1              Company overview

Aster DM Healthcare Limited (“the Company”) is a service company and was incorporated on 18 January 2008 and primarily carries on the business of rendering healthcare and allied services. The Company was converted into a public limited company with effect from 1 January 2015. The Company is a subsidiary of Union Investments Private Limited, Mauritius which is also the ultimate holding company. The consolidated financial statements of the Company as at and for the year ended 31 March 2016 comprise the Company and its subsidiaries (collectively referred to as the ‘Group’ and individually as ‘Group entities’) and the Group’s interest in associates. The Group is primarily involved in the operations of healthcare facilities, retail pharmacies and providing consultancy in areas related to healthcare. The Group has operations in UAE, Oman, Kingdom of Saudi Arabia (‘KSA’), Qatar, Kuwait, Jordan, Philippines, Bahrain and India. 2              Significant Accounting Policies 2.1        Basis of accounting and brparation of consolidated financial statements

The consolidated financial statements have been brpared and brsented in accordance with the Indian Generally Accepted Accounting Principles (“IGAAP”) under historical cost convention on an accrual basis and comply with the Accounting Standards (‘AS’) brscribed in the Companies (Accounting Standards) Rules, 2006, other pronouncements of the Institute of Chartered Accountants of India (ICAI), the relevant provisions of the Companies Act, 2013 (to the extent applicable) and the relevant provisions of the Companies Act, 1956 (to the extent applicable). The financial statements are brsented in Indian rupees rounded off to the nearest million.2.2        Use of estimates

The brparation of consolidated financial statements in conformity with generally accepted accounting principles in India (Indian GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from those estimates. Estimates and underlying assumption are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future periods.2.3        Principles of consolidation

The consolidated financial statements include the financial statements of the Company and all of its subsidiaries in which the parent company has more than one-half of the voting power of an enterprise or where the parent company controls the composition of the board of directors or its governing body.

(i)                 The financial statements of the parent company and the subsidiaries have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses after eliminating intragroup balances / transactions and resulting unrealised profits / losses in full in accordance with Accounting Standard (AS) 21 - “Consolidated Financial Statements” ('AS 21'). The amounts shown in respect of reserves comprise the amount of the relevant reserves as per the balance sheet of the parent company and its share in the post-acquisition increase in the relevant reserves of the subsidiaries.

(ii)               The Group accounts for investments in associate companies by the equity method of accounting in accordance with AS-23 “Accounting for Investment in Associates in Consolidated Financial Statements” ('AS 23'), where it is able to exercise significant influence over the operating and financial policies of the investee. The carrying amount of investments in associates are effected using the “equity method” and includes the associate company’s share of post-acquisition profits or losses. The Group’s investment in associates includes goodwill identified on acquisition.2.3     Principles of consolidation (continued)

(iii)             The excess / deficit of cost to the parent company of its investment in the subsidiaries over its portion of equity at the respective dates on which investment in such entities were made is recognized in the financial statements as goodwill / capital reserve. The parent company’s portion of equity in such entities is determined on the basis of the book values of assets and liabilities as per the financial statements of such entities as on the date of investment and if not available, the financial statements for the immediately brceding period are adjusted for the effects of significant transactions, up to the date of investment.

(iv)             Minority interest in the net assets of consolidated subsidiaries consists of: (a) the amount of equity attributable to minorities at the date on which investment in a subsidiary is made; and (b) the minorities’ share of movements in equity since the date the parent-subsidiary relationship came into existence. Minority interest in share of net result for the year is identified and adjusted against the profit after tax. Excess of loss, if any, attributable to the minority over and above the minority interest in the equity of the subsidiary is absorbed by the Group. 

(v)               The consolidated financial statements are brsented, to the extent possible, in the same format as that adopted by the parent company for its separate standalone financial statements.

(vi)             The consolidated financial statements are brpared using uniform accounting policies for like transactions and other events in similar circumstances. 

(vii)           The consolidated financial statements include the results of the subsidiaries, step down subsidiaries and associates as listed in Note 45.2.4        Tangible fixed assets and debrciation

Tangible fixed assets are carried at their cost of acquisition or construction less accumulated debrciation. The cost of tangible fixed assets includes freight, duties, taxes and other incidental expenses related to the acquisition of those tangible fixed assets. In respect of major projects involving construction directly attributable costs form part of the value of assets capitalised. Borrowing costs directly attributable to the acquisition / construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use is capitalized.  

Advances paid towards the acquisition of fixed assets, outstanding at each balance sheet date are included under long-term loans and advances. The cost of fixed assets not ready for their intended use before such date are disclosed as capital work-in-progress.  

Debrciation on tangible fixed assets is provided on the straight-line method over the useful lives of the assets estimated by the Management. Debrciation for assets purchased / sold during a period is proportionately charged. Leasehold improvements are amortized over the lease term or useful lives of assets, whichever is lower.

The management’s estimates of the useful lives for various categories of fixed assets as given below:

Class of assets	Years
Building*	3 to 60
Plant and machinery *	5 to 15
Medical equipments *	5 to 10
Motor vehicles *	5 to 8
Computer equipments	3
Furniture and fittings *	5 to 10

 2.4  Tangible fixed assets and debrciation (continued)

 * For the above mentioned class of assets, the Group believes that the useful lives as given above best rebrsent the useful lives of these assets based on internal assessment and supported by technical advice, where necessary, which is different from the useful lives as brscribed under Part C of Schedule II of the Companies Act, 2013.

Debrciation and amortisation methods, useful lives and residual values are reviewed periodically, including at each financial year end.2.5    Intangible fixed assets

Intangible assets are amortized in the statement of profit and loss over their estimated useful lives, from the date that they are available for use based on the expected pattern of consumption of economic benefits of the asset. Accordingly, at brsent, these are being amortized on straight line basis. In accordance with the applicable Accounting Standard, the Group follows a rebuttable brsumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. However, if there is persuasive evidence that the useful life of an intangible asset is longer than ten years, it is amortized over the best estimate of its useful life. Such intangible assets that are not yet available for use are tested annually for impairment.

Amortization is provided on a pro-rata basis on straight-line method over the estimated useful lives of the assets, not exceeding ten years as detailed below:

Class of assets	Years
Computer software	3 to 6
Trade mark	5
Right to use	5

 2.6     Goodwill Any excess of the cost to the parent of its investment in a subsidiary over the parent’s portion of equity of the subsidiary, at the date on which investment in the subsidiary is made, is recorded as goodwill arising on consolidation.

Goodwill arising on consolidation/acquisition of assets is not amortised. It is tested for impairment on periodic basis and written-off, if found impaired (also refer note 2.9 below).2.7     Inventories

Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises purchase price, cost of conversion and other cost incurred in bringing the inventories to their brsent location and condition. The Company uses the weighted average method to determine the cost of inventory consisting of medicines and medical consumables. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. 2.8     Employee benefits

Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the related services are rendered by the employees. 2.8        Employee benefits (continued)

Post-employment benefits

Defined contribution plans

Contributions payable to the recognized provident fund, which is a defined contribution scheme, is made monthly at brdetermined rates to the appropriate authorities and charged to the statement of profit and loss on an accrual basis. There are no other obligations other than the contributions payable to the respective fund. 

