use and is included
impaired. A financial asset is ‘credit impaired’ when
in depreciation and amortisation in consolidated
one or more events that have a detrimental impact
statement of profit and loss.

Financial Statements
on the estimated future cash flows of the financial
Goodwill: asset have occurred.

For measurement of goodwill that arise on business Loss allowances for trade receivables are always
combination [see note 3.1(i)]. subsequent measurement measured at an amount equal to lifetime expected
is at cost less any accumulated impairment loss. credit losses. Lifetime expected credit losses are the
expected credit losses that result from all possible
The estimated useful lives of intangible assets other default events over the expected life of a financial
than goodwill are as follows: instrument.

Class of assets Years In all cases, the maximum period considered when
Software 3 to 6 estimating expected credit losses is the maximum
Trademarks 5 contractual period over which the Group is exposed
Trade name 5 to credit risk.
Right to use 5
‘Payor’ relationship 10 When determining whether the credit risk of a
financial asset has increased significantly since
The estimated useful life of an identifiable intangible initial recognition and when estimating expected
asset is based on a number of factors including the credit losses, the Group considers reasonable
effects of obsolescence, demand, competition and other and supportable information that is relevant and
economic factors (such as the stability of the industry available without undue cost or effort. This includes
and known technological advances) and the level of both quantitative and qualitative information and
maintenance expenditures required to obtain the analysis, based on the Group’s historical experience
expected future cash flows from the asset. and informed credit assessment and including
forward‑ looking information.
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in the Measurement of expected credit losses:
specific asset to which it relates. All other expenditure
is recognised in the statement of profit and loss as Expected credit losses are a probability‑weighted
incurred. estimate of credit losses. Credit losses are
measured as the present value of all cash shortfalls
3.5 Inventories (i.e. the difference between the cash flows due to
the Group in accordance with the contract and the
Inventories are measured at the lower of cost and net
cash flows that the Group expects to receive).
realisable value. The cost of inventories comprises
purchase price, cost of conversion and other cost

Annual Report 2017-18 175

Notes to the Consolidated Financial Statements
Presentation of allowance for expected credit If such assets are considered to be impaired, the
losses in the balance sheet: impairment to be recognized in the consolidated
statement of profit and loss is measured by the
Loss allowances for financial assets measured amount by which the carrying value of the assets
at amortised cost are deducted from the gross exceeds the estimated recoverable amount of the
carrying amount of the assets. asset.
Write-off: An impairment loss is reversed in the consolidated
statement of profit and loss if there has been a
The gross carrying amount of a financial asset is
change in the estimates used to determine the
written off (either partially or in full) to the extent
recoverable amount. The carrying amount of
that there is no realistic prospect of recovery. This
the asset is increased to its revised recoverable
is generally the case when the Group determines
amount, provided that this amount does not
that the debtor does not have assets or sources of
exceed the carrying amount that would have been
income that could generate sufficient cash flows to
determined (net of any accumulated amortization
repay the amounts subject to the write off.
or depreciation) had no impairment loss been
ii. Impairment of non- financial assets recognized for the asset in prior years.

The Group’s non-financial assets, other than 3.7 Employee benefits

inventories and deferred tax assets, are reviewed at
each reporting date to determine whether there is any Short-term employee benefits
indication of impairment. If any such indication exists,
Employee benefits payable wholly within twelve months
then the asset’s recoverable amount is estimated.
of receiving employee services are classified as short-
Goodwill is tested annually for impairment.
term employee benefits. These benefits include salaries
For impairment testing, assets that do not generate and wages, bonus and ex-gratia. Short-term employee
independent cash inflows are grouped together into benefit obligations are measured on an undiscounted
cash-generating units (CGUs). Each CGU represents basis and are expensed as the related service is provided.
the smallest group of assets that generates cash A liability is recognised for the amount expected to be
inflows that are largely independent of the cash paid e.g., under short-term cash bonus, if the Group has a
inflows of other assets or CGUs. present legal or constructive obligation to pay this amount
as a result of past service provided by the employee and
Goodwill arising from a business combination is the amount of obligation can be estimated reliably.
allocated to CGUs or groups of CGUs that are expected
to benefit from the synergies of the combination. Post-employment benefits

The recoverable amount of a CGU (or an individual Defined contribution plans

asset) is the higher of its value in use and its fair
A defined contribution plan is a post-employment
value less costs to sell. Value in use is based on the
benefit plan under which an entity pays fixed
estimated future cash flows, discounted to their
contributions into a separate entity and will
present value using a pre-tax discount rate that
have no legal or constructive obligation to pay
reflects current market assessments of the time
further amounts. The Company makes specified
value of money and the risks specific to the CGU (or
monthly contributions towards Government
the asset).
administered provident fund scheme. Obligations
Intangible assets and property, plant and equipment for contributions to defined contribution plans
are evaluated for recoverability whenever events are recognised as an employee benefit expense in
or changes in circumstances indicate that their profit or loss in the periods during which the related
carrying amounts may not be recoverable. For the services are rendered by employees.
purpose of impairment testing, the recoverable
Defined benefit plans
amount i.e. the higher of the fair value less cost
to sell and the value-in-use is determined on an A defined benefit plan is a post-employment benefit
individual asset basis unless the asset does not plan other than a defined contribution plan. The
generate cash flows that are largely independent Group’s net obligation in respect of defined benefit
of those from other assets. In such cases, the plan is calculated by estimating the amount of future
recoverable amount is determined for the CGU to benefit that employees have earned in the current
which the asset belongs. and prior periods and discounting that amount.

176 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
The calculation of defined benefit obligation is 3.8 Provisions (other than employee benefits)
performed annually by a qualified actuary using the
projected unit credit method. A provision is recognised if, as a result of a past event,
the Group has a present legal or constructive obligation
Re-measurements of the net defined benefit that can be estimated reliably, and it is probable that an
liability, which comprise actuarial gains and losses outflow of economic benefits will be required to settle
and returns on plan assets (excluding interest) are the obligation. Provisions are determined by discounting
recognised in other comprehensive income (OCI). the expected future cash flows (representing the best
estimate of the expenditure required to settle the present
The Group determines the net interest expense obligation at the balance sheet date) at a pre-tax rate
(income) on the net defined benefit liability (asset) that reflects current market assessments of the time
for the period by applying the discount rate used value of money and the risks specific to the liability. The
to measure the defined benefit obligation at the unwinding of the discount is recognised as finance cost.
beginning of the annual period to the then-net Expected future operating losses are not provided for.
defined benefit liability (asset), taking into account
any changes in the net defined benefit liability A contract is considered to be onerous when the
during the period as a result of contributions and expected economic benefits to be derived by the Group
benefit payments. Net interest expense and other from the contract are lower than the unavoidable cost of
expenses related to defined benefit plans are meeting its obligations under the contract. The provision
recognised in the statement of profit and loss. for an onerous contract is measured at the present
value of the lower of the expected cost of terminating
Other long term employee benefits - Compensated the contract and the expected net cost of continuing
absences

Financial Statements
with the contract. Before such a provision is made, the
Group recognises any impairment loss on the assets
The Group’s net obligation in respect of long-term
associated with that contract.
employee benefits other than post-employment
benefits is the amount of future benefit that 3.9 Revenue
employees have earned in return for their service
in the current and prior periods; that benefit is Revenue from medical and healthcare services to
discounted to determine its present value, and the patients is recognised as revenue when the related
fair value of any related assets is deducted. The services are rendered unless significant future
obligation is measured on the basis of an annual uncertainties exist. Revenue is also recognised in
independent actuarial valuation using the projected relation to the services rendered to the patients who
unit credit method. Re-measurements gains or are undergoing treatment/ observation on the balance
losses are recognised in profit or loss in the period sheet date to the extent of services rendered. Revenue
in which they arise. is recognised net of discounts given to the patients.

Share- based payment transactions Revenue from sale of medical consumables and drugs
within the hospital premises is recognised when
The grant date fair value of equity settled share- property in the goods or all significant risks and rewards
based payment awards granted to employees of their ownership are transferred to the customer and
is recognised as an employee expense, with a no significant uncertainty exists regarding the amount
corresponding increase in equity, over the period of the consideration that will be derived from the sale of
that the employees unconditionally become entitled the goods and regarding its collection.
to the awards. The amount recognised as expense
is based on the estimate of the number of awards Revenue from sale of pharmacy products is recognised
for which the related service and non-market on sale of medicine and similar products to the buyer.
vesting conditions are expected to be met, such that The amount of revenue recognised is net of sales
the amount ultimately recognised as an expense is returns and exclusive of sales tax and discounts given to
based on the number of awards that do meet the patients.
related service and non-market vesting conditions
at the vesting date. For share-based payment ‘Unbilled revenue’ represents value to the extent
awards with non-vesting conditions, the grant date of medical and healthcare services rendered to the
fair value of the share-based payment is measured patients who are undergoing treatment/ observation on
to reflect such conditions and there is no true-up for the balance sheet date and is not billed as at the balance
differences between expected and actual outcomes. sheet date.

Annual Report 2017-18 177

Notes to the Consolidated Financial Statements
Income from services rendered is recognised based on another systematic basis is more representative of
agreements / arrangements with the customers as the time pattern in which the benefit derived from
the service is performed in proportion to the stage of the leased asset is diminished. Costs, including
completion of the transaction at the reporting date and depreciation, incurred in earning the lease income
the amount of revenue can be measured reliably. are recognised as expense.

3.10 Leases 3.11 Recognition of dividend income, interest income or

interest expense
i. Determining whether an arrangement contains a
lease: Dividend income is recognised in consolidated statement
of profit and loss on the date on which the right to
At inception of an arrangement, it is determined
receive payment is established.
whether the arrangement is or contains a lease. At
inception or on reassessment of the arrangement Interest on deployment of surplus funds is recognized
that contains a lease, the payments and other using the time proportionate method, based on the
consideration required by such an arrangement transactional interest rates.
are separated into those for the lease and those
for other elements on the basis of their relative fair Interest income or expense is recognised using the
values effective interest method. The ‘effective interest rate’
is the rate that exactly discounts estimated future cash
ii. Asset held under leases: payments or receipts through the expected life of the
financial instrument to the gross carrying amount of
Assets held under leases that transfers to the
the financial asset or the amortised cost of the financial
Group substantially all the risks and rewards of
liability.
ownership are classified as finance lease. The
leases assets are measured initially at an amount In calculating interest income and expense, the effective
equal to the lower of their fair value and the present interest rate is applied to the gross carrying amount of
value of minimum lease payments. Subsequent to the asset (when the asset is not credit-impaired) or to
initial recognition, the assets are accounted for in the amortised cost of the liability.
accordance with the accounting policy applicable to
similar owned assets. 3.12 Earnings / (loss) per share

Assets held under lease that do not transfer to the The basic earnings / (loss) per share (‘EPS’) is computed
Group substantially all the risks and rewards of by dividing the consolidated net profit / (loss) after tax
ownership (i.e. operating lease) are not recognised for the year attributable to equity shareholders by the
in the Group’s balance sheet. weighted average number of equity shares outstanding
during the year.
iii.
Lease payments
The number of shares used in computing diluted earnings
Payments made under operating leases are per share comprises the weighted average number
generally recognised in consolidated statement of of shares considered for deriving basic earnings per
profit and loss on a straight- line basis over the term share and also the weighted average number of equity
of the lease unless such payments are structured shares that could have been issued on the conversion
to increase in line with expected general inflation to of all dilutive potential equity shares. Dilutive potential
compensate for the lessor’s expected inflationary equity shares are deemed converted as of the beginning
cost increases. Lease incentives received are of the period unless issued at a later date. In computing
recognised as an integral part of the total lease dilutive earning per share, only potential equity shares
expense over the term of the lease. Minimum that are dilutive i.e. which reduces earnings per share or
lease payments made under finance leases are increases loss per share are included.
apportioned between the finance lease charges and
the reduction of outstanding liability. The finance 3.13 Borrowing cost
charge is allocated to each period during the lease
Borrowing costs are interest and other costs (including
term so as to produce a constant periodic rate of
exchange differences relating to foreign currency
interest on the remaining balance of the liability.
borrowings to the extent that they are regarded as an
Lease income from operating leases is recognised adjustment to interest costs) incurred in connection
in the consolidated statement of profit and loss with the borrowing of funds. Borrowing costs directly
on a straight line basis over the lease term unless attributable to acquisition or construction of an asset

178 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
which necessarily take a substantial period of time to get Deferred tax is measured at the tax rates that are
ready for their intended use are capitalised as part of the expected to apply to the period when the asset is
cost of that asset. Other borrowing costs are recognised realised or the liability is settled, based on the laws
as an expense in the period in which they are incurred. that have been enacted or substantively enacted by
the reporting date. The measurement of deferred
3.14 Income tax tax reflects the tax consequences that would follow
from the manner in which the Group expects, at
Income tax comprises current and deferred tax. It is
the reporting date, to recover or settle the carrying
recognised in consolidated statement of profit and loss
amount of its assets and liabilities.
except to the extent that it relates to an item recognised
directly in equity or in other comprehensive income. Deferred tax assets and liabilities are offset if there
is a legally enforceable right to offset current tax
i. Current tax
liabilities and assets, and they relate to income
Current tax comprises the expected tax payable or taxes levied by the same tax authority on the same
receivable on the taxable income or loss for the year taxable entity, or on different tax entities, but they
and any adjustment to the tax payable or receivable intend to settle current tax liabilities and assets on
in respect of previous years. Minimum Alternative a net basis or their tax assets and liabilities will be
Tax (‘MAT’) under the provisions of the Income-tax realised simultaneously.
Act, 1961 is recognised as current tax in the profit
3.15 Financial instruments
or loss. The amount of current tax reflects the best
estimate of the tax amount expected to be paid i. Recognition and initial measurement
or received after considering the uncertainty, if

Financial Statements
any, related to income taxes. It is measured using Trade receivables and debt securities issued are
tax rates (and tax laws) enacted or substantively initially recognised when they are originated. All
enacted by the reporting date. other financial assets and financial liabilities are
initially recognised when the Group becomes a party
Current tax assets and current tax liabilities are to the contractual provisions of the instrument.
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended A financial asset or financial liability is initially
to realise the asset and settle the liability on a net measured at fair value plus, for an item not at fair value
basis or simultaneously. through profit and loss (FVTPL), transaction costs that
are directly attributable to its acquisition or issue.
ii. Deferred tax
ii. Classification and subsequent measurement
Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets Financial assets
and liabilities for financial reporting purposes and
the corresponding amounts used for taxation On initial recognition, a financial asset is classified as
purposes. Deferred tax is also recognised in respect measured at either at amortised cost, FVTPL or fair
of carried forward tax losses and tax credits. value through other comprehensive income (FVOCI)

Deferred tax assets are recognised to the extent Financial assets are not reclassified subsequent to
that it is probable that future taxable profits will their initial recognition, except if and in the period
be available against which they can be used. The the Group changes its business model for managing
existence of unused tax losses is strong evidence financial assets.
that future taxable profit may not be available.
A financial asset is measured at amortised cost if
Therefore, in case of a history of recent losses,
it meets both of the following conditions and is not
the Group recognises a deferred tax asset only to
designated as at FVTPL:
the extent that it has sufficient taxable temporary
differences or there is convincing other evidence - the asset is held within a business model
that sufficient taxable profit will be available whose objective is to hold assets to collect
against which such deferred tax asset can be contractual cash flows; and
realised. Deferred tax assets – unrecognised or
recognised, are reviewed at each reporting date - the contractual terms of the financial asset
and are recognised/ reduced to the extent that it is give rise on specified dates to cash flows that
probable/ no longer probable respectively that the are solely payments of principal and interest
related tax benefit will be realised. on the principal amount outstanding.

Annual Report 2017-18 179

Notes to the Consolidated Financial Statements
On initial recognition of an equity investment that is - the frequency, volume and timing of sales of
not held for trading, the Group may irrevocably elect financial assets in prior periods, the reasons for
to present subsequent changes in the investment’s such sales and expectations about future sales
fair value in OCI (designated as FVOCI – equity activity.
investment). This election is made on an investment
by investment basis. Transfers of financial assets to third parties in
transactions that do not qualify for derecognition are
All financial assets not classified as measured at not considered sales for this purpose, consistent with
amortised cost or FVOCI as described above are the Group’s continuing recognition of the assets.
measured at FVTPL. This includes all derivative
financial assets. On initial recognition, the Group Financial assets that are held for trading or are
may irrevocably designate a financial asset that managed and whose performance is evaluated on
otherwise meets the requirements to be measured a fair value basis are measured at FVTPL
at amortised cost or at FVOCI as at FVTPL if doing
Financial assets: Assessment whether contractual
so eliminates or significantly reduces an accounting
cash flows are solely payments of principal and
mismatch that would otherwise arise.
interest
Financial assets: Business model assessment
For the purposes of this assessment, ‘principal’
The Group makes an assessment of the objective of is defined as the fair value of the financial asset
the business model in which a financial asset is held on initial recognition. ‘Interest’ is defined as
at a portfolio level because this best reflects the way consideration for the time value of money and for
the business is managed and information is provided the credit risk associated with the principal amount
to management. The information considered includes: outstanding during a particular period of time and
for other basic lending risks and costs (e.g. liquidity
- the stated policies and objectives for the risk and administrative costs), as well as a profit
portfolio and the operation of those policies in margin.
practice. These include whether management’s
strategy focuses on earning contractual interest In assessing whether the contractual cash flows are
income, maintaining a particular interest rate solely payments of principal and interest, the Group
profile, matching the duration of the financial considers the contractual terms of the instrument.
assets to the duration of any related liabilities This includes assessing whether the financial asset
or expected cash outflows or realising cash contains a contractual term that could change the
flows through the sale of the assets; timing or amount of contractual cash flows such
that it would not meet this condition. In making this
- how the performance of the portfolio is assessment, the Group considers:
evaluated and reported to the Group’s
management; - contingent events that would change the
amount or timing of cash flows;
- the risks that affect the performance of the
business model (and the financial assets held - terms that may adjust the contractual coupon
within that business model) and how those rate, including variable interest rate features;
risks are managed;
- prepayment and extension features; and
- how managers of the business are
- terms that limit the Group’s claim to cash
compensated – e.g. whether compensation is
flows from specified assets (e.g. non recourse
based on the fair value of the assets managed
features).
or the contractual cash flows collected; and

180 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
Financial assets: Subsequent measurement and If the Group enters into transactions whereby it
gains and losses transfers assets recognised on its balance sheet,
but retains either all or substantially all of the
Financial These assets are subsequently
risks and rewards of the transferred assets, the
assets at measured at fair value. Net gains transferred assets are not derecognised.
FVTPL and losses, including any interest
or dividend income, are recognised Financial liabilities
in the statement of profit and loss. The Group derecognises a financial liability when its
Financial These assets are subsequently contractual obligations are discharged or cancelled
assets at measured at amortised cost using or expire.
amortised the effective interest method.
The Group also derecognises a financial liability when
cost The amortised cost is reduced
its terms are modified and the cash flows under the
by impairment losses. Interest
modified terms are substantially different. In this case,
income, foreign exchange gains
a new financial liability based on the modified terms is
and losses and impair-ment are
recognised at fair value. The difference between the
recognised in the statement of carrying amount of the financial liability extinguished
profit and loss. Any gain or loss on and the new financial liability with modified terms is
derecognition is recognised in the recognised in the statement of profit and loss.
statement of profit and loss.
Equity These assets are subsequently iv. Offsetting
investments measured at fair value. Dividends Financial assets and financial liabilities are offset
at FVOCI are recognised as income in the and the net amount presented in the balance sheet

Financial Statements
statement of profit and loss unless when, and only when, the Group currently has a legally
the div-idend clearly represents enforceable right to set off the amounts and it intends
a recovery of part of the cost of either to settle them on a net basis or to realise the
the invest-ment. Other net gains asset and settle the liability simultaneously.
and losses are recognised in OCI
v. Derivative financial instruments
and are not re-classified to the
statement of profit and loss. The Group holds derivative financial instruments
to hedge its foreign currency and interest rate risk
Financial liabilities: Classification, subsequent exposures. Derivatives are initially measured at fair
measurement and gains and losses value. Subsequent to initial recognition, derivatives
Financial liabilities are classified as measured at are measured at fair value, and changes therein are
amortised cost or FVTPL. A financial liability is recognised in the statement of profit and loss.
classified as at FVTPL if it is classified as held for 3.16 Government grant
trading or it is a derivative or it is designated as such
on initial recognition. Financial liabilities at FVTPL Government grants are recognised where there is
are measured at fair value and net gains and losses, reasonable assurance that the grant will be received and
including any interest expense, are recognised in the all attached conditions will be complied with. Where the
statement of profit and loss. Other financial liabilities Company receives non-monetary grants, the asset and
are subsequently measured at amortised cost using the grant are accounted at fair value and recognised in
the effective interest method. Interest expense and the statement of profit and loss over the expected useful
foreign exchange gains and losses are recognised life of the asset.
in profit or loss. Any gain or loss on derecognition is 3.17 Cash flow statement
also recognised in the statement of profit and loss.
Cash flows are reported using the indirect method, whereby
iii.
Derecognition consolidated profit before tax is adjusted for the effects of
Financial assets transactions of a non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. The
The Group derecognises a financial asset when the cash flows from regular revenue generating, investing and
contractual rights to the cash flows from the financial financing activities of the Group are segregated.
asset expire, or it transfers the rights to receive the
contractual cash flows in a transaction in which 3.18 Cash and cash equivalents
substantially all of the risks and rewards of ownership Cash and cash equivalents comprise cash at bank and on
of the financial asset are transferred or in which the hand and short-term deposits with an original maturity
Group neither transfers nor retains substantially all of three months or less which are subject to insignificant
of the risks and rewards of ownership and does not risk of changes in value.
retain control of the financial asset.

