C O N T E N T S

02-98 99-207
Corporate Overview Statutory Reports
02 Committed to Healthcare Excellence 99 Management Discussion
04 Our Global Footprint and Analysis

06 Chairman’s Message 113 Board’s Report

10 Deputy MD’s Message 149 Corporate Governance Report

12 CFO’s Review 184 Business Responsibility &

Sustainability Reporting
16 Quarterly Clinical Highlights

208-367
18 Business Model
20 Materiality Assessment
22 Macroeconomic Trends
24 Stakeholder Engagement Financial Statements
26 Our Strengths Standalone
28 Risk Management 209 Independent Auditor’s Report
29 Our Governance 220 Balance Sheet
30 Financial Capital 221 Statement of Profit and Loss
36 Manufactured Capital 222 Statement of Cash Flows
62 Intellectual Capital 224 Statement of Changes in Equity
68 Human Capital 226 Notes to the Financial Statements
80 Social and Relationship Capital
92 Natural Capital Consolidated
98 Corporate Information 282 Independent Auditor’s Report
290 Balance Sheet
291 Statement of Profit and Loss
292 Statement of Cash Flows
294 Statement of Changes in Equity
298 Notes to the Financial Statements

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 To know more about us
material respects. However, we caution that actual results, performances or achievements could differ materially from in digital mode, scan
those expressed or implied in such forward-looking statements. We undertake no obligation to update or revise any this QR code in your
forward-looking statement, whether as a result of new information, future events, or otherwise. QR mobile application.
At Aster, our aspiration for
clinical excellence is reflected
in our actions.

Our constant commitment to raise the bar of patient-centric care drives

us to challenge norms and deliver innovative efficient treatment plans
for complex medical conditions. From developing multispecialty hospitals
to an extensive network of clinics, laboratories, diagnostic centres and
pharmacies, we are relentlessly striving to improve access to affordable
and accessible care facilities.

With an aim to reduce the healthcare burden of patients, we are constantly

adopting technologically fortified processes, improving diagnostic
facilities and enabling timely care for chronic problems. We strive to make
customer-centric solutions a reality for a vast majority of our patients.
Our care commitment is also strengthened by a team of experienced and
compassionate healthcare professionals who believe in constantly staying
attuned to patient needs.

Backed by the immense trust and faith in brand ‘Aster’ in the GCC
countries, we are stepping up efforts to enhance our operations in India as
well. To improve patient care within the country, we have introduced state-
of-the-art hospitals and medical facilities that are equipped to handle
challenging medical procedures and make care accessible for the common
man. Constantly reiterating our promise of “We’ll treat you well”, Looking
forward, we remain optimistic about sharpening our focus on clinical
excellence while paving the path for Aster’s continued growth in India and
abroad.
Aster DM Healthcare Limited

Committed to
Healthcare Excellence
Aster DM Healthcare provides exceptional healthcare
services to millions of people in the MENA and South Asian
regions through a network of world class hospitals, clinics
and pharmacies.

30,330
Keeping clinical excellence at the 32 hospitals, 127 clinics ,205 Labs
core, our integrated healthcare & PEC and 521 pharmacies* cater
service model spans across primary, to the diverse needs of patients and
secondary, tertiary, and quaternary strive to offer affordable and high- Asterians including
care. We have established a strong quality care. To ensure excellence outsourced
presence across the entire life cycle in healthcare, we continue to adopt

5,756
of healthcare service through retail advanced technologies to further
chains, diagnostic laboratories, improve our care portfolio and live up
digital services and medical to our promise of ‘’We’ll treat you
education. Our extensive network of well”. Bed capacity

*257 Pharmacies in India are operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster and GCC retail pharmacies includes Opticals

02
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Our Values

EXCELLENCE

7 Surpassing current benchmarks constantly by continually challenging

our ability and skills to take the organization to greater heights.

– Albert Einstein
Presence in Countries

32 COMPASSION
Going beyond boundaries with empathy and care.

Hospitals – Mother Teresa

127 INTEGRITY
Doing the right thing without any compromises and embracing a higher
Clinics standard of conduct.

– Nelson Mandela

521* RESPECT
Pharmacies Treating people with utmost dignity, valuing their contributions and
fostering a culture that allow each individual to rise to their fullest
potential.

205 – Mahatma Gandhi

Labs & PEC

PASSION
Going the extra mile willingly, with a complete sense of belongingness
and purpose while adding value to our stakeholders.

19.9 Mn – Steve Jobs

Patients served
UNITY
Harnessing the power of synergy and engaging people for exponential
INR 11,933 Cr performance and results.

– H.H. Sheikh Zayed Bin Sultan Al Nahyan

Revenue generated
*257 Pharmacies in India are operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster and GCC retail pharmacies includes Opticals

03
Aster DM Healthcare Limited

Our Global Footprint

GCC
15
Jordan Hospitals

Bahrain

115
Qatar

UAE Clinics
Saudi Arabia
Oman

264
Pharmacies

MEDCARE ASTER
Medcare Hospital, Dubai, UAE Aster Hospital Mankhool, Dubai, UAE
Medcare Orthopaedics and Spine Hospital, Dubai, UAE Aster Hospital Qusais, Dubai, UAE
Medcare Women & Children Hospital, Dubai, UAE Aster Cedars Hospital, Dubai, UAE
Medcare Sharjah Hospital, Sharjah, UAE Aster Hospital Sonapur, UAE
Al Raffah Hospital, Muscat, Oman
Al Raffah Hospital, Sohar, Oman
Al Khair Hospital, Ibri, Oman
Aster Hospital, Doha, Qatar
Aster Royal Hospital, Muscat, Oman
Sanad Hospital, Riyadh, KSA
Aster Hospital, Sharjah, UAE

04
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

HOSPITALS IN INDIA
India Aster Medcity, Kochi, Kerala
Aster MIMS, Kottakkal, Kerala
17 Aster MIMS, Calicut, Kerala
Aster MIMS, Kannur, Kerala
Hospitals
DM WIMS, Wayanad, Kerala
Aster CMI, Bengaluru, Karnataka
Aster RV Hospital, Bengaluru, Karnataka
12 Aster Whitefield Women and Children Hospital, Bengaluru, Karnataka

Clinics Aster Aadhar, Kolhapur, Maharashtra

Aster Prime, Hyderabad, Telangana
Dr. Ramesh Hospital, Main Centre, Vijayawada, Andhra Pradesh

257*
Dr. Ramesh Hospital, Labbipet, Vijayawada, Andhra Pradesh
Dr. Ramesh Hospital, Guntur, Andhra Pradesh

Pharmacies Dr. Ramesh Sanghamitra Hospital, Ongole, Andhra Pradesh

Aster Mother Hospital, Areekode, Kerala
Ramesh (IB), Vijayawada, Andhra Pradesh

205 Aster Narayanadri, Tirupati, Andhra Pradesh

Labs & PEC

Maharashtra
Telangana

Karnataka
Andhra Pradesh

Tamil Nadu
Kerala
*257 Pharmacies in India are operated by Alfaone
Retail Pharmacies Private Limited under brand license
from Aster

05
Aster DM Healthcare Limited

Chairman’s
Message

Dr. Azad Moopen

Founder, Chairman and

Managing Director

Our commitment to the Indian

market remains strong, as we
continued to expand our
footprint with the addition of
126 pharmacies, 91 diagnostic
centers, and patient experience
centers.

06
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Dear Shareholders,
It is my pleasure to address you scarcity of trained doctors and In addition to our dedicated regional
today, as we emerge from the nurses poses a significant hurdle, focus, we are actively venturing
shadows of the global pandemic further exacerbated by the high into new geographies, including
that put our collective strength and attrition rate among nurses, reaching previously untapped regions and
resilience to the test. At this critical as high as 35 to 40 percent. To tackle states within India, to uncover
juncture, I am delighted to share with this challenge, we have adopted a potential avenues for growth.
you our vision and commitment in strategic approach, taking a step It is important to highlight that
navigating the evolving landscape back. We have enhanced training our approach has evolved from
of healthcare in our regions of programs and create a robust primarily pursuing greenfield
presence. pipeline of healthcare professionals projects to brownfield project
An urgent need to bridge the gap to meet the rising demand. Efforts expansions of our existing hospitals
are being made to attract and and now embracing Operations &
With a current healthcare retain talent by offering competitive Management of hospitals in Tier 2
expenditure of less than 3% of India’s remuneration packages and and Tier 3 cities in the country. The
GDP, it is imperative to increase this adequate opportunities for career later enables us to leverage their
investment to at least 5 to 6 percent growth. Additionally, we are actively existing infrastructure and resources
of the GDP. By doing so, we can collaborating with educational while expanding our expertise, brand
enhance the infrastructure, expand institutions and engaging in and create a holistic ecosystem of
capacity, and ensure access to international exchange programs to healthcare services.
quality healthcare services for all. help bridge the skills gap and foster
Through these strategic initiatives,
To bring about this transformative knowledge-sharing.
we are committed to broadening our
change, we must undertake Committed to delivering healthcare footprint, enhancing accessibility to
several crucial measures. Firstly, excellence quality healthcare to more people.
it is important to bolster our By embracing both organic growth
healthcare infrastructure, proactively In response to the prevailing gaps
and strategic collaborations, we are
anticipating future challenges by in the Indian healthcare sector and
poised to strengthen our position
investing in essential resources as part of our expansion strategy,
as a leading healthcare provider and
– healthcare professionals and we have made significant strides in
create a positive impact on the lives
infrastructure alike. Secondly, establishing our presence in various
of individuals across the region.
augmenting healthcare spending cities across Southern India in recent
will enable us to effectively address years. We envision the development Performance review
the growing demands of our of a comprehensive healthcare
In the financial year 2023, we
population and bring us in line with ecosystem encompassing hospitals,
achieved a consolidated revenue
global standards. Public-private pharmacies, and laboratories
of INR 11,933 crores, marking a
partnerships can play a crucial role within the next three years in
significant 16% increase compared
in bridging gaps in infrastructure, Southern India. While our labs and
to the previous year. Our EBITDA
technology, and specialized care. pharmacies are already operational,
stood at INR 1,565 crores, reflecting
Lastly, fostering innovation and the construction of many of the
a 6% growth. Despite the challenges
research in the healthcare sector will greenfield hospitals is expected to be
faced due to losses incurred from
drive advancements in treatment completed within a timeline of two
the operations of new hospitals, our
and position India as a leader in to three years where as brown-field
overall EBITDA showed a satisfactory
healthcare excellence. expansion of some of the existing
improvement. Adjusting for these
hospitals shall be done in 1 year.
Another pressing challenge within losses, our EBITDA stood at INR
Together this is likely to add around
India’s healthcare sector revolves 1,655 crores, marking a noteworthy
1,625 beds to our existing capacity
around the shortage of skilled growth of 11% compared to the
of 4,317 beds.
healthcare professionals. The previous period. This demonstrates

07
Aster DM Healthcare Limited

our ability to effectively manage experience centers. We had done April’23, further strengthening our
and mitigate challenges while restructuring of the Kerala and presence in the state. Looking ahead,
maintaining a positive trajectory in Karnataka cluster 2 years back we are actively evaluating merger
our financial performance. which is reflected in the exponential and acquisition opportunities that
growth of business both at revenue align with our strategic goals. We
Comparatively our India business
and EBITDA level. There have been remain open to both acquisitions that
performed exceptionally well, with
some operational challenges in complement our existing operations
revenue growth of 25% to INR 2,983
Andhra and Telangana in the last and transformative opportunities
crores. The EBITDA increased by 28%
couple of years which is being that can shape our future growth.
to INR 453 crores, and the profit
addressed so that this geography
after tax post NCI reached INR 147 Our strategies in the Indian market
also keeps pace with the others
crores, demonstrating a remarkable align with the country’s healthcare
in coming years. These strategic
growth of 146% compared to the sector potential and our dedication to
investments reflect our dedication
previous year. delivering quality healthcare services
to meeting the evolving healthcare
to a larger population. Through
In the GCC business, we witnessed needs of the Indian population.
investments, expansion, and a
a 14% year-over-year revenue By establishing a comprehensive
commitment to excellence, we aim
growth, reaching INR 8,950 crores. healthcare ecosystem encompassing
to meet evolving healthcare needs,
Although the EBITDA remained flat hospitals, labs, and pharmacies, we
set new benchmarks, and ensure
at INR 1,112 crores, it reflects our aim to provide a seamless continuum
access for all. We are also looking
commitment to maintaining stable of care to our patients in South India
for opportunities for acquiring
performance in the challenging where we are already present. We
healthcare assets to consolidate
phase too. are also rolling out myAster Super
growth through inorganic track.
Restructuring strategies for App soon in India which will help to
connect the various services we offer In the GCC region, our core business
sustained growth
from primary to quaternary care across hospitals, pharmacy, and
As India emerges as the most seamlessly and shall be the face of clinics experienced growth, with
populous country, there is a notable the organization for the patients. Our positive revenue impact. Although
increase in healthcare expenditure, integrated approach ensures that EBITDA for the region was affected
rising incomes, expanding insurance individuals not only have access to by losses from new hospitals built,
coverage, and Government schemes. high-quality medical facilities but we have made significant progress in
The Government’s focus on the also benefit from the convenience expanding our bed capacity with the
healthcare sector reflects its growing and efficiency of diagnostic services addition of Aster Sharjah Hospital,
importance in providing high- and pharmacy support. This holistic Aster Sonapur Hospital, and Aster
quality services to the growing and approach strengthens our position Royal Hospital Muscat. Even though
underserved population. as a leading healthcare provider and this has resulted in initial loss, going
In terms of our financial performance reinforces our mission to deliver forward, we anticipate improved
in 2023, we witnessed significant exceptional and patient-centered revenue and EBITDA performance
revenue and profit growth in India. care across the Nation. as we optimize the increased bed
However, overall EBITDA growth capacities.
During the year, we have started
was subdued, primarily due to expanding our reach to suburban I am happy to inform that Aster
the margins being impacted by areas of India by adopting an O&M Sanad Hospital in Riyadh has turned
expansions in the GCC region, leading asset-light model, adding a total of profitable with EBITDA positive
to early EBITDA losses. Throughout 390 beds. This approach allowed us during the fiscal. We are actively
the year, we successfully added to provide quality healthcare services exploring further opportunities for
five hospitals, 150 pharmacies, while managing costs effectively. expansion in Saudi Arabia, including
and seven clinics, marking an Notably, Aster Narayanadri hospital the rollout of pharmacies, as we see
unprecedented growth for our achieved break-even within its first Saudi as our next major market for
company. quarter of operation, validating our expansion of GCC business.
Our commitment to the Indian belief in the model. Welcoming new members to
market remains strong, as we Secondly, we prioritized investment leadership team
continued to expand our footprint and growth throughout the year. In our pursuit of continued growth
with the addition of 126 pharmacies, We inaugurated Aster Madegowda and excellence, I am delighted
91 diagnostic centers, and patient Hospital in Mandya, Karnataka in to announce key leadership

08
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

appointments within our

organization. Dr. Nitish Shetty, a
seasoned healthcare management
professional, has been appointed
as the CEO of Aster DM Healthcare
India. With his remarkable During the year, we have started expanding
contributions in driving extraordinary our reach to suburban areas of India by
growth in our Karnataka operations,
we have full confidence that under
adopting an O&M asset-light model, adding a
Dr. Nitish’s leadership, our India total of 390 beds.
business will flourish, achieving new
milestones and setting industry
healthcare but also highlights our on both fronts. The Indian market, in
benchmarks.
commitment to addressing the particular, is experiencing remarkable
Furthermore, I am pleased to pressing healthcare needs of the growth, and under the leadership
announce that Sunil Kumar M R has underserved communities. The of Dr. Nitish Shetty, we are poised
been appointed as the Joint Chief prestigious Guinness World Records to achieve outstanding results and
Financial Officer who will be taking have recognized this exceptional stand shoulder to shoulder with
care of India along with Amitabh achievement, solidifying our position our industry peers. Similarly, in the
Johri who is already looking after as a leader in delivering impactful GCC region, we anticipate significant
the GCC finance, both of whom have healthcare services. In addition, improvements in performance
demonstrated their exceptional we successfully concluded the first with the entry of Aster Pharmacy
capabilities during their tenure edition of Aster Guardians Global in Saudi Arabia and our ongoing
with us. Their expertise and proven Nursing Award which saw Kenyan digital transformation initiatives.
track records will play a vital role nurse Anna Qabale Duba win the The myAster omnichannel digital
in strengthening our financial award worth USD 250,000 which app which was introduced in UAE in
governance and driving sustainable is being utilised by her to uplift January was the first of its kind to
growth across these key markets. the rural community in her remote be introduced in the region and has
village of Turbi in Africa, by building fast emerged as the country’s go-to
Additionally, we have appointed
a school. Aster Guardians Global healthcare app which shall soon be
Hitesh Dhaddha, a seasoned
Nursing Award has now emerged rolled out in India.
professional with over 18 years
as a renowned and sought-after
of experience in finance, M&A, I am confident that with our
recognition in the nursing and
and strategies, as our Chief of dedicated team, robust strategies,
healthcare World which is not
Investor Relations and M&A. and your steadfast support, Aster
only putting a spotlight on all the
With his strategic acumen and DM Healthcare will continue to
hard work that nurses do but also
financial expertise, Hitesh will be thrive and reach new heights of
inspiring people to keep their faith
instrumental in fostering strong excellence. Let us embark on this
in nursing as a profession which is
investor relationships and identifying journey together, as we strive to
essential to address the growing
strategic opportunities to further make a meaningful difference in the
global shortage.
enhance our business. lives of people and contribute to the
We also remain dedicated to betterment of healthcare on a global
Beyond Business
advancing our ESG commitments, scale.
I am proud to share with you ensuring the resilience and
Thank you for your trust, and I
that Aster DM Healthcare has sustainability of our business
look forward to your continued
achieved a remarkable milestone while making a positive impact on
involvement and collaboration as
in our commitment to social the world around us. With every
we shape the future of Aster DM
responsibility. On World Diabetes milestone achieved, we reaffirm
Healthcare.
Day, we organized the largest our pledge to serve as a responsible
free diabetes screening camp for healthcare provider and a catalyst for Sincerely,
low-income workers, screening positive change. Dr. Azad Moopen
an astounding 12,714 individuals
Outlook Founder, Chairman and
within a span of just 24 hours. This
accomplishment not only reflects our In conclusion, I am delighted to Managing Director
dedication to providing accessible share that our business is thriving

09
Aster DM Healthcare Limited

Deputy MD’s
Message

I am also excited to inform

that three of our hospitals
have been recognized and
noted by the prestigious
US Newsweek global list.
We were in the top 5,
top 20, as well as in the
global 150 list with our
Aster Hospitals.

During FY 2023, effective management

of COVID allowed UAE to gain the status
of being a preferred location globally. This
impact has been visible in the influx of
expat population in UAE and migration
of people from Ukraine as well as Russia.
We have seen this reinstate some of
the population loss which we have seen
Alisha Moopen
during the COVID time. There is a big
statement of that population in UAE,
Deputy Managing Director which is visible in the revenue numbers
for FY 2023.

While we have witnessed significant

revenue and profit growth in India, the
GCC region experienced muted EBITDA
growth and percentage due to our major
Dear Shareholders,
expansions, resulting in early EBITDA loss
The fiscal 2022-23 has been a year of successfully combined our services across and lower margins.
growth investments for us at Aster. This businesses under one app. Moreover, During the pandemic owing to the
has been the first year we have opened we experienced a substantial ramp-up restrictions, we were compelled
up five new hospitals in a single year, a in Aster pharmacy orders, indicating a to temporarily pause some of our
feat that showcases our strong efforts growing acceptance and reliance on our investment projects. In the year gone
towards catering to a larger patient base digital platforms. All of this enabled us to by, while we invested approximately INR
and meeting their diverse needs. This was continue to position our organization for 100 crores in additional business, some
also a year where we were able to reach growth and success in the future. of these investments were also the
key milestones in our digital initiatives. ones that were paused earlier. However,
In India, we have recorded excellent
The launch of our app ‘myAster’ on iOS, this had an unfavorable impact on our
growth as some of our hospitals have
Android as well as the web platforms was profitability for the year.
reached almost full capacity. We are also
met with great enthusiasm, as evidenced
looking forward to adding new beds in I am pleased to share that we have
by the targeted downloads we achieved. It
such areas. successfully substituted the revenue
is the region’s first integrated healthcare
platform to be launched in UAE and has generated from COVID and PCR testing,

10
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

which accounted for 8% of our total end of 2023-24. We have also started Services to the underprivileged. This
revenue in the previous financial year, with work on our pharmacies in Saudi Arabia initiative has reflected our commitment to
robust growth in core healthcare revenue, and expect our first set of pharmacies to reaching out to marginalized communities
particularly in the GCC region. This growth go live by the end of Q2 FY 2024. and ensuring they receive the healthcare
is evident in our hospital and pharmacy they deserve. Additionally, during the
Also, the company has diligently
segments. fiscal we have completed and handed over
addressed intrinsic issues within its GCC
more than 250 Aster homes in Kerala.
In the GCC business, we achieved a business, particularly concerning onerous
We strongly believe in investing in our
substantial growth of 14% year-over-year contracts with insurance companies. By
healthcare professionals and empowering
revenue growth, amounting to INR 8,950 renegotiating these contracts, we have
them to deliver the highest quality of
crores. However, it is important to note achieved improved pricing and increased
care to our patients. Towards this end,
that our EBITDA remained flat year-on- margins, resulting in a more favorable
we launched 11 career development
year at INR 1,112 crores, compared to INR financial outlook.
programs during the fiscal and we are
1,130 crores in the previous financial year.
Furthermore, the Saudi government’s delighted that more than 1500 nurses
In line with our mission to enhance commitment to diversify its economy have completed their career development
patient-centered care, during the fiscal, away from oil and implement Saudization courses.
we entered into three partnerships to policies has had a positive impact on our In conclusion, we take immense pride in
further strengthen our capabilities and business. These policies have led to an the strategic objectives achieved during
expand our reach. First, we entered into increased focus on hiring and empowering the fiscal. However, we understand that
a partnership with “Sukoon” which is local Saudi talent, resulting in enhanced true success cannot be measured solely
a leading insurance provider in UAE to productivity and contribution from our by the achievements or obstacles of a
launch two new health insurance plans Saudi employees. single year. Instead, the enduring quality
with Aster products. Second, we signed a of our relationships, stands as the most
In line with our efforts to strengthen
partnership with Dr. Reddy’s Laboratories genuine indicator of our triumph, rooted
the organization, we have undertaken
to look at producing quality medication in shared values, consistent performance,
a comprehensive restructuring of our
and making it more accessible in UAE and reciprocal benefits.
teams. This strategic move has enabled
and GCC through Aster Pharmacy. Third,
us to assemble a strong and effective Our unwavering dedication to delivering
we joined hands with “Talabat” which
leadership, ensuring streamlined exceptional healthcare services to our
is an online food delivery platform to
operations and driving the Company patients remains steadfast. We will
offer prescription delivery services in
towards sustainable growth. continue to invest in our infrastructure,
Dubai through Aster Pharmacies. Under
the strategic pact, Aster Pharmacy Our commitment to sustainability and technology, and talent to further elevate
customers can upload the prescriptions corporate social responsibility remains the quality of care we offer. By doing so,
securely through that app and make the resolute. During the fiscal, we continued we aim to continually enhance our ability
purchases available and have it delivered to make significant progress across to serve and improve the well-being of
to their home through the Talabat delivery all aspects of environment, social and our patients. Moreover, we actively seek
platform. governance. As part our commitment to opportunities to expand our services,
environmental responsibility, we have forge strategic partnerships, and explore
I am also excited to inform that three of new avenues for growth.
adopted a four – pronged approach to
our hospitals have been recognized and
improve our energy efficiency. It includes I would like to extend my deepest
noted by the prestigious US Newsweek
(a) Energy Efficient Infrastructure gratitude to our esteemed shareholders
global list. We were in the top 5, top 20, as
(b) Energy Efficient Equipment for their unwavering support and trust.
well as in the global 150 list with our Aster
(c) Renewable Energy Integration
Hospitals. This is a strong endorsement of It is your steadfast belief in our vision that
(d) Adhering to Green Building
our continued efforts towards delivering drives us forward. As we move ahead,
Regulations. Through these four pillars of
exceptional patient outcomes. we remain resolute in our commitment
energy efficiency, we have been making
If we talk about our future capacity substantial progress in reducing our to maximizing shareholder value and
creation plans, we have two important environment impact. Notably, we have delivering sustainable growth in the
projects currently in our pipeline. We have reduced 1,993 MWh energy across Aster years to come. With the support of our
planned the hospital network expansion Hospitals GCC. With our focused water shareholders, we are confident in our
through a high-end multi-specialty facility conservation efforts, we have also saved ability to achieve our shared goals and
with a capacity of 126 beds, which is 2,68,983 KL of water during the year create long-term value for all stakeholders
expected to be completed in Q4 of FY under review. involved.
2023-24. Additionally, we will open up
As part of our social endeavours, we are Regards,
new block of 59 beds as an extension to
happy that we have been able to provide Alisha Moopen
our Sanad facility in Saudi Arabia by the
7,77, 690 Aster Volunteer Mobile Medical Deputy Managing Director

11
Aster DM Healthcare Limited

CFO’s Review
Message from Mr. Amitabh Johri, Joint Chief Financial Officer

We have seen significant growth in

revenues from e-Pharmacy and Home
Delivery. Nevertheless, it is important
to acknowledge that our EBITDA
was adversely affected by the losses
incurred by the new hospitals we
launched during the year. However, we
anticipate that the strategic initiative
to add 101, 34 and 179 beds at Aster
Sharjah Hospital, Aster Sonapur
Hospital and Aster Royal Hospital
Muscat respectively, will contribute to
our revenue and EBITDA performance
in the forthcoming quarters as their
utilization improves.