Defined benefit plans

Gratuity, a defined benefit scheme, is accrued based on an actuarial valuation at the balance-sheet date, carried out by an independent actuary. The brsent value of the obligation under this defined benefit plan is determined based on an actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional units of employee benefit entitlement and measures each unit separately to build up the final obligation. 

End of services benefits

The provision for employees end of service benefits rebrsents amount due and payable to the employees upon termination of their contracts in accordance with the terms and conditions of the respective labor and workman laws applicable to the subsidiaries. The provision is calculated on the basis of actuarial valuation using the projected unit method at the balance-sheet date, carried out by an independent actuary. 

Compensated absences

The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the           

employees render the related service and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The Group records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method. 

Employee stock option plan

The group 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 the difference between the fair market value of the option of the Company as reduced by the exercise price.2.9        Impairment of assets

The Group assesses at each balance sheet date whether there is any indication that an asset forming part of its cash generating units may be impaired. If any such indications exist, the Group estimates the recoverable amount of the asset or the group of assets comprising, a cash generating unit. For an asset or a group of assets that does not generate largely independent cash flows, the recoverable amount is determined for the cash generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. An impairment loss is reversed only to the extent that the carrying amount of the asset does not exceed the book value that would have been determined; if no impairment loss has been recognized.2.10    Leases

The lease arrangement is classified as either a finance lease or an operating lease, at the inception of the lease, based on the substance of the lease arrangement.

Finance leasesA finance lease is a lease that transfers substantially all the risks and rewards incident to ownership of an asset. A finance lease is recognized as an asset and a liability at the commencement of the lease, at the lower of the fair value of the asset and the brsent value of the minimum lease payments. Initial direct costs, if any, are also capitalized and, subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Operating leases

 Lease where the lessor effectively retains substantially all the risks and rewards of ownership of the leased asset, are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

 Lease income from operating leases is recognised in the statement of profit and loss on a straight line basis over the lease term unless another systematic basis is more rebrsentative of the time pattern in which benefit derived from the leased asset is diminished. Costs, including debrciation, incurred in earning the lease income are recognised as expenses. 2.11    Provisions, contingent liabilities and contingent assets

The Group recognises a provision when there is a brsent obligation as a result of a past (or obligating) event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for a contingent liability is made where there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a brsent obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a brsent obligation as a result of an obligating event, based on a reliable estimate of such obligations. 2.12    Revenue recognition

The Group derives its revenue primarily from rendering medical and healthcare services. Income from medical and healthcare services comprises of income from hospital services and sale of pharma products.

Revenue from hospital services to patients is recognised as revenue when the related services are rendered unless significant future uncertainties exist. Revenue is also recognised in relation to the services rendered to the patients who are undergoing treatment/observation on the balance sheet date to the extent of services rendered.

Revenue from sale of pharma products is recognised on sale of medicines and similar products to the buyer. The amount of revenue recognised is net of sales returns and exclusive of sales tax and discounts given to patients.

‘Unbilled revenue’ rebrsents value of medical and healthcare services rendered in excess of amounts billed to the patients as at the balance sheet date.

Revenue from rendering of consultancy services is recognised as per the terms of the agreements with the customer. 2.12    Revenue recognition (continued)

Interest income is recognised using the time proportionate method, based on the transactional interest rates.Dividend income is recognised in the statement of profit and loss when a right to receive payment is established.

Rental income is accrued on a time basis by reference to the agreements entered.         2.13    Foreign currency transactions and balances

The reporting currency of the Group is the Indian Rupee. The local currencies of the non-integral subsidiaries are different from the reporting currency of the Group.

The Group is exposed to currency fluctuations on foreign currency transactions. Transactions in foreign currency are recognized at the rate of exchange brvailing on the date of the transaction. Exchange difference arising on foreign exchange transactions settled during the year is recognized in the statement of profit and loss for the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date and the resultant exchange differences are recognised in the statement of profit and loss.  Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

Foreign operations

The financial statements of the foreign integral subsidiaries, rebrsentative offices and branches collectively referred to as the ‘foreign integral operations’ are translated into Indian rupees as follows:

·            Items of income and expenditure are translated at the respective monthly average rates;

·            Monetary items are translated using the closing rate;

·            Non-monetary items are translated using the monthly average rate which is expected to approximate the actual rate on the date of transaction; and

·            The net exchange difference resulting from the translation of items in the financial statements of foreign integral operations is recognised as income or as expense for the year.

The financial statements of non-integral foreign operations are translated into Indian rupees as follows:

·            All assets and liabilities, both monetary and non-monetary, are translated using the closing rate;

·            items of income and expenditure are translated at the respective monthly average rates.

·            The resulting net exchange difference is credited or debited to a foreign currency translation reserve.2.14    Derivative contracts

           Forward contracts

Premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Any profit or loss arising on the cancellation or renewal of forward contracts is recognized as income or as expense for the period. The Company does not use the foreign exchange forward contracts for trading or speculation purposes.

In relation to the forward contracts entered into to hedge the foreign currency risk of the underlying outstanding at the balance sheet date, the exchange difference is calculated as the difference between the foreign currency amount of the contract translated at the exchange rate at the reporting date, or the settlement date where the transaction is settled during the reporting period, and the corresponding foreign currency amount translated at the later of the date of inception of the forward exchange  contract and the last reporting date. Such exchange differences are recognized in the statement of profit and loss in the reporting period in which the exchange rates change.2.14     Derivative Contracts (continued)

Other derivative contracts

In accordance with the ICAI Announcement – ‘Accounting for derivatives’, the Company provides for losses in respect of all outstanding derivative contracts at the balance sheet date by marking them to the market. 2.15    Earnings per share The basic earnings per share (‘EPS’) is computed by dividing the net profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per 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 equity shares are deemed converted as of the beginning of the period unless issued at a later date. In computing dilutive earning per share, only potential equity shares that are dilutive i.e. which reduces earnings per share or increases loss per share are included. 2.16    Investments

Long-term investments are carried at cost less provision for any diminution, other than temporary, in the value of such investments determined on a specific identification basis.

Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

The cost of investment includes acquisition charges such as brokerage, fees and duties.

The acquisition cost of investments acquired, or partly acquired by the issue of shares or other securities, is the fair value of the securities issued.

Profit or loss on sale of investments, if any is determined separately for each investment.2.17    Income taxes

The current income tax charge is determined in accordance with the relevant tax regulations applicable to the respective entities within the Group.

Deferred tax charge or credit is recognized for the future tax consequences attributable to timing difference that result between the profit offered for income taxes and the profit as per the financial statements. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date.  Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, when there is a brought forward loss or unabsorbed debrciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets.  Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

The Group offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.2.18    Cash-flow statement

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Group are segregated.2.19    Cash and cash equivalents

Cash and cash equivalents comprise cash and balances with banks. The Group considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

33.