Annual Report 2017-18 181

182
Notes to the Consolidated Financial Statements
4. Property, plant and equipment and capital work-in-progress
H in Millions
Particulars Freehold Buildings Leasehold Furniture Plant and Computer Medical Motor Total (A) Capital work- Total (A+B)
land improvements and fixtures machinery equipment equipment vehicles in -progess (B)
Gross carrying value
Balance at 1 April 2016 7,344.76 3,704.16 3,196.97 2,663.82 1,319.41 433.96 7,819.83 374.82 26,857.73 3,581.29 30,439.02

Aster DM Healthcare Limited

Additions/ (transfers) 835.09 951.70 2,611.67 706.15 452.74 320.19 2,976.34 44.88 8,898.76 (644.51) 8,254.25
Acquisition through business combinations - 603.93 285.70 41.05 188.21 3.39 639.00 25.86 1,787.14 - 1,787.14
Disposals - - (5.64) (0.18) (11.19) (0.40) (40.68) (9.79) (67.88) - (67.88)
Exchange difference on translation (15.23) (21.07) (162.16) (60.14) (27.28) (14.80) (160.98) (8.57) (470.23) (39.18) (509.41)
Balance at 31 March 2017 8,164.62 5,238.72 5,926.54 3,350.70 1,921.89 742.34 11,233.51 427.20 37,005.52 2,897.60 39,903.12
Balance at 1 April 2017 8,164.62 5,238.72 5,926.54 3,350.70 1,921.89 742.34 11,233.51 427.20 37,005.52 2,897.60 39,903.12
Additions/ (transfers) 7.46 1,852.41 909.95 222.97 248.64 165.72 1,352.19 29.87 4,789.21 1,107.84 5,897.05
Acquisition through business combinations - - 4.15 0.14 0.29 1.59 14.70 - 20.87 - 20.87
Disposals - - (16.68) (0.56) (1.36) (2.75) (32.60) (14.12) (68.07) - (68.07)
Exchange difference on translation 1.28 9.34 16.54 5.49 2.93 1.85 11.97 0.82 50.22 11.91 62.13
Balance at 31 March 2018 8,173.36 7,100.47 6,840.50 3,578.74 2,172.39 908.75 12,579.77 443.77 41,797.75 4,017.35 45,815.10
Accumulated depreciation
Balance at 1 April 2016 - 351.72 1,322.66 1,142.33 636.48 213.85 2,661.00 155.66 6,483.70 - 6,483.70
Depreciation for the year - 171.10 655.72 575.06 274.60 163.24 1,170.35 94.08 3,104.15 - 3,104.15
Disposals - - (5.64) (0.13) (7.69) (0.40) (33.75) (8.81) (56.42) - (56.42)
Exchange difference on translation - (7.02) (52.41) (31.60) (14.52) (7.06) (75.29) (6.10) (194.00) - (194.00)
Balance at 31 March 2017 - 515.80 1,920.33 1,685.66 888.87 369.63 3,722.31 234.83 9,337.43 - 9,337.43
Balance at 1 April 2017 - 515.80 1,920.33 1,685.66 888.87 369.63 3,722.31 234.83 9,337.43 - 9,337.43
Depreciation for the year - 303.47 716.31 453.44 149.55 213.26 908.70 61.93 2,806.66 - 2,806.66
Disposals - - (7.28) (0.12) (0.33) (0.86) (12.86) (11.00) (32.45) - (32.45)
Exchange difference on translation - 1.36 8.41 4.63 5.80 1.59 8.68 0.76 31.23 - 31.23
Balance at 31 March 2018 - 820.63 2,637.77 2,143.61 1,043.89 583.62 4,626.83 286.52 12,142.87 - 12,142.87
Carrying amounts (net)
At 31 March 2018 8,173.36 6,279.84 4,202.73 1,435.13 1,128.50 325.13 7,952.94 157.25 29,654.88 4,017.35 33,672.23
At 31 March 2017 8,164.62 4,722.92 4,006.21 1,665.04 1,033.02 372.71 7,511.20 192.37 27,668.09 2,897.60 30,565.69

a) For details of property, plant and equipment pledged, refer Note 14.

b) Property, plant and equipment and capital work-in-progress includes borrowing cost capitalised in accordance with Ind AS 23 - Borrowing cost aggregating H26.82 (31 March 2017: H.133.14).

c) With effect from 1 April 2017, the Group has revised the useful lives of certain property, plant and equipment. The change in accounting estimate is applied prospectively in accordance with Ind
AS 8; ‘Accounting policies, changes in accounting estimates and errors’. The effect of these changes on the depreciation charge in the current and future years is as follows:

For the year ended 31 March 2018 31 March 2019 31 March 2020 31 March 2021 31 March 2022
Decrease in depreciation charge 640.58 613.03 460.26 248.05 164.93
Notes to the Consolidated Financial Statements
4. Property, plant and equipment and capital work-in-progress (contd..)
A Plant and equipment held under finance lease
The group has acquired medical equipment and building under finance lease agreement. The lease provides the Group with the option to
purchase the equipment at the end of lease term at a beneficial price. The leased equipment secures the related lease obligation.

The gross and net carrying amount of the medical equipment and building acquired under finance lease and included in the above are
as follows:

H in Millions
Particulars Medical equipment Building
As at As at As at As at
31 March 2018 31 March 2017 31 March 2018 31 March 2017
Cost 25.00 25.00 1,101.56 -
Accumulated depreciation 9.32 7.57 58.75 -
Net carrying amount 15.68 17.43 1,042.81 -

5. Goodwill and other intangible assets

H in Millions
Particulars Goodwill on Brand name, Payor Software Other Total
consolidation tradename and relationship intangibles

Financial Statements
trademark
Gross carrying value
Balance at 1 April 2016 4,465.13 1.03 - 235.05 187.13 4,888.34
Additions - 0.14 - 26.23 46.87 73.24
Acquisition through business combinations
(refer note 39) 2,428.00 476.06 130.05 4.08 - 3,038.19
Disposals - - - (1.31) (46.73) (48.04)
Exchange difference on translation (103.57) (5.50) (0.67) (3.04) (6.85) (119.63)
Balance at 31 March 2017 6,789.56 471.73 129.38 261.01 180.42 7,832.10
Balance at 1 April 2017 6,789.56 471.73 129.38 261.01 180.42 7,832.10
Additions - 0.14 - 22.99 2.25 25.38
Acquisition through business combinations
(refer note 39) 333.38 - - 0.94 - 334.32
Disposals - - - (1.10) - (1.10)
Exchange difference on translation 10.26 0.28 0.03 0.32 0.57 11.46
Balance at 31 March 2018 7,133.20 472.15 129.41 284.16 183.24 8,202.16
Accumulated amortisation and impairment losses
Balance at 1 April 2016 46.27 0.59 - 55.07 85.68 187.61
Impairment / Amortisation for the year 4.56 37.11 10.50 62.27 10.41 124.85
Disposals - - - (1.28) - (1.28)
Exchange difference on translation (1.11) (0.37) (0.04) (1.50) (4.85) (7.87)
Balance at 31 March 2017 49.72 37.33 10.46 114.56 91.24 303.31
Balance at 1 April 2017 49.72 37.33 10.46 114.56 91.24 303.31
Impairment / Amortisation for the year - 48.15 10.99 65.12 46.52 170.78
Disposals - - - (0.95) - (0.95)
Exchange difference on translation 0.09 0.13 - 0.31 0.72 1.25
Balance at 31 March 2018 49.81 85.61 21.45 179.04 138.48 474.39
Carrying amount (net)
At 31 March 2018 7,083.39 386.54 107.96 105.12 44.76 7,727.77
At 31 March 2017 6,739.84 434.40 118.92 146.45 89.18 7,528.79

Annual Report 2017-18 183

Notes to the Consolidated Financial Statements
5. Goodwill and other intangible assets (contd..)
Impairment testing for cash-generating units containing goodwill.

For the purpose of impairment testing, goodwill is allocated to the Group’s operating divisions which represent the lowest level within the
Group at which the Goodwill is measured for internal management purposes, which is not higher than the Group’s operating segments.

The aggregate carrying amount of goodwill allocated to each unit are as follows :

H in Millions
As at As at
31 March 2018 31 March 2017
Medcare Hospital LLC, UAE 1,044.92 1,043.06
Sanad Al Rahma for Medical Care LLC, KSA 1,013.74 1,011.94
Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited, India 1,749.70 1,749.70
Al Raffah Hospital, Oman 390.84 390.14
Harley Street Group , UAE 726.27 655.19
Malabar Institute of Medical Sciences Limited, India 400.59 400.59
Pharmacies - GCC states 1,226.03 962.08
Others 531.30 527.14
7,083.39 6,739.84

Goodwill was tested for impairment annually in accordance with the Group’s procedure for determining the recoverable value of such
assets. For the purpose of impairment testing, goodwill is allocated to a cash generating unit (“”CGU””) representing the lowest level
within the Group at which the goodwill is monitored for internal management purposes, and which is not higher than the Group’s
operating segment. The recoverable amount of the CGU is the higher of fair value less cost to sell (“”FVLCTS””) and its value in use
(“”VIU””). The FVLCTS of the CGU is determined based on the market capitalisation approach, using the turnover and earnings multiples
derived from observed market data. The VIU is determined based on discounted cash flow projections. Key assumptions on which the
Group has based its determination of VIUs include:

a) Estimated cash flow for five years based on formal approved internal management budgets with extrapolation of remaining period,
wherever such budgets were shorter than the five years period.

b) Terminal value arrived by extrapolating last forecasted year cash flows to perpetuity using long-term growth rates. These long-term
growth rates take into consideration external macroeconomic sources of data. Such long-term growth rate considered does not
exceed that of the relevant business and industry.

The key assumptions used in the estimation of recoverable amount are set out below. The values assigned to the key assumptions
represents management’s assessment of future trends in the relevant industries and have been based on historic data from both
internal and external sources.

H in Millions
As at
31 March 2018
Discount rate 16.8% - 20.0%
Terminal value growth rate 2.0% - 3.0%
Weighted average cost of capital (WACC) before tax - equity 15.5% - 22.0%
Weighted average cost of capital (WACC) before tax - debt 6.0%

The Company has performed sensitivity analysis around the base assumptions and have concluded that no reasonable changes in key
assumptions would cause the recoverable amount of the CGU to be less than the carrying value.

184 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
6. Investments
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current investments
Equity shares
Shares at FVTPL
Janata Sahakari Bank Limited, Pune (1,000 equity shares of H10 each) 0.01 0.01
0.01 0.01
Current investments
Investment in liquid mutual funds, unquoted at FVTPL 246.87 215.61
246.88 215.62
Aggregate book value of quoted and unquoted investments 246.88 215.62
Aggregate market value of quoted and unquoted investments - -

7. Other financial assets

H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Unsecured, considered good

Financial Statements
Rent and other deposits 406.12 380.01
Restricted deposits 325.34 444.63
Interest accrued on fixed deposits with banks 0.03 0.56
Advance given to equity accounted investees 1,134.77 1,257.27
Other financial assets 69.45 137.50
1,935.71 2,219.97
Current
Unsecured, considered good
Rent and other deposits 163.18 278.78
Unbilled revenue 459.92 2,032.77
Interest accrued on fixed deposits with banks 10.62 9.68
Other financial assets 8.50 7.37
642.22 2,328.60
2,577.93 4,548.57
Note 1: For the details of related party transactions refer note 42.

8. Other assets
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Advances for capital goods 1,049.80 1,835.56
Deferred lease expense 359.96 359.61
Prepayments 727.04 328.11
2,136.80 2,523.28
Current
Prepayments 1,384.24 1,233.32
Balances with statutory / government authorities 53.69 6.94
Payment to vendors for supply of goods and services 168.97 100.08
Advance against investment* - 79.80
Deferred lease expense 26.67 26.51
Other loans and advances 1,435.23 1,081.44
3,068.80 2,528.09
5,205.60 5,051.37
* Represents advance given for investment in Sri Sainatha Multi-Speciality Hospital Private Limited in the financial year 2014- 15 deposited in an escrow account
jointly held by the directors of Sri Sainatha Multi-Speciality Hospital Private Limited and the Company. The amount has been converted to equity shares of the
Company during the current financial year.

Annual Report 2017-18 185

Notes to the Consolidated Financial Statements
9. Inventories
H in Millions
As at As at
31 March 2018 31 March 2017
(Valued at lower of cost and net realisable value)
Stock in trade including medical consumables 6,132.08 5,085.27
Stores and spares 138.17 170.12
6,270.25 5,255.39

10. Trade receivables

H in Millions
As at As at
31 March 2018 31 March 2017
Current
Unsecured
considered good 15,463.93 12,876.18
considered doubtful 3,294.58 3,078.40
18,758.51 15,954.58
Allowances for expected credit loss (3,294.58) (3,078.40)
Net trade receivables 15,463.93 12,876.18
a) Of the above, trade receivables from related parties are as below:
Total trade receivables from related parties - 1.04
Loss allowance - -
- 1.04

11. Cash and cash equivalents

H in Millions
As at As at
31 March 2018 31 March 2017
Balance with banks
- in current accounts 1,274.60 1,248.28
- in deposit accounts 650.30 26.19
Cash on hand 116.78 98.74
2,041.68 1,373.21
Less : Book overdraft (refer note 15) (125.27) (15.80)
Less : Bank overdraft used for cash management purposes (refer note 14) - (47.29)
Cash and cash equivalents in the statement of cash flows 1,916.41 1,310.12

12. Other bank balances

H in Millions
As at As at
31 March 2018 31 March 2017
Balance in banks for margin money 375.72 79.85
In deposit accounts (with original maturity of more than 3 months) 580.36 67.63
956.08 147.48

186 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
13. Share capital
H in Millions
Particulars As at 31 March 2018 As at 31 March 2017
Number Amount Number Amount
of shares of shares
(in millions) (in millions)
Authorised
Equity shares of H10 each 550.00 5,500.00 550.00 5,500.00
Compulsory convertible preference shares ('CCPS') of H10 each 66.20 662.00 66.20 662.00
616.20 6,162.00 616.20 6,162.00
Issued, subscribed and paid-up
Equity shares of H10 each 505.23 5,052.29 403.22 4,032.22
Compulsory convertible preference shares ('CCPS') of H10 each - - 64.01 640.10
505.23 5,052.29 467.23 4,672.32
Reconcilation of shares outstanding at the beginning and
at the end of the reporting period
Equity shares of H.10 each fully paid-up
At the beginning of the year 403.22 4,032.22 403.05 4,030.52
Conversion of CCPS to equity (Refer Note (a) below) 63.85 638.49 - -
Shares issued for cash 38.16 381.58 0.17 1.70
At the end of the year 505.23 5,052.29 403.22 4,032.22

Financial Statements
Preference shares of H10 each fully paid-up
Series A compulsory convertible preference share capital
At the beginning of the year 12.76 127.63 - -
Conversion of financial liability to equity - - 12.76 127.63
Conversion of CCPS to equity (Refer Note (a) below) (12.76) (127.63) - -
At the end of the year - - 12.76 127.63
RAR compulsory convertible preference share capital
At the beginning of the year 51.10 510.99 - -
Conversion of financial liability to equity - - 51.10 510.99
Conversion of CCPS to equity (Refer Note (a) below) (51.10) (510.99) - -
At the end of the year - - 51.10 510.99
Total 505.23 5,052.29 467.08 4,670.83

(a) 13.85% Series A compulsory convertible preference shares of H10 each and 50.16 RAR compulsory convertible preference shares of
H10 each (aggregate face value of H640.10) were issued during the year 2014-15 and 2015-16 respectively, were initially classified as
financial liabilities. However, modification to the terms of these instruments in March 2017 led to the extinguishment of the related
financial liabilities and the recognition of the same as equity. Subsequently, on 20 November 2017, the Series A and RAR compulsory
convertible preference shares have been converted into 12.76 and 51.09 equity shares respectively, in the Company.

(b) Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. All equity shares rank equally with regard to dividends and share in the Company’s
residual assets. The equity shares are entitled to receive dividend as declared from time to time and subject to dividend payable
to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands) is in proportion to the
shareholders’ share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which
any call or other sums presently payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining
after distribution of all preferential amounts in proportion to the number of equity shares held.

(c) Rights, preferences and restrictions attached to Series A compulsory convertible preference shares

0.00001% Series A, compulsory convertible preference shares (Series A CCPS) of H10 each.

Annual Report 2017-18 187

Notes to the Consolidated Financial Statements
13. Share capital (contd..)
Upon expiry of the 9th anniversary of the Completion Date, the Series A CCPS shall be compulsorily converted in to equity shares of
the Company as per the manner mentioned in the share subscription agreement.

The Series A CCPS shall confer on the holder the right to receive, in priority to the holders of any other class of shares in the capital
of the Company, a preference dividend on the face value of the Series A CCPS, such dividend to be apportioned and paid up on the
Series A CCPS during any portion or portions of the period in respect of which the preference dividend is paid.

Rights to receive preference dividend shall be cumulative, and the right to receive the preference dividend shall accrue to the holders
of the Series A CCPS whether the preference dividend is declared or not in any year.