Financial overview

Over the course of FY 2023, our

revenue experienced a significant
growth reaching INR 8,950 crores from
INR 7,870 crores in the previous fiscal
year’, representing a substantial 14%
increase. It is worth noting that the
Amitabh Johri, Joint Chief Financial Officer high-margin revenue generated from
COVID testing in FY 2022, totalling
INR 869 crores, has been replaced
by core healthcare revenue, which
Dear Shareholders, Aster being the leading healthcare exhibited an impressive 26% year-
provider in the region has mirrored this on-year growth without considering
I hope this message finds you in good
in its growth strategies, revenue trends the Covid related revenues. While our
health and high spirits.
where Covid Revenues were replaced by EBITDA from the GCC region reached
Globally Fiscal year 2023 was a Core Revenue across Hospitals, Clinics INR 1,112 crores, slightly lower than
year of significant recovery from the and Pharmacies and Capital Allocation the INR 1,130 crores recorded in FY
challenging times of the last few years Plans to harness the geographical 2022, it is pertinent to exclude the
and investment for future. GCC as a advantage. losses incurred by the new hospitals
geography navigated these challenges amounting to INR 77 crores. Upon doing
posed with strong resilience and Expanding horizons with so, our EBITDA showcased 4% growth,
has emerged as a preferred global substantial investment reaching INR 1,189 crores.
destination for business and healthcare
Throughout the GCC region, our Performance across businesses
support. The impact of effective
pandemic management is tangible core businesses comprising of
hospitals, pharmacies, and clinics In the GCC region, our hospitals
and is seen in the influx of expatriate
have demonstrated steady growth. achieved a remarkable revenue of INR
population in the UAE, including
We have witnessed increased non 4,012 crores, representing a significant
individuals migrating from Ukraine and
covid footfall across our hospitals, 14% year-on-year increase. This growth
Russia. This influx has not only helped
pharmacies, and clinics. Notably, our is a testament to our commitment
restore the population loss experienced
digital initiatives have played a pivotal to delivering exceptional healthcare
during the peak of the pandemic but has
role in driving revenue and underscoring services. While the EBITDA for our
also reaffirmed our position as a trusted
the immense potential of technology hospitals stood at INR 584 crores,
location.
in transforming healthcare delivery. marginally lower than the

12
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

this growth, the corresponding EBITDA the establishment of a network of

increased from INR 290 crores to INR pharmacies in Saudi Arabia. We envision
350 crores, reflecting a commendable Saudi Arabia as our next major market,
21% growth. Ultimately, the EBITDA given its substantial population of 30
margin for this sector in FY 2023 stood million, equivalent to the combined
In the GCC region, our at 11.7%. Moreover, as of March 31st, population of all other GCC countries.
2023, our GCC net debt amounted to We are also in advanced stages of
hospitals achieved a USD 163 million, showcasing a decline launching our new flagship Medcare
remarkable revenue of from the USD 197 million recorded on Royal Hospital in Dubai with a bed
INR 4,012 crores, March 31st, 2022. capacity of 126 in FY24. The future
growth prospects in the GCC region
representing a significant Embracing new frontiers continue to be highly promising and
14% year-on-year encouraging.
increase. This growth Moving forward, our unwavering focus
remains on securing the right contracts Charting the course
is a testament to our and favourable rates for the large-scale
commitment to delivering facilities and infrastructure we are As we move forward, we recognize
exceptional healthcare currently developing. Over the course of that the future of healthcare will
this year, we have achieved significant witness the evolution of various care
services. milestones in our digital initiatives, formats, ultimately bringing us closer
most notably the successful launch to the consumer. With our unwavering
of our app, surpassing our targeted dedication, we are well-prepared to
downloads, increasing active users, seize these emerging possibilities
and witnessing a significant ramp-up in and will continue to grow organically
pharmacy orders. and inorganically, aligning ourselves
INR 608 crores recorded in FY 2022, with the evolving healthcare needs of
it is important to note that this figure With a strategic focus on leveraging our people. By harnessing the best in
includes the losses from the new our digital advancements, seizing clinical care and cutting-edge healthcare
hospitals and write-off. opportune moments, and capitalizing technologies, we remain steadfast in
on our expertise, we are confident in our mission to serve our patients with
However, when we exclude these solidifying our position as a leader in the unparalleled excellence.
exceptional factors and focus on the healthcare industry.
core performance of our hospitals, In conclusion, I would like to extend
the adjusted EBITDA amounted to In line with our commitment to my heartfelt gratitude to all our
INR 661 crores. This adjusted figure growth and expansion, we are shareholders for their perpetual
reflects a robust EBITDA margin of 17%, exploring new opportunities, such as support and trust. It is through your
reaffirming the operational efficiency enduring support that we are able to
and financial strength of our hospital deliver exceptional healthcare services
segment. and achieve sustainable growth. We
remain resolute in our commitment
Similarly, our clinics generated to excellence and look forward to
a revenue of INR 2,412 crores, continued success in the future.
experiencing a slight dip compared to
Best regards,
the INR 2,440 crores achieved in FY With a strategic focus
2022. However, when normalizing for Amitabh Johri,
COVID testing, the core business of the
on leveraging our digital
Joint Chief Financial Officer
clinics demonstrated an impressive 29% advancements, seizing
growth. Consequently, the EBITDA for opportune moments,
the GCC clinics reached INR 450 crores,
with a notable margin of 18.7%.
and capitalizing on
our expertise, we are
Meanwhile, our pharmacies in the confident in solidifying our
GCC region experienced a remarkable
revenue increase of 33% year-on-year,
position as a leader in the
surging from INR 2,245 crores to INR healthcare industry.
2,984 crores in FY 2023. Accompanying

13
Aster DM Healthcare Limited

CFO’s Review
Message from Mr. Sunil Kumar M R, Joint Chief Financial Officer

to the citizens of 156 countries.

Indian medical tourism market was
valued at US$ 2.89 billion in 2020
and is expected to reach US$ 13.42
billion by 2026.

Scaling up our presence

As we expand our footprint, we have

witnessed remarkable growth in
our India business, which is poised
to continue its upward trajectory
in the coming years. Our hospitals
have been operating at near full
capacity, prompting us to proactively
expand our bed capacity to meet
the escalating demand. Moreover,
we are strategically establishing
new hospitals in areas where the
Sunil Kumar M R, Joint Chief Financial Officer Aster brand is already recognized,
emphasizing our promise of “We will
treat you well”.

To accelerate our growth trajectory,

Dear Shareholders, decade. India’s public expenditure we have embarked on an array of
on healthcare stood at 2.1% of expansion plans. Notably, we are
I am pleased to share with you GDP in 2021-22 against 1.8% in augmenting the capacity of both
the latest updates and financial 2020-21 and 1.3% in 2019-20. The Aster MIMS Hospital Kannur and
highlights of our operations in India. Government is planning to increase Aster Medcity Kochi by adding 100
Despite the prevailing external public health spending to 2.5% of beds to each facility. Additionally,
challenges, India’s economy is the country’s GDP by 2025. Per we have initiated the construction
expected to remain resilient, having capita GDP of India is expected to of a new 200-bed project at Aster
achieved the growth rate of 7.2% in reach US$ 3,277.28 in 2024 from Hospital Kasargod, while Phase 1
2023 and projected growth of 6.5% in US$ 2,320.40 in 2022. Moreover, of Aster Hospital in Trivandrum,
2024, making it the fastest growing changing demographics will also comprising 350 beds, is well
major economy globally. Leveraging contribute to greater healthcare underway. The development of the
this favourable economic scenario spending. This is likely to continue as Phase 2 of Aster Whitefield Hospital
and our strategic initiatives, our India the size of elderly population is set to in Bengaluru, comprising 275 beds,
business has achieved excellent rise from the current 98.9 million to is nearing its completion, and it is
revenue and profitability growth. about 168 million by 2026. expected to become operational in
Q2 of FY 2023-24.
On the healthcare front, per capita Medical tourism has been a new
healthcare expenditure has risen growth factor for India’s healthcare Key financial achievements
at a fast pace. This is due to rising sector. Presence of world-class
income, easier access to high-quality hospitals and skilled medical Our financial performance is
healthcare facilities and greater professionals has strengthened a testament to our success in
awareness of personal health and India’s position as a preferred navigating these opportunities.
hygiene. Greater penetration of destination for medical tourism. In the fiscal year 2023, our
health insurance aided the rise To promote medical tourism in the revenue from operations reached
in healthcare spending, a trend country, the government of India is an impressive INR 2,983 crores,
likely to intensify in the coming extending the e-medical visa facility marking a remarkable growth of

14
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

25% compared to INR 2,384 crores and transformative opportunities capacity to meet growing patient
in FY 2022. The EBITDA from our that have the potential to shape our needs, resulting in improved
India operations stood at INR 453 future growth. efficiency, productivity, and overall
crores, with a margin of 15.2% performance.
in FY 2023, reflecting a growth To support our expansion plans, we
rate of 28% compared to INR 353 will continue to add pharmacies, In FY 2023-24, the company has
crores and a margin of 14.8% in diagnostic centres, and patient embarked on an extensive efficiency
FY 2022. Moreover, our post-Non experience centres. These project targeting various areas
Controlling Interest (NCI) Profit After investments are instrumental in including material cost, revenue
Tax (PAT) surged to INR 147 crores, enhancing our capabilities and assurance, manpower cost, and
demonstrating a staggering growth positioning us at the forefront of the overheads. These initiatives aim
of 146% year-on-year, compared to healthcare industry. By expanding to optimize resource utilization,
INR 60 crores in FY 2022. our pharmacies and diagnostic streamline processes, and drive cost
centres , we are establishing a robust savings throughout the organization.
In terms of revenue from our India Aster omni-channel ecosystem By implementing these measures, we
hospitals and clinics, excluding that enables us to better serve our anticipate a significant improvement
the O&M asset-light hospitals, we patients. in EBITDA, enhancing our profitability
achieved INR 2,819 crores in FY and bolstering our financial
2023, reflecting a notable growth of Building on the tremendous success performance for the year.
20% compared to INR 2,343 crores and positive response to our digital
in FY 2022. Additionally, our EBITDA initiatives in the GCC region, we are Maximizing growth capabilities
for this segment stood at INR 527 excited to bring the same level of
crores, with a margin of 18.7% in innovation and convenience to our The Indian healthcare market is
FY 2023, as compared to INR 407 operations in India. The growing a vast landscape teeming with
crores and a margin of 17.4% in FY penetration of smartphones and immense potential, and we are
2022, exhibiting a commendable increased digital adoption among steadfast in our belief that Aster
growth rate of 30%. The increase the Indian population present a DM is uniquely positioned to
in EBITDA can be attributed to remarkable opportunity for us to capitalize on these opportunities.
the implementation of efficiency leverage technology and enhance With our extensive assets, ongoing
measures throughout the year, the healthcare experience for our developments, and unwavering
specifically in terms of reducing patients. commitment to excellence, we are
material costs and ensuring revenue poised to unlock sustainable value for
assurance. As for our net debt, Aster With our proven track record in the our shareholders.
India recorded INR 510 crores as of GCC, where our digital initiatives
March 31, 2023, in comparison to have surpassed expectations, we As we reflect on our journey,
INR 319 crores as of March 31, 2022. are well-equipped to replicate this we remain unwavering in our
Furthermore, our capital expenses success in the Indian market. Our commitment to deliver best-in-
for the fiscal year 2023 amounted to focus is on developing a robust and class healthcare services. We
INR 280 crores. user-friendly mobile app that will are dedicated to enhancing our
empower patients with seamless offerings, embracing innovation, and
Navigating the road ahead access to healthcare services. maintaining the highest standards
of patient care. This steadfast
In pursuit of our strategic goals, We have demonstrated a steadfast dedication will enable us to navigate
we have adopted an O&M asset- commitment to continuous challenges, seize opportunities,
light model to increase our bed growth in capital expenditures and create a positive impact on the
capacity and extend healthcare (capex) throughout the year, healthcare landscape. Thank you for
services to Tier 2 & Tier 3 cities allocating significant resources your continued trust and support on
while maintaining cost efficiency. towards enhancing our operational our journey.
Moreover, we are diligently capabilities and maintaining a
evaluating potential mergers and competitive edge in the market. By Warm regards,
acquisitions that align with our strategically investing in capex, we
values and strategic objectives, have modernized our healthcare Sunil Kumar M R,
complement our existing operations facilities, upgraded our technological Joint Chief Financial Officer
infrastructure, and expanded our

15
Aster DM Healthcare Limited

Quarterly Clinical Highlights

Quarter 1 Quarter 2
INDIA INDIA
Aster CMI’s plastic surgeon conducted a critical surgery on a 38-year- In Aster CMI, a 65-year-old man with Parkinson’s received bilateral
old woman whose nose was bitten off by a dog. To recover the nose STN DBS. SenSight DBS Directional leads from Medtronic were used
tissue, the exterior skin of the nose was rebuilt using the nasolabial for the first time in the Asia Pacific during this procedure.
flap, and the inner lining of the nose was covered with Integra dermal An African lady from Zambia, on dialysis for the past six years, had
substrate. bilateral external iliac occlusion due to previous issues with dialysis
At Aster CMI, interventional cardiologists and radiologists treated a access. Surgical challenges were faced during the anastomosis for
type B aortic dissection with aortic stenting in a post-liver transplant transplanting the kidney ureter to the native ureter. This challenging
patient. task was successfully carried out by the transplant team at Aster CMI.
A multidisciplinary clinic for Prader Willi Syndrome (involving multiple At Aster Medical City, a 4-month-old infant with biliary atresia had
specialists) was held at Aster CMI with 13 children in the pilot project. developed jaundice and liver failure. He underwent a left lateral liver
The Cardiothoracic & Vascular Surgery team of Aster Medcity transplantation with his mother serving as the liver donor.
implanted the first open heart suture less aortic valve - Perceval At Aster MIMS Kannur, a patient with a history of Type 1 Respiratory
(the first of its kind in Kerala) in a 55-year-old lady. The treatment Failure, Influenza A Pneumonia, and severe ARDS had ECMO/CRRT for
is a game-changer as it involves a minimally invasive method that the first time in North Malabar.
prevents the high cost associated with a TAVI.
The Neurosurgery team of MIMS Calicut conducted a 4th generation
pipeline embolization with shield technology to treat two cerebral GCC
aneurysms. These were the first two cases reported in Kerala. Cartoid Revascularization of Near Total Occlusion (99% Critical
At Aster RV, a cochlear implant was carried out on a 9-month-old Stenosis) of Right Carotid Artery was performed successfully using
child. It was the first model of Med-El Synchrony and Rondo 3 implant Stent Technology in Aster Quasis.
carried out in Karnataka on the youngest patient till date. At Aster Quasis, extra adrenal paragangliomas- Carotid Body and
Aortic Locations were successful removed during a procedure.
GCC Laparoscopic removal of intraperitoneal cancer with the infusion of
Hyperthermic Chemotherapy was performed for the first time in UAE
Interventional Cardiologists at Aster Mankhool successfully conducted at Medcare Dubai.
Minimally-invasive TEVAR procedure. A complex case of Post CABG Medically Resistant Angina was treated
The cardiothoracic team at Aster Hospital, Qusais conducted a total successfully through Angioplasty in Aster Hospital, Mankhool.
arch and ascending aorta replacement on a patient with Stanford Bay Arel from Turkey was treated for Spinal Muscular Atrophy and
Type-A aortic dissection arising in the proximal aortic arch with upper received gene therapy in Medcare women and children hospital.
body malperfusion.
A patient with Stanford Type-A Aortic Dissection in the Proximal
Aortic Arch with Upper Body Malperfusion was treated by Total Arch
and Ascending Aorta Replacement by the Cardiothoracic team at
Aster Qusais.
Midwest Orthopedic Specialty Hospital Orthopaedic team conducted
two high-risk scoliosis surgeries, with one of the patients suffering
from cerebral palsy and epilepsy, making it extremely challenging to
manage the anaesthesia procedure.

16
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Quarter 3 Quarter 4
INDIA INDIA
At Aster CMI, to perform Hyperthermic Intraperitoneal Chemotherapy A 72-year-old lady suffered from D12 fracture. A minimally invasive
(HIPEC), Mitomycin for Gastric carcinoma and Cisplatin for ovarian percutaneous procedure, Vertebral Body Stenting, was performed, to
Cancer was administered through an FDA-approved, third generation insert a stent into the fractured vertebrae. It was inflated with a balloon
PERFORMER 3-HT Machine from Rand. This is the first installation in and then filled with bone cement. The patient recovered in quick time
India and in the entire South East Asian region. and was discharged within two days of the operation. It was the first
Interstitial brachytherapy, a rare procedure, was successfully such procedure performed in Bengaluru and in the state of Karnataka.
conducted for a soft tissue sarcoma of the thigh by doctors in MIMS The remarkable achievement was accomplished by the neurosurgery
Calicut. team at Aster CMI.
Zero contrast angioplasty, the latest innovation in interventional A 46-year-old with history of acute is chemic stroke and lacunar infarct
cardiology was performed in Aster MIMS Kottakkal. Instead of dye, of left posterior limb of internal capsule, underwent Transesophageal
the latest imaging technique, intravascular ultrasound (IVUS) was echocardiogram (TEE) at MIMS Calicut. The TEE detected Patent
used to ensure perfection in the angioplasty. This is one of the very Foramen Ovale (PFO) and a procedure for closing the hole was carried
few cases that has been successfully completed in Kerala. out with Life tech Cera Flex PFO device. This is south Asia’s first such
procedure.
Per Oral Endoscopic Myotomy (POEM) was performed at Aster
At MIMS Calicut, an Ex-utero intrapartum treatment (EXIT) procedure
Medcity for a 27-year-old patient from Lakshadweep who presented
was carried out on a foetus with large pharyngeal teratoma, with
a history of swallowing difficulty for almost 21 years and was
severely compromised airway. A multidisciplinary team conducted the
diagnosed with Achalasia Cardia.
surgery to keep the utero placental circulation uninterrupted and ensure
A delicate and complex open-heart surgery was conducted on a oxygen supply to the neonate. The procedure was a first-of-its-kind
54-year-old female patient at Aster RV to remove a tumour inside the performed at the hospital and in the state.
heart, without rupturing it or leaving a chance for its recurrence. Using the novel FTRD, a case of endoscopic full thickness resection of
rectal neuroendorine tumour was carried out at Aster MIMS Kannur, the
GCC first instance of such a surgery in Malabar.
A 52-year-old patient underwent the first minimally invasive laser
Achalasia Cardia treated successfully with Laparoscopic Heller enucleation of the prostate (MiLEP) surgery in India. MiLEP is an
Myotomy and Dor Fundoplication at Aster Quasis. innovative laser surgery performed with the help of very small
A large fibroid was treated successfully through Non-Surgical endoscopic instruments that minimise injuries to the urethra and
Endovascular Embolization Technique at Aster Quasis. bladder.
The gastroenterology team at Aster AI Raffah, Muscat performed the An 8-year-old was injured by an air gun pellet stuck in a very sensitive
SpyGlass Cholangioscopy. area on the neck. Extraction of the shrapnel was a risky procedure as it
could have turned fatal because it was located millimetres away from
A case of Legionella pneumonia with overlap syndrome was treated in the boy’s trachea and thyroid gland. A multidisciplinary team of Aster
Aster AI Raffah Muscat. Medcity, consisting of Cardiac surgeons & anaesthetists successfully
A case of an Endoscopic Removal of Foreign Body from the Ethmoid removed the shrapnel.
Sinus, without postoperative complications, was carried out at
Medcare Hospital, Sharjah. GCC
2.6kg of intramural uterus was removed by total Abdominal
Hysterectomy, Cystourethroscopy with indwelling double-J Ureteral
Stent at Medcare Hospital, Sharjah.
Successful replantation of complete post-traumatic
metacarpophalangeal (MCP) Amputation of left thumb using venous
graft at Aster, AI Qusais.
Successful primary fixation of type- 3 open bone forearm Fracture in a
Polytrauma Patient done at Aster Hospital, Cedar.
A patient suffered from continuous diarrhea and severe weight loss
even after one year of gastric bypass anastomosis. A laparoscopic
reversal of the process was carried out at Medcare AI Safa and the
surgery revealed a very long bypass of 6 meters. The patient was
discharged from the hospital in a stable condition.
A 59-year old male patient suffered from severe abdominal and
back pain. The CT scan showed that the patient had a large infrarenal
aortic aneurysm. Endovascular aneurysm repair (EVAR) surgery was
conducted on the patient and he was discharged in a stable condition
from Medcare, AI Safa.