Earnings per share	Year ended 31 March 2016	Year ended 31 March 2015
Net profit for the year (as per statement of profit and loss)	2,851.29	3,477.40
Weighted average number of equity shares of Rs.10 each used for calculation of basic earnings per share	39,54,04,133	38,31,01,198
Effect of dilutive potential equity shares	-	-
Employee stock options	15,31,598	18,53,772
Compulsorily convertible brference shares	4,11,20,541	85,17,303
Weighted average number of equity shares of Rs.10 each used for calculation of diluted earnings per share	43,80,56,272	39,34,72,273
Earnings per share, basic	7.21	9.08
Earnings per share, diluted	6.51	8.84

34.

Contingent liabilities	-	-
Export commitments under EPCG scheme*	1,136.69	768.14
Claims against company not acknowledged as debt	23.92	19.29
Letter of credit	-	1.50
Statutory bonus	16.13	-
Disputed income tax/wealth tax/ provident fund demands pending before assesing/appelate authorities (refer notes (a) to (g) below)	18.45	14.53
Bank guarantees	2,957.87	2,783.71
Total	4,153.06	3,587.17

*The Group has obtained duty free / concessional duty licenses for import of capital goods by undertaking export obligations under the EPCG scheme.  As at 31 March 2016, export obligations remaining to be fulfilled amounts to Rs.1,136.69 (Previous year: Rs.768.14 ).  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.228.69 (Previous year:  Rs.156.73) to the customs authorities in this regard.       
       
"a) A subsidiary company has received an income tax demand for the assessment years 2002-03 and 2003-04 wherein demand for tax and penalty of Rs. 2.97 million and Rs. 3.64 million respectively has been raised against the company on account of certain disallowances, adjustments made by the income tax department. A significant portion of this amount arises from disallowance of certain penalties paid on unexplained investment. 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 company has filed an appeal against the demands received.
b) A subsidiary company has received an income tax demand for the assessment year 2004-05 wherein demand for tax and penalty of Rs. 0.18 million has been raised against the company on account of certain disallowances, adjustments made by the income tax department. A significant portion of this amount arises from disallowance of certain penalties paid on not including foreign exchange gain in the cost of acquisition during purchase of plant and machinery. 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 company has filed an appeal against the demands received."       
       
"c) A subsidiary company has received an income tax demand for the assessment year 2005-06 wherein demand for tax and penalty of Rs. 11.78 million has been raised against the company on account of certain disallowances, adjustments made by the income tax department. The company has paid Rs. 10.36 million under protest against the demand. A significant portion of this amount arises from disallowance of certain penalties paid on electricity charges. 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 company has filed an appeal against the demands received.
"       
d) A subsidiary company has received an income tax demand for the assessment year 2006-07 wherein demand of Rs. 2.37 million has been raised against the company on account of certain disallowances, adjustments made by the income tax department. The company has paid Rs. 2.06 million under protest against the demand. A significant portion of this amount arises from certain adjustment for unabsorbed debrciation done by the income tax department in the computation of Minimum Alternative Tax. 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 company has filed an appeal against the demands received.       
e) A subsidiary company has received an income tax demand for the assessment year 2008-09 wherein demand of Rs. 3.53 million has been raised against the company on account of certain disallowances, adjustments made by the income tax department. The company has paid Rs. 2.46 million under protest against the demand. A significant portion of this amount arises from certain adjustment done by the income tax department in the computation of Minimum Alternative Tax. 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 Company has filed an appeal against the demands received.       
f) A subsidiary company has received demand from the provident fund authorities wherein demand of Rs. 8.8 million has been raised against the company on account of PF contribution in respect of certain trainees employed by the Company. 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 company has filed an appeal against the demands received.       
g) 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. A subsidiary company 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 company has obtained an independent legal opinion in support of its position on the matter.       
"h) It is not practicable for the Group to estimate the timings of 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.
i) In the past, prior to Malabar Institute of Medical Sciences Limited ('MIMS') becoming a subsidiary of the Company, there was a violation of section 67(3) of the Companies Act, 1956 at MIMS.  The violation related to certain instances of issuance and allotment of equity shares by MIMS which were not in compliance with the requirements of the said section of the Act.  Subsequently, in November 2015, the SEBI issued a circular and provided that companies involved in such violations may avoid penal action subject to fulfilment of certain conditions. Consequently, the Company has taken actions to comply with the requirements of the SEBI circular and has filed its compounding application before the National Company Law Tribunal (NCLT) stating that the non-compliance was inadvertent and requesting to compound the offence. The NCLT has vide its order dated 24 August 2016, compounded the offence by imposing a penalty which is not considered to be significant to the consolidated financial statements.
j) The Group does not expect any reimbursements in respect of the above contingent liabilities.
k) The Group has reviewed all its pending litigations and proceedings and has made adequate provisions where required and disclosed as 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 results.
l) The Group has given Bank Guarantees in respect of certain contingent liabilities listed above."       
       
35.

Capital commitments
Capital commitments	2883.37	2673.88
	2883.37	2673.88

36  Operating lease commitments – Group as lessee       
 i) The Group is obligated under non-cancellable operating leases for its hospital, clinics, pharmacies and office brmises. Total rental expenses under such leases amounted to Rs. 1,960.17 (brvious year: Rs 1,153.65). Future minimum lease payments under non-cancellable operating leases are as follows:       

Less than one year	1849.45	1589.93
Between one and five years	4073.38	3260.48
More than five years	10153.79	10162.80
	16076.62	15013.21

ii) The Group is also obligated under cancellable operating leases for its hospital, clinics, pharmacies and office brmises which are renewable at the option of both the lessor and lessee. Total rental expenses under such leases amounted to Rs. 44.51 (brvious year: Rs 109.73).       
iii) Further, the Group has entered into a hospital operation and management agreement under a non-cancellable contract and the operating lease commitment from such contract amounted to Rs.37.35 (brvious year: Rs 24.99).       
 37  Related party transactions       
        
 (i) Names of related parties and description of relationship with the Company:       
A) Enterprises where control exist

(a) Holding and ultimate holding Company	Union Investments Private Limited, Mauritius
(b) Subsidiaries and step-down subsidiaries and associates	Refer note 45

B) Other related parties with whom the group had transactions during the year

(a) Entities having significant influence over the Company	Olympus Capital Asia Investment Limited, Mauritius
	Indium IV (Mauritius) Holdings Limited
(b) Entities under common control/ Entities over which the Company has significant influence	DM Education & Research Foundation (also known as DM Foundation, India)
(c) Key managerial personnel and their relatives	Dr. Azad Moopen (Chairman and Managing Director)
	Mr. Sreenath Reddy (Chief Financial Officer)

38  Employee stock option plan       
 "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 the 2013 Plan, the Company has granted 1,480,266 (adjusted for bonus issue) options on 2 March 2013, 607,817 options on 1 April 2014  and 403,019 options on 1 April 2015 to eligible employees. 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 three different categories of options on 2 March 2013, 1 April 2014 and 1 April 2015 on different terms viz; incentive options, milestone options and loyalty options.
The Guidance Note on ""Accounting for Employee Share Based Payments"" issued by the ICAI establishes financial and reporting principles for employees share based payment plans. The Guidance Note applies to employee share based payment plans, the grant date in respect of which falls on or after 1 April 2005.