The holder of Series A CCPS shall also be entitled to any dividend declared on the equity shares of the Company by the Board on an
accrual basis with respect to the Series A CCPS held by such holder on an as if converted basis, ie. based on the actual number of
equity shares which the Series A CCPS will be entitled to upon conversion.

On distribution of capital in the event of liquidation, dissolution or winding up of the Company, the distributable amount shall be
applied first in paying to the preference shareholders, an amount equal to the sum of subscription price (less any amount that may
have been received by the preference shareholders on sale of any of their securities) , the preference shareholders purchase price
(less any amount that may have been received by preference shareholders on sale of any of their sale shares) and any arrears and
accruals of the unpaid preference dividend on the CCPS, dividend on the CCPS on as if converted basis and dividend on the shares
and liquidation preference amount subject to the conditions mentioned.

Each holder of a Series A CCPS shall be entitled to convert the Series A CCPS into shares as per the terms mentioned in the agreement.
The conversion price will be adjusted based on future bonus issue, issuances arising from exercise of any stock options, share
splits, consolidation, reorganization and other situations mentioned in the agreement. The right to convert Series A CCPS shall be
exercisable by the holder at any time prior to the expiry of the Series A CCPS term by delivering to the Company a notice in writing of
its desire to convert any Series A CCPS, provided that such notice shall specify the number of Series A CCPS that the holder desires
to convert.

(d) Rights, preferences and restrictions attached to RAR compulsorily convertible preference shares (RAR CCPS)

0.00001% RAR, compulsorily convertible preference shares “RAR CCPS” of H10 each were issued during the year ended 31 March 2016.

The RAR CCPS will compulsorily be converted on the earlier of

- the date upon which the final conversion of outstanding Series A CCPS into equity shares occurs and

- the expiration of the RAR CCPS Term as per the agreement

The right to receive the preference dividend shall accrue to the holders of the RAR CCPS whether the preference dividend is declared
or not in any year.

The RAR CCPS shall confer on the holder the right to receive a preference dividend of 0.00001% per annum on the face value of
the RAR CCPS. The right to receive preference dividend shall be cumulative. The holders of RAR CCPS shall also be entitled to any
dividend declared on the equity shares of the Company by the Board on an accrual basis with respect to the RAR CCPS held by such
holder on an as if converted basis, i.e. based on the actual number of equity shares which the RAR CCPS will be entitled to upon
conversion. It is clarified that the dividend rights of the holders of RAR CCPS shall be pari-passu to the dividend rights enjoyed by the
holders of the Series A CCPS.

On distribution of capital in the event of liquidation, dissolution or winding up of the Company, the distributable amount shall be
applied first in paying to the preference shareholders, an amount equal to the sum of subscription price (less any amount that may
have been received by the preference shareholders on sale of any of their securities) the preference shareholders purchase price
(less any amount that may have been received by preference shareholders on sale of any of their sale shares) and any arrears and
accruals of the unpaid preference dividend on the CCPS, dividend on the CCPS on as if converted basis and dividend on the shares
and liquidation preference amount subject to the conditions mentioned.

Each holder of a RAR CCPS shall be entitled to convert the RAR CCPS into equity shares as per the terms mentioned in the agreement.
The conversion price will be adjusted based on future bonus issue, issuances arising from exercise of any stock options, share splits,
consolidation, reorganization and other situations mentioned in the agreement. The right to convert RAR CCPS shall be exercisable

188 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
13. Share capital (contd..)
by the holder at any time prior to the expiry of the RAR CCPS term by delivering to the Company a notice in writing of its desire to
convert any RAR CCPS, provided that such notice shall specify the number of RAR CCPS that the holder desires to convert.

(e) Employee stock options

Terms attached to stock options granted to employees are described in note 41 regarding employee share based payments.

(f) Shares held by ultimate holding company/ holding company and their subsidiaries/ associates

As at 31 March 2018 As at 31 March 2017

Number Amount Number Amount
of shares of shares
(in millions) (in millions)
Equity shares of J10 each fully paid-up held by
Union Investment Private Limited, Mauritius, ultimate
holding company (till 22 February 2018) 188.71 1,887.06 207.56 2,075.55

(g) Details of shareholders holding more than 5% shares of the Company

As at 31 March 2018 As at 31 March 2017

Number % Number %
of shares of shares

Financial Statements
(in millions) (in millions)
Equity shares of J10 each fully paid -up held by
Union Investments Private Limited, Mauritius 188.71 37.35% 207.56 51.47%
Olympus Capital Asia Investments Limited, Mauritius 117.79 23.32% 105.58 26.18%
IVF Trustee Company Private Limited 46.54 9.21% 46.54 11.54%
Rimco (Mauritius) Limited 51.09 10.11% - -
Compulsory Convertible Preference shares of J10 each fully
paid up held by
Olympus Capital Asia Investments Limited, Mauritius - - 9.31 67.20%
Indium IV (Mauritius) Holdings Limited - - 4.54 32.80%
RAR Compulsory Convertible Preference shares of J10 each
fully paid up held by
Rimco (Mauritius) Limited, Mauritius - - 50.16 100.00%

(h) Shares reserved for issue under options and contracts

As at 31 March 2018 As at 31 March 2017

Number Amount Number Amount
of shares of shares
(in millions) (in millions)
Under Employee Stock Option Scheme, 2013 :1,368,232
equity shares of H10 each, at an exercise price of H50 per
share (See note 41) 1.09 54.50 1.37 68.50
Under Employee Stock Option Scheme, 2013 :3,23,000 equity
shares of H10 each, at an exercise price of H10 per share (See
note 41) 0.68 6.80 0.32 3.20
Under Employee Stock Option Scheme, 2013 :3,23,000 equity
shares of H10 each, at an exercise price of H175 per share (See
note 41) 0.24 42.00 - -
Under Employee Stock Option Scheme, 2013 :3,23,000 equity
shares of H10 each, at an exercise price of H142 per share (See
note 41) 0.48 68.16 - -
For compulsorily convertible Series A preference shares:
12,763,021 equity shares of H10 each - - 12.76 127.63
For compulsorily convertible RAR preference shares:
51,098,785 equity shares of H10 each - - 51.10 510.99

Annual Report 2017-18 189

Notes to the Consolidated Financial Statements
13. Share capital (contd..)
(i) Details of bonus shares issued for consideration other than for cash during the past 5 years

- During the financial year 2013-14, 249.68 million equity shares and during the financial year 2012-13, 124.72 million equity
shares of H10 each, fully paid-up, have been allotted as bonus shares by capitalisation of securities premium.

(j) Details of shares issued for consideration other than for cash during the past 5 years

- During the year 2015-16, 4.91 million shares have been allotted as consideration for swap of shares with the shareholders of
Malabar Institute of Medical Science Limited.

- During the year 2015-16, 7.03 shares have been allotted as per the scheme of amalgamation with Indogulf Hospitals India
Private Limited.

(k) Details of buyback for consideration other than for cash during the past 5 years

- The Company has not bought back any class of equity shares during the period of five years immediately preceding the balance
sheet date.

13 B. Analysis of accumulated other comprehensive income, net of tax

a. Items of other comprehensive income

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Remeasurement of net defined benefit liability/ (asset) 82.20 (61.53)
Exchange difference in translating financial statements of foreign operations 21.70 (262.04)

i) Remeasurement of net defined benefit liability/ (asset)

H in Millions
As at As at
31 March 2018 31 March 2017
Remeasurement of net defined benefit liability/ (asset) 82.20 (61.53)
Non-controlling share of remeasurement of net defined benefit liability/ (asset) (6.48) 7.38
Transferred to retained earnings (75.72) 54.15
Closing balance - -

ii) Exchange difference in translating financial statements of foreign operations

H in Millions
As at As at
31 March 2018 31 March 2017
Opening balance 235.99 455.61
Exchange difference in translating financial statements of foreign operations 21.70 (262.04)
Exchange difference in translating financial statements of foreign operations on
capital reserve (0.62) 7.40
Exchange difference in translating non-controlling interest (1.26) 35.02
Closing balance 255.81 235.99

190 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
13. Share capital (contd..)
b. Disaggregation of changes in items of other comprehensive income

Attributable to owners of the Company Total Attributable Total other

Exchange difference Remeasurement of attributable to non- comprehensive
in translating net defined benefit to owners of controlling income
financial statements liability/ (asset) the Company interest
of foreign operations
Year ended 31 March 2017
Exchange difference in translating financial (227.02) - (227.02) (35.02) (262.04)
statements of foreign operations
Remeasurement of net defined benefit - (54.15) (54.15) (7.38) (61.53)
liability/ (asset)
(227.02) (54.15) (281.17) (42.40) (323.57)
Year ended 31 March 2018
Exchange difference in translating financial 20.44 - 20.44 1.26 21.70
statements of foreign operations
Remeasurement of net defined benefit - 75.72 75.72 6.48 82.20
liability/ (asset)
20.44 75.72 96.16 7.74 103.90

Notes:

Financial Statements
i) Exchange difference in translating financial statements of foreign operations

These comprise of all exchange differences arising from the translation of financial statements of foreign operations.

ii) Remeasurement of net defined benefit liability/ (asset)

Remeasurement of net defined benefit liability/ (asset) comprises acturial gains and losses and return on plan asset (excluding interest income).

14. Borrowings
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Secured
Term loans from banks 14,699.96 18,892.59
Long-term maturities of finance lease obligations 1,078.56 12.47
15,778.52 18,905.06
Current
Unsecured
Temporary overdraft from a bank - 47.29
Cash credit and overdraft facilities from banks 550.43 489.35
Commercial paper - 94.27

Secured
Cash credit and overdraft facilities from banks 5,712.35 7,322.70
Short term loans 82.43 345.17
Loan from others - 5.66
6,345.21 8,304.44
Amount included under other financial liabilities (refer note 15) 1,392.01 367.42
23,515.74 27,576.92

Annual Report 2017-18 191

Notes to the Consolidated Financial Statements
14. Borrowings (contd..)
Information about the Company's exposure to interest rate and liquidity risks are included in note 36.

The bank facilities have the following securities:

a) Parent

- Equitable mortgage on certain immovable properties of the Company and of certain Indian subsidiaries of the Company.

- Corporate guarantee of DM Med City Hospitals India Private Limited and Ambady Infrastructures Private Limited.

- Charge on movable properties (comprising plant and machinery, furniture and fittings, vehicles and other movable assets), present
and future, of the Company

- First charge on entire cashflows of the Aster Medcity project (to be routed through the escrow account).

- Assignment of contractor guarantees, liquidated damages, letter of credit, guarantee or performance bonds that may be provided by
any counter party under any project agreement or contract in favour of the borrower and insurance policies.

- Demand promissory note provided as continuing security.

- Commercial mortgage on immovable assets, medical equipments, machineries, tools / accessories, furniture and fixtures, inventories
and receivables of Aster CMI, Bangalore.

- First and exclusive charge on current assets, operating cash flows, receivable, commissions, revenues of whatsoever nature and
wherever arising, present and future, intangible, goodwill, uncalled capital, present and future of Aster CMI, Bangalore.

- There is no continuing default in the repayment of the principal loan and interest amounts.

b) Indian subsidiaries

- Commercial mortgage on immovable assets, medical equipments, machineries, tools / accessories, furniture and fixtures, inventories
and receivables of certain subsidiaries of the Company.

- First, fixed and exclusive charge on the medical equipments, vehicles, fixed deposits, post dated cheques and present and future
receivables.

- Equitable mortgage on certain immovable properties, leasehold rights of the Company, fixed deposits and of certain Indian
subsidiaries of the Company.

- Corporate guarantee of the holding company.

- Charge on movable properties (comprising plant and machinery, furniture and fittings, vehicles and other movable assets), present
and future, of the Company and of its Indian Subsidiaries.

- Assignment of receivables from insurance companies of certain foreign subsidiaries of the Company in favor of the bank.

- Personal guarantees of shareholders / directors and equitable mortgage of two properties belonging to a director of one of the
subsidiaries.

- There is no continuing default in the repayment of the principal loan and interest amounts.

c) Foreign subsidiaries

- Commercial mortgage on medical equipment, machineries, tools / accessories, furniture & fixtures, inventories and receivables;

- Promissory note and bank guarantees

- Insurance of medical equipment, machineries, tool and other accessories, furniture and fixtures, computers and motor vehicles in
favour of the bank;

- Corporate guarantee of the subsidiaries and security cheques;

192 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
14. Borrowings (contd..)
- Insurance of inventories in favour of the bank;

- Assignment of receivables from insurance companies in favour of the bank and assignment of point of sale collection

- Vehicle mortgage

- Pledge of accounts and shares

- Assignment and subordination of shareholders loans;

- Assignment of credit card receivables and insurance receivables and hypothecation of assets of the Group;

- Pledge of equity interest held by Affinity Holdings Private Limited in a subsidiary.

A Terms and conditions of non-current borrowings (including current maturities) are as follows:

H in Millions
Particulars Borrowed Interest rate Maturity Currency As at As at
by Parent/ period 31 March 2018 31 March 2017
subsidiaries
Secured loan from banks Parent 8.95% - 10.70% 2018 - 2019 INR 266.17 5,480.63
Secured loan from banks Subsidiaries 8.35% - 12.25% 2018 - 2031 INR 2,373.14 2,389.19
Secured loan from banks Subsidiaries 2.84% - 5.00% 2018 - 2024 AED 174.51 817.71

Financial Statements
Secured loan from banks Subsidiaries 3.23% - 6.00% 2018 - 2021 QAR 470.71 501.94
Secured loan from banks Subsidiaries 4.45% - 5.05% 2018 - 2024 USD 12,766.86 10,027.11
Secured loan from banks Subsidiaries 4.25% 2018 - 2019 OMR 9.60 38.59
Finance lease Subsidiaries 11.52% 2020 INR 12.91 17.31
Finance lease Subsidiaries 6.00% 2018 - 2042 QAR 1,096.63 -
17,170.53 19,272.48

B Terms and conditions of current borrowings are as follows:

H in Millions
Particulars Borrowed Interest rate Maturity Currency As at As at
by Parent/ period 31 March 2018 31 March 2017
subsidiaries
Unsecured loan from banks Parent 9.50% - 10% 2018 - 2019 INR 347.69 630.91
Secured loan from banks Parent 9% - 10.70% 2018 - 2019 INR 484.88 341.79
Secured loan from banks Subsidiaries 9% - 11.52% 2018 - 2019 INR 107.64 108.74
Secured loan from banks Subsidiaries 3.7% - 5.00% 2018 - 2019 AED 3,565.56 6,165.52
Secured loan from banks Subsidiaries 5.00% 2018 - 2019 QAR 47.73 1.49
Secured loan from banks Subsidiaries 3.50% 2018 - 2019 USD 1,296.22 642.21
Secured loan from banks Subsidiaries 4.50% - 5.00% 2018 - 2019 OMR 352.73 413.78
Secured loan from banks Subsidiaries 5.75% 2018 - 2019 JOD 142.76 -
6,345.21 8,304.44

C Changes in liabilities and financial assets arising from financing activities

H in Millions
Particulars As at Cash flows Non-cash changes As at
31 March 2017 Acquisition Foreign Exchange Fair Value 31 March 2018
Movement changes
Non-current borrowings 19,255.18 (3,228.22) - 34.03 - 16,060.99
Current borrowings 8,304.44 (1,959.57) - 0.34 - 6,345.21
Finance lease 17.31 1,084.74 - 7.49 - 1,109.54
Total 27,576.92 (4,103.05) - 41.86 - 23,515.74

Annual Report 2017-18 193

Notes to the Consolidated Financial Statements
14. Borrowings (contd..)
D Finance leases

H in Millions
As at 31 March 2018 As at 31 March 2017
Particulars Future Interest element Present value Future Interest element Present value
minimum lease of minimum of minimum minimum lease of minimum of minimum
payments lease payments lease payments payments lease payments lease payments
Within less than one year 96.99 65.04 30.98 6.59 1.74 4.84
Between 1 and 5 years 463.11 293.85 169.26 14.03 1.56 12.47
After more than 5 years 1,423.72 506.72 909.30 - - -
Total 1,983.82 865.61 1,109.54 20.62 3.30 17.31

Above finance lease inlcudes lease agreement entered by subsidiary with Al Estiana Real Estate Development WLL to obtain the hospital
building for a period of 25 years

15. Other financial liabilties

H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Payable to non-controlling interest on account of business combination 158.84 158.56
Other financial liabilities 22.57 -
181.41 158.56
Current
Current maturities of non-current borrowings 1,361.03 362.58
Current maturities of finance lease obligations 30.98 4.84
Book overdraft 125.27 15.80
Interest accrued but not due on borrowings* 11.09 60.50
Dues to holding company 26.99 10.37
Payable to non controlling interest towards account of business combination (refer note 39) 194.58 649.21
Payable to partners in clinics 113.99 171.76
Accrued salaries and benefits 1,531.95 1,489.23
Dues to creditors for expenses and others 2,630.54 1,772.06
Dues to creditors for capital goods 368.33 434.80
Security deposits from employees and from others 25.23 31.93
6,419.98 5,003.08
6,601.39 5,161.64
* The details of interest rates, repayment and other terms are disclosed in note 14
The Company’s exposure to currency and liquidity risk related to the above financial liabilities is disclosed in note 36

16. Provisions
H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Provision for employee benefits
Net defined benefit liability - Gratuity 76.28 59.52
Compensated absences [ refer note (a) below ] 43.07 27.03
Net defined benefit liability - post employment benefits 1,791.16 1,661.58
1,910.51 1,748.13

194 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
16. Provisions (contd..)
H in Millions
As at As at
31 March 2018 31 March 2017
Current
Provision for employee benefits
Net defined benefit liability - gratuity 10.75 11.75
Compensated absences [ refer note (a) below ] 15.48 10.89
Net defined benefit liability - post employment benefits 326.91 196.57
Other provisions
Zakat payable* [ refer note (b) below ] 108.35 77.95
Total current provisions 461.49 297.16
Total provisions 2,372.00 2,045.29
* Zakat payable is the amount provided for in accordance with the Saudi Arabian Zakat and Income Tax regulations
(a) Movement of compensated absences
Balance at the beginning 37.92 24.14
Provision made during the year (net of benefits paid) 20.63 13.78
Balance at the end 58.55 37.92
(b) Movement of zakat payable
Balance at the beginning 77.95 229.58
Zakat charges 42.07 -

Financial Statements
Payment/ adjustments made during the year (11.67) (151.63)
Balance at the end 108.35 77.95

17. Other liabilities

H in Millions
As at As at
31 March 2018 31 March 2017
Non-current
Lease equalisation reserve 550.43 444.10
550.43 444.10
Current
Advances received from customers 168.02 204.12
Statutory dues payables 143.56 106.15
Others 121.22 19.31
432.80 329.58
983.23 773.68

18. Trade payables

H in Millions
As at As at
31 March 2018 31 March 2017
Dues to micro and small enterprises 0.28 0.79
Dues to trade creditors other than micro and small enterprises 8,456.59 7,824.16
8,456.87 7,824.95

Annual Report 2017-18 195

Notes to the Consolidated Financial Statements
18. Trade payables (contd..)
Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act") based on the information
available with the Company are given below:

H in Millions
As at / Year ended As at / Year ended
31 March 2018 31 March 2017
The principal amount remaining unpaid to any supplier as at the end of the year. 0.28 0.79
The interest due on the principal remaining outstanding as at the end of the year 0.01 0.02
The amount of interest paid under the Act, along with the amounts of the payment made
beyond the appointed day during the year. - -
The amount of interest due and payable for the period of delay in making payment
(which have been paid but beyond the appointed day during the year) but without adding
the interest specified under the Act. 0.09 0.11
The amount of interest accrued and remaining unpaid at the end of the year. 0.53 0.43
The amount of further interest remaining due and payable even in the succeeding years,
until such date when the interest dues as above are actually paid to the small enterprise,
for the purpose of disallowance as a deductible expenditure under the Act. - -