17
Aster DM Healthcare Limited

Business Model
Input Operating business model

FINANCIAL CAPITAL

Total equity INR 4,860 Crore A Caring Mission with a Global

Net Debt including lease liabilities INR 5,260 Crore Vision to serve the world with
Accessible and Affordable
Debt to equity ratio 1.08 Our Vision
Quality Healthcare.
CAPEX INR 852 Crore

MANUFACTURED CAPITAL

Hospitals 32
Clinics 127
Pharmacies 521*
Labs & PEC 205 “We’ll Treat You Well” We live by
this promise that sums up what
Our Promise we do and why we exist. This is
INTELLECTUAL CAPITAL our guiding philosophy in our in-
teractions with patients, doctors,
myAster app launched in 2022
employees and society at large.
Capital Investment Digital Technology INR 85.69 Crore

HUMAN CAPITAL

Total number of employees 30,330

Total number of employees hired in FY22-23 10,894
Nationalities in the workforce 72
People of determination 112

Our Strengths
SOCIAL AND RELATIONSHIP CAPITAL
Synergies Across Geographies
Total Expenditure on CSR activities INR 2.86 Crore Proficient & Experienced Manage-
Total number of volunteers 56,000+ ment Team
Total number of suppliers 4,900+ De -Risked Business Model
Robust & Expansive Healthcare
Ecosystem
Sturdy Performance Record
NATURAL CAPITAL
Asset -Light Business Model
Energy consumption from solar 3,675,000 KWh Touchstone of Healthcare Practices
Energy consumption from wind 2,300,000 KWh
Energy consumption from hydro 3,569,298 KWh

*257 Pharmacies in India are operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster

18
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Outputs Outcomes

Value created for shareholders

Our Offerings Revenue generated INR 11,933 Crore
Consistent growth in revenue
Net Profit INR 425 Crore
Strong financial position
EBITDA INR 1,565 Crore
Primary Care EBITDA Margin 13.1%

No. of visits to Hospital OPDs 4.70 Mn

Increase operational efficiency
Secondary Care Ensure quality service for patients
No. of visits to Clinic OPDs 5.09 Mn
Staying true to our promise of caring for
patients.
No. of visits to Pharmacies 9.81 Mn

Tertiary Care No. of consultations till

2,40,000+
date on Aster eConsult
No. of Research Adoption of new and innovative
17
Partnerships technologies to improve patient care
Number of patients Improvement in operational processes
4.9 Mn
analyzed
Quaternary Care
Number of patients
1.9 Mn
Engaged

Creating a workplace that is safe, non-

Percentage of female workforce 59%
Healthcare Retailing discriminatory, and inclusive.
No of training sessions
Continuous learning and development
(Sessions include development and 4000+
at professional and personal level
professional trainings)
Diverse and committed workforce
No of Nurses up-skilled 8000+

Diagnostic Laboratories

Total number of people Building brand reputation

4 million+
positively impacted
Enhancing long-term partnerships
No. of individuals assisted Ensuring effective stakeholder
Digital Health through Aster Volunteer 0.9 million+ engagement
Mobile Medical Services

Net emission reduction

Medical Education from renewable energy 7,500 tCO2e
consumption Reduce environmental footprint
Water consumption from Fulfil obligations towards the
24% environment
recycled and rain water
Waste recycled 423,806 KG
Net Zero Emissions Goal by 2050

19
Aster DM Healthcare Limited

Materiality
Assessment
Aster DM Healthcare identifies sustainability issues that are partners, investors, suppliers, charitable organizations, healthcare
most important to its stakeholders and focuses on implementing authorities, regulators, communities and others. Our teams consult
resolution measures to address those ESG issues that are and gather their inputs on sustainability issues most relevant to
most likely to have a significant impact on our sustainability them and any concerns about their association with Aster DM
performance. A key outcome of stakeholder engagement is the Healthcare. This year, we engaged with stakeholders through
Materiality Assessment Matrix, used for decision- making at Aster. interviews, focus groups, and surveys. Their responses and feedback
The Materiality Assessment Matrix lists out the issues (also known were analyzed with the top issues prioritized for the reporting year.
as material topics) that are relevant and important to the business Aster has considered the potential impact of each material topic
and its stakeholders. For example, health and safety, good on the business and the level of concern among stakeholders.
governance, environmental effects and so on. The information in Through stakeholder consultation 9 material topics were identified.
this matrix is organized after consultation with stakeholders and During the management review and materiality assessment it
mapping their sustainability concerns to Aster’s. The materiality was suggested that although environmental indicators were not
assessment exercise is initiated by identifying Aster’s key identified as material topics by stakeholders still these are priority
stakeholders – this includes our customers, issues for Aster and were added to the list of material ESG topics.

External Stakeholders

Investors/Shareholders Board of Directors

Customers/Patients Management

Regulatory and
Industry Bodies Doctors

Suppliers, Partners
and Collaborators Nurses

Community Employees

Internal Stakeholders

20
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

High

Anti
Corruption
Influence on stakeholder assessments and decisions

Customer
Health and privacy & Data
Safety Security

Non-
Discrimination

Employee
Experience Corporate
and Well-being Governance Water
Medium

Management

Local Waste
Diversity Management
Communities
and Equal
& Community
Opportunity
giving
Emission

Economic
Low

performance
Energy
Management

Low Medium High

Significance of economic, environmental, and social impacts

Environment Social Governance Economic

GRI 302: Energy GRI 403: Health and Safety GRI 205: Anti Corruption GRI 201: Economic
Management performance
GRI 406 : Non- GRI 2: Corporate Governance
GRI 303: Water Discrimination
Management GRI 418: Customer privacy
GRI 401: Employee and data security
GRI 305: Emission Experience and Well-being

GRI 306: Waste GRI 405 : Diversity and

Management Equal Opportunity

GRI 413 : Local Communities

& Community giving

21
Aster DM Healthcare Limited

Macroeconomic Trends

GCC1

The GCC
healthcare
USD 135.5 bn
market is
expected to reach
USD 135.5 billion USD 104.17 bn 5.4 %
CAGR
In view of the anticipated rise
in 2027 growing
in population, GCC is likely to at a CAGR of 5.4%
require 12,207 new hospital beds
from 2022.

2027
2022
by 2027. This translates into an
estimated annual average growth
of 1.9% since 2022 to reach a
collective bed capacity of 133,731 1
https://alpencapital.com/research/2023/gcc-healthcare-report-mar20.pdf
by 2027.

Between 2022 and 2027, Saudi

Arabia is likely to witness the TRENDS
highest demand for beds in the
Supportive policies for private Adoption of new-age technology to aid
GCC, at over 8,197 new beds to
healthcare providers healthcare
efficiently cater to patient needs.
To improve healthcare delivery, the GCC While advanced technologies are
GCC’s population is expected to states are encouraging public-private being used to improve preventive care,
partnerships for the development of the use of cutting-edge diagnostic
grow at an annualized rate of world-class hospitals and introduction tools and more predictive models for
1.9%, between 2022 and 2027, of innovative solutions to the sector. health assessment and management
to reach 66.2 million. The elderly Moreover, in the UAE, 100% foreign have emerged as a key enablers for
population (50+ years) is likely to ownership in healthcare has been advancements in the healthcare
permitted. It is expected to support the industry. It is also likely to result in
account for 20.8% of the total by
entry of new players to the sector while improved methods of treatment,
2027, up from 15.8% in 2022. encouraging existing healthcare providers making healthcare more equitable and
to further elevate their care portfolio.
affordable.
Emphasis on preventive healthcare
Increasing demand for healthcare
The prevalence of noncommunicable services
diseases in GCC countries have increased
The demand for Long-Term and Post-
the region’s healthcare spending to
a great extent. It has also increased Acute Care (LTPAC), including home
the burden on hospitals and available healthcare and rehabilitation services,
healthcare resources as chronic and is increasing in the GCC countries. The
lifestyle-related diseases have grown region’s ageing population is driving
to be a major concern for the GCC demand for such services as more people
population. To counter the growing trend require geriatric care, rehabilitation, and
of lifestyle diseases, GCC governments home care services. Due to the region’s
are focusing on preventive healthcare as growing demand for complex healthcare
a means to alleviate these issues. It has services, specialized healthcare service
also opened up new opportunities in the providers are gaining ground in the GCC.
healthcare sector.

22
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

INDIA

The Indian
healthcare
INR 110 tn
industry in India
is estimated to
reach INR 110 Tn INR 28.84 tn 30.7%
CAGR
by 2027 with a
The hospital industry in India compound annual
growth rate CAGR

2027
is estimated to value USD 132

2022
billion in 2023, growing at a CAGR
of 16% - 17%. of 30.7%2
https://www.tatatelebusiness.com/articles/5-emerging-healthcare-trends-in-india-for-2023/
2

TRENDS
Growing acceptance of telemedicine Government initiatives

Telemedicine facilitates quicker The government has allocated INR

access to medical care, effectively 88,956 Cr for health expenditure in
minimizing the strain on India’s the Union Budget FY2023-24, an
currently overburdened healthcare increase of 2.71% from the previous
system. The use of Artificial year. Through the Ayushman Bharat
Intelligence to improve patient - Pradhan Mantri Jan Arogya Yojana
care has resulted in better access (AB-PMJAY), the government aims
to exceptional care facilities and to provide universal healthcare
have considerably reduced costs. coverage to Indians. With the easily
availability of health insurance as
Clinical-grade healthcare well as healthcare services, it is
expected to play an important role in
Opportunities for non-traditional the country’s healthcare landscape.3
healthcare providers in the home
health sector will increase as Rise of healthcare SaaS unicorns
consumer and provider preferences
change and technology becomes Growth in India’s healthcare SaaS
more accessible and affordable. sector will be fueled by a thriving
startup ecosystem that is fueling the
SaaS revolution and improvements in
the digital health stack.

3
https://www.investindia.gov.in/team-india-blogs/indias-healthcare-industry-navigating-road-health-all-world-health-day

23
Aster DM Healthcare Limited

Stakeholder Engagement
Why these stakeholders are
Stakeholders Stakeholder expectations
important to us?

A patient centric approach keeps us Provision for quality healthcare

ahead of competition and enables us to facilities
provide the best healthcare facilities to Affordable healthcare
our valued patrons. It also empowers us Safety, privacy and confidentiality
PATIENTS to fulfil our commitment to improve the Emergency care
lives of people.

Our people empower us to deliver critical A thriving, rewarding and engaging work
care to patients and enable us to enhance environment
operational efficiency. They also help to Continuous learning and growth
Fair, transparent and inclusive people
build a culture of excellence and improve
EMPLOYEES the Company’s market reputation.
practices
Equitable pay structures, performance
incentives, and benefit structures
Well being and Recognition

Strong relationships enable us to Ethical and transparent business

strengthen our care continuum and make practices
timely services available to patients. Building long-term relationships

SUPPLIERS, PARTNERS, Fair terms of contract and constant

communication to ensure superior
AND COLLABORATORS service

We continuously strive to abide by Compliance with regulations

statutory compliances and fulfil Healthcare quality and safety
our obligations as a socially and Cost-effective healthcare
ecologically conscious entity.
REGULATORY AND Support for public health initiatives
INDUSTRY BODIES Local investments and tax revenues

The long-term success of our Company Access to quality healthcare

depends on building stronger bonds Environmental impact
with people and enhancing our Community engagement
COMMUNITY contribution to improve lives. Ethical business practices
Contribution to communities

They play a critical role in sustaining Consistent revenue growth

a resilient and agile business. The Transparent practices
continuous growth and profitability Adherence to ethics, values and
INVESTORS AND of the Company is dependent on their regulatory guidelines
SHAREHOLDERS contribution towards the organization.

24
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Frequency of engagement
Engagement Activities Stakeholder Value provided
activities

Health education sessions Prompt interventions during

Patient portals emergencies
Wellness programmes Enhanced patient satisfaction
Hourly/Daily/ According to requirement Timely and quality care
Patient surveys
Sharing reporting documents to Compliance and completeness of
enable transparency in operations discharge summaries

Internal advancement opportunities Career advancement

Flagship learning and developmnet Capability building, development and
programs enhancement of skills
Leadership connects to drive Recognition
engagement Weekly/ Monthly Overall, culture of ‘”Aster Cares”
Employee experience and feedback that promotes, well-being, trust and
surveys at key touchpoints productivity
Rewards and Recognition Competitive rewards and incentive
Well-being initiatives schemes
Social Events
Ensured operational readiness and
Contractual terms and commercial
delivery
agreements
Collaboration opportunities and award Transparency in business
functions As per requirements Strengthened the critical supplier/client
Supplier summits, meets and relationship
engagements
Cost Optimization
Consolidation of spend & vendor

Communication channels Build positive relationships

Collaboration opportunities Timely compliance with laws and
Industry association memberships regulations
As per requirements Adherence to environmental laws
Stakeholder consultations
Timely payment of taxes
Support for various government schemes

Volunteer opportunities Engagement in philanthropic activities

Community sponsorships Addressing needs of the community
Community outreach Adoption of sustainable practices
As per requirements
Community events and functions Upliftment of communities

Investor conferences, Maintaining sustainable growth and

meetings and calls returns
Annual reports Sustain high standards of corporate
Quarterly/ Annually /According to
Sustainability reporting governance and risk management
requirements
Official communication channels: Understand concerns and expectations
advertisements, publications,
websites and social media

25
Aster DM Healthcare Limited

Our
Strengths

Strong geographic footprint

Revenue from GCC and Indian operations stand at 75% and 25% respectively.
Promoting medical tourism in India on the back of a strong GCC network
Recruitment of experienced medical professionals from India
Ensuring financial prudence on account of lower cost of debt in GCC

Experienced Management
The top management possess decades of healthcare experience
Strong second line of management provides stability through extensive managerial, healthcare and regulatory experience

De-Risked Business Model

Multi-geographic presence enables revenue diversification from stratified segment operations
Brands such as Medcare, Aster and Access help to diversify business offerings
The stability of GCC currencies help to hedge against dollar fluctuations

Robust Healthcare Ecosystem

A comprehensive healthcare ecosystem with primary, secondary, tertiary and quaternary care
Network of 32 hospitals equipped with state-of the-art equipment
Extensive network of 127 clinics
Strategic location of 521 pharmacies*
205 Labs & PEC
*257 Pharmacies in India are operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster

26
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Stellar performances
A track-record of financial and operational success in the GCC
Steady scaling-up of operations across segments and geographies
Improvements in Indian business on account of additional capacity addition and maturing of assets

Excellence in healthcare
Maintaining the highest standards of patient care, reiterated through numerous industry recognitions and patient
endorsements

Asset -Light Business Model

Combination of leased and owned assets, with concentration of leased assets for an asset light model
All assets in GCC (except in KSA) are leased while India has a mix of owned, leased and O&M assets
Established units in GCC exhibit higher average return on capital employed

Digital Initiatives
Provide omni channel experience for patients through our virtual care initiatives.
Digital CRM program being scaled to benefit 4.9 million customers across pharmacy, clinics, hospitals and Medcare

27
Aster DM Healthcare Limited

Risk
Management
Our framework Our workshop session
We have a comprehensive enterprise Crisis management Risk awareness session
risk management framework in
We organize multiple Crisis Simulation Imparting risk and compliance
place that includes a set of policies,
scenario workshop sessions with awareness sessions across various
procedures and practices for identifying,
Business Leaders and Department teams to increase understanding of
assessing, mitigating and monitoring
Heads, each focusing on the distinct risks and familiarizing teams with risk
risks across our extensive network of
executive-level decision-making and assessments and control activity via
healthcare facilities and services.
communication strategies that are new joiner induction and a bi-monthly
critical to any crisis response. newsletter named ‘Risky Times’.
Our risk identification and
assessment process Disaster Recovery Plan
Risk Management
We conduct Board risk identification Every organization needs a Disaster Committee (RMC)
workshops to gain insights into risks Recovery Plan (DRP) to deal with
Controls and measures have been
and opportunities from a top-down unforeseen events that could affect
identified for each risk to decrease or
approach. our facilities, such as earthquakes,
mitigate it. Action plans are monitored
sandstorms, floods, explosions, power
We identify the risks associated with and major risks, mitigation measures,
outages and so on. The HVA and
our business and plan mitigation and actions are reported to the RMC
vertical risk assessment registers are
strategies to control the process. on a quarterly basis. Additionally,
in line with each other and risks against
major risks are discussed weekly
Our risk committee monitors the all recognized hazards are listed in the
with corporate leaders and updated
business verticals to identify emerging vertical risk assessment register. The
quarterly for reporting to the RMC. The
risks, optimize assurance activities disaster management plan and related
quarterly reporting to the RMC includes
and report risk interconnections. policies are reviewed and updated
risk trends and key risk indicators that
periodically.
aid in understanding risk movements.
At least once a year, the RMC reviews
the Risk Management process.

For more details on Risk Management please refer MDA Report

28
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Our
Governance
At Aster, we believe in fostering a strong corporate governance framework, aligned to
regulatory guidelines and a commitment to create and share value responsibly. Our
emphasis on adhering to industry best practices and upholding a culture of honesty,
integrity and accountability enables us to maximize benefits for our diverse stakeholders.
Corporate governance philosophy Code of Conduct
Our corporate governance strategy is based on a holistic approach that maximizes Our code of conduct helps us to promote a
benefits for the Company as well as the shareholders, employees, consumers, positive organizational culture and ensure
government, and the general public. Transparency and accountability are the core ethical behaviour across the organization.
foundations of our solid corporate governance structure and it enables us to adopt a Every employee signs the Code of
patient-centric approach. Conduct every year. New employees are
also made aware of the expectations
Our philosophy is based on five principles-
during their induction. We also abide by a
disciplinary policy to address inappropriate
or unethical behaviour. Moreover, the
employees are required to comply with the
applicable laws and regulations, including
Board’s accountability

those related to anti-corruption, anti-

Equitable treatment
Strategic guidance

to all stakeholders

bribery and data privacy.

Value creation

Transparency

Diversity and Inclusion

We focus on creating an inclusive
and diverse workforce that promotes
creativity, innovation and better decision

6 100% 100% making. It allows us to lay the foundation

of a workplace where employees
Familiarization Resolved data Compliance for the feel valued and respected. A positive

programs for privacy breach Code of Conduct work culture plays an integral role in
retaining employees and increasing the
Independent cases reported In Policy
productivity of the organization.
Directors 2022-23
For more details on Corporate Governance please refer Corporate Governance Report.

29
Financial
Capital
We use our financial resources to
deliver exceptional service, upgrade
our investments in people, process
and technology. It empowers us to
maintain a robust balance sheet,
judiciously allocate capital and
sustain healthy liquidity. Our sound
financial approach empowers us
to deliver clinical excellence and
expand our reach.
Cost optimization
To improve operating margins, we strive to reduce expenses and adopt cost-effective
methods to ensure efficiency. We also resort to a pay-per-use investment plan that
allows us to lease equipment instead of buying them. Besides, we are enhancing
investments in technology and medical equipment to adopt cost efficiency across
our operations. We prioritize enhancing our clinical specialities and procedures and
implementing revenue assurance measures to close revenue gaps. This assists us in
sustaining these revenues while also sharply focusing on cost lines through material
cost optimization programmes and maintaining tight control over our HR expenditures.

To minimise expenditure, we have consolidated the hospital lab business with the
help of Aster labs. We have also focused on hiring local staff to handle peak loads
and keep fixed costs under control. With the integration of telehealth facilities, we
have consolidated the radiology business and lowered expenses on human resource.
Alongside, we have adopted a cluster-based approach that promotes resource sharing
and consolidation within and across the clusters.

Geographical expansion
Aster Labs
We are expanding our reach in the states of Karnataka, Kerala, Andhra Pradesh,
Telangana, Tamil Nadu, and Maharashtra through Aster Labs. Since our inception,
we have successfully served over 3.24 million patients and performed 12.3 million
tests. As of March 31, 2023, we have 1 global reference lab, 189 patient experience
centres and 15 satellite labs. As part of our ambitious growth strategy, we will also be
expanding our geographic footprint into other states.

Aster Pharmacies
The ‘Aster Pharmacy’ brand in India has been licensed under Alfaone Retail Pharmacies
Private Limited (ARPPL) to operate retail outlets and online pharmacies. There were
257 pharmacies as of March 31, 2023, with 106 in Karnataka, 85 in Kerala, 61 in
Telangana and 5 in Andhra Pradesh. We focus on delivering high-margin private labels.
Our large-format pharmacies have a better assortment in the home healthcare, body
support, and vitamins, minerals and supplements (VMS) areas.
Aster DM Healthcare Limited

GCC growth Strategies for future growth

We aim to increase the current 1,439 Over the years, we have proactively
beds in GCC by 240+ in the next two responded to opportunities in the
years. Kingdom of Saudi Arabia (KSA), operating landscape and continued to
one of the GCC nations, is regarded as a align our services with emerging needs
key market for future growth. Through for patient care. With a patient- centric
our partnership with the Al Hokair business model, we aspire to enhance the
Holding Group, we have begun operating use of advanced technology and digital
a pharmacy in Saudi Arabia. In the next platforms to improve margins, generate
To further strengthen a resilient and
five years, the partners want to establish cash flow and high return on investment.
future-proof business, we aim to
a network of more than 250 Aster We are also expanding our network of
accomplish the following:
pharmacies throughout the Kingdom. laboratories, diagnostic facilities and
pharmacies across India to enhance our Healthy revenue growth from Indian
Initiatives reach. and GCC operations
We have entered into a partnership Positive EBITDA and PAT margins
with Sukoon which is a leading We are also implementing lean and
with strong ROCE and ROE return on
insurance provider in UAE to launch scalable operational practices along with
capital
two new health insurance plan with the adoption of innovative methods of
treatment. Going forward, we aim to Strong cash flow generation to cover
Aster products.
ensure the effective utilization of existing operating and capital costs
We signed a partnership with Dr. assets for better returns and the adoption Consistent EPS growth to increase
Reddy’s Laboratories to look at of digital platforms in the form of apps, shareholder return
producing quality medication and e-pharmacy, teleconsultation, and others.
making it more accessible in UAE and Improve capacity to control costs,
GCC through Aster Pharmacy debt and quality of service

INR 11,933 Cr Consolidated

Revenue from Operations EBITDA

Total revenue (INR in crore) 16% (INR in crore) 6%
YoY Growth YoY Growth
generated
11,933 1,565
10,253 1,483
8,652 8,608 1,258

16%
7,963 1,063
863

Revenue growth
(Y-o-Y)
FY 19* FY 20 FY 21 FY 22 FY 23 FY 19* FY 20 FY 21 FY 22 FY 23

1,565 Cr
EBITDA Margin ROCE (pre-tax)
INR (in %) (in %)

EBITDA 10.0
14.5 14.5 9.7
13.1
12.3 8.2
10.8 7.4

5.1

INR 425 Cr
PAT (Post NCI) FY 19* FY 20 FY 21 FY 22 FY 23 FY 19* FY 20 FY 21 FY 22 FY 23
*Pre IndAS 116

32
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Asset-light models Stakeholder value creation

We have ventured into O&M asset-light Our prudent capital allocation strategy
models by acquiring existing hospitals in empowers us to create long-term value
Tier II and Tier III cities. This will increase for stakeholders. We have also made
our revenue and EBITDA in a short investments in state-of-the-art technology
period of time while also assisting in the and medical care facilities to improve the
expansion of our footprint and acting as a quality of life of patients.
feeder to major hospitals for challenging
Continued stakeholder confidence in our
patients. When compared to greenfield and
business has fuelled our growth narrative
brownfield hospitals, these O&M asset-
and it has been instrumental in our
light hospitals require considerably less
success.
capital expenditure. These O&Ms enable
us to deliver affordable and high-quality
healthcare in Tier II and Tier III areas.

Revenue EBITDA
(in %) (in %)

25 29
23 24

75 71
77 76

FY 22 FY 23 FY 22 FY 23

India GCC India GCC India GCC India GCC

Net Debt (Excl. Lease Liabilities) Net Debt (Excl. Lease Liabilities)/EBITDA
(INR in crore) India GCC

2,784 2.9 2.7

358
2,004
1,806 1,848
306 1.6 1.6
319 510

2,425 1,698 1,487 1,338

FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23

* Post IndAS 116

FY21 numbers have an impact of COVID

33
Aster DM Healthcare Limited

Aster India
India’s contribution to the group revenue has increased from 23% to 25%, primarily owing to
normalization of operations in the post-Covid period and ramping up of operations of Aster MIMS
Kannur, Aster RV Hospital and Aster Whitefield Women and Children Hospital. The contribution of our
Indian operation to the group EBITDA has increased to 29% compared to 24% in the previous year.
Our revenue from operations stood at INR 2,983 crore, up 25% from INR 2,384 crore in FY22. EBITDA
from India operations has increased to INR 453 crore with a margin of 15.2% in FY23, up from INR 353
crore with a margin of 14.8% in FY22, representing a 28% increase. Our PAT (Post NCI) has increased
146% year-on-year to INR 147 crore from INR 60 crore in FY22.