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:"       

Option Type	Grant Date	Fair Market Value	Exercise Price	Vesting conditions	Exercise period
Incentive option	02-03-2013	40.90	50.00	At the end of 1 year based on performance	5 years from the date of grant
Incentive option	01-04-2014	77.07	50.00	At the end of 1 year based on performance	5 years from the date of grant
Incentive option	01-04-2015	216.86	50.00	At the end of 1 year based on performance	5 years from the date of grant
Milestone option	02-03-2013	48.68	50.00	25% at the end of each financial year over a period of 4 years based on KPIs	5 years from the date of grant
Milestone option	01-04-2014	78.50	50.00	25% at the end of each financial year over a period of 4 years based on KPIs	5 years from the date of grant
Milestone option	01-04-2015	219.21	50.00	25% at the end of each financial year over a period of 4 years based on KPIs	5 years from the date of grant
Loyalty option	02-03-2013	161.42	10.00	100% vesting at the end of 1 year from date of grant	5 years from the date of grant
Loyalty option	01-04-2014	124.19	10.00	100% vesting at the end of 1 year from date of grant	5 years from the date of grant
Loyalty option	01-04-2015	251.09	10.00	100% vesting at the end of 1 year from date of grant	5 years from the date of grant

Summary of the status of options granted under the 2013 Plan to employees as at 31 March 2016 and 31 March 2015 is brsented below :

Particulars	31 March 2016		31 March 2015
Options granted and outstanding at the beginning of the year  *	18,53,772		14,60,266
Granted during the year	4,03,019		6,07,817
Lapsed / forfeited during the year	1,91,407		1,97,430
Exercised during the year	2,00,219		-
Expired during the year	37,647		16,881
Options outstanding at the end of the year	18,27,518		18,53,772
Options exercisable at the end of the year	17,87,388		13,91,385
Weighted average exercise price	50.53		51.82

* Adjusted for bonus issue       
The options outstanding as at 31 March 2016 had a weighted average remaining contractual life of 2.31 years.        
Assumptions used to estimate the fair value of option using Black- Scholes Option Pricing valuation model are as follows:

Option Type	Incentive Option			Milestone Option			Loyalty Option
Date of grant	1st April 2015	1st April 2014	2 March 2013	1st April 2015	1st April 2014	2 March 2013	1st April 2015	1st April 2014	2 March 2013
Risk free interest rate	7.79%	8.89%	7.95%	7.79%	8.89%	7.95%	7.79%	8.89%	7.95%
Expected life	2 Years	2 Years	1.96 Years	2.75 Years	2.80 Years	2.80 Years	2 Years	2 Years	2 Years
Expected volatility	0.001%	0.001%	Nil	0.001%	0.001%	Nil	0.001%	0.001%	Nil
Expected dividend yeild	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
Fair market value of underlying assets	Rs. 259.65	Rs. 132.56	Rs. 170	Rs. 259.65	Rs. 132.56	Rs. 170	Rs. 259.65	Rs. 132.56	Rs. 170

39  Investment in equity accounted investees 

Investments	As at 31 March 2016	As at  31 March 2015
Aries Holdings FZC, UAE - 1,250 equity shares of  Rs 10 each  ( brvious year 1,250 equity shares)	12.43	21.24
MIMS Infrastructure and Properties Private Limited, India - 6,617,401 equity shares of Rs.10 each ( brvious year 6,617,401 )	96.77	94.96
AAQ Healthcare Investments LLC,  - 99 equity shares of  AED 1,000 each  ( brvious year Nil equity shares)	1.78	-
Others	0.01	0.01
-	110.99	116.21

Share of profit/ (loss)	Year ended 31 March 2016	Year ended 31 March 2015
Aries Holdings FZC, UAE - 1,250 equity shares of  Rs 10 each	(9.77)	(0.16)
MIMS Infrastructure and Properties Private Limited, India	1.81	0.83
-	(7.96)	0.67

Aries Holdings FZC, UAE       
The Group has a 25% interest in Aries Holdings FZC, an entity which is not listed on any public exchange, effective from 24 November 2014. The carrying value of the investment as at 31 March 2016 was Rs 12.43 and as at 31 March 2015 was Rs 21.24. The Group’s share of losses for the year ended 31 March 2016 was Rs.9.77 and for year ended 31 March 2015 was Rs.0.16        
       
The aggregate summarized financial information of Aries Holdings FZC is as follows:       

-	As at 31 March 2016	As at 31 March 2015
Total assets	1,689.22	448.17
Total liabilities	950.96	0.14
Total equity	738.26	448.03
Revenue	-	-
Loss for the  year	(39.09)	(0.64)

MIMS Infrastructure and Properties Private Limited       
The Group has a 49% interest in MIMS Infrastructure and Properties Private Limited, an entity which is not listed on any public exchange, effective from 30 March 2013. The carrying value of the investment as at 31 March 2016 was Rs. 96.77 (brvious year Rs. 94.96). The Group’s share of profits for the year ended 31 March 2016 was Rs. 1.81 and for year ended 31 March 2015 was Rs. 0.83.       
       
The aggregate summarized financial information of MIMS Infrastructure and Properties Private Limited. is as follows:       

-	Year ended 31 March 2016	As at 31 March 2015
Total assets	184.26	199.31
Total liabilities	21.41	26.65
Total equity	162.85	172.66
Revenue	18.68	9.34
Profit for the period / year	5.93	4.31

AAQ Healthcare Investment LLC       
The Group has a 33% interest in AAQ Healthcare Investment LLC, an entity which is not listed on any public exchange, effective from 27 March 2016. The carrying value of the investment as at 31 March 2016 was Rs. 1.78 (brvious year Rs. Nil). The Group’s share of profits for the year ended 31 March 2016 was Rs. Nil and for year ended 31 March 2015 was Rs. Nil.       
       
The aggregate summarized financial information of AAQ Healthcare Investment LLC is as follows:       

-	Year ended 31 March 2016	As at 31 March 2015
Total assets	127.81	-
Total liabilities	122.41	-
Total equity	5.40	-

Others        
The Group has interest in other entities which are not listed on any public exchange. The carrying value of the investment in other entities as at 31 March 2016 and 31 March 2015 was Rs. 0.01 and Rs. 0.01, respectively.        
 40  Segment reporting      
       
 The Group has structured its business broadly into four verticals – Hospitals, clinics, retail pharmacies and others. The Group considers business segment as the primary segment and geographical segment based on the location of customers as the secondary segment.  The accounting principles consistently used in the brparation 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.
"      
       
 Primary segment information :      
 "The primary segments of the Group are its business segments which are as follows:
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"      