19. Revenue from operations

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Income from hospital services 47,505.71 41,697.58
Sale of medicines 18,668.04 16,452.51
Income from healthcare consultancy 58.38 33.31
Other operating revenue 979.48 1,129.47
67,211.61 59,312.87

20. Other income

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Interest income under the effective interest method on
Fixed deposits with banks 25.01 23.00
Lease deposits 23.03 16.63
Rental income 43.18 36.65
Income from hospital canteen 30.62 30.65
Dividend on non-current investments - 3.18
Profit on sale of property, plant and equipment 13.37 0.72
Dividend income from mutual funds - 4.16
Gain on sale of investment 7.96 1.82
Other non-operating income 311.18 249.34
454.35 366.15

21. Purchase of medicines and consumables

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Medicines and consumables 21,604.30 20,021.63
21,604.30 20,021.63

196 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
22. Change in inventories
H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Medicines and medical consumables:
Opening stock 5,255.39 4,107.03
Closing stock 6,270.25 5,255.39
(1,014.86) (1,148.36)

23. Employee benefits expenses

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Salaries and allowances 21,869.27 19,752.64
Contribution to provident and other funds 230.70 166.66
Equity settled share based payments 43.44 50.66
Staff welfare expenses 567.89 575.05
22,711.30 20,545.01

Financial Statements
24. Finance costs
H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Interest expense on borrowings from banks 1,725.48 1,434.91
Interest expense on financial liabilities measured at amortised cost - 1,599.88
Other borrowing costs 120.94 501.20
1,846.42 3,535.99

25. Depreciation and amortisation expense

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Depreciation on property, plant and equipment (refer Note 4) 2,806.66 3,104.15
Amortisation on intangible assets (refer Note 5) 170.78 120.29
2,977.44 3,224.44

26. Other expenses

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Professional fee paid to doctors 5,151.45 4,362.61
Hospital operation and management fees 169.19 139.63
Lab expenses 226.52 195.57
Consumables 99.83 160.71
Power and fuel 863.10 718.38
Housekeeping and security 706.12 739.44
Rent 3,027.40 2,658.36
Insurance 229.36 202.69

Annual Report 2017-18 197

Notes to the Consolidated Financial Statements
26. Other expenses (contd..)
H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Repairs and maintenance:
- Buildings 24.09 50.86
- Plant and machinery 190.10 149.58
- Others 791.86 571.10
Rates and taxes 535.59 445.35
Advertising and promotional expenses 1,197.31 1,461.66
Legal, professional and consultancy 336.14 324.52
Printing and stationery 196.19 174.19
Fair value movement in derivative instrument 1.70 -
Communication expense 272.74 235.15
Canteen expense 262.92 234.13
Travelling expense 246.29 227.27
Allowances for expected credit losses on financial assets 1,095.83 1,947.68
Impairment loss on non-current assets (non-financial) - 4.56
Net loss on account of foreign exchange fluctuations 9.92 0.22
Bank charges 194.93 172.77
Expenditure on corporate social responsibility 10.58 7.19
Miscellaneous expenses 1,943.86 1,389.77
17,783.02 16,573.39

27. Exceptional items

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Net gain on account of extinguishment of financial liabilities (Refer Note A) - 3,591.89
Contingent consideration written back (Refer Note B) 450.91 2,368.82
Allowance for credit losses on prior year receivables (Refer note C) - (1,801.65)
Receipt against prior year allowances for credit losses on receivables (Refer note C) 845.51 -
1,296.42 4,159.06

A. Modification of the terms of Series A and RAR Compulsorily Convertible Preference Shares in March 2017 has led to the extinguishment
of the related financial liabilities and the recognition of equity with effect from the date of modification. The difference between the
carrying value of the liability and the fair value of the equity instrument at the date of modification, amounting to H3,591.89 has been
recognized in the statement of profit and loss for the year ended 31 March 2017.

B. During the year ended 31 March 2016, the Company had acquired a portion of the non controlling interest in its controlled subsidiary
Sanad Al Rahma for Medical Care LLC, KSA (‘Sanad’). The purchase consideration included a contingent consideration payable to
the sellers based on future performance of Sanad. The Company carried a liability of H3,040.23 as at 31 March 2016 relating to the
contingent consideration. Based on the expected performance of Sanad, an independent valuation of the contingent consideration
revised the expected liability to H194.58 million as at 31 March 2018 (31 March 2017 - H671.41). This downward revision of the
expected liability has resulted in a gain of H450.91 (31 March 2017 - H2,368.82) (net of foreign currency translation difference) which
has been recognized in the statement of profit and loss.

C. During the year ended 31 March 2017, Sanad has entered into a settlement agreement with certain large customers from whom
significant amounts were due for services provided in earlier years. The settlement has resulted in Sanad writing-off a significant
portion of these receivables, resulting in a loss of H1,801.65 during the year ended 31 March 2017.During the current year, Sanad has
recovered an amount of H845.51 out of the previously written off receivables, which has been classified as exceptional income.

198 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
28. Deferred tax asset/ liabilities
H in Millions
As at As at
31 March 2018 31 March 2017
Deferred tax asset 49.00 30.30
Deferred tax liabilities 1,423.34 1,436.61
(1,374.34) (1,406.31)

(i) Deferred tax charge/ (benefit) recognised during the year

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Origination and reversal of temporary differences (31.51) 2.33
(31.51) 2.33

(ii) Deferred tax assets and liabilities are attributable to the following:

H in Millions
As at As at
31 March 2018 31 March 2017

Financial Statements
Deferred tax asset
MAT credit entitlement 49.00 28.61
Provision for employee benefits 20.07 1.69
Provision for doubtful debts and advances 7.58 -
Unabsorbed business loss including from specified business 1,551.07 1,418.91
Total deferred tax asset 1,627.72 1,449.21
Deferred tax liability
On account of fair valuation of land * (1,130.36) (1,109.81)
Excess of depreciation on property, plant and equipment under Income Tax Act, 1961 (1,826.78) (1,703.91)
over depreciation under Companies Act.
Other financial assets (Deposit amortisation) (44.92) (41.80)
Total deferred tax liability (3,002.06) (2,855.52)
Deferred tax liability (net) (1,423.34) (1,436.61)
Deferred tax assets 49.00 30.30
* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

The Group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority. The Group has
recognised deferred tax assets arising out of tax losses (unabsorbed depreciation) to the extent of net deferred tax liability on account of
taxable temporary differences.

Annual Report 2017-18 199

Notes to the Consolidated Financial Statements
28. Deferred tax asset/ liabilities (contd..)
H in Millions
Movement during the year ended 31 March 2018 As at Credit/ (charge) Credit/ (charge) On account As at
31 March 2017 in the statement in other of business 31 March 2018
of profit and loss comprehensive combination
income
MAT credit entitlement 28.61 20.39 - - 49.00
Provision for employee benefits 1.69 18.38 - - 20.07
Provision for doubtful debts and advances - 7.58 - - 7.58
Unabsorbed business loss including from
specified business 1,418.91 132.16 - - 1,551.07
On account of fair valuation of land * (1,109.81) (21.02) 0.47 - (1,130.36)
Excess of depreciation on property, plant and
equipment under Income Tax Act, 1961 over
depreciation under Companies Act. (1,703.91) (122.87) - - (1,826.78)
Other financial assets (Deposit amortisation) (41.80) (3.12) - - (44.92)
(1,406.31) 31.51 0.47 - (1,374.34)
* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

H in Millions
Movement during the year ended 31 March 2017 As at Credit/ (charge) Credit/ (charge) On account As at
31 March 2016 in the statement in other of business 31 March 2017
of profit and loss comprehensive combination
income
MAT credit entitlement - 28.61 - - 28.61
Provision for doubtful debts and advances 3.04 (3.04) - - -
Provision for employee benefits 15.21 (12.18) (1.34) - 1.69
Unabsorbed business loss including from
specified business 1,469.64 (50.73) - - 1,418.91
On account of fair valuation land * (1,110.90) - 1.09 - (1,109.81)
Excess of depreciation on fixed asset under
Income Tax Act, 1961 over depreciation under
Companies Act (1,633.14) 31.10 - (101.87) (1,703.91)
Other financial assets (Deposit amortisation) (45.71) 3.91 - - (41.80)
(1,301.86) (2.33) (0.25) (101.87) (1,406.31)
* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

(iii) Unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items, because it is not probable that future taxable profit will
be available against which the Company can use the benefits therefrom:

H in Millions
As at 31 March 2018 As at 31 March 2017
Particulars Gross amount Unrecognised Gross amount Unrecognised
tax effect tax effect
Tax losses (business loss) 7,563.67 2,592.89 9,039.72 3,112.57
Tax losses (capital loss) 94.37 21.35 406.20 92.04
Tax losses (unabsorbed depreciation) 1,160.22 382.11 560.55 185.56
Total 8,818.26 2,996.35 10,006.47 3,390.17

200 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
28. Deferred tax asset/ liabilities (contd..)
(iv) Tax losses carried forward

H in Millions
As at 31 March 2018 As at 31 March 2017
Particulars Loss Expiry Loss Expiry
Brought forward losses - allowed to carry forward for specified
period 1,977.40 various dates 4,282.87 various dates
Brought forward losses from specified business - allowed to
carry forward for infinite period 5,680.64 - 5,163.05 -
Brought forward losses - allowed to carry forward for
infinite period 1,160.22 - 560.55 -
8,818.26 10,006.47

29. Income tax asset / liabilities

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Income tax asset 500.55 372.57
Income tax liabilities 118.50 253.03

Financial Statements
382.05 119.54

(i) Tax expense recognised in the Statement of Profit and Loss

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Current tax 97.56 77.25
Foreign income taxes 194.77 28.79
Total (A) 292.33 106.04

(ii) Reconciliation of effective tax rate

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Profit before tax 3,077.63 1,083.69
Statutory income tax rate 34.61% 34.61%
Tax expenses /(asset) 1,065.17 (375.07)
Income chargeable at special rate 194.77 132.86
Tax on exempt income (1,264.62) 294.64
Non-deductible expenses / permanent differences 212.08 441.24
Additional deduction on investment allowance 211.47 154.64
Un-recognised deferred tax assets (126.54) (542.27)
Income tax expense 292.33 106.04

Annual Report 2017-18 201

Notes to the Consolidated Financial Statements
30. Segment information
Ind AS 108 'Operating Segment' ('Ind AS 108') establishes standards for the way that business enterprises report information about
operating segments and related disclosures about products and services, geographic areas and major customers. Based on the
"management approach" as defined in Ind AS 108, operating segments are to be reported in a manner consistent with the internal
reporting provided to the Chief Operating Decision Maker (CODM). The CODM evaluates the Group's performance and allocates resources
on overall basis.

The Group has structured its business broadly into four verticals – Hospitals, clinics, retail pharmacies and others. The accounting
principles consistently used in the preparation of the financial statements are also consistently applied to record income and expenditure
in individual segments.

Income and direct expenses in relation to segments are categorised based on items that are individually identifiable to that segment,
while the remainder of costs are apportioned on an appropriate basis. Certain expenses are not specifically allocable to individual
segments as the underlying services are used interchangeably. The Group therefore believes that it is not practical to provide segment
disclosures relating to such expenses and accordingly such expenses are separately disclosed as unallocable and directly charged against
total income.

The assets of the Group are used interchangeably between segments and the management believes that it is currently not practical to
provide segment disclosures relating to certain assets and liabilities since a meaningful segregation is not possible.

A. Business segments :

The Group has the following business segments based on the information reviewed by Group's CODM :

i) Hospitals - comprises of hospitals and in-house pharmacies at the hospitals

ii) Clinics - comprises of clinics and in-house pharmacies at the clinics

iii) Retail Pharmacies - comprises standalone retail pharmacies

iv) Others - comprises of healthcare consultancy services and others

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Segment revenue
Hospitals 32,266.97 27,047.32
Clinics 17,769.22 16,229.16
Retail Pharmacies 17,151.34 15,977.65
Others 24.08 58.74
Total 67,211.61 59,312.87
Segment profit before income tax
Hospitals 1,838.50 777.93
Clinics 1,579.58 315.63
Retail Pharmacies 1,600.32 1,225.03
Others 1.75 3.52
Total 5,020.15 2,322.11
Segment profit before income tax includes :
Depreciation, amortisation and impairment
Hospitals 1,903.11 1,815.31
Clinics 731.77 1,084.35
Retail Pharmacies 258.89 190.45
Total 2,893.77 3,090.11
Other income, excluding finance income
Hospitals 299.57 297.71
Clinics 10.10 9.75
Total 309.67 307.46

202 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
30. Segment information (contd..)

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Segment assets
Hospitals 48,966.28 41,959.37
Clinics 12,202.08 12,473.44
Retail Pharmacies 9,725.55 9,589.24
Others 10.60 14.83
Unallocated 3,937.87 4,035.89
Total 74,842.38 68,072.77
Segment liabilities
Hospitals 14,244.50 19,256.75
Clinics 4,765.76 4,226.86
Retail Pharmacies 5,915.22 5,242.54
Unallocated 18,016.58 16,839.85
Total 42,942.06 45,566.00
Capital expenditure
Hospitals 4,587.12 7,926.38
Clinics 407.15 831.25
Retail Pharmacies 181.94 457.93

Financial Statements
Others 19.85 1.40
Unallocated - 102.54
Total 5,196.06 9,319.50

B. Reconciliation of information on reportable segments to Ind AS measures

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Profit before tax
Total profit before tax for reportable segments 5,020.15 2,322.11
Unallocated amounts :
Other income, excluding finance income 96.64 19.06
Depreciation, amortisation and impairment (83.67) (134.33)
Finance income 48.04 39.63
Finance charges (1,846.42) (3,535.99)
Exceptional items 1,296.42 4,159.06
Unallocated expenses (net of unallocated income) (1,476.40) (1,783.56)
Profit before share of equity accounted investees and tax 3,054.76 1,085.98
Share of profit/ (loss) of equity accounted investees 22.87 (2.29)
Profit before tax 3,077.63 1,083.69
Tax expense (260.82) (108.37)
Profit for the year 2,816.81 975.32
Less : Non controlling interest (128.05) 42.28
Profit attributable to the owners of the Company 2,688.76 1,017.60

Annual Report 2017-18 203

Notes to the Consolidated Financial Statements
30. Segment information (contd..)
C. Geographical segment information :

The Group operates in three principal geographical areas which have been identified based on the location of the customers.

The geographical segments of the Company as identified above are as follows:

i) GCC States - United Arab Emirates, Qatar, Oman, Kingdom of Saudi Arabia, Jordan, Kuwait and Bahrain

ii) India

iii) Rest of the world (including Philippines)

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Segment revenue
GCC States 55,506.39 49,791.64
India 11,665.06 9,499.99
Rest of the world 40.15 21.24
Total 67,211.61 59,312.87

H in Millions
As at As at
31 March 2018 31 March 2017
Segment assets
GCC States 48,471.51 43,876.86
India 26,173.73 24,059.45
Rest of the world 197.14 136.46
Total 74,842.38 68,072.77
Capital expenditure
GCC States 3,692.48 5,757.77
India 1,428.91 3,522.65
Rest of the world 74.67 39.08
Total 5,196.06 9,319.50
D. Major customer

No customer has contributed more than 10% of the Group's total revenue.

204 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
31. Employee benefits:
a) Defined benefit plan

The Group operates certain post-employment defined benefit plans which is provided for based on actuarial valuation carried out by an
independent actuary using the projected unit credit method. The Group accrues gratuity as per the provisions of the Payment of Gratuity
Act, 1972 and end of service benefits based on the labour laws of relevant geography.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the benefit plans and the amounts
recognised in the Group’s consolidated financial statements as at balance sheet date:
Reconciliation of the projected benefit obligation

H in Millions
As at As at
31 March 2018 31 March 2017
Defined benefit liability - Gratuity plan (Plan A) 129.41 108.56
Plan assets 42.37 37.28
Net defined benefit liability 87.04 71.28
Net defined benefit liability - End of service benefits (Plan B) 2,118.06 1,858.15
Liability for compensated absences 58.55 37.92
Total employee benefit liability 2,263.65 1,967.35
Non-current 1,910.51 1,748.13
Current 353.14 219.22

Financial Statements
For details about related employee benefit expenses, see note 23

b) Reconciliation of net defined benefit (assets)/ liability

i) Plan A

i) Reconciliation of present values of defined benefit obligation

The following table shows a reconciliation from the opening balances to the closing balances for net defined benefit (asset) liability and
its components:

H in Millions
As at As at
31 March 2018 31 March 2017
Defined benefit obligation as at beginning of the year 108.56 64.70
Benefits paid (12.35) (5.81)
Current service cost 31.70 17.14
Interest cost 7.57 5.16
Past Service Cost 1.64 -
Loss (gain) on settlement (1.22) -
Acquisition/(disposal) during the year - 21.50
Actuarial (gains) losses recognised in other comprehensive income
-changes in demographic assumptions - 0.61
-changes in financial assumptions (4.33) 1.21
-experience adjustments (2.16) 4.05
Defined benefit obligations as at end of the year 129.41 108.56

Annual Report 2017-18 205

Notes to the Consolidated Financial Statements
31. Employee benefits: (contd..)
ii) Reconciliation of the present values of plan assets

H in Millions
As at As at
31 March 2018 31 March 2017
Plan assets at beginning of the year 37.28 14.14
Contributions paid into the plan 7.39 1.85
Interest income 2.70 2.34
Benefits paid (5.22) (1.56)
Return on plan assets recognised in other comprehensive income 0.22 0.41
Acquisition/(disposal) during the year - 20.10
Plan assets at the end of the year 42.37 37.28
Net defined benefit liability 87.04 71.28

ii) Plan B

i) Reconciliation of present values of defined benefit obligation

The following table shows a reconciliation from the opening balances to the closing balances for net defined benefit (asset)/ liability and
its components:

H in Millions
As at As at
31 March 2018 31 March 2017
Defined benefit obligation as at beginning of the year 1,858.15 1,573.69
Benefits paid (217.14) (120.18)
Current service cost 488.20 476.30
Interest cost 64.78 55.82
Actuarial (gains) losses recognised in other comprehensive income
-changes in demographic assumptions - 420.61
-changes in financial assumptions - (113.13)
-experience adjustments (80.98) (389.09)
Effect of changes in foreign exchange rates 5.05 (45.87)
Defined benefit obligations as at end of the year 2,118.06 1,858.15

c) Expense recognised in consolidated statement of profit and loss

i) Expense recognised in consolidated statement of profit and loss

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Current service cost 519.90 494.23
Interest cost 72.35 60.98
Interest income (2.70) (2.34)
Past service cost 1.64 -
Loss (gain) on settlement (1.22) -
589.97 552.87

206 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
31. Employee benefits: (contd..)
ii) Remeasurements recognised in other comprehensive income (excluding tax)

H in Millions
Year ended Year ended
31 March 2018 31 March 2017
Actuarial (gain)/ loss on defined benefit obligation (87.46) 75.74
Return on plan assets excluding interest income (0.22) (0.41)
(87.68) 75.33

d) Plan assets comprises the following

H in Millions
As at As at
31 March 2018 31 March 2017
Insurance policy 42.37 37.28

e) Defined Benefit obligation

i) Actuarial assumptions

Financial Statements
The following are the principal actuarial assumptions at the reporting date (expressed as weighted average):

H in Millions
As at As at
31 March 2018 31 March 2017
Plan A
Attrition rate Below 35 years Below 35 years
-30% - 35% -30% - 35%
Above 35 years Above 35 years
3%-6% 3%-6%
Discount rate 7% - 8% 6% - 8%
Future salary increases 4.5% - 12% 5% - 12%
Plan B
Attrition rate 15% 15%
Discount rate 3.50% 3.50%
Future salary increases 2.75% - 3.50% 2.75% - 3.50%

Assumptions regarding future mortality experience are set in accordance with the published statistics by the Life Insurance Corporation
of India for Plan A. The Group assesses these assumptions with its projected long-term plans of growth and prevalent industry standards.
The discount rate is based on the government securities yield.