Maturity Wise Hospital Performance*

GULF COOPERATION COUNCIL (GCC)

Operational Key Performance indicators
Revenue
Maturity Hospitals Beds
(INR in Crs.) ARPOBD Occupancy EBITDA
(Census)

0-3 Years 3% 19% INR ~135,200 INR (77)

3 INR 125 217
16%
NM

97% 81% INR 661

Over 3 Years 12 INR 3,887 897 INR ~204,600 56%
17%

INR 584
15 INR 4,012 1,114 INR ~201,000 50%
14.6%
*G
 CC hospitals 0-3 Years: Aster Hospital Sharjah, Aster Hospital Sonapur and Aster Royal Hospital, Muscat
Note: 1. Revenue and EBITDA shown above excludes other income; 2. Above financials are presented in INR crore; 3. Wahat (Homecare) Revenue is considered under Hospital segment;
4. All the numbers above are post IndAS 116; Financial numbers are rounded to the nearest integer

INDIA
Operational Key Performance indicators
Revenue
Maturity Hospitals Beds
(INR in Crs.)
(Census) ARPOBD Occupancy EBITDA

3% 9% INR (21)
0-3 Years 4 INR 73
INR ~24,900 49%
307 NM

97% 91%
69% INR 537
Over 3 Years 12 INR 2,729 2,997 INR ~37,000
19.7%

INR 516
16 INR 2,802 3,304 INR ~36,500 68%
18.4%
* India hospitals 0-3 Years : Aster Mother Hospital Areekode, Aster Whitefield Women and Children Hospital, Aster Narayandari and Ramesh IB
Note: 1
 India Clinics, Labs and Wholesale Pharmacy operations are not included in Revenue and EBITDA shown above
2. Wayanad Institute of Medical Science (WIMS) details are not included above. Considering WIMS, count of hospitals in India is 17
3.Revenue and EBITDA shown above excludes other income; All the numbers above are post IndAS

34
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

India Cluster-Wise Trends Historical Trends

Kerala cluster Capacity Beds

Revenue EBITDA EBITDA margin
(INR in crore) (INR in crore) (in%) Financial
Total GCC India
year
1,691 356 21.0 2022-23 5,756 1,439 4,317
19.4
1,318
2021-22 5,065 1160 3,905
255
935
13.2 2020-21 4,907 1150 3,757
2019-20 4,804 1111 3,693
124
2018-19 4,561 1101 3,460
2017-18 3,882 875 3,007
2016-17 3,739 668 3,071
FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23

Karnataka and Maharashtra cluster Patient Count

Revenue EBITDA EBITDA margin
(INR in crore) (INR in crore) (in%) Financial Outpatient Inpatient
year (in million) (in 000’)
817 128 15.6 2022-23 9.8 326
655 12.6 2021-22 10.3 273
83 2020-21 7.7 220
433 7.6
2019-20 9.4 254
33 2018-19 8.7 218
2017-18 7.8 202
2016-17 6.7 158
FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23
*T
 he EBITDAR for KM cluster For FY21
is 9.3%, FY22 is 15.9 % & FY23 is 19.0%

Andhra and Telangana cluster

Revenue EBITDA EBITDA margin
(INR in crore) (INR in crore) (in%)

370 69 18.7
344
16.2
279
45

31 9.1

FY 21 FY 22 FY 23 FY 21 FY 22 FY 23 FY 21 FY 22 FY 23

35
 Manufactured
Capital
At Aster, we aspire to achieve clinical
excellence through our wide network
of hospitals, clinics, pharmacies,
diagnostic facilities and an entire
range of primary to quaternary care
facilities. It empowers us to enhance
patient care through world-class
facilities and advanced treatment
methodologies, specifically designed
to offer a better life to patients.

17 15 32
Hospitals in India GCC hospitals Total number of
hospitals
 Operational beds (Census)

Gulf Co-operation Council (GCC) India

(Numbers) (Numbers)

1,114 3,304

948 2,899
913 908 923 2,686
2,530
2,179

FY 19 FY 20 FY 21 FY 22 FY 23 FY 19 FY 20 FY 21 FY 22 FY 23

Total
(Numbers)

4,418

3,634 3,822
3,438
3,092

FY 19 FY 20 FY 21 FY 22 FY 23

19.9 Mn 4,418
Patient visits Operational Beds (Census)
Aster DM Healthcare Limited

Hospitals in GCC

Aster Hospitals, UAE

449
Bed Capacity

0.59 Mn
Outpatient visits
in FY23

42,900+
Inpatient visits
in FY23

As a leading hospital chain in the UAE, Aster offers excellent care facilities to patients.
Over the past three decades, we have focused on patient needs and adopted medically
advanced procedures to ensure excellence across our operations.

We have 5 Hospitals in Dubai. The multispecialty hospital in Mankhool is a 136-bed

facility. The hospital at Quasis and Cedar has 158 and 20 beds respectively. We also
have a 34-bed hospital in Sonapur. In 2022, we launched a multispecialty hospital
in Sharjah to extend our care facilities to a larger number of people. Equipped with
state-of-the-art facilities, these hospitals employ the most technologically advanced
equipment and medical procedures to carry out challenging surgeries and complex
treatments.

Awards and Accolades

Aster Hospitals UAE received the UAE Innovation Award

Aster Hospitals UAE received the IHF award

Aster Hospitals UAE received the title of World’s Best Hospitals by Newsweek

Aster Hospitals UAE received the Smart Innovation Awards 2022

Aster Hospitals UAE is recognized by the Cyber Security Council

38
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Aster Hospital and Medical Centres, Qatar

61
Bed Capacity

0.13 Mn
Outpatient visits
in FY23

2,800+
Inpatient visits
in FY23

Inline with Qatar’s National Health Strategy 2030, which aims to build a comprehensive
healthcare system that is effective, affordable and easily accessible to people, we have
developed Aster DM Healthcare Qatar. With an aim to offer the finest medical facilities
under one roof, we have developed a holistic and affordable healthcare delivery
ecosystem through our operations in the country.

In Qatar, we have a multispecialty hospital, 5 pharmacies, and 6 Aster Medical Centres.

The 61 bed Aster Hospital Qatar is located at Old Airport Road and is equipped with
advanced facilities and 24-hour emergency services. It provides interdisciplinary,
integrated medical care through a team of experienced doctors, nurses, and healthcare
professionals.

39
Aster DM Healthcare Limited

Hospitals in GCC

Aster AI Raffah Hospitals and clinics, Oman

363
Bed Capacity

0.49 Mn
Outpatient visits
in FY23

15,600+
Inpatient visits
in FY23

Since 2009, Aster is catering to the needs of patients in the Sultanate of Oman.
We have four multispecialty hospitals (2 in Muscat, 1 in Sohar, and 1 in Ibri) with a
combined capacity of 363 beds. We also operate 6 clinics and 6 pharmacies in the
country. In the past year, we have opened the doors of another hospital in Muscat
and it continues to carry forward our quest for clinical excellence. In Oman, Aster has
a long legacy of 13-years with a sustained track record of exceptional healthcare
performance. We currently have 1100+ people, including 500+ nurses and 140+ trained
doctors, including VCs in Oman.

Awards and Accolades

Aster Al Raffah Hospital received the IHF award

Aster Al Raffah Hospital is recognized by World Endoscopy Organization COE

Aster Al Raffah Hospital received the Healthcare Asia Awards

40
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Aster Sanad Hospital in Riyadh, KSA

230
Bed Capacity

0.18 Mn
Outpatient visits
in FY23

14,200+
Inpatient visits
in FY23

Aster Sanad Hospital is located at a prime location in Riyadh with quick access
to the airport and it is close to the Saudi Red Crescent Centre. It enables Aster’s
multidisciplinary team of neurosurgeons, cosmetic, spinal, and maxillofacial surgeons
to provide prompt services for trauma and accident care. Aster Sanad Hospital is
recognized by the Saudi Central Board of Accreditation for Healthcare Institutions
(CBAHI) and is renowned for offering excellent healthcare facilities.

Major medical specializations and subspecialties offered by the hospital include neuro
and spine surgery, orthopaedics, Cath lab, bariatrics, cosmetic and reconstructive
surgery, maxillofacial surgery, and vascular surgery. It has a team of 160+ doctors,
190+ nurses and 350+ other staff and it is one of the few healthcare organizations
that offers its services to the Ministry of Health and Security Forces Hospital in Riyadh.
It has a comprehensive home care unit that is properly trained, well-equipped, and
capable of offering the best medical services at home.

Awards and Accolades

Association of Healthcare Providers Award

MOSH- Patient-Friendly hospital

SANAD- Nursing excellence;

Phenomenal performance in clinical excellence & quality

41
Aster DM Healthcare Limited

Hospitals in GCC

Medcare Hospitals and Medical Centres, UAE

336
Bed Capacity

0.61 Mn
Outpatient visits
in FY23

24,900+
Inpatient visits
in FY23
Medcare is a premium private healthcare service provider, operating under the Aster
brand. In addition to 23 medical facilities and two speciality hospitals for women and
children, orthopaedics, and spine, Medcare also runs two multispecialty hospitals
in Dubai and Sharjah. Medcare enjoys a significant position in the UAE’s healthcare
industry.

Medcare Orthopaedics & Spine Hospital provides comprehensive care for the
prevention, diagnosis, and treatment of a variety of disorders affecting the bones, Awards and Accolades
joints, and spine. The hospital has been accredited by DNV Healthcare USA as a centre Specialty Hospital of the Year - UAE
of excellence for foot and ankle surgery, hip and knee replacement, and spine surgery. Patient Care Initiative of the Year -
It is the first private hospital in Dubai with a focus on women’s health and a team UAE
comprising mostly of female clinical specialists.
Patient Safety Initiative of the Year
The hospital offers finest maternity and gynaecology services in a safe and - UAE
multidisciplinary setting, offering specialized treatment for gynaecology and obstetrics,
breast health, minimally invasive surgery, high-risk pregnancy, NICU, and paediatrics.

42
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Hospitals in India (Kerala Cluster)

Aster Medcity Hospital, Kochi

759
Bed Capacity

0.54 Mn
Outpatient visits
in FY23

45,500+
Inpatient visits
in FY23
Aster Medcity, set in a soothingly beautiful 40-acre waterfront campus, is a 759-bed
quaternary care facility & one of the best hospital in Kochi, Kerala. The hospital has
been delivering quality healthcare at affordable cost through its Centres of Excellence Awards and Accolades
and a multi-specialty hospital since 2013. It is the first JCI accredited quaternary care Aster Medcity Hospital received the
multispecialty hospital in the state and combines the best of talent and technology to ICC Healthcare Excellence Award
provide holistic treatment with a multidisciplinary approach.
Aster Medcity Hospital received the
Across the years, Aster Medcity has evolved into a medical destination one that title of the World’s Best Hospital
attracts not just thousands of patients across the world but also attracts and nurtures Award from Newsweek
the best talent, keeps upgrading technology as well as fosters research, education and Aster Medcity Hospital is
a distinctive work culture that is ethically and socially relevant. recognized by Outlook’s Best
Hospital Ranking
Kerala’s first quaternary care hospital, Aster Medcity has also been accredited by
NABH, received NABH certification for Nursing Excellence, Green OT (Green Operation Aster Medcity Hospital is
Theatres) Certification by Bureau Veritas all within a year of opening its door to the recognized by the Model Service
world. Society -Nurses for fighting against
COVID
With a multidisciplinary treatment approach at its core, Aster Medcity offers
Aster Medcity Hospital is recognized
quality healthcare under Centres of Excellence in Cardiac Sciences, Neurosciences,
for excellence in the Therapeutic
Orthopaedics & Rheumatology, Nephrology & Urology, Oncology, Women’s Health,
Food Service Management
Child & Adolescent Health, Gastroenterology & Hepatology, and Multi-Organ
Transplantation. Aster Medcity Hospital is
recognized by the FICCI

43
Aster DM Healthcare Limited

Hospitals in India (Kerala Cluster)

Aster MIMS, Calicut

695
Bed Capacity

0.55 Mn
Outpatient visits
in FY23

41,900+
Inpatient visits
in FY23

The 695 Beds multispecialty hospital is located in a prime location in Calicut. The
hospital is renowned for its excellent medical care facilities, nursing and diagnostic
service quality. The hospital has established itself as a pioneer in giving the common
man access to top-notch medical care at affordable rates. It keeps up with the most
recent technological advancements to ensure patient health and wellbeing.

Through its 25+ specialities, it provides in-depth expertise for advance medical and
surgical interventions.

Awards and Accolades

Aster MIMS, Calicut, is recognized by the World Stroke Association Rating

Aster MIMS, Calicut, is recognized by the Times All India Multispecialty Hospitals Ranking Survey 2021

Aster MIMS, Calicut, is recognized by the IBARC as the Iconic Leader of the Year

44
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Hospitals in India (Kerala Cluster)

Aster MIMS Hospital, Kottakkal

340
Bed Capacity

0.33 Mn
Outpatient visits
in FY23

22,700+
Inpatient visits
in FY23

Aster MIMS Kottakkal is a multispecialty hospital with NABH accreditation that offers
a wide array of medical services. It is a tertiary level hospital offering advanced medical Awards and Accolades
technology and medical specialties, including neurosurgery and nuclear medicine. Aster MIMS Hospital, Kottakkal,
Due to its superb facilities and dedication to upholding the highest standards of is recognized by the National
safety, cleanliness, integrity, and honesty, the hospital in Kottakkal is a great choice Neonatology Forum (level 2 to
for patients seeking specialty treatment for a wide range of clinical issues. It offers level 3)
comprehensive care by utilizing state-of-the-art technology and first-rate facilities for
Aster MIMS Hospital, Kottakkal,
Trauma Care, Intensive Care, and more. It is also focusing on new medical innovations
received the International Patient
to offer affordable treatment to patients in a comfortable setting.
Safety Awards recognized by the
It also has a ‘Women and Children Wing’ which focuses on complete gynaecological FICCI
care, starting from childbirth to motherhood and menopause. It also offers excellent
neonatal and paediatric care, including paediatric surgery. Obstetrics care, including
normal and high-risk pregnancies, are also treated at the hospital. Additionally, the
hospital offers maternal and paediatric emergency services round-the-clock. It has
labour and delivery rooms, an innovative modular operating room, cardiotocography
monitoring of the foetus’ heartbeat, 3D and 4D ultrasound capabilities, paediatric and
neonatal intensive care units, X-ray, and a walk-in pharmacy that is open 24x7.

45
Aster DM Healthcare Limited

Hospitals in India (Kerala Cluster)

Aster MIMS Hospital, Kannur

302
Bed Capacity

0.36 Mn
Outpatient visits
in FY23

26,500+
Inpatient visits
in FY23

Aster MIMS hospital is located in the coastal city of Kannur and spreads over a 1.5-
acre campus. The 302-bed multispecialty hospital is a first-of-its-kind in the city. The
medical specialists, medical practitioners, nurses, technologists, and support staff of
Aster MIMS Kannur is trained to handle challenging medical procedures.

The hospital’s ICUs are staffed with a group of expert critical care doctors and are
fully equipped with newest technologies, such as ECMO, to monitor and attend
to the needs of critically ill patients. Its well-equipped Emergency & Critical Care
department provides patients the best possible care. It has 25 emergency beds and
offers emergency services round-the-clock. The hospital’s radiology department is
equipped with highly advanced MRIs, 128 slice CTs, 4D ultrasound equipment, and
mammograms. It also has MR Angiogram and viability study packages. The OBG
department provides excellent treatment for women’s health.

Awards and Accolades

Aster MIMS Kannur received the AHPI award

Aster MIMS Kannur received the Digital Health Summit Awards

46
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Hospitals in India (Kerala Cluster)

Aster Mother Hospital, Areekode

140
Bed Capacity

69,377
Outpatient visits
in FY23

1,227
Inpatient visits
in FY23

The 140-bedded multi-speciality hospital is the first of its kind in the healthcare
landscape of the culturally rich city, of Areekode. The tertiary care hospital has 4 OTs, 40
single rooms, 4 suite rooms & 27 ICU beds. Aster Mother Areekode is complemented by
medical experts, Medical practitioners, nurses, technologists & support staff who bring
professionalism that has no parallel. The newly built hospital is set to move forward
with its commitment to strengthening the health care system of the city.

This facility features a level 3 neonatal intensive care unit which is among the most
advanced. With a fully equipped inborn & outborn NICU. The ICUs are first of their
kind in Areekode manned with a team of excellent critical care physicians, with fully
equipped the latest technologies like ECMO to monitor and respond to the needs of the
critical care patient.

The well-equipped Emergency & Critical care department is the first of its kind in
Areekode, offering the best treatment for patients, equipped with 25 emergency beds
and 24x7 emergency services.

47
Aster DM Healthcare Limited

Hospitals in India (Karnataka and Maharashtra Cluster)

Aster CMI Hospital, Bengaluru

508
Bed Capacity

0.34 Mn
Outpatient visits
in FY23

27,000+
Inpatient visits
in FY23

With nearly above 500 bed, the Aster CMI Hospital in Bengaluru is a modern, cutting-
edge facility that provides a full range of primary to quaternary care services through
its Centres of Excellence in Complete Cancer Care, Cardiac Sciences, Neurosciences,
Gastroenterology, Surgery and Allied Specialties, Integrated Liver Care, Organ
Transplant, Urology and Nephrology, Orthopaedics, Women’s Health, and Child &
Adolescent Health.

Awards and Accolades

Aster CMI Bengaluru is ranked 1st in the Times of Indian – all-India multi-speciality hospital ranking

Aster CMI has been recognized by the Economic Times as the Best Hospital for Paediatrics

48
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Hospitals in India (Karnataka and Maharashtra Cluster)

Aster RV Hospital, Bengaluru

237
Bed Capacity

0.10 Mn
Outpatient visits
in FY23

9,200+
Inpatient visits
in FY23

Aster RV Hospital was founded in Bengaluru to offer the finest patient-centric facilities,
supported by innovative and advanced treatment methods. It is a 237 bed hospital and Awards and Accolades
centres of excellence in cardiac sciences, neurosciences, gastro sciences, orthopaedics, Times All India Critical Care
organ transplant, and minimally invasive surgeries. The super speciality hospital Hospital Ranking survey 2022
provides comprehensive primary care to quaternary care services. The hospital has
5th in cardiology
state-of-the-art facilities like an intraoperative MRI and a biplane Cath lab. The 62 bed
ICU Facility at Aster RV Hospital also has paediatric and neonatal ICUs. 6th in Obstetrics and Gynaecology

5th in Neuroscience

10th in Paediatrics

5th in Nephrology

4th in Urology

10th in Emergency & Trauma

6th in Gastroentrology &

Hepatology

49
Aster DM Healthcare Limited

Hospitals in India (Karnataka and Maharashtra Cluster)

Aster Whitefield Women and Children Hospital

61
Bed Capacity

0.05 Mn
Outpatient visits
in FY23

2,900+
Inpatient visits
in FY23

Aster Women & Children Hospital in Whitefield, Bengaluru, is a specialty hospital that
focuses on the specific medical requirements of women and children. A comprehensive Awards and Accolades
treatment plan is offered to treat various gynaecological conditions. It also provides Medcare Women and Children
the best diagnostic services to ensure efficient and timely treatment. The facility has a Hospital-IPSG-PREM Tool
61 bed, level 3B NICU and 24-hour neonatology care facility. The experienced team of
obstetricians, gynaecologists, neonatologists, and paediatricians at the hospital adhere
to international medical standards to provide the finest care facilities.

50
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Hospitals in India (Karnataka and Maharashtra Cluster)

Aster Aadhar
228
Bed Capacity

0.07 Mn
Outpatient visits
in FY23

14,000+
Inpatient visits
in FY23

Aster Aadhar Hospital in Kolhapur is a 228-bed facility. It offers one of the best
healthcare facilities in western Maharashtra in terms of infrastructure, skill sets,
and doctoral legacies. The hospital provides quaternary care facilities through a
multispecialty hospital with Centres of Excellence in Joint Replacements, Pulmonology,
Cardiac Sciences, Neurosciences, Critical care, Nephrology & Urology, Oncology,
Women’s Health, Child & Adolescent Health, Gastroenterology & Integrated Liver Care,
Multi-Organ Transplant, and Minimal Access Surgery. It is a NABH accredited facility,
one of the first hospitals in the region to have received the certification.

Internal medicine, general surgery, endocrinology, aesthetics and plastic surgery,

ENT, dental sciences, cranio-maxillofacial surgery, ophthalmology, dermatology,
psychiatry, clinical imaging, interventional radiology, infectious disease & infection
control, pathology, physical medicine & rehabilitation, pain palliative medicine, wellness,
laryngology, and round-the-clock emergency care services can be availed at the
multispeciality hospital.

Apart from medical services provided by the hospital, it has set benchmarks through
its CSR initiatives such as Nirdhar for Flood rescue and Sankalpa for Organ donation
awareness.

51
Aster DM Healthcare Limited

Hospitals in India (Andhra Pradesh and Telangana Cluster)

Aster Prime Hospital, Hyderabad, Telangana

158
Bed Capacity

0.06 Mn
Outpatient visits
in FY23

4,800+
Inpatient visits
in FY23

Aster Prime Hospital, located in Ameerpet, delivers quaternary medical care to ensure
access to world class medical facilities for patients. With access to recent technology Awards and Accolades
and advanced treatment methods, it is at par with global facilities and maintains the Aster Prime Hospital received the ICC
highest standards of clinical care. As one of the finest healthcare facilities in Hyderabad, Healthcare Excellence Awards
the hospital offers patients the most advanced medical and nursing expertise, round-
the-clock individualised care, and technologically empowered diagnostic services and
treatment for severe conditions.

It is a 158-bed multispecialty hospital, accredited by NABH & NABL and it was the
first hospital in Telangana to perform TAVR, making it one of the state’s first corporate
healthcare institutions. The hospital offers academic programmes in the Cardiology
department, including DNB and PGDCC as well as paramedical courses under the
Osmania University. The hospital has advanced medical technology including the Philips
3D Echo CVX Machine, 1.5 Tesla MRI, Multi Slice CT & Dexa Scan, Digital 500 KVP
X-Ray, and Cath-lab capabilities.

52
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Hospitals in India (Andhra Pradesh and Telangana Cluster)

Ramesh Hospitals
739
Bed Capacity

0.22 Mn
Outpatient visits
in FY23

25,100+
Inpatient visits
in FY23

It is a renowned multispecialty tertiary care chain located in coastal Andhra Pradesh.

Established in 1988 with a 6-bed facility, Ramesh Hospitals now runs 5 hospitals in
Vijayawada, Guntur, and Ongole, with a combined capacity of 739 beds. All of these
facilities are NABH approved, and the Guntur site is JCI accredited. Since acquiring
Ramesh Hospitals in 2016, Aster Ramesh has become a prominent NABL accredited
healthcare service provider that has also received the nursing excellence certification.
Our extensive network of over 30 tele-medicine and outpatient outreach centres,
spanning 5 districts of coastal Andhra Pradesh, contributes to our continued success.

Additionally, we offer academic programmes like DNB in Cardiology & Cardiothoracic,

Radiology, Orthopaedics, Paediatrics, Obstetrics & Gynaecology, Critical care, and Neurology.
Aster Ramesh Hospital is one of the few facilities in the area with a licence for liver, heart
and kidney transplants in Guntur, with an overall success record of more than 95%.

53
Aster DM Healthcare Limited

Hospitals in India (Andhra Pradesh and Telangana Cluster)

Aster Narayanadri
150
Bed Capacity

8,918
Outpatient visits
in FY23

4,425
Inpatient visits
in FY23

Aster Narayanadri Hospital, Tirupati, a 150-bed state-of-the-art Multispeciality

Hospital, is DM Healthcare’s continuation of its endeavour to create world-class,
patient-centric hospitals.

At Aster Narayanadri Hospital, innovation and a culture of excellence are all set to
bring comprehensive medical care to the city of Tirupati, in the form of quaternary to
primary care services. Aster Narayanadri Hospital would be the best Hospital and one
point Health care destination for Tirupati and some other parts of Andhra Pradesh,
which would extend advanced medical services to the people. The world-class, patient-
centric hospital will feature Centres of Excellence in Cardiac Sciences, Neurosciences, GI
Sciences, Orthopaedics and Minimally Invasive Surgeries, backed by High-End Critical
Care and Emergency Services.

The Clinical staff at Aster Narayanadri Hospital includes some of the best specialists,
who bring years of expertise to you and provide evidence-based care to deliver the
best treatment. In addition, it offers patients the most up-to-date medical and nursing
expertise, round-the-clock individualized care, and cutting-edge technological.

54
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Aster Clinics

127
Total number of
Aster Clinics

115
GCC

12
India

Considered among the finest clinics in the UAE, it is renowned for providing the best
healthcare services. The first Aster multispecialty clinic was established in 1987 and
since then, it has become one of the largest and most widespread network of clinics
across the Middle East, including countries such as Oman, Qatar and Bahrain. The
organization has spent the last 3 decades in strengthening and evolving the brand,
which has now become synonymous with high quality and excellent service across the
communities we serve.