Particulars	Year ended 31 March 2016	Year ended 31 March 2015
Segment revenue	-	-
Hospitals	25,729.04	19,002.80
Clinics	12,730.86	9,085.70
Retail Pharmacies	14,018.00	10,646.46
Others	21.00	23.47
Total	52,498.90	38,758.43
Segment result	-	-
Hospitals	3,487.07	3,290.72
Clinics	832.40	1,247.88
Retail Pharmacies	1,048.60	753.57
Total	5,368.07	5,292.17
Other income, excluding interest income	212.81	90.50
Finance income	34.27	137.33
Finance charges	(854.73)	(659.18)
Unallocated expenses	(1,498.70)	(1,042.55)
Profit before tax, minority interest and share in profit/(loss) of  associates	3,261.72	3,818.27
Provision for tax	(402.47)	(341.54)
Profit before minority interest and share in profits of  associates	2,859.25	3,476.73
Segment assets	-	-
Hospitals	48,666.71	25,917.50
Clinics	9,342.92	5,637.12
Retail Pharmacies	8,657.24	5,821.45
Others	29.96	16.74
Unallocated	4,768.32	2,443.04
Total	71,465.15	39,835.85
Segment liabilities	-	-
Hospitals	15,994.70	8,500.59
Clinics	3,117.91	1,793.67
Retail Pharmacies	5,519.79	3,446.08
Others	1,351.94	4.30
Unallocated	9,446.95	5,898.29
Total	35,431.29	19,642.93
Particulars	Year ended 31 March 2016	Year ended 31 March 2015
Debrciation, amortisation and impairment	-	-
Hospitals	1,549.72	1,062.33
Clinics	417.26	225.37
Retail Pharmacies	188.35	105.71
Unallocated	354.67	50.26
Total	2,510.00	1,443.67
Capital expenditure	-	-
Hospitals	4,944.01	2,752.58
Clinics	1,929.25	848.20
Retail Pharmacies	659.11	292.12
Others	-	8.39
Unallocated	70.26	265.98
Total	7,602.63	4,167.27

Secondary segment information:      
The Group operates in three principal geographical areas which have been identified as secondary segments based on the location of the customers.      
"The secondary 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)"      

Segment revenue	-	-
GCC States	46,178.27	34,478.46
India	6,318.73	4,279.97
Rest of the world	1.90	-
Total	52,498.90	38,758.43
Segment assets	-	-
GCC States	56,384.78	27,899.90
India	14,970.18	11,821.43
Rest of the world	110.19	114.52
Total	71,465.15	39,835.85
Capital expenditure	-	-
GCC States	5,149.63	2,476.87
India	2,381.41	1,670.31
Rest of the world	71.59	20.09
Total	7,602.63	4,167.27

41  Employee benefits:  
 a)  Post-employment benefit plans  
 The following tables set out the status of the gratuity plan as required under Accounting Standard-15, 'Employee Benefits'  
 Reconciliation of the projected benefit obligation  

Particulars	As at / for the year ended 31 March 2016	As at / for the year ended 31 March 2015
Obligations at the beginning of the year	49.38	25.63
Current service cost	13.39	12.23
Interest cost	3.62	2.48
Actuarial gain / (loss)	3.24	9.73
Past service cost	-	3.39
Benefits paid	(3.06)	(4.08)
Acquisition/(disposal) during the year	(1.87)	-
Obligations at the end of the year	64.70	49.38
Change in plan assets
Plans assets at beginning of the year, at fair value	12.15	10.55
Expected return on plan assets	1.01	1.00
Actuarial gain / (loss)	0.16	(0.05)
Contributions	1.16	1.30
Benefits paid	(0.22)	(0.65)
Acquisition/(disposal) during the year	(0.12)	-
Plans assets at the end of the year	14.14	12.15
Reconciliation of brsent value of the obligation and the fair value of the plan assets:
Fair value of plan assets at the end of the year	14.14	12.15
Present value of the defined benefit obligations at the end of the year	64.70	49.38
Net liability recognized in the balance sheet	50.56	37.23
Gratuity cost for the year ended
Current service cost	13.39	12.23
Interest cost	3.62	2.48
Expected return on plan assets	(1.01)	(1.00)
Actuarial (gain) / loss	3.08	9.78
Past service cost		3.39
Gratuity cost	19.08	26.88
Assumptions:	31 March 2016	31 March 2015
Discount rate (per annum)	7.40% - 7.80%	7.80% - 7.90%
Rate of return on plan assets	7.60%	9.00%
Rate of increase in compensation levels	6% - 8%	5% - 8.5%
Retirement age	58 - 60 years	58 - 60 years
Attrition rates	Below 35 years : 35% p.a 35 yrs & above : 3% p.a.	20%-40%

The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

 42  Acquisitions      
       
 "a) Amalgamation of Indogulf Hospitals Private Limited ('IGH') :
IGH, a Company incorporated on 19 September 2012, was a subsidiary of Aster DM Healthcare Limited ('the company') with shareholding of 65.44% as on 31 March 2015.
The Scheme of Amalgamation ('the scheme') of IGH with the Company was approved by the Hon'ble High Court, Kerala vide its Order dated 1 July 2015, which was given effect to by filing with Registrar of Companies, Kerala dated 21 August 2015. The Scheme inter-alia provides for the amalgamation of IGH with the Company effective from 1 April 2015.
As per the scheme, the new equity shares to be issued to the members of the Transferor Companies shall be in multiples of 1 and any fractional shares shall be rounded-off to the next higher multiple of 1. The new equity shares to be issued shall rank pari passu with the existing equity shares of the Company. In accordance with the scheme, 7,029,092  equity shares of Rs 10 each has been issued to the shareholders of IGH.
In accordance with the requirements of the said Scheme, the above mentioned amalgamation have been accounted under the Pooling of Interest Method as follows :"      
       
 "a) The assets aggregating to Rs 1,007,844,407 and current liabilities of Rs 122,085 of IGH have been recorded by the Company at book values.
b) Investment of Rs 705,815,301  in IGH and receivable of Rs.6,251,773 from IGH was cancelled
c) The reserves of IGH Rs 549,950,289 were transferred to the Company in the same form.
d) The surplus arising between the aggregate values of assets of the IGH, net of the aggregate of the liabilities of the IGH, together with the share capital issued, and reserves of the IGH recorded by the Company (i.e, the difference between the amount recorded as share capital issued and the amount of share capital of the IGH), has been adjusted to the reserves of the Company, as per the requirements of Accounting Standard 14 'Accounting for Amalgamations'.
As part of the scheme approved by the Hon'ble High Court, the authorised share capital of IGH (Rs 500 million) is added to the authorised share capital of the Company."      
 Although IGH was amalgamated with the Company with an appointed date of 1 April 2015, it continued to be a separate legal entity till 21 August 2015. The transaction between IGH and the Company from 1 April 2015 to 21 August 2015 and outstanding balances have been cancelled to give effect to the amalgamation in the books of the Company. Hence, these transactions do not form part of the disclosures relating to the "Related Party Transactions" mandated by Accounting Standard 18.      
 b) During the current year, the Group has acquired additional 56.2% stake in Sanad Hospital, Kingdom of Saudi Arabia. The total purchase consideration amounting to Rs. 16,794.96 million had been paid in cash. The Group has also accounted for the contingent consideration payable as per terms of the contract amounting to Rs.3,040.23 million. The goodwill of Rs. 15,549.54 million comprises of value of expected synergies arising from the acquisition.       
 c) During the current year, the Group has acquired additional 47.75% stake in Dr. Moopens Healthcare Management Services WLL. The total purchase consideration amounting to Rs. 809.08 million had been paid in cash. The goodwill of Rs. 300.99 million comprises of value of expected synergies arising from the acquisition.      
 d) During March 2016 the Company has acquired additional 2.74% stake in Malabar Institute of Medical Sciences Limited (MIMS) pursuant to an invitation to offer dated 27 January 2016 made to 599 share holders of MIMS. The offer was made by the Company pursuant to a brss release dated November 30, 2015 and circular no. CIR/CFD/DIL3/18/2015 dated 31 December 2015 (the brss release and the circular, the “SEBI Circular”) recognising the intend of SEBI on the matter involving violation of the provisions of section 67 (3) of the Companies Act 1956 by MIMS in the past. The total purchase consideration amounting to Rs. 195.53 million had been paid in cash. The goodwill of Rs. 140.70 million comprises of value of expected synergies arising from the acquisition.      
 43  Disinvestments      
 On 7 January 2016, the Company has sold its entire investment in Medipoint Hospitals Private Limited for a total consideration of Rs.50 milllion, pursuant to which the entity ceased to be a subsidiary of the Company from that date.      
       