Gratuity is applicable only to employees drawing a salary in Indian rupees and there are no other foreign defined benefit gratuity plan.

Annual Report 2017-18 207

Notes to the Consolidated Financial Statements
31. Employee benefits: (contd..)
(ii) Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant,
would have affected the defined benefit obligation by the amounts shown below.

H in Millions
As at 31 March 2018 As at 31 March 2017
Increase Decrease Increase Decrease
Plan A
Discount rate (0.5% - 1% movement) (52.84) 60.40 (8.30) 9.67
Future salary increase (0.5% - 1% movement) 60.43 (52.79) 7.41 (6.77)
Attrition rate (0.5% - 1% movement) (50.70) 52.82 (4.04) 4.76
Plan B
Discount rate (1% movement) (118.00) 132.34 (104.91) 117.70
Future salary increase (1% movement) 131.92 (119.84) 117.30 (106.53)
Attrition rate (1% movement) 3.61 (4.17) 2.84 (3.33)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation
of the sensitivity of the assumptions shown.

32. Earnings per share

A. Basic earnings per share

The calculation of profit attributable to equity share holders and weighted average number of equity shares outstanding for the purpose
of basic earnings per share calculations are as follows:

i) Profit attributable to equity share holders (basic)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Profit for the year, attributable to the equity share holders 2,688.76 1,017.60

ii) Weighted average number of equity shares (basic)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Opening balance 399.48 398.62
Effect of share options exercised 0.03 0.38
Effect of fresh issue of shares for cash 3.97 0.16
Conversion of compulsorily convertible preference shares 63.85 63.86
Weighted average number of equity shares of H10 each for the year 467.33 463.02
Earnings per share, basic 5.75 2.20

B. Diluted earnings per share

The calculation of profit attributable to equity share holders and weighted average number of equity shares, after adjustment for the
effects of all dilutive potential equity shares is as follows:

i) Profit attributable to equity share holders (diluted)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Profit for the year, attributable to the equity share holders 2,688.76 1,017.60

208 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
32. Earnings per share (contd..)
ii) Weighted average number of equity shares (diluted)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Weighted average number of equity shares of H10 each for the year (basic) 467.33 463.02
Effect of exercise of share options 1.30 0.93
Weighted average number of equity shares of H10 each for the year (diluted) 468.63 463.95
Earnings per share, diluted 5.74 2.19

Note : Diluted earnings per share = Profit attributable to equity shareholders / weighted average number of diluted potential shares
outstanding during the year.

33. Contingent liabilities

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Contingent liabilities:
Claims against the Group not acknowledged as debts in respect of:
a) Income tax related matters [see note (a) and (b) below] 208.90 172.19

Financial Statements
b) KVAT related matters [see note (c) below] 12.81 12.81
c) Disputed provident fund demand pending before appellate authorities [see note (d) below] 8.84 8.84
d) Other matters including claims relating to employees/ ex-employees etc. [see note (e) below] 16.13 16.13
e) Customer claims 45.79 34.33
Export commitments under EPCG scheme [see note (f) ] 871.58 991.04
Letter of credit 5.30 -
Guarantees:
a) Bank guarantee 343.60 375.64
Commitments:
a) Estimated amount of contracts remaining to be executed on capital account (net of
advances) and not provided for 2,958.51 1,866.01

Notes:

(a) Aster DM, the parent company has received income tax assessment orders for AY 2014-15 and for AY 2015-16 where in the assessing
officer has disallowed Foreign Tax Credit claimed amounting to H200.77 claimed as per provisions of Section 90/90A of Income Tax Act
1961. The management has taken a legal opinion for the allowance of FTC and has gone for an appeal for the said matter. Management
believes that the position taken by it on the matter is tenable and hence no adjustment has been made to financial statements

(b) A subsidiary company has received income tax assessment orders relating to previous years on account of certain disallowances
and adjustments made by the Income tax department.

(c) The Company has received a Kerala Value Added Tax (KVAT) demand for the FY 2014-15 where in the assessing officer raised
a demand for H12.81 million against the Company, on account of difference in returns filed with audited acccounts / report.
Management believes that the position taken by it on the matter is tenable and hence, no adjustment has been made to the
financial statements. The Company has filed an appeal against the demand received.

(d) A subsidiary has received demand from the provident fund authorities for H8.84 million on account of provident fund contribution in
respect of certain trainees employed by the subsidiary. Management believes that the position taken by it on the matter is tenable and
hence, no adjustment has been made to the financial statements. The subsidiary has filed an appeal against the demands received.

(e) Employee bonus refers to amount payable to employees as per Payment of Bonus (Amendment) Act 2015 vis-à-vis retrospective
application from 1 April 2014 to 31 March 2015. The subsidiary has relied on stay petition granted by the Honorable High Court of
Kerala and Honorable High Court Madras against retrospective application of Payment of Bonus (Amendment) Act 2015 from 1
April 2014. Pending disposal of the case, no provision has been made in the books of accounts. The subsidiary has relied on the
independent legal opinion in support its position.

Annual Report 2017-18 209

Notes to the Consolidated Financial Statements
33. Contingent liabilities (contd..)
(f) The Company has obtained duty free / concessional duty licenses for import of capital goods by undertaking export obligations under
the EPCG scheme.  As at 31 March 2018, export obligations remaining to be fulfilled amounts to H871.58 million (31 March 2017;
H991.04 million). In the event that export obligations are not fulfilled, the Company would be liable to pay the levies. The Company’s
bankers have provided bank guarantees aggregating Rs 251.68 (31 March 2017: H245.83 million) to the customs authorities in this
regard.

(g) It is not practicable for the Group to estimate the timings of the cash outflows, if any, in respect of the above pending resolution of
the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/authorities.

(h) The Group has reviewed all its pending litigations and proceedings and has made adequate provisions where required and disclosed
contingent liabilities where applicable, in its consolidated financial statements. The Group does not expect the outcome of these
proceedings to have a materially adverse effect on its financial statements.

(i) The Group has given Bank Guarantees in respect of certain contingent liabilities listed above.

34. Operating lease commitments – leases as lessee

The Company is obligated under cancellable operating leases for office, hospital premises and residential premises which are renewable
at the option of both the lessor and lessee.

The Company is obliged under non-cancellable operating leases for hospital operations and management fees (revenue share) and
operating leases for office and residential premises . Future minimum lease payments due under non-cancellable operating leases are
as follows:

(i) Future minimum lease payments

The future minimum lease payments to be made under non-cancellable operating lease are as follows.

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Payable in less than one year 2,569.65 1,097.69
Payable between one to five years 5,482.19 3,941.21
Payable after more than five years 15,361.69 13,066.58

(ii) Amounts recognised in the Statement of Profit and Loss

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Non-cancellable 3,045.19 2,645.99
Cancellable 151.40 152.00

210 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
35. Capital Management
The Group's policy is to maintain a stable capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. Management monitors capital on the basis of return on capital employed as well as the debt to total equity
ratio. For the purpose of debt to total equity ratio, debt considered is long-term and short-term borrowings. Total equity comprise of
issued share capital and all other equity reserves.

The capital structure as of 31 March 2018 and 31 March 2017 was as follows:

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Total equity attributable to the equity shareholders of the Company 31,900.32 22,506.77
As a percentage of total capital 58% 45%
Long-term borrowings including current maturities 17,170.53 19,272.48
Short-term borrowings 6,345.21 8,304.44
Total borrowings 23,515.74 27,576.92
As a percentage of total capital 42% 55%
Total capital (equity and borrowings) 55,416.06 50,083.69

Financial Statements

Annual Report 2017-18 211

212
Notes to the Consolidated Financial Statements
36. Financial Instruments- Fair values and risk management

A Accounting classifications and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

H in Millions

Aster DM Healthcare Limited

As at 31 March 2018 Carrying value Fair value
Particulars Note Financial assets FVTPL Other financial Total Level 1 Level 2 Level 3 Total
at amortised cost liabilities at carrying value
amortised cost
Assets
Financial assets not measured at fair value*
Cash and cash equivalents 11 2,041.68 - - 2,041.68 - - - -
Other bank balances 12 956.08 - - 956.08 - - - -
Trade receivables 10 15,463.93 - - 15,463.93 - - - -
Other financial assets 7 2,518.22 - - 2,518.22 - - - -
Financial assets measured at fair value
Other financial assets 7 - 59.71 - 59.71 - 59.71 - 59.71
Investments 6 - 246.88 - 246.88 246.88 - - 246.88
Total 20,979.91 306.59 - 21,286.50 246.88 59.71 - 306.59
Liabilities
Financial liabilities not measured at fair value*
Trade payables 18 - - 8,456.87 8,456.87 - - - -
Borrowings 14 - - 22,123.73 22,123.73 - - - -
Other financial liabilities (including current maturities of borrowings) 15 - - 6,406.81 6,406.81 - - - -
Financial liabilities measured at fair value
Payable to minority shareholders towards aqusitions (note A.1 below) 15 194.58 - 194.58 - - 194.58 194.58
Derivatives- put option (note A.2 below) - 863.00 - 863.00 - - 863.00 863.00
Total - 1,057.58 36,987.41 38,044.99 - - 1,057.58 1,057.58
 Notes to the Consolidated Financial Statements
36. Financial Instruments- Fair values and risk management
H in Millions
As at 31 March 2017 Carrying value Fair value
Particulars Note Financial assets FVTPL Other financial Total Level 1 Level 2 Level 3 Total
at amortised cost liabilities at carrying value
amortised cost
Assets
Financial assets not measured at fair value*
Cash and cash equivalents 11 1,373.21 - - 1,373.21 - - - -
Other bank balances 12 147.48 - - 147.48 - - - -
Trade receivables 10 12,876.18 - - 12,876.18 - - - -
Other financial assets 7 4,548.57 - - 4,548.57 - - - -
Financial assets measured at fair value
Investments 6 - 215.62 - 215.62 215.62 - - 215.62
Total 18,945.44 215.62 - 19,161.06 215.62 - - 215.62
Liabilities -
Financial liabilities not measured at fair value*
Trade payables 18 - - 7,824.95 7,824.95 - - - -
Borrowings 14 - - 27,209.50 27,209.50 - - - -
Other financial liabilities (including current maturities of borrowings) 15 - - 4,512.43 4,512.43 - - - -
Financial liabilities measured at fair value
Payable to minority shareholders towards aqusitions (Note A.1 below) 15 - 649.21 - 649.21 - - 649.21 649.21
Derivatives- put option (Note A.2 below) - 861.30 - 861.30 - - 861.30 861.30
Total - 1,510.51 39,546.88 41,057.39 - - 1,510.51 1,510.51

*The Group has not disclosed the fair values for financial instruments such as cash and cash equivalents, trade receivables,trade payables etc, because their carrying amounts are a resonable
approximation of fair value.

Note A.1 - During the year 2016, the Group acquired additional 56.2% stake in its subsidiary Sanad Al Rahma for Medical Care LLC (“Sanad”) thereby increasing the Group’s ownership from 40.8% to
97%. The purchase consideration includes contingent consideration payable as per terms of the contract. The Group has agreed to pay the selling shareholders in three years’ time, an additional
consideration, based on the EBITDA margins. The fair value of contingent consideration is determined using Monte Carlo Simulation model and is valued at H194.58 and H649.21 as at 31 March
2018 and 31 March 2017 respectively.

Note A.2 - The Company has entered into share subscription and share purchase agreement dated 30 April 2016, with Dr Ramesh Cardiac and Multi Speciality Hospital Private Limited (Dr Ramesh
Hospital) and its promoter group (non-controlling interest).The non-controlling interest has a put option on 49% of the non-controlling interests' equity ownership in Dr. Ramesh Hospital. The
option is exercisable from May 2021 onwards. The put option contains an obligation for the Company to acquire 49% of the non-controlling interests and accordingly the fair value of such put
option is determined using Monte Carlo simulation model and other valuation techniques.

Annual Report 2017-18

213
Financial Statements
Notes to the Consolidated Financial Statements
36. Financial Instruments- Fair values and risk management (contd..)
B Measurement of fair values
The following methods and assumptions were used to estimate fair values:

a) The fair values of the units of mutual fund schemes are based on net asset value at the reporting date.

b) The fair value of the put option and contingent consideration payable to non-controlling shareholders is determined using Monte Carlo
simulation valuation model.

c) The fair value of the remaining financial instruments is determined using discounted cash flow analysis. The discount rates used is
based on management estimates.

Level 3 fair values

The significant unobservable inputs used in the fair value measurement of the level 3 fair values together with a quantitative sensitivity
analysis as at 31 March 2018 and 31 March 2017 are as shown below:

Reconciliation of Level 3 fair values

The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values.

H in Millions
Particulars Derivatives-put Contingent
option consideration
Balance at 1 April 2016 - (3,040.23)
Assumed in business combination (refer note 36 (A.2) ) (861.30) -
Gain included in statement of profit and loss
Net change in fair value (unrealised) (refer note 27) - 2,368.82
Gain included in OCI
Exchange difference in translating financial statements of foreign operations - 22.20
Balance as at 31 March 2017 (861.30) (649.21)
Balance at 1 April 2017 (861.30) (649.21)
Loss included in "other expenses"
Net change in fair value (unrealised) (refer note 26) (1.70) -
Gain included in "exceptional item"
Net change in fair value (unrealised) (refer note 27 B) - 450.91
Gain included in OCI
Exchange difference in translating financial statements of foreign operations - (3.72)
Balance as at 31 March 2018 (863.00) (194.58)

Sensitivity analysis

For the fair values of put option and contingent consideration, reasonably possible changes at the reporting date to one of the significant
unobservable inputs, holding other inputs constant, would have the following effects.

i) Put option

H in Millions
As at 31 March 2018
Increase Decrease
Volatility (10% movement) 2.30 4.00
EBITDA growth rates (10% movement) 174.60 (161.40)
Risk free rate (1% movement) (47.70) 65.60

214 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
36. Financial Instruments- Fair values and risk management (contd..)
H in Millions
As at 31 March 2017
Increase Decrease
Volatility (10% movement) 7.30 (11.90)
EBITDA growth rates (10% movement) 260.40 (220.90)
Risk free rate (1% movement) (74.50) 75.30

ii) Contingent consideration

H in Millions
As at 31 March 2017
Increase Decrease
Volatility (5% movement) 19.38 1.76
EBITDA growth rates (10% movement) (33.47) 31.71
Risk free rate (1% movement) (10.57) (7.05)
Annual revenue growth rate (10% movement) 7.05 (14.09)

C Financial risk management

The Group's activities expose it to a variety of financial risks: credit risk, market risk and liquidity risk.

Financial Statements
i) Risk management framework

The Group's board of directors has overall responsibility for the establishment and oversight of the risk management framework. The
Group’s audit and risk management committee oversees how management monitors compliance with the risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The committee is
assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls
and procedures, the results of which are reported to the audit and risk management committee.

ii) Credit risk

Credit risk is the risk that the counterparty will not meet its obligation under a financial instrument or customer contract, leading to
financial loss. The credit risk arises principally from its operating activities (primarily trade receivables) and from its investing activities,
including deposits with banks and financial institutions and other financial instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom credit has been
granted after obtaining necessary approvals for credit. The collection from the trade receivables are monitored on a continuous basis by
the receivables team.

The Group establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables
based on the past and the recent collection trend. The maximum exposure to the credit risk at the reporting date is primarily from trade
receivables amounting to H15,463.93 million (31 March 2017: H12,876.18 million ) and unbilled revenue amounting to H459.92 million (31
March 2017: H2,032.77 million ).

At 31 March 2018 the carrying amount of Group's most significant customer (Ministry Of Health, Kingdom of Saudi Arabia) is H256.89
million (31 March 2017 - H2,816.02 million). The movement in allowance for credit loss in respect of trade receivable and unbilled revenue
during the year was as follows:
H in Millions
Allowance for credit loss As at As at
31 March 2018 31 March 2017
Balance at the beginning 3,365.13 4,905.87
Provision created during the year 250.32 3,749.33
Impairment loss recognised/(reversed) (320.87) (5,290.07)
Balance at the end 3,294.58 3,365.13
Credit risk on cash and cash equivalent is limited as the Group generally transacts with banks and financial institutions with high credit
ratings assigned by international and domestic credit rating agencies.

Annual Report 2017-18 215

Notes to the Consolidated Financial Statements
36. Financial Instruments- Fair values and risk management (contd..)
iii) Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Group's approach to managing liquidity is to ensure, as far as possible,
that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Group's reputation.

The Group believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.
The table below provides details regarding the undiscounted contractual maturities of significant financial liabilities as of 31 March 2018.

H in Millions
Particulars Payable More than 1 year Total
within 1 year
Trade payables 8,456.87 - 8,456.87
Current borrowings 6,345.21 - 6,345.21
Non current borrowings (including current maturities) 1,392.01 15,778.52 17,170.53
Derivatives - 863.00 863.00
Other financial liabilities 5,027.97 181.41 5,209.38

The table below provides details regarding the undiscounted contractual maturities of significant financial liabilities as of 31 March 2017:

H in Millions
Particulars Payable More than 1 year Total
within 1 year
Trade payables 7,824.95 - 7,824.95
Current borrowings 8,304.44 - 8,304.44
Non current borrowings (including current maturities) 367.42 18,905.06 19,272.48
Derivatives - 861.30 861.30
Other financial liabilities 4,635.66 158.56 4,794.22

iv) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices,
such as foreign exchange rates, interest rates and equity prices.

Foreign currency risk

The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which transactions are
denominated and the respective functional currencies of the Group. The functional currency of company is INR. The currencies in which
these transactions are primarily denominated is AED, OMR QAR and SAR.
The summary quantitative data about the Group's exposure to currency risk (based on notional amounts) as reported to the management
is as follows.