Aster medical speciality clinic is not only one of the biggest integrated networks in the
region, but it has also successfully reshaped the healthcare landscape in the regions
where it operates. Keeping patient-centric care at the core of our operations, we have
developed robust quality standards, enhanced professional expertise and created spacious
infrastructure to render the most comfortable and satisfying experience to patients.

Over the years, we have opened new clinics across the UAE and particularly in Dubai and
Sharjah to keep up with the growing demand for our services and the faith reposed by
patients in the Aster brand. We have also made efforts to utilize speciality services in
existing clinics while enhancing our focus on medium as well as premium service verticals.

55
Aster DM Healthcare Limited

Aster Pharmacies - GCC

264
Total number of
pharmacies

With over 20 years of experience in pharmaceutical retailing, Aster Pharmacy, a branch

of Aster DM Healthcare, is a trusted name in the industry. Aster Pharmacy began
with a focus on ‘delivering good health and happiness’. It is a household name in the
UAE and has emerged as the brand of choice among pharmacies due to its reliability,
accessibility and customer-first philosophy. It offers a full range of curative, nutritive,
baby, lifestyle, wellness, FMCG, cosmetics, personal, and homecare products.

Aster Pharmacies have already dotted the GCC healthcare landscape with over 200
pharmacies in its network. In order to achieve our goal of having an Aster pharmacy in
every region, Aster Pharmacy continues to expand its footprint in the Middle East as
well as in India. Our untapped potential in Kerala and the rest of Karnataka allows us to
provide consistent and high-quality services among the region’s generally unorganized
pharmacies.

56
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Indian Market - Aster Pharmacies

106
Stores in
Karnataka

85
Stores in
Kerala

61
Stores in
Telangana

5
In India, Aster pharmacies are operated by Alfaone Retail Pharmacies Private Limited
(ARPPL) and it manages 257 pharmacies in Kerala, Karnataka, Telangana and Andhra
Pradesh. The store ambience, prescription fulfilment capability and the availability of an
extensive selection of pharmaceutical and wellness products keeps Aster Pharmacies a Stores in
step ahead of competition. Patients are also offered free home delivery, monthly offers Andhra Pradesh
and prescription refill reminders. The Doctor Connect programme links Aster Pharmacy
and the nearby doctors and community through Cluster Camps and In-Store Events
which in turn enhance value creation.

Strengthening our position in India

Enhancing our footprint in Telangana and Kerala while putting into practice a go-to-
market plan to enter Andhra Pradesh
Concentrating on sales of FMCG, wellness products, and private labels to increase
gross profit margins
Focusing on the e-commerce segment to make our services accessible to patients

57
Aster DM Healthcare Limited

Indian Market - Aster Labs

3.24 Mn
Clients served

1
Reference Lab

15
Satellite Labs

In the midst of the pandemic in 2020, Aster Labs established operations in India with
its Global Reference Laboratory in Bengaluru. It utilizes innovative technology including

189
integrated biochemistry platform Atellica, Haematology on Advia on an automated
track, LCMS (Waters), Flowcytometry, Digital Pathology of Philips, and others. It has a
clear focus on delivering True Quality reports and a positive patient experience.
Patient experience
The NABL ISO-15189 certified Global Reference Lab produces highly accurate results
centres
with minimum human involvement, and its strong online presence allows patients to
easily schedule tests and collect reports on time.

We strive to strike a balance between the hub-and-spoke model at Aster Labs and the
patient collection centres. By driving the visibility of our Franchise patient Experience
Centers (FPECs) by introducing a mobile application and website revamp, we provide
a key tool for generating leads and attracting patients. Simultaneously, adopting
technologies to redesign our supply chain and logistics systems enables us to enhance
collections effectively, ensuring convenience for our end consumers.

58
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Aster International Institute of ratio analysis, balanced scorecard all new facilities. This framework
Oncology measures, and core operational levers. ensures that new facilities adhere to
We introduced Aster International These include key metrics like stringent quality and accreditation
Institute of Oncology (AIIO) during ARPOB (Average Revenue per standards, guaranteeing consistent
the year 2022-23. AIIO places Occupied Bed), manpower per delivery of high-quality healthcare
a major emphasis on delivering occupied bed, capacity utilization services.
advanced robotic oncology services, benchmarking, and occupancy
ensuring precision and optimal analysis. By closely monitoring Integration of new facilities
outcomes for our patients. As part of these parameters, our leadership Integrating existing Aster hospitals
our commitment to comprehensive team maintains a strong grasp on with newly acquired facilities is a
cancer care, we have unified all operational efficiency. Additionally, challenging process. The following
oncology subspecialties across all service excellence forms a core pillar strategies have been adopted to
our units under the umbrella of AIIO. in our balanced scorecard. We believe address the challenges.
We also prioritize advanced research in the concept of ‘Patient Delight’
through international collaborations, and consistently analyze patient Develop a clear integration plan
partnering with renowned satisfaction scores and benchmarked We meticulously design and
institutions around the world to Net Promoter scores (NPS) across all outline the objectives, establish
drive innovation and enhance our business units. realistic timelines, and identify
understanding of cancer treatment key stakeholders involved in
and management. Maintaining quality and safety the integration. We understand
standards at new facilities that effective communication is
To foster academic excellence,
AIIO offers international academic We prioritize the maintenance of vital during the process and our
exchange programmes, providing quality and safety standards while plan includes a comprehensive
opportunities for knowledge-sharing establishing new facilities. Each communication strategy. It allows us
and professional development under new facility undergoes a thorough to keep our stakeholders informed
the mentorship of our esteemed risk stratification process, ensuring about the changes taking place and
senior faculty. Leveraging innovative that appropriate risk mitigation understand their roles during the
technology platforms, we strive measures are implemented. We also integration process.
to establish a comprehensive data lay emphasis on compliance with
repository to preserve oncology legal and statutory requirements to Establish a cross-functional
records and develop a robust cancer uphold ethical practices and meet integration team
registry. regulatory standards. To ensure At Aster DM, we recognize the
the safety of both patients and our importance of establishing a
Ensuring optimum utilization of people, we conduct regular clinical cross-functional integration
resources and patient safety audits. This helps team comprising representatives
us identify areas of improvement and from various departments such
We have implemented a
take necessary actions to ensure a as operations, finance, IT, HR,
comprehensive due diligence
safe medical infrastructure. and clinical personnel. This team
mechanism that is deeply rooted
in Lean management principles. By Additionally, we perform business plays a critical role in ensuring a
adopting a lean ‘value-engineered’ risk evaluations to proactively successful integration process. Each
operational model, we ensure that identify and address any potential team member has clear roles and
our strategic direction aligns with threats to the business while responsibilities that align with their
optimal resource and capacity capitalizing on market opportunities. areas of expertise. Communication
utilization. Our focus on financial and We have established a robust channels are established within
operational excellence is reinforced Healthcare Quality framework, the integration team to facilitate
through parameters such as financial serving as a scalable benchmark for seamless information sharing and
coordination.

59
Aster DM Healthcare Limited

Standardize processes and to standardize processes and Staff training

procedures procedures, improve communication, To ensure that the teams are
For integrating existing hospitals and increase operational efficiency. equipped to work in a newly
with newly acquired facilities we We also ensure that the technology integrated system, we provide
require standardizing processes and solutions selected are compatible training on different processes and
procedures across all our facilities with existing systems. procedures. This training is ongoing
to ensure consistency in patient and tailored to each department’s
care and operational efficiency. This Develop a culture of needs to ensure that everyone is up-
involves creating and implementing collaboration to-date with the latest practices.
standard operating procedures We focus on developing a culture
(SOPs) for various departments, of collaboration among our people Monitor progress
including clinical, financial, and to ensure a smooth transition. We monitor the progress of the
administrative functions. This involves encouraging open integration process regularly and
communication, promoting adjust the plan as needed. This
Invest in technology teamwork, and providing involves measuring key performance
We are Investing in technology opportunities to the people to share indicators (KPIs) to ensure fulfilment
solutions such as HIS and electronic their experiences and best practices. of objectives and identifying areas
health records (EHRs) which help that require further attention.

Supply chain management

India
We ensure efficient supply we recommend alternate brands for
chain management to deliver every formulation. By establishing
uninterrupted patient care a network of alternate vendors,
while optimizing costs. Through we mitigate the risk of stockouts,
consolidated negotiations and the ensuring a continuous supply of
request for quotation (RFQ) process, crucial medical supplies. We closely
we have achieved a cost-saving monitor the Vital and Essential
opportunity of INR 53 crores for the Items list as well as the Crash Cart
entire Aster India. Additionally, we inventory to maintain an adequate
have implemented a group formulary stock of life-saving drugs. We ensure
and a unit formulary, standardizing comprehensive maintenance with a
medication practices across our 99% uptime guarantee for all medical
facilities. equipment.
To guarantee uninterrupted
availability of essential medications ,

60
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Our partnerships Warehouse automation

GCC We recognize that pharmaceutical warehouse automation solutions are crucial for
complying with government regulations and upholding industry best practices.
We have implemented several innovative Ensuring safety and compliance is critical in pharmaceutical warehousing and
solutions to enhance our supply chain distribution. By implementing robust and efficient systems customized to our
processes. Through our partnership needs, we are able to maintain operational efficiency while adhering to serialization
with Cafu Petroleum, we are able to requirements for tracking and tracing drug packages. These solutions enable us to
refuel our delivery vehicles directly at manage our pharmaceutical inventory more efficiently, minimise errors and ensure
our Aster warehouses, eliminating the seamless distribution to our various healthcare facilities.
need for time-consuming stops at petrol
stations. This not only saves an average
of 20 minutes per truck but also helps us
benefit from discounted diesel prices of
0.12 AED per litre.

61
Intellectual
Capital
At Aster, our digital health initiatives
focus on providing a dynamic blend
of technological advancements,
medical expertise, and data-driven
insights, to drive the transformation
of healthcare delivery. We have
deployed cutting-edge procedures
like robotic surgery, OT imaging
facilities, nuclear medicine and
interventional radiology suites to
further enhance the ambit of clinical
excellence at our facilities.
Digital Initiatives
DCRM

We effectively analyze patient data and create segments and deliver personalized
messages tailored to each segment, enabling direct and targeted communication
with our patients. This approach increases engagement levels, enhances brand recall,
and establishes our expertise in providing personalized healthcare services. Through
DCRM, we aim to optimize patient experiences, strengthen relationships, and deliver
exceptional care at every touchpoint.

4.9 Mn 1.9 Mn
Customers analyzed Customers engaged

myAster
myAster is a one-stop solution designed to provide patients with seamless,
convenient and personalized healthcare experience. Patients can access a wide range
of healthcare services, including in-person appointment booking, virtual consultation,
online medication ordering, medical record management and lab report access, all
with the click of a button. With 700,000 downloads in FY23 alone, myAster has grown
quickly to become a leading E-commerce platform for medicine delivery and ranks as
the no. 1 free medical app on play store and app store in UAE. Key upcoming services
on myAster include labs and home care, with the help of which myAster would be able
to enable end-to-end facilitation for all of Aster’s key healthcare services.

Ranked amongst Top Downloaded Health &

Fitness Apps in EMEA
Aster DM Healthcare Limited

E-pharmacy business in the GCC, with a significant

With myAster’s e-commerce stack, increase of over 400%. This digital
we offer patients the ability to order transformation has enabled us to
both prescription and non-prescription streamline operations, reduce manual
medicines on the platform via a user- processes and operational costs, allowing
friendly, easy to navigate platform. us to deliver exceptional pharmacy
Patients can enjoy express delivery on services to our valued customers. Key
their medication within 90 minutes and upcoming features like prescription
choose from a diverse assortment of automation journey, recommendation
products at competitive prices. Since engine and personalization will help
launch last year, we have experienced myAster establish a strong competitive
remarkable growth in our E-pharmacy edge in the market

myAster as a % of total appointments & E-pharmacy orders FY-23

33%
31% 29%
28% 28%
24%
21%
20%
17%
12% 14%
8% 8%
6% 6% 6%
0% 0%
Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 22 Feb 22 Mar 22

% myAster share in total E-pharmacy order % myAster Share in total Appointment

64
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Digital Hospitals & Clinics Digital transformation of workforce Aster Connect

With this service, patients can find their We have implemented continuous training Aster Connect has a profound impact
preferred doctors in clinics & hospitals, programmes to ensure the adoption on HR processes to create a seamless
view schedules and book in-person of new tools and technologies. Our journey for employees from the time
appointments with them. They can even employees are trained and retrained to of their recruitment to their retirement.
schedule virtual consultations and interact ensure that they remain updated with the The platform has recently onboarded
with general practitioners in as early latest trends and best practices in their tools like Aster Wiz, a chatbot, which
as 10 minutes. Post the consultation, respective fields. Our clinical staff and has transformed the way employees
patients can view their prescriptions, lab support teams are provided with regular access information. It provides quick
records and can directly order lab tests training and development opportunities and accurate responses to basic queries
and medicines via myAster. It also acts to enhance their skills and knowledge. without requiring HR intervention.
as a single source of all health records We have invested in developing a robust Aster Connect integration with the Visa
for patients. Current active user base training infrastructure, including e-learning module has made the visa application
for consultation stands at 105,000 (24x platforms and online training modules. The and renewal processes more transparent
growth since launch), and this will only focus is on ensuring that the workforce has and efficient, reducing the turnaround
continue to grow rapidly with the scale-up the necessary skills to leverage new tools time and eliminating the need for manual
of recent hospitals launch. and technologies effectively. paperwork. This has increased employee
satisfaction and productivity while also
contributing to the overall improvement
in retention rates. Furthermore, the
platform provides access to dashboards
and analytics, enabling informed decision-
making and helping HR personnel to
understand employee preferences.

65
Aster DM Healthcare Limited

LTTS
We have partnered with L&T Technology
Services (LTTS) to develop a tracheal tree
navigation protocol using AI and ML. This
collaboration aims to improve precision and
confidence in navigating the tracheal tree,
ultimately enhancing patient outcomes.

Logy.AI
Our partnership We aim to validate the Logy.AI Eye remote patient monitoring, teleICU,
screening solution for validation of the teleradiology and telemedicine-enabled
Intelpixel AI models for cataract screening using interventions.
Our collaboration with Intelpixel spans just smartphones. As a clinical validation As part of its digital initiatives, Aster has
across couple of projects that aim to partner, through the chatbot validation and successfully consolidated Radiology
enhance medical imaging analysis rigorous testing of the AI models on the services across the group, to establish
using sample images provided by us, ground patient data, we aim to validate the “Aster Medical Imaging”. The
as per protocols. Automated tool for accuracy of the AI models developed by consolidation of radiology operations
image interpretation using AI for Carotid Logy.AI. has helped leverage expertise, extend
Ultrasound and improving the workflow coverage, and extend its services to
in the echocardiography laboratory by non-Aster entities across the globe,
automatically identifying echocardiogram while bringing in efficiency across the
Growing with Aster Telehealth
views and extracting quantitative organization. Aster Medical Imaging
Aster Telehealth has progressively grown
parameters using AI and CNN were some currently supports & operates nearly 165
to extend the services of its experts beyond
of the projects worked in partnership with centres, across 9 countries reporting over
the boundaries of its hospitals and clinics
Intelpixel. 1.6 million cases annually.
leveraging technology.
One Aster: One Aster provides a digital
Siemens Healthineers In line with organization’s commitment
portal for patients to book appointments
to leverage technology to improve the
Our partnership with Siemens Healthineers online via the web or mobile devices. This
accessibility to the needy, Aster has started
focuses on the ‘Digitalization of Healthcare’, platform is integrated with existing hospital
its first “Telehealth Command Centre” in
to enhance the patient experience information management system to create
Bengaluru. The centre will be the backbone
and streamline healthcare processes. a unified booking platform and provide a
of all telehealth operations offering a range
Together, we leverage digital platforms and centralized access to patients record across
of services, including virtual consultations,
solutions to enhance healthcare services Aster hospitals in India.
and provide a seamless, connected
experience for patients. Our partnership
objectives include research collaboration,
workflow optimization, a road map for
implementing future-ready technologies,
education and training programs utilizing
Siemens Healthineers’ expertise and global
footprint.

Qure.AI
This collaboration focuses on optimizing a
CE approved tool for the interpretation of
chest X-rays utilizing advanced algorithms
and machine learning techniques to our
radiology workflow requirements. The aim
is to reduce diagnosis time and enabling
radiologists to focus on complex cases and
critical decisions.

66
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Aster e-Consult: Aster e-Consult is

the teleconsult platform for patients to
consult Aster clinicians and avail quality
consultation remotely. The platform
enables patients to select doctors across
multiple criteria like qualifications,
languages spoken and availability. The
mobile version of the app provides
an added convenience to patients for
connecting with their doctors. Users can
also upload their medical records prior to
the consultation for review by the doctor.
Consultations notes and prescriptions
generated by the doctors are also available
to the patients within the Aster e-Consult
platform, with a functionality order
medicines at home.
Aster Connected Care: Aster’s Tele-ICU
model enables remote monitoring and Data Privacy
management of critically ill patients in
client ICUs using technology platform. It We have implemented a comprehensive set of measures to ensure the protection of
connects Pediatric, Neonatal, and Adult sensitive information and comply with data privacy regulations.
ICUs of clients with Aster command
center for surveillance by intensivists & Our data loss prevention strategy We have appointed a dedicated Data
trained critical care paramedics and ensure includes disabling USB ports, Protection Officer to oversee and
24/7 critical care delivery. The remote- implementing firewalls, enhancing manage data privacy.
monitoring service is a sophisticated internet security, and maintaining
We conduct thorough vendor due
remote healthcare solution that enables round-the-clock threat detection
diligence processes to assess data
healthcare providers to monitor patients’ capabilities.
vital signs and health data from their security and privacy risks.
homes or remote locations, by utilizing We are actively investing in a Data
We conduct regular risk awareness
advanced technology such as sensors and Loss Prevention (DLP) solution to
campaigns to educate our employees
wearable devices. mitigate risks and plan to implement
about data privacy risks and best
The Digital Innovation and Research it across our operations by the end of
practices through newsletters,
vertical of Aster is involved multiple this year.
sessions, and flyers.
projects that have potential to provide
We are adopting EMR (Electrical
a better patient experience and across
multiple spectrums of healthcare. The Medical Record) and refining access
Research Team is involved in multiple controls to protect data and restrict
projects at various stages of evaluation access to authorised personnel.
and testing, primarily focusing on Artificial
Intelligence with external partners and with
internal stakeholders to drive data insights
for better decision making and patient
outcome.

67
Human
Capital
At Aster we are driven by our
mission to become the most
preferred healthcare employer by
2025 in the regions we operate
where every Asterian finds purpose
and aspires to be the best in
providing care for our patients and
customers.

3,863 13,318
Doctors Enabling & Support

8,975 4,174
Nurses Outsourced staff
Aster Cares

As we reflect on the achievements and progress of our organization over the

past year, we firmly believe that success at Aster hinges on the dedication,
expertise, and passion of its people. Our commitment to nurturing and
empowering our workforce has been a guiding principle in achieving
sustainable growth and delivering exceptional value to our stakeholders. Our
culture of “Aster Cares” stems from the brand promise of “We’ll treat you
well” and builds engagement and high performance through the 3 pillars of
Trust, Productivity & Wellbeing. We seek to build trust through leadership
connects, feedback surveys and focus group discussions. We drive higher
levels of productivity through upskilling our workforce, promoting internal
career opportunities and digitization of people processes. We promote
well-being through dedicated well-being interventions that address
physical, mental, social and financial aspects of well-being. We take pride in
recognizing our high performers and in creating people practices that attract
and retain top talent in industry.

As we continue to invest in talent, foster a culture of innovation and

inclusivity, prioritize employee well-being and enhance engagement and
retention, we are confident that our human capital will remain a valuable
asset at Aster, driving us towards even greater heights of success in the
years to come.
Aster DM Healthcare Limited

People Excellence Strategy

Our unified people strategy enables a high-performance culture and strives towards creating a rewarding employee experience

Employer Brand & Culture

Digital
Become a great place to work for
Digital people solutions to enhance
current and future Asterians
connectivity, engagement and
Aster CARES Culture productivity

Talent Diversity & Inclusion Digitize employee experience

Well- being & Engagement

rs e s a
s Nu
nd
Clinician

Param

ed
ics
Ena

rt

bli
po

n g & S up

Performance, Development & Efficiency & Productivity

Sustainability Highly efficient and productive
A sustainable high performing and workforce that drives our
equal opportunity organization performance and impact
Integrated Performance &
Talent development Competitive Reward
Schemes/Incentives
Learning & Career Growth

70
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Employer Brand & Culture

Become a great place to work for current and future Asterians

Talent Diversity & Inclusion

At Aster we take pride in our journey towards building a diverse and inclusive workplace that fosters innovation, creativity, and
long-term success. We embrace diversity by hiring individuals from different backgrounds, cultures, genders, ethnicities, ages, and
abilities.

People of Determination

72 Group wide we have 112 people of

determination, POD (64 in India, 48 in UAE)

Nationalities We have established the partnership with

Ministry of Community Development (
The focus of this year was to add diverse MOCD) in UAE and with social service trust
workforce and nationalization in GCC in India for any POD hiring.

Gender Bifurcation Group Wide

GCC INDIA Women representation ( GCC) :

42% 40%
Entry level: 89%
Mid Management to Senior Management : 11.4%

Male Male Women representation ( India)

Entry level: 90%

58% 60%
Mid Management to Senior Management : 10%

Our focus has been to steadily increase the representation

of women in management and leadership roles over the
Female Female
period of next 3 years.

71
Aster DM Healthcare Limited

Aster Discover: Early Talent program

We have a robust early talent program for full time employment and internship opportunities for management graduates, clinicians, engineers
and high school students.