 44  Derivative contracts      
 a) The Company has entered into forward contract to hedge its foreign exchange fluctuation risk associated with the purchase of an asset - Rs. 89.43 (USD 1.26) {brvious year Rs. 83.34 (USD 1.26)}.       
 b) A subsidiary company has entered into derivative contracts to hedge its interest rate risk associated with the repayment of Borrowings from a bank aggregating to 1,553.32 (USD 23.50) {(brvious year Rs 1,505.77 (USD 30.00)).      
(ii) Details of transactions/outstanding balances with related parties

Particulars	Holding Company	Associates	KMP	Entities having significant influence over the Company	Others	Total
For the year ended 31 March 2016	-	-	-	-	-	-
Interest on loan	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	1.23	-	-	-	1.23
Security Deposit	-	-	-	-	-	-
DM Education and Research Foundation, India	-	-	-	-	150.00	150.00
Donations given	-	-	-	-	-	-
DM Education and Research Foundation, India	-	-	-	-	0.31	0.31
Long term loans and advance repayment received	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	5.37	-	-	-	5.37
Managerial remuneration	-	-	-	-	-	-
Key Managerial Personnel	-	-	256.48	-	-	256.48
Staff recruitment services rendered by associates	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	4.60	-	-	-	4.60
Expenses incurred on behalf of subsidiaries/ associates	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	1.77	-	-	-	1.77
Outstanding balances as at  31 March 2016	-	-	-	-	-	-
Long-term loans and advances	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	6.87	-	-	-	6.87
MIMS Infrastructure and Properties Private Limited, India	-	0.08	-	-	-	0.08
Dues to holding company	-	-	-	-	-	-
Union Investments Private Limited, Mauritius	10.37	-	-	-	-	10.37
Rent and other deposits
DM Education and Research Foundation, India	-	-	-	-	150.00	150.00
For the year ended 31 March 2015	-	-	-	-	-	-
Long term loans and advance repayment received	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	4.38	-	-	-	4.38
Dividend received	-	-	-	-	-	-
MIMS Infrastructure and Properties Private Limited	-	3.28	-	-	-	3.28
Interest on loan	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	1.12	-	-	-	1.12
Managerial remuneration	-	-	-	-	-	-
Key Managerial Personnel	-	-	121.02	-	-	121.02
Expenses incurred on behalf of subsidiaries/ associates	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	1.18	-	-	-	1.18
Outstanding balances as at 31 March 2015	-	-	-	-	-	-
Long-term loans and advances	-	-	-	-	-	-
EMED Human Resources (India) Private Limited, India	-	8.17	-	-	-	8.17
MIMS Infrastructure and Properties Private Limited, India	-	0.61	-	-	-	0.61
Other payables	-	-	-	-	-	-
Union Investments Private Limited, Mauritius	10.37	-	-	-	-	10.37

Additional information pursuant to para 2 of general instructions for the brparation of consolidated financial statements     