H in Millions
As at 31 March 2018 AED OMR QAR SAR USD Others
Financial Assets
Investments 31.41 - - - - -
Other financial assets (current and non-current) 1,702.26 - 0.07 343.47 - 18.78
Trade Receivables 11,103.30 1,313.67 933.26 1,039.19 - 87.74
Cash and Cash Equivalents and Bank balances 851.46 41.55 15.96 293.38 39.48 65.80
Financial Liabilities -
Borrowings (current and non-current) 3,740.03 362.33 1,615.06 - 14,063.07 142.75
Trade payables 6,311.53 346.35 421.96 393.39 - 218.42
Other financial liabilities (current and non-current) 3,205.00 153.34 177.51 238.32 0.84 113.83

216 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
36. Financial Instruments- Fair values and risk management (contd..)
H in Millions
As at 31 March 2017 AED OMR QAR SAR USD Others
Financial Assets
Investments 10.04 - 1.76 - - -
Other financial assets (current and non-current) 2,084.79 - 0.07 1,906.68 - 14.83
Trade Receivables 8,186.59 1,094.70 791.69 1,994.16 - 69.75
Cash and Cash Equivalents and Bank balances 792.63 28.58 98.53 169.55 4.40 67.62
Financial Liabilities
Borrowings (current and non-current) 6,607.68 451.50 383.68 345.17 10,669.33 148.73
Trade payables 5,863.77 326.00 240.00 419.00 - 202.00
Other financial liabilities (current and non-current) 2,956.65 126.67 213.18 488.36 0.78 50.05

Sensitivity analysis

The sensitivity of profit or loss and the impact on the other components of equity to changes in exchange rates arising mainly from
foreign currency denominated financial instruments is as follows:

H in Millions
Impact on profit or loss Impact on net assets

Financial Statements
Particulars Year ended Year ended Year ended As at
31 March 2018 31 March 2017 31 March 2018 31 March 2017
AED Sensitivity
INR/ AED - Increase by 1% 24.91 35.72 319.92 226.79
INR/ AED - Decrease by 1% (24.91) (35.72) (319.92) (226.79)
OMR Sensitivity
INR/ OMR - Increase by 1% 1.91 2.37 3.25 1.30
INR/ OMR - Decrease by 1% (1.91) (2.37) (3.25) (1.30)
QAR Sensitivity
INR/ QAR - Increase by 1% (3.65) 2.05 9.92 13.60
INR/ QAR - Decrease by 1% 3.65 (2.05) (9.92) (13.60)
SAR Sensitivity
INR/ SAR - Increase by 1% 16.13 (28.49) 48.06 (107.77)
INR/ SAR - Decrease by 1% (16.13) 28.49 (48.06) 107.77

Cash flow and fair value interest rate risk

The Group's main interest rate risk arises from long-term borrowings with variable rates, which expose the Group to cash flow interest
rate risk. The interest rate on the Group’s financial instruments is based on market rates. The Group monitors the movement in interest
rates on an ongoing basis.

(a) Interest rate risk exposure

The exposure of the Group's borrowing to interest rate changes at the end of the reporting period are as follows:

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Financial liabilities (bank borrowings)
Variable rate long term borrowings including current maturities 21,307.15 18,494.64
Derivative financial instrument
Interest rate swap 4,533.97 -

Annual Report 2017-18 217

Notes to the Consolidated Financial Statements
36. Financial Instruments- Fair values and risk management (contd..)
(b) Sensitivity

A reasonably possible change of 100 basis points (BP) in interest rates at the reporting date would have increased / (decreased) equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain
constant.

H in Millions
Impact on profit or loss Impact on equity
Particulars As at As at As at As at
31 March 2018 31 March 2017 31 March 2018 31 March 2017
Sensitivity
100 BP increase in interest rate (213.07) (184.95) (213.07) (184.95)
100 BP decrease in interest rate 213.07 184.95 213.07 184.95

The interest rate sensitivity is based on the closing balance of secured term loans from banks.

218 Aster DM Healthcare Limited

 Notes to the Consolidated Financial Statements
37. Non-controlling interest

Additional information pursuant to paragraph 2 of Division II of Schedule III to the Companies Act 2013- ‘General instructions for the
preparation of consolidated financial statements’.

H in Millions
As at / For the year ended 31 March 2018
Name of the entity Net assets Share in profit or loss Share in other Share in total
comprehensive income comprehensive income
As a % of Amount As a % of Amount As a % of other Amount As a % of total Amount
consolidated consolidated comprehensive comprehensive
net assets profit or loss income income
Parent
Aster DM Healthcare Limited 91.72% 29,259.73 (30.95%) (871.92) (0.23%) (0.24) (29.86%) (872.16)
Subsidiaries
India
Aster DM Healthcare (Trivandrum) Private Limited (0.21%) (66.16) (0.08%) (2.18) - - (0.07%) (2.18)
DM Med City Hospitals India Private Limited 2.12% 676.10 (0.04%) (1.25) - - (0.04%) (1.25)
Prerana Hospital Limited 0.50% 160.83 0.47% 13.35 0.94% 0.98 0.49% 14.33
Ambady Infrastructure Private Limited 2.21% 705.04 0.04% 1.07 - - 0.04% 1.07
Sri Sainatha Multispeciality Hospitals Private Limited 1.08% 344.26 (0.14%) (4.00) 2.55% 2.65 (0.05%) (1.35)
Malabar Institute of Medical Sciences Limited 11.77% 3,755.57 4.48% 126.30 2.18% 2.26 4.40% 128.56
Ramesh Cardiac and Multispeciality Hospitals Private Limited 3.54% 1,129.56 3.80% 106.93 (3.09%) (3.21) 3.55% 103.72
Aster Ramesh Duhita LLP 0.02% 5.05 0.00% - - - 0.00% -
Foreign
Affinity Holdings Private Limited 3.46% 1,104.65 (0.04%) (1.18) - - (0.04%) (1.18)
Dar Al Shifa Medical Centre LLC 0.04% 11.98 (0.42%) (11.73) - - (0.40%) (11.73)
Al Rafa Medical Centre, LLC (0.49%) (155.18) 0.10% 2.81 - - 0.10% 2.81
Dr. Moopen's Medical Clinic LLC (0.02%) (6.56) 0.17% 4.88 - - 0.17% 4.88
(Formerly known as Dr.Moopens Medical Poly Clinic LLC)
Union Pharmacy LLC 0.24% 76.54 (0.64%) (18.10) - - (0.62%) (18.10)
Shindaga Pharmacy LLC 0.06% 19.08 (0.33%) (9.18) - - (0.31%) (9.18)
Asma Pharmacy LLC 0.05% 15.80 0.15% 4.29 - - 0.15% 4.29
Rafa Pharmacy LLC (0.04%) (12.59) (0.02%) (0.49) - - (0.02%) (0.49)
Modern Dar Al Shifa Pharmacy LLC 0.17% 54.27 (0.75%) (21.19) - - (0.73%) (21.19)
Maryam Pharmacy LLC - - - - - - 0.00% -
Medshop Garden Pharmacy LLC 0.32% 102.16 0.80% 22.60 - - 0.77% 22.60

Annual Report 2017-18

Ibn Alhaitham Pharmacy LLC - - - - - - 0.00% -
Aster Pharmacy (AUH) 0.01% 4.57 (0.35%) (9.89) - - (0.34%) (9.89)

219
Financial Statements
220
Notes to the Consolidated Financial Statements
37. Non-controlling interest (contd..)
H in Millions
As at / For the year ended 31 March 2018
Name of the entity Net assets Share in profit or loss Share in other Share in total
comprehensive income comprehensive income
As a % of Amount As a % of Amount As a % of other Amount As a % of total Amount
consolidated consolidated comprehensive comprehensive

Aster DM Healthcare Limited

net assets profit or loss income income
Dr.Moopen's Healthcare Mgt Services LLC (0.19%) (60.62) (2.18%) (61.38) - - (2.10%) (61.38)
DM Healthcare LLC 3.20% 1,021.21 38.84% 1,093.93 - - 37.45% 1,093.93
DM Pharmacies LLC 0.38% 121.87 0.89% 25.01 - - 0.86% 25.01
Medshop Drug Stores LLC 1.86% 592.90 6.66% 187.56 - - 6.42% 187.56
Eurohealth Systems FZ LLC 0.24% 76.77 0.44% 12.45 - - 0.43% 12.45
Aster DM Healthcare FZC 63.23% 20,171.23 67.90% 1,912.60 78.48% 81.54 68.28% 1,994.14
Medcare Hospital LLC 20.99% 6,695.84 22.43% 631.76 - - 21.63% 631.76
Aster IVF & Women Care Clinic LLC (0.30%) (97.15) (2.25%) (63.49) - - (2.17%) (63.49)
(formerly known as Aster Milann Fertility & Women's Wellness Center LLC)
Al Rafa Hospital LLC - Oman 1.18% 375.22 6.65% 187.42 - - 6.42% 187.42
Dr. Moopens Healthcare Management Services WLL, Qatar 5.07% 1,617.11 8.43% 237.42 - - 8.13% 237.42
Wellcare Polyclinic WLL (0.01%) (4.16) 0.39% 11.09 - - 0.38% 11.09
Sanad Al Rahma for Medical Care LLC 15.75% 5,024.42 37.24% 1,049.10 - - 35.92% 1,049.10
New Aster Pharmacy DMCC (formerly known as New Aster Pharmacy JLT) 0.11% 34.93 0.47% 13.12 - - 0.45% 13.12
Zabeel Pharmacy LLC 0.00% 0.47 - - - - 0.00% -
Aster Al Shafar Pharmacies Group LLC 0.33% 106.08 0.08% 2.19 - - 0.07% 2.19
Symphony Healthcare Managment Services LLC (0.24%) (77.55) 6.25% 175.98 - - 6.03% 175.98
Aster Pharmacies Group LLC 9.07% 2,892.66 41.58% 1,171.22 - - 40.10% 1,171.22
Alpha Drug Store LLC 1.15% 365.38 8.31% 234.16 - - 8.02% 234.16
Al Raffah Medical Centre LLC (0.15%) (49.29) 0.19% 5.48 - - 0.19% 5.48
Aster Kuwait General Trading Co WLL (0.55%) (176.64) (3.34%) (94.04) - - (3.22%) (94.04)
AL Shafar Pharmacy LLC (AUH) (0.03%) (8.54) (0.09%) (2.41) - - (0.08%) (2.41)
Orange Pharmacies LLC (0.56%) (179.15) (1.35%) (38.05) - - (1.30%) (38.05)
Aster DM Healthcare SPC (1.15%) (367.67) (2.42%) (68.10) - - (2.33%) (68.10)
Aster DM Healthcare INC (0.31%) (98.10) (1.96%) (55.11) - - (1.89%) (55.11)
Aster Opticals LLC (0.15%) (46.44) (1.42%) (40.09) - - (1.37%) (40.09)
Al Rafa Investments Limited (0.02%) (7.67) (0.13%) (3.75) - - (0.13%) (3.75)
Al Rafa Holdings Limited (0.01%) (2.25) (0.06%) (1.68) - - (0.06%) (1.68)
Aster Grace Nursing & Physiotherapy LLC 0.02% 5.11 0.91% 25.69 - - 0.88% 25.69
Aster Medical Centre LLC (0.53%) (169.81) (1.54%) (43.39) - - (1.49%) (43.39)
 Notes to the Consolidated Financial Statements
37. Non-controlling interest (contd..)
H in Millions
As at / For the year ended 31 March 2018
Name of the entity Net assets Share in profit or loss Share in other Share in total
comprehensive income comprehensive income
As a % of Amount As a % of Amount As a % of other Amount As a % of total Amount
consolidated consolidated comprehensive comprehensive
net assets profit or loss income income
Harley Street Medical Center LLC 0.66% 209.17 1.12% 31.49 - - 1.08% 31.49
Harley street Pharmacy LLC (0.05%) (16.92) 0.05% 1.38 - - 0.05% 1.38
Harley Street LLC 0.01% 1.67 - - - - 0.00% -
Dr. Moopens Aster Hospital WLL, Qatar (1.94%) (620.14) (22.14%) (623.67) - - (21.35%) (623.67)
Harley Street Dental LLC (0.09%) (28.97) 0.11% 3.06 - - 0.10% 3.06
Al Raffah Pharmacies Group LLC 0.00% 0.32 0.01% 0.32 - - 0.01% 0.32
Aster DCC Pharmacy LLC 0.02% 5.29 - - - - 0.00% -
73,821.61 5,248.40 83.98 5,332.38
Associates (Investment as per equity method) (Refer note 40) 0.41% 130.48 0.81% 22.87 0.00% - 0.78% 22.87
Adjustment arising out of consolidation (143.04%) (45,631.15) (91.68%) (2,582.51) 11.73% 12.18 (88.00%) (2,570.33)
Non controlling interest in subsidiaries 11.22% 3,579.38 4.55% 128.05 7.45% 7.74 4.65% 135.79
Consolidated net assets/ Profit after tax 100.00% 31,900.32 100.00% 2,816.81 100.00% 103.90 100.00% 2,920.71

Annual Report 2017-18

221
Financial Statements
222
Notes to the Consolidated Financial Statements
37. Non-controlling interest (contd..)
Additional information pursuant to paragraph 2 of Division II of Schedule III to the Companies Act 2013- 'General instructions for the preparation of consolidated financial statements'.

H in Millions
As at / For the year ended 31 March 2017
Name of the entity Net assets Share in profit or loss Share in other Share in total
comprehensive income comprehensive income

Aster DM Healthcare Limited

As a % of Amount As a % of Amount As a % of other Amount As a % of total Amount
consolidated consolidated comprehensive comprehensive
net assets profit or loss income income
Parent
Aster DM Healthcare Limited 103.44% 23,280.72 47.89% 467.06 0.21% (0.69) 71.56% 466.37
Subsidiaries
India
Aster DM Healthcare (Trivandrum) Private Limited (0.28%) (63.99) (0.35%) (3.41) - - (0.52%) (3.41)
DM Med City Hospitals India Private Limited 3.01% 677.36 (0.90%) (8.81) - - (1.35%) (8.81)
Prerana Hospital Limited 0.65% 146.49 (5.03%) (49.02) 0.34% (1.11) (7.69%) (50.13)
Ambady Infrastructure Private Limited 3.13% 703.97 (0.18%) (1.80) - - (0.28%) (1.80)
Sri Sainatha Multispeciality Hospitals Private Limited 1.54% 346.51 (6.82%) (66.53) 0.28% (0.89) (10.34%) (67.42)
Malabar Institute of Medical Sciences Limited 16.36% 3,681.68 10.24% 99.83 0.15% (0.50) 15.24% 99.33
Ramesh Cardiac and Multispeciality Hospitals Private Limited 4.56% 1,025.95 2.48% 24.23 0.47% (1.52) 3.48% 22.71
Foreign
Affinity Holdings Private Limited 4.96% 1,116.73 (1.16%) (11.36) - - (1.74%) (11.36)
Dar Al Shifa Medical Centre LLC 0.11% 23.75 (1.16%) (11.35) - - (1.74%) (11.35)
Al Rafa Medical Centre, LLC (0.70%) (157.73) (2.19%) (21.41) - - (3.28%) (21.41)
"Dr. Moopen's Medical Clinic LLC (0.05%) (11.45) (0.45%) (4.42) - - (0.68%) (4.42)
(Formerly known as Dr.Moopens Medical Poly Clinic LLC)"
Union Pharmacy LLC 0.42% 94.60 (0.22%) (2.10) - - (0.32%) (2.10)
Shindaga Pharmacy LLC 0.13% 28.41 0.29% 2.86 - - 0.44% 2.86
Asma Pharmacy LLC 0.06% 14.09 0.33% 3.17 - - 0.49% 3.17
Rafa Pharmacy LLC (0.05%) (12.08) (0.05%) (0.48) - - (0.07%) (0.48)
Modern Dar Al Shifa Pharmacy LLC 0.36% 80.75 2.18% 21.23 - - 3.26% 21.23
Maryam Pharmacy LLC (0.19%) (41.83) (0.07%) (0.66) - - (0.10%) (0.66)
Medshop Garden Pharmacy LLC 0.49% 110.98 3.91% 38.18 - - 5.86% 38.18
Ibn Alhaitham Pharmacy LLC (0.07%) (16.71) (0.02%) (0.21) - - (0.03%) (0.21)
Aster Pharmacy (AUH) 0.06% 14.50 0.43% 4.19 - - 0.64% 4.19
Dr.Moopen's Healthcare Mgt Services LLC 0.01% 1.18 (15.53%) (151.45) - - (23.24%) (151.45)
DM Healthcare LLC 4.00% 899.69 50.32% 490.75 - - 75.30% 490.75
DM Pharmacies LLC 0.55% 122.95 5.17% 50.41 - - 7.73% 50.41
 Notes to the Consolidated Financial Statements
37. Non-controlling interest (contd..)
H in Millions
As at / For the year ended 31 March 2017
Name of the entity Net assets Share in profit or loss Share in other Share in total
comprehensive income comprehensive income
As a % of Amount As a % of Amount As a % of other Amount As a % of total Amount
consolidated consolidated comprehensive comprehensive
net assets profit or loss income income
Medshop Drug Stores LLC 2.58% 580.79 16.35% 159.48 - - 24.47% 159.48
Eurohealth Systems FZ LLC 0.32% 73.01 2.29% 22.36 - - 3.43% 22.36
Aster DM Healthcare FZC 81.05% 18,240.80 174.38% 1,700.81 15.80% (51.14) 253.11% 1,649.67
Medcare Hospital LLC 28.66% 6,449.69 75.53% 736.69 - - 113.03% 736.69
Aster IVF & Women Care Clinic LLC (formerly known as Aster Milann Fertility & (0.15%) (33.61) (13.50%) (131.71) - - (20.21%) (131.71)
Women's Wellness Center LLC)
Al Rafa Hospital LLC - Oman 0.83% 187.47 23.47% 228.93 - - 35.13% 228.93
Dr. Moopens Healthcare Management Services WLL, Qatar 6.12% 1,377.24 20.58% 200.76 - - 30.80% 200.76
Wellcare Polyclinic WLL (0.07%) (15.14) 0.51% 4.96 - - 0.76% 4.96
Sanad Al Rahma for Medical Care LLC 19.74% 4,443.51 (298.54%) (2,911.73) - - (446.76%) (2,911.73)
New Aster Pharmacy DMCC (formerly known as New Aster Pharmacy JLT) 0.14% 32.34 1.20% 11.74 - - 1.80% 11.74
Zabeel Pharmacy LLC 0.00% 0.47 0.00% - - - 0.00% -
Aster Al Shafar Pharmacies Group LLC 0.62% 139.66 5.21% 50.77 - - 7.79% 50.77
Symphony Healthcare Managment Services LLC (1.12%) (253.08) 0.21% 2.00 - - 0.31% 2.00
Aster Pharmacies Group LLC 11.06% 2,489.14 92.05% 897.83 - - 137.76% 897.83
Alpha Drug Store LLC 1.36% 307.16 18.78% 183.14 - - 28.10% 183.14
Al Raffah Medical Centre LLC (0.25%) (56.11) 1.01% 9.89 - - 1.52% 9.89
Aster Kuwait General Trading Co WLL (0.37%) (82.45) (8.18%) (79.83) - - (12.25%) (79.83)
AL Shafar Pharmacy LLC (AUH) (0.03%) (6.12) (0.13%) (1.27) - - (0.19%) (1.27)
Orange Pharmacies LLC (0.63%) (140.85) (4.42%) (43.12) - - (6.62%) (43.12)
Aster DM Healthcare SPC (1.33%) (299.04) (17.76%) (173.19) - - (26.57%) (173.19)
Aster DM Healthcare INC (0.19%) (42.92) (6.95%) (67.82) - - (10.41%) (67.82)
Aster Opticals LLC (0.03%) (6.35) (1.23%) (12.04) - - (1.85%) (12.04)
Al Rafa Investments Limited (0.02%) (3.92) (0.15%) (1.51) - - (0.23%) (1.51)
Al Rafa Holdings Limited (0.00%) (0.57) (0.07%) (0.68) - - (0.10%) (0.68)
Aster Grace Nursing & Physiotherapy LLC (0.09%) (20.55) (1.99%) (19.43) - - (2.98%) (19.43)
Aster Medical Centre LLC (0.56%) (126.19) (9.77%) (95.30) - - (14.62%) (95.30)
Harley Street Medical Center LLC 0.79% 177.36 (6.21%) (60.61) - - (9.30%) (60.61)