Wellbeing & Engagement

Our journey towards creating an
and renowned doctors to evolve into
managerial roles to facilitate hospital 1500 +
engaging workforce starts by building operations, to support the COO and
CEO. Since its inception, FLO 2 has employee suggestions to build
a listening culture at Aster where
conducted 17 townhalls, during which we a better Aster every day
employees participate through flagship
leadership connect programs called received an impressive number of 600+

101
Frontline Obsession to share suggestions suggestions from doctors alone.
to build a better Aster everyday. The
At Aster we understand the
main objective of the Frontline Obsession
Initiative at Aster DM Healthcare is
multidimensionality of wellbeing and the Wellbeing champions trained
to create an environment where all
importance of taking care of our people in across employee segments on
employees, especially those directly
a comprehensive manner through pulse promoting a psychologically
involved in patient care and services,
surveys and wellbeing initiatives that safe workplace
address holistic wellbeing of employees.
feel heard, valued, and empowered.
Our Wellbeing initiative is called Meet the

948 nurses trained

We received over 1000+ suggestions
Moment which is propelled by a simple,
out of which, 900 suggestions have
unifying goal: helping Asterians feel
been actioned upon. This has also led
empowered to put their wellbeing first
to several group wide projects such as Promoting Awareness of
– so they can be their best self at home,
the Service Wallet, Drone Delivery of Mental health challenges
work, and everywhere else.
medicines, Internal Job opportunities and across frontlines
expansion of hospitals etc.
Encouraged by the positive outcomes We also conduct multiple awareness sessions for our
of the first FLO, we introduced FLO 2, frontliners and enabling and support employees on
which is specifically designed to foster sensitive topics such as suicide prevention. The objective
connections among clinicians across the of this program is to improve wellbeing and provide timely
organization. Through this initiative we counselling support especially for our frontline staff who are
also aim to help clinical administrators at risk of high stress and burnout

72
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Performance Development & Sustainability

A sustainable high performing and equal opportunity organization

Integrated Performance and talent At Aster we take a comprehensive view Learning & Career Growth
development of Organization performance as reviewed
At Aster we take pride in creating
through 7 pillars of performance to drive
Our High-performance philosophy is personalized learning opportunities and
sustainable growth across all stakeholder
anchored on goals that connect with career paths to fast track development
communities
the Aster’s mission, vision and brand of our high performers and high
promise of “We’ll treat you well” along People Excellence potentials. Our learning interventions
with values that are anchored on the 9 are an offshoot of continual feedback
Service Excellence
Aster competencies. The performance conversations which involve quarterly
philosophy guides and inspires all Clinical Excellence check-in, mid year evaluation, multirater
30,000+ employees to bring their best feedback and end year evaluation.
to the workplace while driving individual Technology, Digital Transformation & We also have dedicated programs to
and organizational success. Innovation
continuously upskill our frontline staff.
Brand Equity

The 3 enablers of high-performance Sustainability & Community Connect

culture at Aster
Business Performance
Purpose driven goals
At Aster we also look at comprehensive
Managers and Leaders who act as and integrated talent reviews for all
mentors Managers and above to identify and
track high potentials for critical roles and
Aster Cares culture that promotes
build leadership succession pipeline. We
trust amongst all stakeholders
have so far identified more than 130+
Managers who are now a part of ongoing
development initiatives to prepared them
for future roles which also aligns with
their career aspirations. Our people initiatives have
been celebrated across
forums and we are proud
to be recognized as top
employer in the UAE for
internal career mobility by
LinkedIn as a testament of
our internal development
programs

73
Aster DM Healthcare Limited

Learning Purpose & Culture Organized interventions for fostering seamless patient experiences, covering
personal development including their journey from wellness to illness.
Developing for today, building for
physical & emotional well-being - to The holistic Aster GROW (Get Ready
tomorrow – ensuring convergence of
help manage self & team better for Opportunities at Work with Aster)
performance & potential
intervention was launched with a focus to
Learning Practices – Enabling Enhanced proactively provide extensive structured
Enabling Career mobility by offering
Productivity & Efficiency personal development, career growth and
diverse learning experiences
management opportunities for all nurses,
Micro-Learning enablement through
Organizational Learning to ensure across levels, across the group.
self-paced bite-sized digital modules
alignment of individual purpose with
for ‘anytime-anywhere’ learning There are three key tracks as part of
Aster’s mission
BU-specific customized learning this initiative
Organizational Learning on embedding
sessions to focus on operational Intra Movement & Development to
right Cultural mindset, behaviours &
excellence capabilities for frontline facilitate abundant opportunities
ways of working, across responsibility
staff capability development within the Nursing Fraternity through
levels, to enable alignment with
evolving business needs. Trust a. Horizontal Progression to enable
Group-level interventions for building
workshops conducted for creating the movement across geographies and
perspective, sharpening acumen, and
right mindset among the employees lateral movements (specializations)
enabling strategic orientation through
b. Vertical Progression to enable
exposure to
movement to the next level/grade
Learning Philosophy - Customized Leadership programs,
Inter movement and development to
The Learning & Development initiatives co-created with leading academic
cater to the aspirations of nurses who
are progressively organized across think-tanks
want to explore roles outside nursing,
distinct areas, for creating focused
- 1:1 Executive Coaching sessions across Business / Functions
interventions
with leading international coaches
Well-being and Engagement
Foundational courses that ensure the of repute
through reorganization of work-life
workforce, at all levels, is updated
- Engagements for focused skill and retention benefits and Recognition
on policies & systems at Aster so
building of Middle-management platforms
that consistent & quality onboarding
experience enable lower time- to- As an organization, Aster is committed to
GROW (Get Ready for Opportunities at
productivity. The Global On-boarding providing aspirational career journeys to
Work) with Aster
process is designed to ensure its Nursing fraternity within and beyond
consistency across the group for new Building Aspirational Career Road map the function. Aster aspires to see future
joiner assimilation for the Nursing Fraternity business leaders emerge from Nursing.
The Nurses at Aster are at the forefront To aid Career Mobility, NEST (Nurses
Professional Development courses
of providing patient care and the dynamic Enhancement of Skill and Training) was
with clear focus on our top 200
workforce, driving the service excellence launched to create “ready now” bench
managers – developing for today &
mission on being one of the most sought strength of nurses. A total of 42 candidates
building skills for tomorrow
after healthcare providers, through were onboarded across 4 batches.

74
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Aster Health Academy of the next in line. Aster Health Academy With first set of courses live for internal
has forged the right partnerships for both and external audiences, and plenty more
Aster Health Academy is a modern day
content and delivery to ensure an industry- in the works, the Academy is poised to
healthcare ed-tech initiative focused on
first experience in the domains of online increase their sphere of influence across
professional education for both clinical and
and blended learning. The Academy aims geographies and impact healthcare
non-clinical functions. The Academy draws
for a transformation that changes lives, learning through the Leadership &
from the Aster resource pool in addition
businesses, and nations through digital Management Programmes, Clinical
to management veterans and healthcare
upskilling and collaboration to nurture Trainings, Life Saver Trainings, Allied Health
specialists from across the world to
a dynamic skillset capable of facing the Courses, Nurse Go Abroad Programme and
contribute to the learning and development
challenges of tomorrow. Technology courses for healthcare.

Aster EDVantage

Aster EDVantage, a Digital Health Healthcare. The blended certification Aster EDVantage is aimed at enabling
& Innovation Learning intervention journey includes webinars developed and doctors to impact digital transformation
was launched in the year 2021. It is delivered by Aster DM doctors and internal at Aster DM by proactively addressing
predominantly designed for the Doctors experts, videos, and research articles. the needs of the constantly evolving
to not only imbibe an adaptive, digital Aster’s customized Learn Management Healthcare landscape and establishing
mindset but also be able to foresee future system – My Learn – is also being gold standards for clinical and patient care.
possibilities in their arena using Artificial leveraged to drive personalized learning
Intelligence & applications and Digital experiences as part of this intervention.

75
Aster DM Healthcare Limited

Aster EDGE

We recognize the importance of nurturing our People Managers. This programme Participants delve into topics such as
strong leadership capabilities within is specifically curated to build and self-resilience, conflict management,
the Middle Management team. In line enhance the capabilities of Assistant and leadership styles. They also gain
with this objective, we launched a Managers, Deputy Managers, and awareness and understanding of essential
people leadership programme, Aster Managers across the entire group. It is social skills, emotional intelligence
EDGE Aster EDGE (Explore, Develop, a mandatory programme that aims to (EI), and action planning. They also
Grow & Empower) – Making Leaders equip participants with a comprehensive gain valuable insights into strategy
in February 2023 with the vision of set of leadership tools, case studies, and formulation, operational excellence, and
driving “Great People Culture” among theories. the intricacies of driving business growth.

76
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Going Digital to improve employee experience and build connectivity

Our digitization initiatives across the
employee life cycle enriches the employee
experience from hiring to development.
Digitization enables data-driven decision-
making, ensures smooth on boarding
and enhances compliance and security.
Overall, our goal has been to leverage
technology to drive efficiency, employee
experience, and organizational agility

HR Digitization

Aster started its digital transformation

journey in 2018 with the implementation
of Oracle HCM and the entire hire to
retire cycle was moved from a manual
processes to the system. Aster today
manages 30000+ employee and
contractor records on a single system.

Key Highlights

1 2 3 4
To ensure compliance Groupwide probation and For talent acquisition, Employee Visa
with country wide performance reviews are the system at any given processing was digitized
labour laws , we have managed online for all point, has a huge pool of to the last mile and
standardized and employees. Performance 400K+ active candidates Robotic Process
digitized the overall Management for Clinicians and requirement based Automation added to
attendance monitoring a one of its kind initiative recruitments are initiated reduce manual efforts
and payroll process was piloted in India for every month through Aster and improve employee
improving the efficiency a few units and is in Connect which is also experience.
of the entire process. progress for GCC units. connected with job portals.

77
Aster DM Healthcare Limited

Employee Experience Management

During employment at Aster, we focus

on creating the best experience for
them at various touchpoints through
feedback surveys. Each HR transaction
is quantified and bounded with SLA/
TAT and woven around creating superior
employee experience. While leaving the
organization as well, we connect with
exit employees ensuring that benefits are
settled on time. A major highlight in our
journey is amalgamation of HR Analytics
in improving our People Experience scores
and our Glassdoor ratings. Our rating has
increased to 4.1 for Aster DM Healthcare.
We endorse Design Thinking to make our
experience better not only for our Patient
Care but also improvements seen in SLA/
TAT and compliance.

Our score for Employee Experience during

Onboarding process stands at 98% which
cites an improvement from last FY scores.
We are also happy to share that our
Glassdoor reviews have increased from
3.7 last year to 4.1 this year which is a
testament of our strong employer brand.

78
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Efficiency & Productivity

Highly efficient and productive workforce that drives our performance and impact

We have a comprehensive Total Rewards philosophy for the organization which help us us attract and retain high performers across all
employee categories, while also ensuring that we are productive.

Key elements of our Total Reward Our salary structures our designed community. We have a comprehensive
Strategy: according to the talent segment for review of our benefit schemes across the
each of our brands and in line with the group where we review the utilization
Alignment to Business Strategy
differentiated HR strategy. We have data along with our insurance partners
Incentivize actions and behaviors
multiple incentive/bonus plans designed to ensure that benefits are competitive
aligned to organizations vision,
in the organization to promote pay for and relatable to different generations of
mission and strategy
performance. These could range from employees that we have in our workforce.
Performance Based sales incentive plans to promote topline Our end of service benefits are compliant
Based on individual & organization growth in our retail businesses to various to country wise labour laws wherever our
performance with objective criterion gain sharing plans with our clinician employees operate.
and differentiation basis performance

Fairness & Equity

Design and delivery of rewards is fair,
transparent and objective with no bias

Flexible to address Short & Long term

needs
Flexible on both organization &
employee needs and accommodate
pay differentiation

Continuous Evolution
Reviewed and evaluated regularly to
ensure alignment with business needs
and employee expectations

Communication & Transparency

Clear & transparent communications
on structure, criterion and process
used to determine rewards

79
Social and
Relationship Capital
At Aster, our value-based healthcare
approach lays a profound emphasis
on building stronger bonds with
people as well as communities. It
allows us to deliver patient-centric
solutions, aim for clinical excellence
and expand our footprint within
the country.
Building relationship with patient
Training programmes to enhance customer experience
We have a structured, two-day induction programme that all employees must complete
as part of our mandated policy. We conduct finishing school programmes for nurses,
which are 5-day workshops where nurses are coached on the importance of patient
experience and how they can contribute towards the same in their routine tasks, to
ensure that all Patient Facing Roles provide superior customer experience. Thorough
service excellence training programme is also completed by all front-line employees, and
it educates and coaches them to use the appropriate resources and delight patients.

Initiatives to improve patient care

We provide a number of tools, including the voice of the customer, a query
management system, one touch, and a care continuum which together works to enable
the development of a customer-centric culture. In order to accurately understand
customer needs and respond to it, we gather real time feedback, on qualitative as well
as quantitative aspects.

We periodically conduct a benchmarking activity with other service industries to stay

ahead of the curve. We recently introduced the Medcare Look-Grooming Guideline for
all customer-facing roles within the company. We launched a reward and recognition
programme, whereby we strive to enhance customer delight through means that go
well beyond pre-defined criteria. In each quarter, the winners are recognized in front of
the Group CEO, Hospital and Clinic Operations Heads, and Functional Heads.

Feedback from patient

We have several learning and listening portals available to record unbiased feedback
from clients and attendees and we use it to inspire advancements and innovations at
work. On the day of discharge, we receive feedback from our patients about the patient
journey. We have established a queue, specifically to receive feedbacks from inpatient
visits and 5% of outpatient visits to learn about their experiences while they were
with us. QR codes have also been installed at receptions to enable patients to gather
feedback from outpatient visits.
Aster DM Healthcare Limited

We have introduced the following service offerings and product enhancements based on customer feedback.

One Touch Query We introduced We installed coffee We introduced a We Introduced

Application is Management Molton Brown and Nespresso pillow menu to the Instant
used to resolve System receives in all restrooms machines in rooms room in response Feedback
an increasing frequent and public areas in order to respond to patient System
number of nursing complaints from for complaints to increasing complaints about whereby the
complaints patients about a about poor quality patient complaints the hospital’s patient can give
regarding call bell lack of response toiletries. about the pillow selections. feedback on
adherence. time and an SLA inadequate supply 5-point rating
for responding to of tea or coffee in scale without
queries. rooms. revealing his or
her identity.

Engaging with our patients

Promoting health and safety awareness through BLS program
We provide range of advance courses through our basic life support training programme which includes advanced courses such
as Advanced Cardiovascular Life Support (ACLS), Pediatric Advanced Life Support (PALS), and Neonatal Resuscitation Program
(NRP), Pediatric Advanced Emergency Assessment, Recognition and Stabilization (PEARS), and others. By offering a broader range
of courses, we cater to diverse needs of healthcare professionals and community members to create more opportunities for
engagement and continuous education.

Partnerships Promotion Events

We have collaborated with public We have created engaging content on We host community events such as
service organizations and non-profit social media platforms such as Facebook, health fairs, seminars, and workshops
groups to offer training programmes to LinkedIn and Instagram to spread to promote health and safety awareness
members. It has allowed us to reach a awareness about the importance of and provide opportunities for individuals
wider audience and promote health and BLS training. We use digital marketing to learn about our training programmes.
safety awareness in a more targeted and channels such as email marketing and By hosting these events, we create a
impactful manner. pay-per-click advertising to reach a wider sense of belonging to the company and
audience and drive engagement for our build lasting relationships.
programmes.

82
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

deliveries to patients’ homes. Health objectives. By working collaboratively,

camps are also organized to enhance we can align our goals and find mutually
healthcare accessibility, followed by beneficial solutions.
diligent follow-up procedures. We value quality, reliability, and timely
delivery from our suppliers and have
Digital initiatives
established key performance indicators
Our cutting-edge digital healthcare
(KPIs) to monitor and evaluate their
innovation helps in evolving patient care
performance. Also, regular feedback
through telemedicine and the Tele ICU
sessions and performance reviews
concept. The implementation of a 5G
are conducted to identify areas for
ambulance, emergency network, and
improvement.
satellite ERs enable swift and efficient
Value based healthcare
response during critical situations. GCC
Our Healthcare delivery Remote monitoring capabilities In the GCC region, our supplier evaluation
We are dedicated to deliver high- allow real-time monitoring of cardiac process entails thorough assessments of
quality healthcare services through failure patients and help to reduce their facilities to gain firsthand insights
a comprehensive range of initiatives. re-admissions. It also enables us to into their operational capabilities. By
We conduct clinical audits based on provide care proactively. Through the reviewing their infrastructure, equipment,
standard treatment guidelines to integration of smart wearables, patients production processes and quality control
ensure adherence to best practices can conveniently track and transmit vital measures, we ensure that our suppliers
and quality care. Our key performance health data to healthcare professionals, have the necessary resources and
indicators relate to clinical processes and facilitating early intervention and comply with relevant regulations and
outcomes are meticulously monitored personalized care. industry standards. In addition to this,
across all clinical departments to ensure we also focus on supplier development
excellence. Our preventive health Building a robust supplier programmes, which are designed to
checkups are offered to identify potential network enhance the capabilities of our suppliers.
health issues early and initiate prompt This enhances their efficiency and
India
intervention. enables them to deliver higher-quality
We strive to foster strong, mutually
products and services. Through training,
Our services beneficial relationships with our suppliers
support and collaboration, we assist
We also provide homecare services for in India. To ensure the best selection, we
suppliers in developing their technical
chronic disease management, with the engage multiple vendors and conduct
skills, operational processes and
distinction of being the first JCI (Joint rigorous evaluations. Additionally, we
innovation capabilities. This approach
Commission International) accredited encourage effective communication
not only benefits our company but also
homecare service in the country. Post- and transparency, establishing clear
contributes to the overall competitive
discharge care is prioritized through expectations and requirements from the
edge and growth of our suppliers.
regular calls, follow-up consultations, outset. This ensures that both parties
and convenient lab test and pharmacy understand each others needs and

83
Aster DM Healthcare Limited

Building stronger communities

Aster Volunteers With a collective effort, a total of 56,157 Aster Volunteers Mobile
volunteers have joined Dr. Moopen in his Medical Services (AVMMS)
Aster Volunteers, the social contribution mission to serve the less fortunate and
In 2013, we initiated the Mobile Medical
arm of Aster DM Healthcare, is promote values of humanity, empathy,
Services program with the objective
actively involved in the planning and social welfare wherever Aster DM
of delivering primary medical care to
and implementation of projects that Healthcare operates.
individuals residing in remote regions
encompass various domains such as
of India, the UAE, and other parts of the
community development, medical We are thrilled to observe a remarkable
world.
and wellness initiatives, national and 24% surge in Aster Volunteer
international aid, disaster recovery, Registrations compared to the previous
Our mobile clinic team conducts health
child health, and support for People of year. This significant increase is a
talks in various languages, educating
Determination. In a remarkable duration testament to our commitment to our
people on health care practices. We
of only 6 years, Aster Volunteers has social cause, and we are determined to
collaborate with our partners and take
made a significant difference in the lives continue fostering even greater numbers
part in important campaigns to provide
of over four million individuals. This as we expand our efforts further.
medical services in six countries. During
impressive achievement has been made the year, we added four new places to
possible through the dedicated efforts of our network, including Kaithal in Haryana,
56,000+ volunteers, who actively engage Railmagra, Barmer and Qatar.
with people and communities to create
tangible impact on the ground.

Each year, Aster Volunteers actively

participate in cleaning water bodies,
planting trees, organizing medical
camps, and extending assistance to the
underprivileged in various ways. They
demonstrate remarkable responsiveness
during times of calamity by swiftly
providing essential necessities like food,
water, medical supplies, and other vital
items to those affected.

4 AVMMS operating in
New AVMMS in 2022-23 13
(Kaithal-Haryana, Railmagra,
Barmer and Qatar) Countries

84
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Mission Kaithal – Haryana Cardiac Surgeons from Aster Medcity

We have collaborated with the Kochi, joined forces with local volunteers
government of Haryana, Ashok Leyland to organize a six-day medical camp.
and Roots Foundation, to extend our
efforts to underserved communities Aster Sick KIDS Foundation
through AVMMS. Our dedicated team (ASK)
from Aster Volunteers India led the way The ASK Foundation is the philanthropic
in providing vital healthcare services. arm of the Aster DM Foundation, located

29
More than 150 drivers from Haryana in Kochi. Our mission is to ensure that
benefited from these essential services. every child, regardless of their financial
We have plans to deploy additional situation, receives superior-quality
AVMMS units in remote areas of healthcare facilities. While evaluating a Blood donation drives
Haryana. Our aim is to bridge the gap in child’s needs, we work closely with the
healthcare access, especially in the last-
mile regions where people have limited
Aster DM Foundation, Aster Medcity
and Aster CMI. Together, we make it
1,076
access to medical facilities. possible for 75% of the total medical bill
to be waived off, with the family being
Donors
Mission Railmagra – Rajasthan
responsible for only the remaining 25%.
We have collaborated with the
Our aim is to alleviate the financial burden
World Diabetes Day –
government of Rajasthan, Ashok Leyland
on families while providing the best Diabetes Screening Camp
and Roots Foundation, and launched
possible healthcare for their children.
a new Mobile Medical Services Unit On World Diabetes Day, we organized
in North India. Our goal is to bring a campaign to raise awareness about
healthcare services directly to people’s diabetes, its prevention and management
doorsteps, making it easier for them globally. As an active participant in this
to access the care they need. We are campaign, we offered complimentary
excited about this collaboration and the initial assessments and HbA1c tests,
opportunity to make a positive impact on which measure average blood glucose
the lives of individuals in the region. levels over the past three months. These
Mission Barmer – Rajasthan assessments and tests were made
available at designated Aster Hospitals and
We have partnered with the Ruma Devi
Foundation, Human Welfare Foundation Aster Labs in India. Through these efforts,
Blood donation drives we aim to contribute to the early detection
and Roots Foundation to launch a
Our blood donation camps focus on and management of diabetes, ultimately
life-changing Mobile Medical Services
maintaining an adequate and safe blood
programme in Barmer. Initiative makes promoting better health outcomes for
supply for medical treatments and
healthcare accessible to underserved individuals affected by this condition.
emergencies. These camps help save
communities. Our dedicated team of
lives, support crucial medical procedures
volunteer doctors, including Obstetrics
and provide a lifeline to individuals in need
and Gynaecology specialists from Aster
of blood transfusions. We encourage Aster sets a new Guinness
Hospitals Clinics and Pharmacies in World Record
people to donate blood through multiple
Dubai, Senior Paediatric Consultants
blood donation camps held across India
from Aster CMI Bengaluru and Paediatric
and the GCC.

85
Aster DM Healthcare Limited

A wide range of healthcare services are

provided to the attendees, including
ophthalmology, cardiology, pediatrics,
and general medicine. Free medical
check-ups, consultations, and diagnostic
tests to identify and address various
health concerns are carried out by medical
professionals and Aster Volunteers.
Additionally, awareness sessions on topics
like basic life support, hygiene practices,
and disease prevention were conducted
to educate the participants and empower
them to take charge of their well-being.

To commemorate World Diabetes Mega Medical Screening The mega health camps witnessed a
Day, Aster DM Healthcare organized a Camps significant turnout, with around 10,000
remarkable event at Dubai Investments individuals. Through the collective efforts
Park, wherein the largest free diabetes Aster Volunteers organized around 150
of Aster Volunteers and the support of
screening and awareness camp for low- mega health camps to provide healthcare
partner organizations, these camps have
income workers was conducted. services to underprivileged communities
played a crucial role in improving the health
across geographies. These camps aim to
outcomes of underserved communities.
This camp made history by setting a new address the healthcare needs of individuals
Guinness World Records title for the most who lack access to quality medical facilities.
pre-diabetes/diabetes forms completed
in a single venue within a span of 24
hours. A total of 12,714 individuals were
screened during the camp, and the officials
from Guinness World Records were
present to assess the event. Following the
assessment, a prestigious Guinness World
Records certificate was presented to Dr.
Azad Moopen, the Founder Chairman and
Managing Director of Aster DM Healthcare,
acknowledging this outstanding
achievement. We extend our heartfelt
gratitude to all the dedicated volunteers
whose selfless support contributed to the
success of this remarkable feat.

86
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Heart-to-Heart Walk for underprivileged children suffering from ‘Kindness is a habit’ campaign
heart conditions.
Our campaign aims to inspire individuals
Aster Volunteers launched the “Heart-to-
With every stride taken, Aster Volunteers worldwide to embrace and practice
Heart Walk” initiative that captured the
fulfilled its promise of contributing INR kindness as a daily habit. We recently
hearts of many and aimed to improve the
100 for every 10,000 steps completed. introduced several environment-friendly
heart health of underprivileged children.
The cumulative efforts of the participants initiatives to promote sustainable practices.
For every 10,000 steps walked, Aster
resulted in a generous donation of INR Leveraging our network of 30 hospitals
Volunteers pledged to contribute INR
17.87 lakhs towards funding pediatric across seven countries, we are committed
100 towards the funding of pediatric
cardiac surgeries. This substantial to providing 1,000 subsidized surgeries
cardiac surgeries through the Aster DM
sum, facilitated through the Aster DM to disadvantaged individuals globally. We
Foundation.
Foundation, will provide crucial medical have pledged to perform the first 250
The initiative quickly gained momentum, interventions to children who would surgeries completely free of charge. For
attracting the attention of 7,960 otherwise be unable to access or afford the remaining surgeries, we are offering
compassionate individuals who registered the life-saving treatments they urgently a generous 50% discount. Through these
to participate in this noble cause. These require. efforts, we aim to make quality healthcare
volunteers wholeheartedly embraced the more accessible and contribute to the well-
The impact of this initiative goes beyond
initiative and eagerly took on the challenge being of those in need.
the numbers. It embodies the spirit of
of accumulating steps. The collective effort
empathy, unity, and compassion that
of all the walkers yielded a staggering 18
exists within the Aster community and
crores steps an awe inspiring testament
its volunteers. By coming together, they
to their dedication and determination.
have not only raised funds but also raised
Each step represented a commitment to
awareness about the pressing issue of
better heart health and a brighter future
pediatric heart health.