-	Net assets	Net assets	Share in profit or loss	Share in profit or loss
Name of the entity	As a % of consolidated net assets	Amount	As a % of consolidated profit or loss	Amount
Aster DM Healthcare Limited	30.79%	24,115.08	-16.04%	(648.11)
Subsidiaries and step down subsidiaries	-	-	-	-
DM Eye Care (Delhi) Private Limited	-0.18%	(140.58)	-0.16%	(6.59)
DM Med City Hospitals India Private Limited	0.00%	(3.23)	0.05%	1.86
Prerana Hospital Limited	-0.05%	(40.79)	-1.12%	(45.30)
Ambady Infrastructure Private Limited	0.24%	189.57	0.02%	0.71
Medipoint Hospitals Private Limited	0.00%	-	-0.44%	(17.87)
Sri Sainatha Multispeciality Hospitals Private Limited	0.50%	390.98	-0.46%	(18.47)
Malabar Institute of Medical Sciences Limited	2.47%	1,936.66	6.32%	255.42
Affinity Holdings Private Limited	21.70%	16,993.41	-0.54%	(21.71)
Aster DM Healthcare FZC	21.76%	17,040.22	-16.95%	(684.61)
Al Ehsan Pharmacy LLC **	0.00%	-	0.18%	7.35
Al Juma Pharmacy LLC **	0.00%	-	0.23%	9.38
Al Musalla Pharmacy LLC **	0.00%	-	-0.03%	(1.30)
Aster IVF and Women Clinic LLC	0.12%	95.67	-0.33%	(13.43)
Al Rafa Medical Centre LLC	-0.18%	(139.95)	-0.20%	(8.24)
Al Raha Pharmacy LLC **	0.00%	-	0.08%	3.18
Al Shifa Pharmacy LLC **	0.00%	-	1.23%	49.70
Al Warqa Pharmacy LLC **	0.00%	-	-0.01%	(0.25)
Alfa Pharmacy LLC **	0.00%	-	0.67%	27.17
Asma Pharmacy LLC	0.01%	11.27	0.04%	1.71
Aster Grand Pharmacy LLC **	0.00%	-	0.38%	15.34
Aster JBR Pharmacy LLC **	0.00%	-	0.09%	3.68
Aster Jebel Ali Pharmacy LLC **	0.00%	-	0.48%	19.24
Aster Pharmacy LLC **	0.00%	-	6.40%	258.48
Avenue Pharmacy LLC **	0.00%	-	0.22%	9.07
Dar Al Shifa Medical Centre LLC	0.05%	35.46	0.33%	13.18
DM Group FZ LLC	0.02%	12.49	-0.01%	(0.46)
DM Healthcare LLC	0.76%	599.07	7.82%	315.88
DM Pharmacies LLC	0.10%	75.80	0.87%	34.99
Dr Moopens Healthcare Management Services LLC	0.19%	150.68	0.17%	7.03
Dr. Moopens Medical Clinic LLC	-0.01%	(7.33)	-0.03%	(1.03)
Eurohealth Systems FZ LLC	0.07%	52.49	0.44%	17.97
Golden Sands Pharmacy LLC **	0.00%	-	0.06%	2.33
Ibn Al Azwar Pharmacy LLC **	0.00%	-	0.09%	3.58
Ibn Alhaitham Pharmacy LLC	-0.02%	(16.86)	-0.38%	(15.38)
Iqra Pharmacy LLC **	0.00%	-	0.01%	0.42
Marina Pearl Pharmacy LLC	-0.01%	(6.55)	-0.08%	(3.42)
Maryam Pharmacy LLC	-0.05%	(42.07)	-0.67%	(26.92)
Med Save Pharmacy LLC	0.02%	17.69	0.08%	3.13
Med Shop Drugs Store LLC	0.56%	435.71	2.45%	98.81
Medcare Hospital LLC	7.84%	6,142.80	33.98%	1,372.87
Medicine Shoppe Micro Pharmacy LLC **	0.00%	-	0.07%	2.67
Medicine Shoppe Pharmacy LLC	-0.01%	(8.34)	-0.01%	(0.34)
Medshop Garden Pharmacy LLC	0.10%	75.66	0.95%	38.34
Modern Dar Al Shifa Pharmacy LLC	0.08%	61.51	0.65%	26.43
New Al Qouz Pharmacy LLC **	0.00%	-	1.29%	52.25
Rafa Pharmacy LLC	-0.02%	(11.86)	0.00%	0.19
Shindagha Pharmacy LLC	0.03%	26.21	0.09%	3.48
Union Pharmacy LLC	0.13%	98.67	0.61%	24.59
Yacoub Pharmacy LLC **	0.00%	-	-0.03%	(1.04)
Aster DIP Pharmacy LLC **	0.00%	-	0.27%	10.89
Al Faisal Pharmacy LLC **	0.00%	-	0.22%	8.74
Aster Pharmacies Group LLC	2.09%	1,638.13	7.56%	305.27
Alfa Drug Stores LLC	0.17%	132.92	2.40%	96.98
Aster Al Shafar Pharmacies Group LLC	0.12%	92.52	0.78%	31.51
New Aster Pharmacy DMCC (Formerly known as New Aster Pharmacy JLT)	0.03%	21.44	0.27%	10.80
Aster Al Shafar Pharmacy LLC (Lamcy) **	0.00%	-	0.00%	0.11
Sara Pharmacy LLC **	0.00%	-	0.08%	3.18
Symphony Healthcare Management Services LLC	-0.33%	(260.43)	-2.46%	(99.57)
Vitamin World LLC	0.00%	(1.25)	-0.06%	(2.56)
Zabeel Pharmacy LLC	0.00%	0.48	0.00%	(0.05)
Aster Pharmacy LLC, AUH	0.01%	10.67	0.12%	5.03
Al Shafar Pharmacy LLC (AUH)	-0.01%	(4.99)	-0.13%	(5.29)
Aster Grace Nursing and Physiotherapy LLC	0.00%	(1.81)	-0.18%	(7.13)
Aster Medical Centre LLC	-0.04%	(34.81)	-0.98%	(39.74)
Aster Opticals LLC	0.00%	-	0.00%	-
Al Rafa Investments Limited	0.00%	(2.51)	-0.14%	(5.75)
Al Rafa Holdings Limited	0.00%	0.08	-0.08%	(3.18)
Rashid Pharmacy LLC **	0.00%	-	0.34%	13.78
Al Raffah Hospital LLC	-0.04%	(34.50)	5.61%	226.65
Al Raffah Medical Centre LLC	-0.09%	(67.06)	0.28%	11.37
Dr. Moopen's Healthcare Management Services WLL	1.54%	1,208.32	8.38%	338.38
Welcare Polyclinic W.L.L	-0.03%	(20.36)	1.12%	45.29
Sanad for Healthcare Co LLC	0.00%	-	0.00%	-
Sanad Al Rahma for Medical Care LLC	9.86%	7,721.91	55.34%	2,235.65
Dr. Moopens Hospital Co Limited	0.00%	-	0.00%	-
Aster Kuwait General Trading Co WLL	-0.01%	-          (5.42)	-2.10%	-      (84.80)
Orange Pharmacies LLC	-0.13%	(101.28)	-0.69%	(27.83)
Aster DM Healthcare SPC	-0.17%	(134.45)	-3.51%	(141.77)
Aster DM Healthcare INC	0.02%	19.57	-1.28%	(51.78)
Subtotal	-	78,316.73	-	4,040.11
Adjustment arising out of consolidation	-	(42,282.86)	-	(1,188.82)
Minority interest in subsidiaries	-	(2,210.81)	-	(1,219.46)
Consolidated net assets/ Profit after tax	-	33,823.05	-	1,631.83