Annual Report 2017-18

Harley street Pharmacy LLC (0.08%) (18.27) (0.48%) (4.73) - - (0.73%) (4.73)
Harley Street LLC 0.01% 1.67 0.00% - - - 0.00% -

223
Financial Statements
224
Notes to the Consolidated Financial Statements
37. Non-controlling interest (contd..)
H in Millions
As at / For the year ended 31 March 2017
Name of the entity Net assets Share in profit or loss Share in other Share in total
comprehensive income comprehensive income
As a % of Amount As a % of Amount As a % of other Amount As a % of total Amount
consolidated consolidated comprehensive comprehensive

Aster DM Healthcare Limited

net assets profit or loss income income
Al Raffah Pharmacies Group LLC 0.00% - 0.00% - 0.00% -
65,461.66 1,475.29 (55.85) 1,419.44
Associates (Investment as per equity method) (Refer Note 40) 0.48% 107.60 (0.23%) (2.29) 0.00% - (0.35%) (2.29)
Adjustment arising out of consolidation (208.00%) (46,815.15) (46.69%) (455.40) 69.63% (225.32) (104.44%) (680.72)
Non controlling interest in subsidiaries 16.67% 3,752.66 (4.33%) (42.28) 13.10% (42.40) (12.99%) (84.68)
Consolidated net assets/ Profit after tax 100.00% 22,506.77 100.00% 975.32 100.00% (323.57) 100.00% 651.75
Notes to the Consolidated Financial Statements
37. Non-controlling interest (continued)
The following table summarises the financial information relating to subsidiaries which have material non-controlling interest:
(i) Malabar Institute of Medical Sciences Limited

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Non-current assets 5,490.11 5,303.25
Current assets 495.45 419.28
Non-current liabilities (1,475.07) (1,430.34)
Current liabilities (754.92) (610.51)
Net assets 3,755.57 3,681.68
NCI 29.00% 29.00%
Carrying amount of non-controlling interests 1,089.12 1,067.69

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Revenue from operations 3,236.05 3,141.39
Profit for the year 126.30 99.83

Financial Statements
Other comprehensive income for the year 2.26 (0.50)
Total comprehensive income for the year 128.56 99.34
Attributable to non-controlling interest
Profit for the year 36.63 28.95
Other comprehensive income for the year 0.65 (0.14)
Cash flows from:
Operating activities 365.64 361.71
Investing activities (340.74) (559.77)
Financing activities (36.72) 192.75
Net decrease in cash and cash equivalents (11.82) (5.31)

(ii) Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Non-current assets 1,289.27 1,269.90
Current assets 591.38 481.45
Non-current liabilities (410.19) (461.05)
Current liabilities (340.90) (264.47)
Net assets 1,129.56 1,025.83
NCI 49.00% 49.00%
Carrying amount of non-controlling interests 553.48 502.66

Annual Report 2017-18 225

Notes to the Consolidated Financial Statements
37. Non-controlling interest (continued)
(ii) Dr. Ramesh Cardiac and Multi Speciality Hospital Private Limited (Contd...)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Revenue from operations 1,910.67 1,538.80
Profit for the year 106.93 27.61
Other comprehensive income for the year (3.21) (1.74)
Total comprehensive income for the year 103.72 25.87
Attributable to non-controlling interest
Profit for the year 52.40 13.53
Other comprehensive income for the year (1.57) (0.85)
Cash flows from:
Operating activities 181.87 97.54
Investing activities (88.20) (249.04)
Financing activities (91.89) 192.48
Net increase in cash and cash equivalents 1.78 40.98

(iii) Medcare Hospital LLC

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Non-current assets 4,498.57 4,566.08
Current assets 7,549.43 7,051.19
Non-current liabilities (648.06) 516.54
Current liabilities (4,704.10) 4,651.00
Net assets 6,695.84 16,784.82
NCI 49.00% 49.00%
Carrying amount of non-controlling interests 3,280.96 8,224.56

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Revenue from operations 13,450.41 10,925.17
Profit for the year 631.76 736.68
Other comprehensive income for the year - -
Total comprehensive income for the year 631.76 736.68
Attributable to non-controlling interest
Profit for the year 309.56 360.97
Other comprehensive income for the year - -
Cash flows from:
Operating activities 2,244.83 2,989.68
Investing activities (465.20) (3,448.32)
Financing activities (1,141.05) (800.79)
Net increase/(decrease) in cash and cash equivalents 638.59 (1,259.42)

226 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
38. Group information
Subsidiaries, step-down subsidiaries and associates of the parent company

(a) Subsidiaries and step-down subsidiaries

The consolidated Ind AS financial statements of the Group includes subsidiaries listed in the table below:

H in Millions
Sl Entity Country of Ownership interest held by Group
No. incorporation 31 March 2018 31 March 2017
Beneficial Legal * Beneficial Legal *
Direct subsidiaries
1 Aster DM Healthcare (Trivandrum) Private Limited India 100% 100% 100% 100%
2 DM Med City Hospitals India Private Limited India 100% 100% 100% 100%
3 Prerana Hospital Limited India 81% 81% 81% 81%
4 Ambady Infrastructure Private Limited India 100% 100% 100% 100%
5 Affinity Holdings Private Limited Mauritius 100% 100% 100% 100%
6 Sri Sainatha Multispeciality Hospitals Private Limited India 58% 58% 47% 47%
7 Malabar Institute of Medical Sciences Limited India 71% 71% 71% 71%
8 Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited India 51% 51% 51% 51%

Financial Statements
Step down subsidiaries
9 Aster Ramesh Duhita LLP India 50% 50% NA NA
10 Aster DM Healthcare FZC UAE 100% 100% 100% 100%
11 Aster Day Surgery Centre LLC (formerly known as Aster IVF
and Women Clinic LLC ) UAE 82% 49% 82% 49%
12 Al Rafa Medical Centre LLC UAE 51% 40% 51% 40%
13 Asma Pharmacy LLC UAE 50% 0% 50% 0%
14 Dar Al Shifa Medical Centre LLC UAE 51% 40% 51% 40%
15 DM Healthcare LLC UAE 100% 49% 100% 49%
16 DM Pharmacies LLC UAE 100% 49% 100% 49%
17 Dr. Moopens Healthcare Management Services LLC UAE 100% 49% 100% 49%
18 Dr. Moopens Medical Clinic LLC UAE 71% 40% 71% 40%
19 Eurohealth Systems FZ LLC UAE 100% 95% 100% 95%
20 Ibn Alhaitham Pharmacy LLC UAE 100% 49% 100% 49%
21 Maryam Pharmacy LLC UAE 100% 0% 100% 0%
22 Med Shop Drugs Store LLC UAE 100% 49% 100% 49%
23 Medcare Hospital LLC UAE 80% 30% 80% 30%
24 Medshop Garden Pharmacy LLC UAE 100% 49% 100% 49%
25 Modern Dar Al Shifa Pharmacy LLC UAE 51% 40% 51% 40%
26 Rafa Pharmacy LLC UAE 100% 49% 100% 49%
27 Shindagha Pharmacy LLC UAE 90% 49% 90% 49%
28 Union Pharmacy LLC UAE 75% 37% 75% 37%
29 Aster Pharmacies Group LLC UAE 100% 49% 100% 49%
30 Alfa Drug Store LLC UAE 100% 49% 100% 49%
31 Aster Al Shafar Pharmacies Group LLC UAE 51% 49% 51% 49%
32 New Aster Pharmacy DMCC UAE 100% 100% 100% 100%
33 Symphony Healthcare Management Services LLC UAE 100% 0% 100% 0%
34 Zabeel Pharmacy LLC ** UAE 51% 49% 51% 49%

Annual Report 2017-18 227

Notes to the Consolidated Financial Statements
38. Group information
H in Millions
Sl Entity Country of Ownership interest held by Group
No. incorporation 31 March 2018 31 March 2017
Beneficial Legal * Beneficial Legal *
35 Aster Pharmacy LLC, AUH UAE 100% 49% 100% 49%
36 Al Shafar Pharmacy LLC, AUH ** UAE 51% 49% 51% 49%
37 Aster Grace Nursing and Physiotherapy LLC UAE 60% 29% 60% 29%
38 Aster Medical Centre LLC** UAE 90% 39% 90% 39%
39 Aster Opticals LLC UAE 60% 49% 60% 49%
40 Al Rafa Investments Limited UAE 100% 0% 100% 0%
41 Al Rafa Holdings Limited UAE 100% 0% 100% 0%
42 Harley Street LLC UAE 60% 9% 60% 9%
43 Harley Street Pharmacy LLC UAE 60% 9% 60% 9%
44 Harley Street Medical Centre LLC UAE 60% 9% 60% 9%
45 Al Raffah Hospital LLC Oman 100% 70% 100% 70%
46 Al Raffah Medical Centre LLC Oman 100% 70% 100% 70%
47 Dr. Moopen's Healthcare Management Services WLL Qatar 99% 49% 99% 49%
48 Welcare Polyclinic W.L.L Qatar 50% 45% 50% 45%
49 Dr. Moopens Aster Hospital WLL Qatar 99% 49% NA NA
50 Sanad Al Rahma for Medical Care LLC Kingdom of
Saudi Arabia 97% 97% 97% 97%
51 Aster Kuwait for Medicine and Medical Supplies Company W.L.L
(formerly known as Aster Kuwait General Trading Co WLL) Kuwait 54% 2% 54% 2%
52 Orange Pharmacies LLC Jordan 51% 0% 51% 0%
53 Aster DM Healthcare SPC Bahrain 100% 100% 100% 100%
54 Aster DM Healthcare INC Philippines 90% 90% 90% 90%
55 Al Raffah Pharmacies Group LLC Oman 100% 70% 100% 70%
56 Harley Street Dental LLC UAE 50% 74% NA NA
57 Aster DCC Pharmacy LLC UAE 70% 70% NA NA
* Although the percentage of voting rights as a result of legal holding by the Company is not more than 50% in certain entities listed above, the Company has the
power to appoint majority of the Board of Directors of those entities as to obtain susbstantially all the returns related to their operations and net assets and has the
ability to direct that activities that most significantly affect these returns. Consequently, all the entities listed above have been consolidated for the purposes of the
preparation of this consolidated financial information.

** represents subsidiaries which are in the process of being wound-up.

(b) Associates

The consolidated Ind AS financial statements of the Group includes associates listed in the table below:

H in Millions
Sl Entity Country of % equity interest
No. incorporation 31 March 2018 31 March 2017
Beneficial Legal * Beneficial Legal *
1 EMED Human Resources (India) Private Limited India 33% 33% 33% 33%
2 MIMS Infrastructure and Properties Private Limited* India 35% 35% 35% 35%
3 Aries Holdings FZC UAE 25% 25% 25% 25%
4 AAQ Healthcare Investments LLC UAE 33% 33% 33% 33%
The principal place of business of all the entities listed above is the same as their respective countries of incorporation.

228 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
39. Acquisition of Subsidiaries and Non-Controlling Interests (NCI)
Acquisition of subsidiary

i) Acquisition of Harley Street Dental LLC ("Entity").

On 1 October 2017, the Group entered into Share Purchase Agreement to acquire 50% beneficial ownership in Harley Street Dental Centre
LLC for a purchase consideration amounting to H17.53 million thereby giving it control over the Entity.

The Entity operates a dental clinic in Abu Dhabi. Upon transfer of control, the Group owns economic and beneficial interest in 60% of the
net worth and profit/(loss) of the Entity.

A Consideration transferred

The following table summarises the acquisition date fair value of consideration transferred:

Particulars J in Millions
Cash 17.53

B Identifiable assets acquired and liabilties assumed

Particulars J in Millions
Property, plant and equipment 20.94
Other assets 4.60

Financial Statements
Cash and cash equivalent 1.94
Total assets 27.48
Other liabilities (60.60)
Total liabilities (60.60)
Net liabilities assumed (33.12)

C Goodwill
Goodwill arising from acquisition has been determined as follows:

Particulars J in Millions
Consideration transferred 17.53
Fair value of non controlling interest 18.78
Fair value of net liabilities assumed 33.12
Goodwill 69.43

ii) Harley Street Pharmacy LLC, Harley Street LLC and Harley Street Medical Center LLC ("Harley Group").

On 28 July 2016, the Group entered into a Share Purchase Agreement to acquire 60 % voting shares in Harley Street Pharmacy LLC,
Harley Street LLC and Harley Street Medical Center LLC, giving it control over the Harley Group. Harley Group is engaged in the business
of running clinics, pharmacies and other healthcare services. Upon transfer of control, the Group owns economic and beneficial interest
in 60% of the net worth and profit/(loss) of the Harley Group. The acquisition is expected to provide the Group with an increased share
of medical and healthcare sector through access to the subsidiary's customer base and market share. The Group also expects to reduce
costs through economies of scale.

A Consideration transferred

The following table summarises the acquisition date fair value of consideration transferred:

Particulars J in Millions
Cash 765.61

Annual Report 2017-18 229

Notes to the Consolidated Financial Statements
39. Acquisition of Subsidiaries and Non-Controlling Interests (NCI) (contd..)
ii) Harley Group (contd..)

B Identifiable assets acquired and liabilties assumed

Particulars J in Millions
Property, plant and equipment 488.53
Intangible assets including payor relationships and trade name 184.11
Other assets 235.15
Cash and cash equivalent 96.61
Total assets 1,004.40
Borrowings (282.54)
Trade payable (233.33)
Total liabilities (515.87)
Net identifiable assets acquired 488.53

Measurement of fair values

Assets acquired Valuation technique

Property, plant Cost approach (reproduction cost approach) is adopted for the valuation of identified item of property, plant and
and equipment equipment. Reproduction cost new or cost of reproduction new (“CRN”) contemplates replacing the asset with an
identical asset without regard to economic and functional considerations. Reproduction cost new is the cost to
reproduce the asset in like kind to obtain an asset that is nearly an exact duplicate of the subject asset.

Payor The fair value of existing Payor Relationships was estimated using a form of the income approach known as the
relationships contributory asset charges (“CAC”) method or multi-period excess earnings (“MEEM”).Under MEEM, value is estimated
as the present value of the benefits anticipated from ownership of the subject intangible asset in excess of the returns
required on the investment in the contributory assets necessary to realize those benefits. It is based on the theory
that all operating assets contribute to the profitability of an enterprise. Therefore, if the estimated earnings associated
with a specific asset of the Company rely on the use of other company assets, then the estimated excess earnings of
the subject asset must include appropriate charges for the use of these contributory assets.

Trade name The Fair Value of an acquired Trade Name is established using a form of the income approach known as the relief from-
royalty method. This method recognizes that because a company owns the Trade Name rather than licensing them, the
Company does not have to pay a royalty; usually expressed as a percentage of sales, for their use. The present value of
the after-tax cost savings (i.e. royalty relief) at an appropriate discount rate indicates the value of the Trade Name.

C Goodwill
Goodwill arising from acquisition has been determined as follows

Particulars J in Millions
Consideration transferred 765.61
Fair value of non controlling interest 401.03
Fair value of net identifiable assets (488.53)
Goodwill 678.11

230 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
39. Acquisition of Subsidiaries and Non-Controlling Interests (NCI) (contd..)
iii) Ramesh Cardiac and Multispeciailty Hospitals Private Limited (Ramesh Hospital)

On 30 April 2016, the Group entered into a Share Subscription and Share Purchase Agreement ("SSPA") to acquire 51 % stake in Ramesh
Hospital in three separate tranches. The Group also entered into a Shareholders’ Agreement which governs the rights and obligations of
the shareholders. The transfer of control was established on 17 May 2016.

In May 2016, the Group acquired 29.97% voting shares and power to appoint majority of the board of directors in Ramesh Hospital. As as
result, the Group acquired control of the entity. The acquisition is expected to provide the Group with an increased share of medical and
healthcare sector through access to the subsidiary's customer base and market share. The Group also expects to reduce costs through
economies of scale.
A Consideration transferred

The following table summarises the acquisition date fair value of consideration transferred:

Particulars J in Millions
Cash 960.20

B Identifiable assets acquired and liabilties assumed

Particulars J in Millions
Property plant and equipment (including CWIP) 1,322.60

Financial Statements
Intagible assets including payor relationships and trade name 422.00
Cash and cash equivalents 4.70
Current investment 35.20
Other current assets 178.20
Total Assets 1,962.70
Borrowings (732.60)
Short term provision (2.40)
Trade payable (149.20)
Other current liabilities (67.20)
Total liabilities (951.40)
Total net identifiable assets acquired 1,011.30

Measurement of fair values

Assets acquired Valuation technique

Property, plant Cost approach (a combination of reproduction and replacement cost approach) is adopted for the valuation of identified
and equipment Property, plant and equipment.The cost approach to valuation is based on the concept that an informed purchaser will
measure an asset’s value by the cost of substituting another asset of comparable utility. The cost approach relies on
the replacement cost new, the reproduction cost new or a combination of both to provide an indication of value for the
assets. Value indcations developed in applying the method are weighted and reconciled with other facts with regards
to the type of assets being appraised and the quantitty and quality of the data available in order to form a conclusive
opinion of fair market value.

Payor The fair value of existing Payor Relationships was estimated using a form of the income approach known as the
relationships contributory asset charges (“CAC”) method or multi-period excess earnings (“MEEM”).Under MEEM, value is estimated
as the present value of the benefits anticipated from ownership of the subject intangible asset in excess of the returns
required on the investment in the contributory assets necessary to realize those benefits. It is based on the theory
that all operating assets contribute to the profitability of an enterprise. Therefore, if the estimated earnings associated
with a specific asset of the Company rely on the use of other company assets, then the estimated excess earnings of
the subject asset must include appropriate charges for the use of these contributory assets.

Trade name The Fair Value of an acquired Trade Name is established using a form of the income approach known as the relief
from-royalty method. This method recognizes that because a company owns the Trade Name rather than licensing it a
company does not have to pay royalty; usually expressed as a percentage of sales, for their use. The present value of the
after-tax cost savings (i.e. royalty relief) at an appropriate discount rate indicates the value of the Trade Name.

Annual Report 2017-18 231

Notes to the Consolidated Financial Statements
39. Acquisition of Subsidiaries and Non-Controlling Interests (NCI) (contd..)

iii) Ramesh Hospital (contd..)

C Goodwill
Goodwill arising from acquisition has been determined as follows

Particulars J in Millions
Consideration transferred 960.20
Fair value of non controlling interest 1,800.80
Fair value of net identifiable assets (1,011.30)
Goodwill 1,749.70

The non-controlling interest has a put option on 49% of the non-controlling interest’s equity ownership in Dr. Ramesh Hospital. The option
is exercisable from May 2021. The put option contains an obligation for the Company to acquire 49% of the non-controlling interests and
accordingly the fair value of such put option, determined using Monte carlo simulation model along with such other valuation techniques,
has been recognised. Consequently, the put option liability of H861.3 million at the date of acquisiiton is reduced from NCI.

D During the year ended 31 March 2017, the Group acquired 1,330,322 additional shares via fresh issue in Ramesh Hospital for H452.98
million in cash, thereby increasing its stake in voting shares to 38.60 % . The transaction resulted in an increase in non-controlling interest
to the tune of H215.49 million. The difference of H235.15 million represents a decrease in retained earnings.

E Acquisition of NCI

In September 2016, the Group acquired 1,337,040 additional shares in Ramesh Hospital for H452.28 million in cash, thereby increasing its
stake in voting shares to 51%. The Group consequently recognised a decrease in NCI of H126.35 million. The diffrence of H325.93 million
represents a decrease in retained earnings.