87
Aster DM Healthcare Limited

Aster Green Choice children with memorable experiences conducted interviews, onboarded around
50 differently-abled individuals. This
Initiative and spreading happiness in their lives.
We believe in the power of compassion initiative demonstrates our commitment to
and are dedicated to making a difference building a diverse and inclusive workforce,
Planting trees for a greener
in the lives of those in need. empowering individuals with disabilities.
future
We have partnered with the Emirates
Environmental Group to conduct a tree Delivering the right care to
plantation drive at the Ras Al Khaimah- fight cancer
Hatta Border in the UAE. This collaborative We have organized a series of webinar
effort brought together our volunteers programmes and screening camps as part
from various units of Aster DM Healthcare. of our observance of World Cancer Day. Our
Through this initiative, we were able to primary objective was to raise awareness
reduce CO2 emissions, create carbon sinks, about the early detection and prevention
promote biodiversity and contribute to of cancer. The cancer screening camps
environmental sustainability in the region.
350 were especially crucial as they provided
accessible and affordable screening
services to individuals who may not have
Volunteers participated regular access to healthcare facilities.

Aster MIMS provides During these camps, we offered a range of

employment opportunities to screening tests, including mammograms,

the differently-abled Pap smears and oral cancer examinations.

650
At Aster MIMS Hospital, we have recently
taken a significant step towards inclusivity
by offering employment opportunities
to 10 individuals with disabilities. To find Women benefited from
the right candidates, our HR Department screening camps

2,000+
Saplings planted

Smile 5.0
To bring smiles to the faces of
underprivileged children, we have
collaborated with the Emirates Red
Crescent and the Landmark Group. We
have organized special shopping trips
for them in numerous places, providing

88
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Aster Disaster Aid

The “Disaster Aid” pillar of Aster Volunteers
plays a critical role in providing immediate
relief and support during times of crises
and natural disasters. With a swift and
coordinated response, this pillar mobilizes
volunteers and resources to affected areas,
ensuring the timely distribution of essential
aid such as food, water, medical supplies,
and shelter. These dedicated volunteers
work tirelessly to alleviate the suffering
of those impacted by disasters, offering
comfort, care, and assistance when it is
Supporting the earthquake AID for Assam
most needed.
victims of Turkey and Syria Aster Volunteers, in collaboration with the
As Turkey and Syria experienced a series Rotary Club of Silchar, Assam, and local
of devastating earthquakes, support NGOs, stepped forward to provide
Aster Homes
poured in from across the globe to help the support to the flood-affected state of
Our efforts also included supporting the distressed residents of the two countries. Assam in three phases. A total of INR
flood-ravaged state of Kerala. Although our Aster Volunteers UAE, worked 7 days 486,281 was collected to aid the mission.
initial goal was to construct 250 homes for continuously to support ‘Bridges of Giving’, Multiple medical camps were conducted,
those who had lost their shelters during a relief mission led by the Emirates Red and emergency preparedness kits were
the disaster, we surpassed expectations Crescent. As part of the campaign, 50+ distributed in Silchar and the Barack
by building a total of 255 homes across 9 volunteers joined forces with the Emirates Valley, benefiting over 1,500 individuals.
districts in Kerala over a span of four years. Red Crescent Team to sort and pack The second and third phases focused on
The project reached its final milestone relief boxes at the Mega Collection Drive longterm solutions. Ultrafiltration Water
with the inauguration of 37 cluster homes, organized in Expo City Dubai. An incredible Units were installed in several educational
situated on approximately 1.37 acres of 9,500 relief aid boxes were sorted, packed, institutions and the Central Jail of Assam,
land. These cluster homes provide a sense and arranged for shipment. Additionally, ensuring access to clean and potable water
of belonging and offer assistance to the Aster Volunteers in association with Aster not only for flood victims in relief camps
families affected by the floods, offering Pharmacy and Neopharma donated 2 but also for students and neighboring
them a fresh start and a safe place to live. million AED worth of medicinal supplies for communities.
the disaster victims.

89
Aster DM Healthcare Limited

Key achievements of Aster Volunteers

905,481 304,161
Mobile Medical Services Disaster Aid
Care provided by AVMMS Beneficiaries in Somalia,
to the doorstep of Jordan, Bangladesh,
underprivileged people UAE, India, Yemen

255 2,047,214
Aster Homes COVID Support
A new home for the Individuals impacted through
people who have lost their Food Distribution, Webinars,
home in Kerala flood Covid Camp, vaccination

222,384 49,955
BLS Awareness Training Treatment Aid
Basic Life INR 15 crores+ worth
Support awareness treatment aid provided on
provided yearly basis

142 780,526
Employment to Individuals treated via 6,517
People of Determination medical camps
(PoD’s)

90
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

91
Natural
Capital
At Aster, we prioritize energy
efficiency, waste management, and
water conservation as key pillars
of our sustainable operations. As
a responsible corporate, we aim
to minimise our impact on the
environment and build a stronger
foundation for a greener future.
The healthcare sector has a vital role to play in meeting the Global
Greenhouse Gas (GHG) reductions and climate action. Healthcare facilities are
significant contributors to GHG emissions due to their energy consumption,
waste generation, and transportation needs.

As such, adopting sustainable practices and implementing climate action

initiatives within the healthcare sector can have a profound impact on
reducing carbon footprints and mitigating climate change.

24%
Water consumption in our
operations is from recycled
and rain water

7,500 tCO2e
Net emission reduction
from renewable energy
consumption
Aster DM Healthcare Limited

Managing emissions
Efficient Lighting Project Environmental Sustainability fixtures, significantly reducing energy
at Ramesh Sanghamitra Measures in Our New consumption, and promoting a
Hospital Hospitals greener environment.

Dr. Ramesh Sanghamitra Hospital in Aster DM Healthcare continues Additionally, we have invested in
Ongole has upgraded its lighting system to reinforce its commitment to efficient chillers and water fixtures
by replacing its old, inefficient lighting environmental awareness and to conserve energy and reduce water
fixtures with new, more energy efficient sustainability with the launch of its consumption.
ones. new hospitals. As a socially responsible
Effective insulation has been
healthcare provider, we understand
As a first step, an assessment was integrated into the hospitals, ensuring
the importance of incorporating eco-
conducted on the existing lighting optimal temperature control, and
friendly practices into our operations.
fixtures to identify potential areas for reducing the need for excessive
To minimize our ecological footprint, we
improvement. This involved inspecting heating or cooling.
have implemented a range of energy-
the specific type of bulbs, their wattage, efficient measures throughout our With these comprehensive measures,
and the lighting fixtures themselves. facilities. Aster DM Healthcare reaffirms its
Any defective or inefficient fixtures were
commitment to being environmentally
replaced.
aware and actively contributing to a
Installation of solar water heaters
In the second step, the hospital sustainable healthcare ecosystem.
enables us to harness the power
implemented a switch to LED lighting of the sun to meet our hot water
fixtures, which consume less energy requirements, thereby reducing our Energy efficiency
and have a longer lifespan compared to reliance on conventional energy At Aster, we are committed to adopting
conventional fluorescent or incandescent sources. energy-efficient practices to minimise
lights. LED lights also generate less heat,
our environmental impact. As part of
reducing the strain on cooling systems Through strategic architectural design,
our initiatives, we are replacing old
and resulting in lower energy usage and we have prioritized maximizing
HVAC units with energy-efficient and
costs. natural daylight, allowing us to
environment-friendly equipment, such as
minimize the use of artificial lighting
To further reduce energy consumption, split ACs. This transition not only reduces
during daylight hours.
timers and motion sensors will soon energy consumption but also contributes
be introduced alongside the new Embracing cutting-edge technology, to a healthier and greener environment.
LED fixtures. These additions will we have installed a sophisticated We have replaced traditional lighting
automatically switch off lights in vacant Building Management System (BMS) fixtures with energy-efficient LED lights,
spaces. that allows for intelligent monitoring
to significantly reduce electricity usage.
and control of various energy
Overall, the installation of new lighting
consuming systems, ensuring efficient In addition to equipment upgrades,
fixtures at Dr. Ramesh Sanghamitra
utilization of resources and minimizing we make our people aware of energy
Hospital has improved lighting quality,
waste. conservation. We encourage practices
reduced energy usage and costs, and
promoted sustainable practices. such as switching off lights when not
The traditional lighting sources
have been replaced by LED lighting in use, installing motion sensors for

94
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

efficient lighting control, and setting Solar PV project at Aster Hospital Al Qusais (AHQ) and Medcare
correct temperatures on thermostats for Hospital Al Safa
optimal energy usage.
The installation of solar pv at AHQ and Medcare Hospital Al Safa has been completed
To further enhance our energy with annual generation capacity of 277 MWh and 799 MWh respectively. The total
management efforts, we are electricity generation per annum would be approximately 1.1 Million KWh and would
implementing an IoT-based central reduced about 500 tCO2e of emissions in a year. In addition the two installations shall
monitoring system in our hospitals. It result in net annual savings of AED 436K. We are exploring the feasibility of installing
enables real-time analysis of the indoor solar PV at other hospitals to further reduce our GHG intnsity.
environment, allowing us to identify
energy inefficiencies promptly. It allows SOLAR PV AT DM WIMS WAYANAD
us to take corrective actions in real-time, Our decarbonisation initiatives continued across multiple hospitals, at DM WIMS
to optimizing energy usage and minimise Wayanad a solar plant of 650 kWp has been commissioned that shall reduce 460 tCO2e
waste. per annum.

Solar energy Waste management

We have initiated the installation of
Solar PV panels across our hospitals We have implemented a comprehensive
strategy to reduce the generation of
in the UAE. Solar PV projects have
medical waste while ensuring its proper
also been initiated in Qatar and KSA,
disposal. We conducted thorough analyses
demonstrating our emphasis on utilizing
to identify the sources and root causes
renewable energy sources. We have
of medical waste generation within
conducted third-party energy audits for our facilities. Additionally, awareness
all GCC hospitals. These audits allow training sessions were conducted for our
us to assess our energy consumption medical staff, housekeeping staff, and
and identify areas of improvement. The facility management team to promote
recommendations from these audits are responsible waste management practices
implemented using a revenue-sharing and create a culture of waste reduction.
management protocols. We installed
model, to ensure that the benefits are
We set targets across all departments new machines capable of converting
maximized for both Aster and the energy
to actively reduce biomedical waste, medical waste into general waste,
audit partners. As part of our future
emphasizing the importance of following all necessary approvals from
plans, we aim to expand solar projects to relevant authorities. This investment
segregating waste and implementing
other units in the GCC. best practices. Guidelines were helps minimise the volume of medical
circulated throughout the organization waste and ensures compliance with
to ensure consistent adherence to waste environmental regulations.

95
Aster DM Healthcare Limited

Our project economy model that not only benefits The primary consumers of water
We have launched a project to reduce our organization but also contributes to within our healthcare system are our
the broader goals of sustainability and hospitals, while clinics, pharmacies, and
the amount of medical waste generated
environmental stewardship. laboratories utilize smaller amounts.
per bed per day by 10%. The goal is to
find ways to decrease the volume of Although the majority of water
waste produced in our facilities. We
Biomedical waste consumed in our facilities is sourced
closely monitor our waste management
management from local providers, we also supplement
progress through a monthly tracking some of the water consumed in our India
We prioritize minimizing the generation
system, calculating the ratio of BMW of bio-medical waste and ensuring operations with groundwater.
(Biomedical Waste) generated per bed its proper containment to prevent We also proactively engage in recycling
per day. This helps us evaluate the contamination and hospital-acquired rejected or wastewater whenever
effectiveness of our waste reduction infections. Our waste management feasible, effectively easing strain on local
efforts and determine if we are practices encompass general, infectious, water sources and fostering a heightened
achieving our goal of reducing waste hazardous, and radioactive waste types. focus on environmental responsibility.
volume by 10% per bed. Any deviations We take proactive measures to avoid
waste generation, employing appropriate We have implemented various
were promptly addressed through
receptacles to safely contain the measures to reduce water consumption
corrective actions, ensuring continuous
generated waste. To maintain safety and throughout our facilities. To optimize
improvement and compliance with waste
environmental standards, we transport water usage, we have installed water
reduction goals.
the waste to designated disposal facilities, pressure reducers in washrooms, wash
where it undergoes treatment based on basins, and kitchens. These devices help
Waste recycling at Aster its specific type. regulate water flow, minimise wastage
Medcity and promotes efficient water usage.

At Aster Medcity, we have made

Water conservation Additionally, we collect condensation
water from HVAC (Heating, Ventilation,
significant strides in our waste recycling Going beyond the essential elements
and Air Conditioning) units and reuse it
efforts, ensuring a sustainable and of drinking water, sanitation, and
for irrigation purposes.
environmentally responsible approach. hygiene, our commitment extends to
Our commitment to recycling is evident in comprehensive water management By utilizing this collected water for
the composition of waste recycled, where strategies. By embracing SDG 6, we irrigation, we reduce reliance on
we have successfully recycled 71% of actively tread towards responsible freshwater sources and contribute to
waste cardboards, 26% of metal scrap, 2% sustainable water management. We
water stewardship, aiming to secure
of plastic waste, and 1% of paper waste. are also aiming to install waterless
a sustainable future for patients,
urinals during building upgrades and
This impressive breakdown showcases communities, and the environment. Our
new projects. It provides an innovative
our dedication to maximizing the recycling unwavering focus on optimizing water
solution that eliminates the need for
potential of various materials, minimizing usage enables us to ensure equitable flushing, significantly reducing water
waste generation, and reducing our access, minimize environmental impact, usage while maintaining hygiene
overall ecological footprint. By prioritizing and uphold rigorous sustainability standards.
recycling initiatives across these waste standards within the healthcare industry.
categories, we strive to create a circular

96
 CORPORATE OVERVIEW
Integrated Annual Report FY 2022-2023

Waste Water Treatment and Reuse

Aster DM Healthcare’s dedication to

a reputable recycling company in Dubai,
we have initiated the recycling of paper, 24%
plastics, and metals from our healthcare
waste management and resource facilities. To support waste segregation, Water consumption in our
optimization is reflected in the way we we have strategically positioned waste operations is from recyled
handle wastewater across multiple
hospitals. It has constructed a number
bins throughout our hospitals, making and rain water
it convenient for staff and visitors to
of sewage treatment facilities so that segregate waste easily. We have made
the wastewater that is produced by its a conscious choice to use recycled paper
hospitals can be treated and reused for Sustainability across our
bags, reducing our reliance on single-use
flushing, horticulture, and cooling tower plastic bags and promoting the use of
operations
applications. eco-friendly alternatives. Looking ahead, In our construction projects, we are
we aim to launch an electronic waste exploring the use of sustainable
Recycling
recycling project in the coming year. materials to qualify for LEED certification,
We have taken proactive steps to promoting eco-friendly practices and
implement recycling practices across our reducing our carbon footprint. For
hospitals in the UAE. By partnering with current projects involving clinics and
retail spaces, we prioritize small fit-out
works to optimize resource utilization.
We have transitioned to paperless
invoices and reports from vendors,
minimizing paper usage and promoting
sustainable practices across our supply
chain. Plastic bags have been replaced
with eco-friendly paper bags within our
pharmacies, reducing plastic waste and
encouraging responsible consumption.

97
Aster DM Healthcare Limited

Corporate Information

Board of Directors

Dr. Azad Moopen Mr. Chenayappillil John George Dr. Nitish Shetty
Chairman and Managing Director Independent Director Chief Executive Officer- Aster DM
Healthcare Limited- India
Ms. Alisha Moopen Dr. James Mathew
Deputy Managing Director Independent Director Mr. Amitabh Johri
Mr. T J Wilson Mr. Sridar Arvamudhan Iyengar * Joint Chief Financial Officer

Non-executive Director Independent Director Mr. Sunil Kumar M R

Joint Chief Financial Officer
Mr. Anoop Moopen Mr. Wayne Earl Keathley
Non-executive Director Independent Director
Mr. Hemish Purushottam
Mr. Shamsudheen Bin Mohideen Mr. Emmanuel David Gootam Company Secretary and
Mammu Haji Independent Director Compliance Officer
Non-executive Director
Ms. Purana Housdurgamvijaya Deepti
Mr. Daniel Robert Mintz Independent Director
Non-executive Director

*Mr. Sridar Arvamudhan Iyengar resigned with effect from May 23, 2023

Registered Office Secretarial Auditors Statutory Auditors

Aster DM Healthcare Limited M Damodaran & Associates LLP Deloitte Haskins & Sells
No.1785, Sarjapur Road, Sector -1, Practicing Company Secretaries, Chartered Accountants
HSR Layout, Ward No.174, Agara Extension, MDA Towers, New.No.6, Old No.12, Prestige Trade Tower, Level 19,
Bengaluru-560102, Karnataka, India Appavoo Gramani 1st Street, Mandaveli, Palace Road, High Grounds,
Chennai – 600 028, Tamilnadu, India Bengaluru – 560001, Karnataka, India

Registrar and Transfer Agent

Link Intime India Pvt Ltd

C-101,1st Floor, 247 Park,
Lal Bahadur Shastri. Marg,
Vikhroli (West), Mumbai -400 083,
Maharashtra, India

98
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Management Discussion and Analysis

Global Economy GCC Economy
Over the past year, the global economy has continued to bear the A strong economic recovery has been witnessed across the oil exporting
burden of several macroeconomic pressures, impacting various Gulf Cooperation Council (GCC) countries, mostly buoyed by high oil
sectors including the healthcare industry. In addition to the impact of prices. This recovery is expected to have positive implications for the
the war between Russia and Ukraine, the countries around the world healthcare sector, as increased economic stability and revenue streams
have been affected by supply chain disruptions and rising inflationary can potentially lead to higher healthcare investments and improved access
pressures. The resurgence of Covid-19 in China has also slowed to quality healthcare services. Supporting new supply-demand dynamics,
down growth prospects, while the global economy has witnessed an policymakers remain focused on securing energy supplies from this region.
inflation of 8.7% in CY22. Furthermore, it is expected that inflation will As a result, growth prospects for the GCC remain upbeat. Additionally,
slow down to 7% in CY23 before slowing down to 4.9% in CY24.1 This countries in the GCC are also looking to diversify revenue streams, away
has put an additional strain on healthcare budgets and affordability, from oil exports, to sustain its growth momentum. This provides expansion
necessitating careful financial management within the industry. opportunities for the healthcare sector too.

A recessionary environment prevailed in Europe and United States Moreover, the GCC countries are also planning to increase the
too. On the back of rising commodity prices, consumer demand utilization of renewable energy for electricity generation. They are
continued to be muted. Alongside, the fragility of the US financial also aiming to minimise the role of the public sector and enhance
system has come to the fore with the banking crisis in the country private participation in the energy sector to explore growth prospects.
and this may have potential ripple effects on the healthcare industry, The transition towards green energy is expected to lead the
resulting in changes of funding mechanisms and regulations. transformation towards a low-carbon economy and in turn, enhance
GDP growth.3
Outlook
Outlook
The global economy is expected to grow by 2.8% in 2023 and 3% in
2024. Efforts by the Central banks to tighten monetary policy are also The economic outlook for the GCC countries remains positive as
anticipated to ease global inflation.2 This is likely to reduce the price of the countries in this region grew by 2.5% in 2023 and are expected
essential commodities and in turn, reduce the burden on the common to grow by 3.2% in 2024. The GDP of the GCC would increase to
man. Overcoming Covid woes, China has ramped up production and is an anticipated US$ 6 trillion by 2050, if they retain the growth
expected to rebound in the near term which is likely to contribute to momentum. However, the GDP of the GCC nations might increase to
the recovery of global healthcare supply chains. Besides, emerging approximately US$ 13 trillion by 2050 if they adopt a green growth
and developing economies are anticipated to play an integral role in plan that would aid and speed up their economic diversification. The
shaping the way forward for the global economy. transition towards sustainable and low-carbon healthcare practices,
along with increased investments and private sector participation, can
contribute to the growth and development of the healthcare industry,
Fig 1: GDP growth (%) predictions for the year 2024 ultimately benefiting the population by providing improved healthcare
services and advancing medical innovation. For this, private sector
investment would play a leading role in job creation and the adoption
of green energy.4
4.2
3.9
Indian Economy
2.8 3.0
Despite economic weakness witnessed all over the world, the Indian
economy remained remarkably resilient and has become one of the fastest
1.3 1.4
growing major economies in the world. According to the second advanced
estimate of NSO, the GDP growth for the financial year 2022-2023 has
been 7.2%5. Amidst robust domestic demand and improved investor
sentiment, the Indian economy is well on track to rebound growth. Formal
Global Advanced Emerging Markets and
economy economies sector employment rates have improved and business performance of
Developing Economies
the private sector continue to be encouraging. Besides, the government’s
2023 2024 concerted efforts to increase capital expenditure has added impetus to
economic activity.
(Source- IMF World Economic Outlook, April 2023)

1
https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023
2
https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023
3
https://www.worldbank.org/en/country/gcc
4
https://pib.gov.in/PressReleseDetailm.aspx?PRID=1928682
5
https://pib.gov.in/PressReleseDetailm.aspx?PRID=1928682

99
Aster DM Healthcare Limited

In the recently released Union Budget, the government announced innovative methods to deliver quality care. In many instances, lack
a capex of around 10 lakh crore rupees, which amounts to 3.3% of of information affected people’s well-being. These issues were also
GDP.6 It is expected to crowd-in private investment, increase job addressed with online campaigns and virtual sessions. To tackle the
opportunities and demand, which will help in enhancing India’s requirements of the healthcare sector, the demand for trained and
growth. The recent pandemic has also shifted focus on the healthcare experienced medical specialists is expected to increase manifold in
industry and investments for improving medical facilities continue to the coming years. However, there will be an estimated shortage of 10
be prioritised. Healthy collection of goods and services tax (GST) and million healthcare workers worldwide by 20309.
direct tax receipts indicate a positive momentum and it is anticipated
to cushion the Indian economy against concerns of a global downturn. Climate change has also been one of the biggest health threats for the
human race. Whether it is the availability of safe drinking water, fresh
air or adequate food supply, people have been impacted due to changes
Outlook
in climatic conditions. A quarter million more deaths are expected to
In FY 2023-2024, India’s economic growth is projected at 6.5 be caused by malnutrition, malaria, diarrhoea and heat stress between
percent and effective monetary policies are expected to curb inflation the year 2030 and 2050, in the absence of sustainable and resilient
considerably. On the back of rising domestic demand, declining healthcare ecosystems.10
inflation, rising employment rates and strong fiscal policies, the Indian
economy is expected to withstand the combined pressures of a tough Attributing to the above factors, the average global expenditure on
macroeconomic environment7. Figure 1 depicts the GDP growth of medicine is expected to increase from USD1000 billion in 2023 to
India as compared to the BRIC Nations for the period 1990-2023. In USD 2000 billion by the end of 2027 (Figure 2). This surge in spending
the last eight years (2015-2023), India has been growing at a rate reflects the increasing demand for healthcare services, advancements
greater than the other nations, making it the most attractive business in medical research, and the need for innovative therapies and
market for the investors. treatments. The evolving healthcare landscape, coupled with the rising
burden of chronic diseases and aging populations, is driving the need
for greater investment in pharmaceuticals and medical technologies.
INDUSTRY OVERVIEW
As countries strive to enhance healthcare access and quality, the
Global Healthcare Industry Post-COVID-19 expenditure on medicine is poised to play a pivotal role in shaping the
future of global healthcare systems. It is imperative for policymakers,
Global healthcare has been irrevocably altered by the COVID-19
healthcare providers, and industry stakeholders to collaborate and
pandemic, which has accelerated the adoption of new technology
develop sustainable strategies that ensure affordability, accessibility,
and service delivery methods. At the same time, it has also shown
and efficacy in the delivery of medical services and medications. By
the way in which healthcare systems need to be modified to provide
proactively addressing these challenges, we can pave the way for a
people services in an effective manner. After the pandemic, virtual
healthier and more prosperous future for individuals and communities
healthcare has gained momentum. A huge potential awaits the virtual
worldwide.
healthcare sector due to the use of advanced technology and growing
awareness about the need to avail quality healthcare services. It will Outlook
allow people to easily connect with experienced doctors and help in
better management of various health issues. The health sector demonstrated phenomenal resilience in the face of
crisis. From overcoming the Covid-19 pandemic to dealing with novel
Emerging technologies like Artificial Intelligence, Blockchain, infections and diseases in different parts of the world, its impact
telehealth and monitoring devices provide continuous update on on well-being continues to evolve. Governments and nations have
health and wellbeing. By 2024, nearly 440 million consumer health taken stock of healthcare requirements and are heavily investing in
and wellness wearable devices are expected to be shipped worldwide upgrading medical facilities. In the years ahead, private as well as
as medical professionals continue to be more comfortable in using public healthcare expenditure is expected to rise. With a proper plan
them8. to handle crisis and enhance patient care, the healthcare sector needs
to focus on upgrading facilities and improving its care portfolio with
Applications of Artificial Intelligence (AI) are increasingly focusing
technologically advanced methods of treatment and diagnosis.
on numerous aspects of healthcare such as assistance for clinical
decisions, prevention, treatment and monitoring of diseases. It is also GCC Healthcare Industry
aiding diagnosis and treatment of various health issues. Besides, the
The GCC healthcare industry has completely evolved after the pandemic.
use of advanced technology and innovative methods of doing work
Accelerated digitalization, increased use of data analytics, proactive
have helped healthcare personnel to effectively overcome challenges.
wellness regulations and increased health awareness has completely
The Covid-19 pandemic tested the resilience of healthcare systems changed the dynamics of healthcare and wellness industry. The
around the world. It allowed medical professionals to undertake technology, telecommunications, and consumer industries have seen