** During the year subsidiaries have been converted to branches and hence net assets as on year end is Nil

 45  Subsidiaries, step-down subsidiaries and associates of the parent company 

Sl No	Entity	Country of incorporation	Percentage of  holding as at	Percentage of  holding as at	Percentage of  holding as at	Percentage of  holding as at
-	-	-	31 March 2016	31 March 2016	31 March 2015	31 March 2015
-	-	-	Beneficial	Legal *	Beneficial	Legal *
1	DM Eye Care (Delhi) 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	Medipoint Hospitals Private Limited	India	NA	NA	51%	51%
7	Indogulf Hospitals Private Limited	India	NA	NA	65%	65%
8	Sri Sainatha Multispeciality Hospitals Private Limited	India	51%	51%	51%	51%
9	Malabar Institute of Medical Sciences Limited	India	71%	71%	39%	39%
10	Aster DM Healthcare FZC	UAE	100%	100%	100%	100%
11	#  Al Ehsan Pharmacy LLC **	UAE	NA	NA	77%	0%
12	#  Al Juma Pharmacy LLC **	UAE	NA	NA	43%	49%
13	# Al Musalla Pharmacy LLC **	UAE	NA	NA	100%	49%
14	# Aster IVF and Women Clinic LLC (Aster Milann Fertility & Women's Wellness Centre LLC)	UAE	82%	49%	82%	49%
15	Al Rafa Medical Centre LLC	UAE	51%	40%	50%	40%
16	# Al Raha Pharmacy LLC **	UAE	NA	NA	100%	49%
17	# Al Shifa Pharmacy LLC **	UAE	NA	NA	87%	49%
18	# Al Warqa Pharmacy LLC **	UAE	NA	NA	93%	49%
19	# Alfa Pharmacy LLC **	UAE	NA	NA	100%	49%
20	Asma Pharmacy LLC	UAE	50%	0%	50%	0%
21	# Aster Grand Pharmacy LLC **	UAE	NA	NA	100%	49%
22	# Aster JBR Pharmacy LLC **	UAE	NA	NA	100%	49%
23	# Aster Jebel Ali Pharmacy LLC **	UAE	NA	NA	100%	49%
24	# Aster Pharmacy LLC **	UAE	NA	NA	100%	49%
25	# Avenue Pharmacy LLC **	UAE	NA	NA	100%	49%
26	Dar Al Shifa Medical Centre LLC	UAE	51%	40%	50%	40%
27	DM Group FZ LLC ***	UAE	100%	60%	100%	60%
28	# DM Healthcare LLC	UAE	100%	49%	100%	49%
29	# DM Pharmacies LLC	UAE	100%	49%	100%	49%
30	# Dr Moopens Healthcare Management Services LLC	UAE	100%	49%	100%	49%
31	Dr. Moopens Medical Clinic LLC (formerly known as Dr. Moopens Medical Poly Clinic LLC)	UAE	71%	40%	70%	40%
32	Eurohealth Systems FZ LLC	UAE	100%	95%	100%	0%
33	# Golden Sands Pharmacy LLC **	UAE	NA	NA	100%	49%
34	# Ibn Al Azwar Pharmacy LLC **	UAE	NA	NA	47%	49%
35	Ibn Alhaitham Pharmacy LLC ***	UAE	100%	49%	100%	49%
36	# Iqra Pharmacy LLC **	UAE	NA	NA	100%	0%
37	Marina Pearl Pharmacy LLC ***	UAE	100%	49%	93%	49%
38	Maryam Pharmacy LLC ***	UAE	100%	0%	100%	0%
39	# Med Save Pharmacy LLC	UAE	100%	49%	100%	49%
40	# Med Shop Drugs Store LLC	UAE	100%	49%	88%	37%
41	# Medcare Hospital LLC	UAE	80%	30%	80%	30%
42	# Medicine Shoppe Micro Pharmacy LLC **	UAE	NA	NA	100%	49%
43	Medicine Shoppe Pharmacy LLC ***	UAE	NA	NA	100%	49%
44	# Medshop Garden Pharmacy LLC	UAE	100%	49%	100%	49%
45	Modern Dar Al Shifa Pharmacy LLC	UAE	51%	40%	50%	40%
46	# New Al Qouz Pharmacy LLC **	UAE	NA	NA	77%	49%
47	Rafa Pharmacy LLC	UAE	100%	49%	97%	49%
48	# Shindagha Pharmacy LLC	UAE	90%	49%	84%	0%
49	# Union Pharmacy LLC	UAE	75%	37%	63%	37%
50	# Yacoub Pharmacy LLC **	UAE	NA	NA	100%	49%
51	# Aster DIP Pharmacy LLC **	UAE	NA	NA	100%	49%
52	# Al Faisal Pharmacy LLC **	UAE	NA	NA	51%	49%
53	# Aster Pharmacies Group LLC	UAE	100%	49%	100%	49%
54	# Alfa Drug Stores LLC	UAE	100%	49%	100%	49%
55	# Aster Al Shafar Pharmacies Group LLC	UAE	51%	49%	51%	49%
56	New Aster Pharmacy DMCC (Formerly known as New Aster Pharmacy JLT)	UAE	100%	75%	100%	75%
57	# Aster Al Shafar Pharmacy LLC (Lamcy) **	UAE	NA	NA	51%	49%
58	# Sara Pharmacy LLC **	UAE	NA	NA	51%	49%
59	Symphony Healthcare Management Services LLC	UAE	100%	0%	100%	0%
60	# Vitamin World LLC ***	UAE	51%	49%	51%	49%
61	Zabeel Pharmacy LLC ***	UAE	51%	49%	51%	49%
62	Aster Pharmacy LLC, AUH	UAE	100%	49%	100%	49%
63	Al Shafar Pharmacy LLC (AUH)	UAE	51%	49%	51%	49%
64	Aster Grace Nursing and Physiotherapy LLC	UAE	60%	29%	NA	NA
65	Aster Medical Centre LLC	UAE	90%	39%	NA	NA
66	# Aster Opticals LLC	UAE	60%	29%	NA	NA
67	Al Rafa Investments Limited	UAE	100%	0%	NA	NA
68	Al Rafa Holdings Limited	UAE	100%	0%	NA	NA
69	# Rashid Pharmacy LLC **	UAE	NA	NA	100%	49%
70	Al Raffah Hospital LLC	Oman	100%	70%	100%	70%
71	Al Raffah Medical Centre LLC	Oman	100%	70%	90%	60%
72	Dr. Moopen's Healthcare Management Services WLL	Qatar	99%	49%	53%	27%
73	Welcare Polyclinic W.L.L	Qatar	50%	45%	27%	23%
74	Sanad for Healthcare Co LLC	Kingdom of Saudi Arabia	NA	NA	51%	0%
75	Sanad Al Rahma for Medical Care LLC	Kingdom of Saudi Arabia	97%	97%	41%	0%
76	Dr. Moopens Hospital Co Limited***	Kingdom of Saudi Arabia	NA	NA	70%	50%
77	Aster Kuwait General Trading Co WLL	Kuwait	54%	2%	54%	2%
78	Orange Pharmacies LLC	Jordan	51%	0%	51%	0%
79	Aster DM Healthcare SPC	Bahrain	100%	100%	100%	100%
80	Aster DM Healthcare INC	Philippines	90%	90%	82%	82%
81	EMED Human Resources (India) Private Limited ###	India	33%	33%	33%	33%
82	MIMS Infrastructure and Properties Private Limited ###	India	49%	49%	49%	49%
83	Aries Holdings FZC ###	UAE	25%	25%	25%	25%
84	AAQ Healthcare Investment LLC ###	UAE	33%	33%	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 controls the composition of the board of directors or equivalent governing body of those entities so as to obtain economic benefits from their activities. Consequently, all the entities listed above have been consolidated for the purposes of the brparation of these restated consolidated financial statements.      
In September 2015, the entities identified in the table above with "#" have undergone a corporate restructing involving the transfer of shares held  by certain individuals to Al Rafa Holdings Limited (ARHL), a Company incorporated in the Dubai International Financial Center ('DIFC'), in which Aster DM Healthcare Limited has controlling beneficial interest. The Company also controls the composition of the board of directors of Al Rafa Investment Limited, the holding company of ARHL.      
** rebrsents subsidiaries converted as branches during the year      
*** rebrsents subsidiaries which are in the process of winding up      
### rebrsents associates      
 46  "Non-adjusting events after balance sheet date
"      
 "a) Acquisition of stake in Dr.Ramesh Cardiac and Multispeciality Hospitals Private Limited (RCM):
The Company has acquired 29.97% stake in RCM by 17 May 2016 for a total consideration of 958.46 million. The Company has also acquired board control on the same day by appointing majority of the directors."      
 47  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.      
 48  Previous year figures have been regrouped / reclassified wherever necessary to confirm to current period brsentation.      

As per our report on report of even date attached	for and on behalf of the Board of Directors of
for B S R and Associates	Aster DM Healthcare Limited
Chartered Accountants	CIN: U85110KL2008PLC021703
Firm registration number: 128901W
Subret Sachdev	Dr. Azad Moopen	T J Wilson
Partner	Chairman and Managing Director	Director
Membership No.: 205385	DIN: 00159403	DIN: 02135108
	Sreenath Reddy	Rajesh A
	Chief Financial Officer	Company Secretary
		Membership No. : F7106
Bangalore	Bangalore
27 August 2016	27 August 2016