Particulars J in Millions
Carrying amount of non controlling interest acquired 126.35
Consideration paid to non controlling interest 452.28
Decrease in equity attributable to owners of the Company (325.93)

iv) Acquisition of NCI in Malabar Institute of Medical Science Limited, India ('MIMS')
During the year ended 31 March 2017, the Group acquired an additional 0.04% interest in Malabar Institute of Medical Science Limited for
H3.34 millions in cash, increasing its ownership interest from 70.64 % to 70.68 %. The Group consequently recognised a decrease in NCI of
H0.85 million. The difference of H2.49 Million represents a decrease in retained earnings.

Particulars J in Millions
Carrying amount of non controlling interest acquired 0.85
Consideration paid to non controlling interest 3.34
Decrease in equity attributable to owners of the Company (2.49)

v) Al Raffah Pharmacies Group LLC

The Group had formed a new company, Al Raffah Pharmacies Group LLC, in Oman during the year ended 31 March 2017. The company had
obtained trade license but had not started commercial operations. Based on the agreement entered between Aster DM Healthcare FZC,
UAE (a subsidiary) and two resident individuals of Oman, the beneficial and legal shareholding is agreed at 100% and 70% respectively.
During the current year the Comapny has commenced its operations.

vi) Acquisition of Pharmacies (Al Hayat Pharmacy, Al Ola Pharmacy LLC and Mankhool Pharmacy LLC)

During the year ended 31 March 2018, the Group acquired standalone pharmacy outlets based in Dubai, UAE for a total consideration
of H384.96 million and upon acquisition the entities was converted as a branch of one of the subsidiary. The total goodwill recognised
amounts to H263.95 million on acquisition.

232 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
39. Acquisition of Subsidiaries and Non-Controlling Interests (NCI) (contd..)
vii) Acquisition of NCI in Sri Sainatha Multispeciality Hospitals Private Limited

During the year ended 31 March 2018, the Group acquired additional 11.14% stake in Sri Sainatha Multispeciality Hospitals Private Limited
for H80.52 million in cash, increasing its ownership interest from 46.9 % to 58.04 %. The Group consequently recognised a decrease in NCI
of H38.69 million. The difference of H41.83 million represents a decrease in retained earnings.

Particulars J in Millions
Carrying amount of non controlling interest acquired 38.69
Consideration paid to non controlling interest 80.52
Decrease in equity attributable to owners of the Company (41.83)

40. Investment in equity accounted investees

The Group has interest in the following companies listed below. The Group's interest in these companies is accounted for using equity
method in the consolidated financial statements. The Group has significant influence either by virtue of shareholding being more than
20%, provision of essential technical service or Board representation. However the Group does not have control or joint control over any
of these entities.

H in Millions
Name Country Legal and Share of profits/ (losses) Investment
beneficial Year ended Year ended As at As at

Financial Statements
holding 31 March 2018 31 March 2017 31 March 2018 31 March 2017
AAQ Healthcare Investments LLC UAE 33% (5.32) (0.14) (3.68) 1.64
Aries Holdings FZC UAE 25% 24.84 (1.15) 35.01 10.17
EMED Human Resources (India) Private India 33% 0.40 0.75 0.46 0.05
Limited
MIMS Infrastructure and Properties Private India 35% 2.95 (1.75) 98.69 95.74
Limited
Total 22.87 (2.29) 130.48 107.60

Summarised financial information :

(i) MIMS Infrastructure and Properties Private Limited

The Group has a 35% interest in MIMS Infrastructure And Properties Private Limited, an entity which is not listed on any public exchange.
The table below also reconciles the summarised financial information to the carrying amount of the Group's interest in MIMS Infrastructure
and Properties Private Limited.

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Non-current assets 226.66 231.74
Current assets 21.73 15.72
Non-current liabilities - (6.62)
Current liabilities (6.54) (7.51)
Net Assets 241.85 233.33
Ownership held by the group 35% 35%
Group's share of net assets 84.65 81.57

Annual Report 2017-18 233

Notes to the Consolidated Financial Statements
40. Investment in equity accounted investees (contd..)

(i) MIMS Infrastructure and Properties Private Limited (contd..)

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Revenue 18.71 18.87
Profit / (loss) before tax 11.86 (1.55)
Income tax (3.33) 3.45
Profit / (loss) after tax 8.53 (5.01)
Other Comprehensive Income - -
Total Comprehensive Income / (loss) 8.53 (5.01)
Ownership held by the group 35% 35%
Group's share of total comprehensive income 2.95 (1.75)

(ii) Investment in other associates

The Group also has interest in the other associates as listed in the table above. The table below reconciles the summarised financial
information to the carrying amount of the Group's interest in these associates.

H in Millions
Particulars As at As at
31 March 2018 31 March 2017
Non-current assets 3,213.68 2,602.05
Current assets 165.72 48.46
Non-current liabilities (1,460.85) (618.61)
Other payables (1,773.82) (1,489.50)
Current liabilities (8.90) (492.33)
Net Assets 135.83 50.08
Group's share of net assets 33.07 12.79

H in Millions
Particulars Year ended Year ended
31 March 2018 31 March 2017
Revenue 164.50 6.94
Profit before tax/(loss) 84.77 (2.32)
Income tax (0.31) 0.56
Profit after tax/(loss) 84.46 (2.88)
Other Comprehensive Income - -
Total Comprehensive Income 84.46 (2.88)
Group's share of total comprehensive income 19.92 (0.54)

234 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
41. Share based payments
A Description of share based payment arrangements- Share option plans (equity-settled)

The Company has issued stock options under the DM Healthcare Employees Stock Option Plan 2013 (“DM Healthcare ESOP 2013”
or “2013 Plan”) during the financial year ended 31 March 2013. The 2013 Plan covers all non- promoter directors and employees
of the Company and its subsidiaries (collectively referred to as “eligible employees”). Under this plan, holders of vested options are
entitled to purchase shares at the market price of the shares at respective date of grant of options. The Compensation Committee
granted the options on the basis of performance, criticality and potential of the employees as identified by the management.
The Company has issued different categories of options on 2 March 2013, 1 April 2014, 1 April 2015, 22 November 2016, 6 June
2017 and 1 March 2018 on different terms viz; incentive options, milestone options, performance options and loyalty options.
The Company has computed the fair value of the options for the purpose of accounting of employee compensation cost/ expense over
the vesting period of the options.

The fair value of the option is calculated using the Black-Scholes Option Pricing model. Accordingly fair value of the various options
granted is stated below:

H in Millions
Option Type Grant date Number of Exercise price Vesting conditions Contractual
instruments life of options
Incentive option 2 March 2013 344,280 50
At the end of 1 year based on
Incentive option 1 April 2014 344,280 50
performance
Incentive option 1 April 2015 360,526 50

Financial Statements
Incentive option 22 November 2016 410,385 50 50% at the end of first year and 25% each
at the end of second & third year based
on performance.
Incentive option 6 June 2017 148,000 174.75 25% at the end of each financial year
over a period of 4 years based on
performance.
Milestone option 2 March 2013 715,986 50 25% at the end of each financial year
Milestone option 1 April 2014 254,537 50 over a period of 4 years based on
Milestone option 1 April 2015 27,493 50 performance.

Milestone option 22 November 2016 138,000 50 50% at the end of first year and 25% each
at the end of second & third year each
based on performance.
Milestone option 6 June 2017 111,000 175 25% at the end of each financial year
over a period of 4 years based on 5 years from
performance. the date of
Performance 1 March 2018 482,200 142 25% at the end of each financial year grant
options over a period of 4 years based on
performance.
Performance 1 March 2018 183,829 50 25% at the end of each financial year
options over a period of 4 years based on
performance.
Loyalty option 2 March 2013 420,000 10
100% vesting at the end of 1 year from
Loyalty option 1 April 2014 9,000 10
date of grant.
Loyalty option 1 April 2015 15,000 10

Loyalty option 22 November 2016 176,000 10 80% vesting on completion of 6 years’

Loyalty option 6 June 2017 285,000 10 service and 20% vesting on completion of 9
years’ service subject to minimum vesting
period of 1 year from date of grant.

Loyalty option 1 March 2018 146,800 10 75% vesting on completion of 6 years’

service and 25% vesting on completion of 9
years’ service subject to minimum vesting
period of 1 year from date of grant.

Annual Report 2017-18 235

Notes to the Consolidated Financial Statements
41. Share based payments (contd..)
B Measurement of fair value

The Company has computed the fair value of the options for the purpose of accounting of employee compensation cost/ expense
over the vesting period of the options. The fair value of the option is calculated using the Black-Scholes Option Pricing model.
The fair value of the options and the inputs used in the measurement of the grant-date fair values of the equity-settled share based
payment plans are as follows:

Option type Incentive option

Date of grant 6 June 2017 22 November 2016 1 April 2015 1 April 2014 2 March 2013
Fair value at grant date (Rs) 87.20 173.09 216.86 77.07 40.90
Share price at grant date (Rs) 233.00 216.71 259.65 132.56 170.00
Exercise price (Rs) 174.75 50.00 50.00 50.00 50.00
Expected volatality 0.001% 0.001% 0.001% 0.001% Nil
Expected life 2.75 years 2.25 years 2 years 2 years 1.96 years
Expected dividends Nil Nil Nil Nil Nil
Risk-free interest rate 6.64% 6.08% 7.79% 8.89% 7.95%

Option type Milestone option

Date of grant 6 June 2017 22 November 2016 1 April 2015 1 April 2014 2 March 2013
Fair value at grant date (Rs) 87.20 173.31 219.21 78.50 48.68
Share price at grant date (Rs) 232.75 216.71 259.65 132.56 170.00
Exercise price (Rs) 175.00 50.00 50.00 50.00 50.00
Expected volatality 0.001% 0.001% 0.001% 0.001% Nil
Expected life 2.75 years 2.23 years 2.75 years 2.80 years 2.80 years
Expected dividends Nil Nil Nil Nil Nil
Risk-free interest rate 6.64% 6.08% 7.79% 8.89% 7.95%

Option type Performance options

Date of grant 1 March 2018 1 March 2018
Fair value at grant date (Rs) 133.44 61.55
Share price at grant date (Rs) 173.10 173.10
Exercise price (Rs) 50.00 142.00
Expected volatality 16.380% 16.380%
Expected life 2.50 years 2.50 years
Expected dividends Nil Nil
Risk-free interest rate 7.76% 7.76%

H in Millions
Option type Loyalty option
Date of grant 1 March 2018 6 June 2017 22 November 2016 1 April 2015 1 April 2014 2 March 2013
Fair value at grant date (Rs) 165.47 226.89 208.88 251.09 124.19 161.42
Share price at grant date (Rs) 173.10 233.00 216.71 259.65 132.56 170.00
Exercise price (Rs) 10.00 10.00 10.00 10.00 10.00 10.00
Expected volatality 16.380% 0.001% 0.001% 0.001% 0.001% Nil
Expected life 4.50 years 2.61 years 3.14 years 2 years 2 years 2 years
Expected dividends Nil Nil Nil Nil Nil Nil
Risk-free interest rate 6.64% 6.64% 6.08% 7.79% 8.89% 7.95%

236 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
41. Share based payments (contd..)
Expected volatility has been based on an evaluation of the historical volatility of the Company’s share price, particularly over the historical
period commensurate with the expected term. The expected term of the instruments has been based on historical experience and
general option holder behaviour.

C Reconcilation of outstanding share options

The number and weighted-average exercise prices of share options under the share option plans are as follows.

H in Millions
Particulars 31 March 2018 31 March 2017
Outstanding as on 1 April 1.69 1.83
Granted during the year 1.36 0.72
Forfeited during the year 0.51 0.08
Exercised during the year 0.03 0.69
Lapsed during the year 0.02 0.09
Options outstanding at the end of the year 2.49 1.69
Options exercisable at the end of the year 0.99 0.98
Weighted average share price at the date of exercise 68.60 36.01

The options outstanding at 31 March 2018 have an exercise price in the range of H10 to H175 (31 March 2017: H10 to H50) and a weighted
average remaining contractual life of 3.60 years (31 March 2017: 2.75 years & 31 March 2016: 2.31 years).

Financial Statements
D Expense recognised in statement of profit and loss

For details on the employee benefits expense, see note 23

42. Related party disclosures

(i) Names of related parties and description of relationship with the company

A) Enterprises where control exists

a) Holding and ultimate holding company Union Investments Private Limited, Mauritius (till 22 February 2018)
b) Subsidiaries and step down subsidiaries Refer note 38
B) Other related parties with whom the group had transactions
during the year
a) Entities under common control/ Entities over which the DM Education and Research Foundation, India
Company has significant influence Aster DM Foundation, India
Wayanad Infrastructure Pvt Ltd
Equity accounted investees (Refer note 40)
b) Key managerial personnel and their relatives Dr. Azad Moopen ( Chairman and Managing Director)
Alisha Moopen (Director)
Mr. Sreenath Reddy (Chief Financial Officer)
T J Wilson (Director)
Mr. Rajesh A ( Company Secretary)
Daniel James Snyder (Independent Director)
Harsh C Mariwala (Independent Director)
M Madhavan Nambiar (Independent Director)
Ravi Prasad (Independent Director)
Rajagopal Sukumar (Independent Director)
Suresh M. Kumar (Independent Director)

Annual Report 2017-18 237

Notes to the Consolidated Financial Statements
42. Related party disclosures (contd..)
ii) Related party transactions

H in Millions
Nature of transactions Year ended Year ended
31 March 2018 31 March 2017
EMED Human Resources (India) Private Limited
Short-term loans and advances given 0.30 3.61
Short-term loans and advance repayment received 6.19 4.28
Expenses incurred on behalf of associates 1.77 1.61
Interest on loan to related parties 0.65 1.02
Staff recruitment services rendered by associates 2.66 3.52
DM Education & Research Foundation
Income from consultancy services 11.80 10.95
Income from hospital services 12.68 44.97
Interest income under the effective interest method on lease deposit 5.74 5.36
Operating lease- Hospital operation and management expense 7.37 9.96
Shared service expenses 54.93 76.27
Expenses incurred by subsidiaires/ associates 0.60 -
Collection by subsidiaries/ associates 18.68 -
Wayanad Infrastructure Pvt Ltd
Expenses incurred by subsidiaries / associates 0.65 -
Aster DM Foundation India
Income from hospital services 5.97 1.04
Donation given 4.21 8.75
MIMS Infrastructure and Properties Private Limited
Dividend received - 3.18
Expense reimbursement 0.03 0.05
Aries Holdings FZC
Advance given during the year 209.96 103.06
AAQ Healthcare Investment LLC
Advance given during the year - 758.29
Repayment of advances 332.62 -
Managerial remuneration
Short-term employee benefits
- Salaries and allowances* 236.35 215.78
*The aforesaid amount does not include provision for gratuity and leave encashment as the same is determined for the Company as a whole based on an actuarial valuation.

238 Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements
42. Related party disclosures (contd..)
iii) Balance receivable / (payable)

H in Millions
Particulars Related Party balances as at
31 March 2018 31 March 2017
EMED Human Resources (India) Private Limited
Financial assets- loans (current) - Dues from related parties 5.06 8.50
Other financial liabilities (current) - Dues to creditors for expenses (0.12) (3.23)
Wayanad Infrastructure Pvt Ltd
Other financial liabilities (current) - Dues to creditors for expenses (0.65) -
Union Investments Private Limited
Other financial liabilities (current)-Dues to holding company (26.99) (10.37)
DM Education & Research Foundation
Other financial liabilities (current) - Dues to creditors for expenses (3.01) (3.45)
Other non current assets - deferred lease expenses 51.09 58.46
Other current assets - deferred lease expenses 7.37 7.37
Other financial assets- (non current) rent and other deposits 87.72 81.98
Aster DM Foundation India
Trade receivables - 1.04
Aries Holdings FZC
Advance given to equity accounted investees 734.37 524.41

Financial Statements
AAQ Healthcare Investment LLC
Advance given to equity accounted investees 400.40 732.86
MIMS Infrastructure and Properties Private Limited
Other financial assets (current) 0.15 0.13
Key managerial remuneration payable 167.45 -

43 During the year ended 31 March 2018, the Company had completed the initial public offer (IPO), pursuant to which 51,586,145 equity
shares having face value of H10 each were allotted/ allocated, at an issue price of H190 , consisting of fresh issue of 38,157,894 equity
shares and an offer for sale of 13,428,251 equity shares by selling shareholders. The equity shares of the Company were listed on
National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) on 26 February 2018.

The gross proceeds of fresh issue of equity shares from IPO amounts to H7,250 million. The Company's share of fresh issue related
expenses of H443.11 million has been adjusted against securities premium. Details of utilisation of IPO proceeds are as follows:

H in Millions
Particulars Objects of issue as Utilised upto Unutilised amount
per prospectus 31 March 2018 as at 31 March 2018
Repayment/ prepayment of debt 5,641.56 5,641.56 -
Purchase of medical equipment 1,103.11 - 1,103.11
Fresh issue related expenses 490.10 328.12 161.98
General corporate purposes* 15.23 21.33 (6.10)
Total 7,250.00 5,991.01 1,258.99
*The excess utilised has been adjusted against fresh issue related expenses.

Annual Report 2017-18 239

Notes to the Consolidated Financial Statements
44. Disclosure on Specified Bank Notes (SBNs)
During the year ended 31 March 2017, the Company had specified bank notes or other denomination currency notes as defined in
the Ministry of Corporate Affairs notification G.S.R. 308(E) dated 31 March 2017 on the details of Specified Bank Notes (SBN) held and
transacted during the period from 8 November 2016 to 30 December 2016, the denomination wise SBNs and other notes as per the
notification is given below:

H in Millions
Particulars Specified Other   Total
bank notes* denomination notes
Closing cash in hand as on 8 November 2016 14.27 2.56 16.83
(+) Permitted receipts 30.09 277.48 307.57
(-) Permitted payments 2.00 10.24 12.24
(+) Not permitted receipts 25.86 - 25.86
(-) Not permitted payments - - -
(-) Amount deposited in Banks 68.22 262.00 330.22
Closing cash in hand as on 30 December 2016 - 7.80 7.80
* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry
of Finance, Department of Economic Affairs number S.O. 3407(E), dated the 8 November, 2016.

Note: The above disclosure relates to Indian subsidiaries whose financial statements are included in the consolidated Ind AS financial
statements.

45 The subsidiaries and associates incorporated in India has established a comprehensive system of maintenance of information and
documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires
existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the
documentation for the international transactions entered into with associated enterprises during the financial period and expects such
records to be existence latest by the date of filing its income tax return as required by the law. The management is of the opinion that
its international transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financial statements,
particularly on the amount of tax expense and that of provision for taxation.

46 The previous year figures have been reclassified/ regrouped wherever necessary to align with current year presentation.

The accompanying notes form an integral part of the consolidated balance sheet

As per our report of even date attached

for B S R and Associates for and on behalf of the Board of Directors of

Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 128901W CIN: U85110KL2008PLC021703

Rushank Muthreja Dr. Azad Moopen T J Wilson

Partner Managing Director Director
Membership No.: 211386 DIN 00159403 DIN 02135108
Sreenath Reddy Rajesh A
Chief Financial Officer Company Secretary
Membership no. : F7106

Bangalore Dubai Kochi

21 May 2018 21 May 2018 21 May 2018

240 Aster DM Healthcare Limited

a K&A creation | www.kalolwala.co.in