6
Reserve Bank of India
7
https://www2.deloitte.com/us/en/insights/economy/asia-pacific/india-economic-outlook.html
8
https://www.deloitte.com/content/dam/assets-shared/legacy/docs/gx-UPDATED-Health-care-Outlook-2023_Consolidated.pdf
9
https://www3.weforum.org/docs/WEF_Global_Health_and_Healthcare_Strategic_Outlook_2023.pdf
10
https://www.deloitte.com/content/dam/assets-shared/legacy/docs/gx-UPDATED-Health-care-Outlook-2023_Consolidated.pdf

100
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

a flood of investments as a result of disruption and a multidisciplinary In 2022, Saudi Arabia established a Health Sector Transformation
approach to innovation. Looking ahead, the healthcare industry is Programme which aims to ensure continuous development of
expected to grow at a 6.4% CAGR from 2021 to 2027, reaching US$ healthcare services and aims to offer 88% of the population inclusive
23.6 billion in 2027.11 medical facilities by 2025. The regulatory authorities also plan to
invest in the healthcare sector to build resilient and sustainable
Currently, the GCC healthcare industry is in transformative phase, healthcare models. According to a report published by Mashreq and
transitioning from cure to prevention, due to the growing awareness Frost & Sullivan, a total of US$66.67 billion is planned to be invested
about health and well-being. Digital transformations have also taken in healthcare infrastructure and it is anticipated to increase from the
place and governments are focused on investing in smart technologies current 40% to 65% by 2030. It aims to privatize 290 hospitals and 2300
to transform the healthcare sector. Organizations are developing primary health centres13.
strategic plans to implement data integration and make use of cross-
functional capabilities that will increase their competitive advantage Qatar Healthcare Industry
and promote the development of integrated healthcare networks.
Qatar has one of the best healthcare sectors in the world and in the
However, numerous challenges such as shortage of healthcare coming years this sector is expected to gain prominence as medical
personnel prevail in the healthcare industry. Moreover, the region tourism continues to drive the country’s economic diversification
is highly reliant on imports. Disruptions in the supply chain may strategy. The healthcare industry has experienced tremendous
increase global prices. The cost of healthcare services in the GCC growth and is expected to reach $12 billion by 2024.14
region continues to rise because of lack of specialized treatment,
Additionally, investments in the sector is consistent with Qatar's desire
dependence on imports and the demand for complex treatments. To
to create a population that is both physically and psychologically fit, as
overcome these challenges, the regulatory authorities are encouraging
expressed by the Qatar National Vision 2030's human development
investments from private players through the PPP model. They are
pillar. The country, therefore, plans to shore up investments in
also prioritizing investments in technology and is moving towards a
cutting-edge healthcare infrastructures, facilities and technologies
value-based care model that places patient care at the centre of their
as well as the development and improvement of the current
growth strategy.
healthcare services.
United Arab Emirates (UAE) Healthcare Industry
Oman Healthcare Industry
UAE, one of the Middle East's most economically developed and
The Sultanate of Oman has made many attempts to create a robust
diverse marketplaces, has an excellent healthcare system driven by
healthcare ecosystem that is inclusive, sustainable, and extremely
innovative technologies. The digital healthcare commitment by the
flexible to community needs. With a keen focus on the well-being
country’s government is accelerating the growth of the healthcare
of its people, Oman’s health vision 2050 aims at creating a well-
industry. For the federal budget 2022-26, the UAE government has
organised, just, effective, and responsive health system that is
allocated Dh4.9 billion (8.4 per cent of the total budget) for healthcare
based on society principles of social justice and equity. To reduce
and community protection10. the public sector healthcare burden, the government is also focused
on regulating the private sector to address the healthcare needs of
The adoption of smart technologies including Artificial Intelligence and
the people. However, there are many challenges in Oman and with
Machine Learning continues to rise. Healthcare service providers are
significant government policies, the healthcare sector in the country
also committed to use new and advanced technologies to ensure service
is poised for tremendous growth.
excellence and better treatment for patients. Furthermore, the quick
expansion of infrastructure, increasing emphasis on precautionary care Bahrain Healthcare Industry
and robust policies by the government has played a key role in boosting
the sector. The country’s reputation and the liberalising policies by the Bahrain's hospitals and clinics are growing on account of rising
government is also attracting foreign direct investments from private demand for specialty treatments. The country’s healthcare system
companies to invest in sectors like home nursing, tele-health, virtual care has seen great prospects for more investments due to the growth of
and many more. general and specialty medicine as well as the development of medical
facilities in hospitals. Bahrain's healthcare sector is also influencing
Saudi Arabia Healthcare Industry the healthcare in the Gulf because it has strong foundations,
attractive development potential, a strategic position, and promising
In the past few years, technology has become an important part of
talent. The government’s economic vision for 2030 aims to provide all
the kingdom’s healthcare system. The power of Artificial Intelligence,
residents access to quality medical facilities. They are also investing
metaverse, blockchain and virtual reality is being harnessed to increase
in new technologies and encouraging the private sector to build a
the healthcare capabilities as well as quality of operations and medical
sustainable healthcare system.
care in the country. It has made great progress in enhancing its
healthcare infrastructure, which is one of the key pillars of its economy.

11
https://www.businesswire.com/news/home/20221006005550/en/GCC-Health-Insurance-Market-Report-2022-A-Market-Valued-at-23.6-Billion-by-2027---Industry-
Trends-Share-Size-Growth-Opportunity-and-Forecasts---ResearchAndMarkets.com
https://www.zawya.com/en/economy/gcc/uae-spends-about-35-of-gdp-on-healthcare-expert-tf9a6ha6
12

https://insights.omnia-health.com/saudi-arabia/healthcare-saudi-arabia-industry-overview
13

https://www.invest.qa/sectors-and-opportunities/healthcare-and-life-sciences
14

101
Aster DM Healthcare Limited

Growth opportunities in the GCC healthcare industry equipment, the digitalization of health services, equitable access
to healthcare solutions, and the promotion of mental health and
Aster DM Healthcare is a leading integrated healthcare services
well-being.
provider operating in multiple countries across the Middle East. The
presence of the following factors facilitates growth of our company in The Indian healthcare industry, with its remarkable diversity, presents
the GCC healthcare segment: numerous opportunities across various sectors of medical care.
Stakeholders within the healthcare service provision sector are
• Partnerships and adoption of technology
earnestly scrutinizing novel dynamics and market trends to fuel
To address the challenge of low awareness about digital health further growth within the industry. The medical device manufacturing
technology and the high cost of acquiring customers directly, sector, in particular, has identified promising growth potential within
Aster’s focus is shifting towards B2B2C partnerships. These India.
partnerships between health solution developers and healthcare
professionals aim to make specialist medical treatments Key segments of Indian Healthcare sector
more accessible and affordable. Effective collaborations with Hospitals and Infrastructure
healthcare providers can help raise awareness about the benefits
of digital healthcare technologies and improve their adoption The hospital business in India is rapidly growing sector, fuelled by
among patients. increasing demand for quality healthcare services and advancements
in medical technology. With a large population and rising middle-class,
• Expansion of digital therapeutics the demand for healthcare facilities has surged, leading to significant
investments in the hospital industry.
Digital therapeutics is a field that makes use of evidence-
based treatments to treat or manage a disease or condition Presence of world-class hospitals and skilled medical professionals
by supplementing or substituting current treatment methods. has strengthened India’s position as a preferred destination for
Chronic illnesses that are commonplace, like diabetes and medical tourism. Superior quality healthcare coupled with low
hypertension, cause considerable pain in people, rob them of treatment costs in comparison to other countries is benefitting Indian
years of healthy life, and place a significant financial load on medical tourism, and in turn, has enhanced prospects for the Indian
healthcare systems. Expansion of digital therapeutics in the healthcare market. Indian medical tourism market was valued at
KSA and the UAE could help patients and lessen the strain on US$ 2.89 billion in 2020 and is expected to reach US$ 13.42 billion
healthcare staff by integrating digital therapeutics technologies by 202613.
into patient care, for example to monitor blood sugar levels and
dispense insulin. The digital-therapeutics market in KSA and UAE Synergy Between Health Insurance Market Growth and
has far from reached its full potential and new service providers Hospital Expansion in India"
can explore opportunities in this segment. There is also less
The percentage of the Indian population covered under health
usage of apps in these countries because limited number of
insurance has been relatively insignificant. However, there has been
solutions are available for patients.
a noticeable increase in the number of individuals opting for health
• Medical tourism insurance over time, indicating a growing demand for health insurance
in India. The India health insurance market is expected to grow at a
Medical tourism has impacted the growth of the healthcare compound annual growth rate of 11.55% from 2023 to 2030 to reach
sector in the region but, there remains ample scope for USD 30 billion by 2030 The growth of the health insurance market
improvement. UAE is one of the fastest growing medical tourism in India is expected to have a positive impact on hospitals as well.
hub in the GCC. There is a huge opportunity for private players As more individuals opt for health insurance coverage, it will increase
to offer quality services as the UAE government continues to their ability to access healthcare service bills, including hospital care.
extend its support for delivering excellent medical care. This, in turn, can lead to higher patient footfall and increased revenue
for hospitals. With a larger customer base and the assurance of
Indian Healthcare Industry insurance coverage, hospitals may also have more financial stability
to invest in advanced medical technologies and infrastructure, further
India's healthcare market has been expanding at a compound
enhancing the quality of healthcare services provided. Overall, the
annual growth rate (CAGR) of 22% due to factors such as population
growth of the insurance market presents an opportunity for hospitals
demographics, a growing middle class, higher earnings, increased
to expand their reach and cater to a larger population in need of
health awareness, and an increase in lifestyle disorders. The Indian
medical care.
healthcare market is expected to reach US$ 638 billion by 202515.
The rapid expansion in the industry is facilitated by advancements in Pharmaceuticals
healthcare coverage and services, as well as rising investments from
both public and private entities. Following the Covid-19 pandemic, India currently has a $41 billion pharmaceutical market, and by 2030,
there has been a heightened emphasis on self-sufficiency within the the market is projected to grow to $130 billion. According to World
Indian healthcare system, with a shift in focus towards innovation Trade Organization (WTO), India is the third-largest pharmaceutical
and research, the manufacturing of pharmaceuticals and medical market in the world where production costs are around 33 percent
lower than in the US. It is believed that pharmaceuticals industry in

15
https://inc42.com/datalab/decoding-india-ehealth-opportunity-post-covid-19/

102
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

the country will continue to grow and India is expected to become a of 15.1%. Only 14% of doctors were available for virtual consultations
pharmaceutical hub16. in 2016 but, this number increased to 80% in 2022. Unprecedented
rates of digital adoption and change is expected to revolutionise the
Retail Pharmacy healthcare ecosystem like never before.19
In FY 2020, the industry was valued at 21.56 USD bn and is projected
Remote Patient Monitoring and Wearables
to grow at a 12.02% CAGR over the next five years. Because of a rise
in internet users and technical improvements, online pharmacy retail Remote patient monitoring helps to increase the effectiveness of
channels are predicted to grow at a CAGR of 44.34% between 2022 healthcare services. By keeping an eye on patients outside the hospital
and 2026. The pharmacy retail market is also divided into generic, or clinic, doctors are able to monitor patients more effectively and
over-the-counter, and patented pharmaceuticals based on drug type. expand the reach of the healthcare system. It is now quite convenient
Generic medications have the same chemical composition, dose to treat chronic illnesses like heart disease or diabetes with remote
effects, side effects, and administration routes as patented originals17. monitoring devices. To ensure preventive care, real-time access to
data via connected wearable devices can be extremely useful. Access
Diagnostic service market to such data might also encourage changes in unhealthy habits, which
The India diagnostic services market achieved a valuation of can aid in the management of chronic illnesses.
approximately US$ 14.57 billion in FY22. Further, it is projected that
Personalized Medicine and Genomics
the market will grow at a compound annual growth rate (CAGR) of
11.6% from 2023 to 2032.18 This growth can be attributed to several Medicines are typically developed on ‘one-size-fits-all’ basis. The
factors, including the rise in healthcare expenditure, the expanding study of DNA, digital twins, and AI have enabled carers to adopt a
elderly population, and the mounting prevalence of chronic ailments. far more personalized approach, leading to the development of
In addition to that, advancements in medical technology are expected treatments that are tailored to individual needs. Drug companies
to contribute to a surge in the demand for diagnostic services. need to collaborate with hospitals, clinics, and medical specialists to
develop specialized medical devices and medications. Based on blood
Home Healthcare sugar measurements and other specific characteristics, personalized
It provides a range of medical and supportive services to patients treatment offers recommendations for exercise, diet, and illness
in the comfort of their homes. It is a cost effective and efficient management that are customised for each patient.
way to deliver care to patients who do not require hospitalization.
Retail Healthcare
These types of services include skilled nursing, physical therapy and
occupational therapy. Home healthcare is currently in a nascent stage As major retailers have begun to offer medical services including
in India. immunisations, blood testing, and medical checks, retail healthcare
is rapidly evolving. Traditionally, only trained professionals, doctors,
This specialized form of care is designed to cater to individuals who and other medical staff provided these services in hospitals, clinics,
may have chronic conditions, disabilities, or require post-operative and other healthcare facilities. Compared to traditional healthcare
care. The home healthcare business is influenced by various factors, providers, retail healthcare services are much more easily accessible
such as the size and scale of the company, its geographic presence, and do not require prior appointments and hence, these services have
the range of services offered, patient demographics, and the overall a huge growth potential in the future.
demand for home healthcare in the market. With the aging population
and increasing preference for home-based care, the demand for home Government Initiatives in FY23
healthcare services is on the rise, making it an attractive investment
In the Union Budget 2023-24 the Government of India allocated
opportunity.
budgets for various segments of healthcare.
Emerging trends in the healthcare industry Tele-medicine
• The Ministry of Health and Family Welfare has been allocated
By bridging the gap between patients and their doctors or carers, INR 89,155 crores (US$ 10.76 billion)in FY23, an increase of
telemedicine has profoundly transformed the healthcare sector, and 3.43% compared to INR 86,200.65 crores (US$ 10.4 billion) in
its use will only increase over time. Consequently, it will play a big role 2021-22.
in the growth of home healthcare. With the use of healthcare apps,
patients and doctors can communicate in real-time and prevent • Allocation of INR 3,365 crores (US$ 0.41 billion) for Pradhan
medical emergencies. Mantri Swasthya Suraksha Yojana (PMSSY)

Digital Prescription and Health Records • Human Resources for Health and Medical Education was allotted
INR 6,500 crores (US$ 780 million).
The usage of digital prescriptions are expected to increase significantly
due to an emphasis on reducing the use of paper and creating a digital • Allocation of INR 29,085 crores (US$ 3.51 billion) for National
database. The global digital health market was estimated to be worth Health Mission
$96.5 billion in 2020, and by 2028, it is anticipated to rise at a CAGR

16
https://www.india-briefing.com/news/indias-healthcare-ecosystem-key-segments-market-growth-prospects-26225.html/
17
https://www.researchandmarkets.com/reports/5568509/pharmacy-retail-market-in-india-2022
18
https://www.polarismarketresearch.com/industry-analysis/indian-diagnostic-services-market
19
https://www.healthleadersmedia.com/innovation/ama-survey-finds-physicians-embracing-virtual-visits-remote-patient-monitoring-tools

103
Aster DM Healthcare Limited

• Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB- COMPANY OVERVIEW
PMJAY) was allotted INR 7,200 crores (US$ 870 million).
Aster DM Healthcare Limited is one of the largest private healthcare
• INR 5,156 crores (US$ 675.72 million) was allocated to the service providers operating in GCC and in India. Established in 1987 by
newly announced PM-ABHIM to strengthen India’s health Dr. Azad Moopen, it has grown into an integrated healthcare service
infrastructure and improve the country’s primary, secondary and provider that offers people the full spectrum of quality care through its
tertiary care services. network of hospitals, clinics, labs, and pharmacies, providing primary,
secondary, tertiary, and quaternary care to all segments of the
In July 2022, the World Bank approved a US$ 1 billion loan towards population. The organization has consistently upheld its 35-year-old
India’s Pradhan Mantri-Ayushman Bharat Health Infrastructure mission of delivering high-quality and affordable healthcare, pushing
Mission. India’s government is also making the e-medical visa option the boundaries of healthcare excellence and creating international
available to nationals of 156 countries to encourage medical tourism standards for patient care.
in the nation. The Union Government authorised funding in May 2022,
of INR 190 crores (US$23.78 million), for five new medical colleges The Company is headquartered in Dubai, United Arab Emirates and
that are going to come up in Navsari, Porbandar, Rajpipla, Godhra, and has grown from a single clinic to a healthcare enterprise spread
Morbi in Gujarat .20 across 885 establishments in 7 countries. Aster has strengthened its
reputation as a quality care provider and continues to earn the trust of
Challenges for the Indian healthcare industry patients from different parts of the world. Aster's portfolio is diverse,
Lack of infrastructure including 32 hospitals, 127 clinics, 521 pharmacies, 16 labs and 189
patient experience centres in 7 countries, as of 31st March, 2023. It
For a long time, India has struggled with a lack of well-equipped has over 26,156 dedicated staff including 3,863 doctors and 8,975
medical facilities as a result of inadequate infrastructure. Moreover, nurses committed to ensure service excellence.
compared to the current need, the rate of construction for such
medical teaching or training facilities is still lower.
Key strengths
Shortage of efficient and trained manpower • Driving synergies through global networks
The lack of qualified personnel in the medical field, including doctors, Aster provides services through a wide network of hospitals,
nurses, paramedics and primary healthcare workers, continues to be clinics, and pharmacies throughout the GCC, focusing largely
one of the most serious concerns of the domestic healthcare sector. on primary, secondary, and tertiary/quaternary care. Its team of
qualified medical professionals also help to sustain its operations
High out-of-pocket expenditure remains a stress factor
in India and the GCC. It has a robust global network in 7 countries
Nearly 30% of Indians, or 42 crore people, do not have a health and strives to make a positive impact on millions of lives through
insurance, according to NITI Aayog, though true estimates are likely its top-notch healthcare services.
to be higher. The majority of Indians must pay out-of-pocket (OOP)
in order to receive healthcare services. Numerous expenses, such as • Medical Excellence
those for medical exams, prescription drugs and post-operative care, In order to provide high-quality healthcare to millions of people,
are mostly not covered by government programmes and commercial Aster DM Healthcare strives for excellence and perfection. It
health insurance policies. aims to offer affordable healthcare and emphasize on advanced
healthcare solutions to deliver patient-centric care. Additionally,
Rural health infrastructure
it uses innovative technology to further upgrade its care portfolio
Most pharmacies and hospitals are located in urban areas, leaving and has received numerous industry accolades that attest to its
rural areas underserved. In India, there is little to no emphasis placed constant commitment to quality healthcare.
on preventative healthcare.
• Robust and expansive healthcare ecosystem

The company offers holistic healthcare solutions including

primary, secondary, tertiary and quaternary care. It follows a de-
risked business model to diversify revenues from operations in
different countries.

• Experienced team

Over the years, Aster has expanded its range of healthcare

services with a group of skilled and experienced medical
professionals, effectively led by its top management to provide
each patient the finest care possible.

20
https://www.ibef.org/industry/healthcare-india

104
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

BUSINESS OVERVIEW
GCC Segment

In the GCC region, we are mainly present in the United Arab Emirates, Oman, Qatar, Saudi Arabia, Bahrain and Jordan. We are currently planning
the restructuring of our GCC Business.

GCC hospitals
The Company operates 15 hospitals across the GCC, through two renowned brands - Medcare and Aster. Table 1 provides the details of these
facilities in terms of their location, year of acquisition, capacity beds and operational beds.

Table 1: GCC Hospitals Overview

Commencement or Operational
Hospitals-GCC Location Bed Capacity
Acquisition year Beds (Census)
Medcare Hospital Dubai, UAE 2007 64 55
Al Raffah Hospital Muscat, Oman 2009 72 52
Al Raffah Hospital Sohar, Oman 2010 81 63
Sanad Hospital Riyadh, KSA 2011 230 192
Medcare Orthopaedics and Spine Hospital Dubai, UAE 2012 33 27
Aster Hospital Mankhool Dubai, UAE 2015 136 118
Medcare Women and Child Hospital Dubai, UAE 2016 111 95
Medcare Hospital Sharjah, UAE 2017 128 100
Aster Hospital Doha, Qatar 2017 61 30
Aster Hospital Qusais Dubai, UAE 2018 158 126
Ibri Hospital Ibri, Oman 2019 31 25
Cedars Hospital Dubai, UAE 2019 20 14
Aster Hospital Sonapur Dubai, UAE 2020 34 25
Aster Hospital Sharjah, UAE 2022 101 75
Aster Royal Hospital Muscat, Oman 2022 179 117
Total 1439 1114

GCC Clinics India Hospitals

Aster has the largest clinic network in the UAE, abiding by the highest The company's focus on evidence-based medicine ensures that
standards of medical excellence. With affordable services, it aims medical treatments and procedures are supported by the most recent
to improve the quality of life of patients. The Company operates scientific research and best practices, resulting in better patient
101clinics in the United Arab Emirates, 6 clinics in Oman, 6 clinics in results. The Centres of Excellence of Aster hospitals are staffed with
Qatar, and 2 clinics in Bahrain. highly skilled medical personnel who are experts in their respective
fields. This comprehensive approach guarantees that patients
GCC Retail Pharmacies receive personalized and specialized care. Continuous training and
Aster has a huge pharmacy network of 264 stores, offering customers professional development programmes for healthcare professionals
a wide range of products including nutritional supplements, baby care, guarantee that they are up to date with the newest medical
personal care, medical devices, rehabilitation products and others. developments and technologies, hence improving overall quality of
care. The company's emphasis on patient safety, quality assurance,
India Segment and adherence to international standards develops a culture of
excellence in patient care. Adoption of digital health technologies
In India, the company operates mostly in Kerala, Karnataka,
and platforms improves patient engagement, accessibility, and
Maharashtra, Andhra Pradesh and Telangana and provides medical
convenience, resulting in improved healthcare experiences.
facilities through hospitals, clinics, pharmacies, labs and patient
experience centres. The Company operates 17 hospitals in India with an installed bed
capacity of 4317 beds, as of March, 2023 and the same has been
detailed in Table 2. These hospitals offer a wide range of services
including Cardiac, Orthopaedic, Neurology, Oncology and others.

105
Aster DM Healthcare Limited

Table 2: India Hospitals Overview

Commencement or Bed Operational

Hospitals-India Location
Acquisition year Capacity Beds (Census)
Aster Aadhar Kolhapur, Maharashtra 2008 228 193
Aster MIMS Kozhikode Kozhikode, Kerala 2013 695 518
Aster MIMS Kottakkal Kottakkal, Kerala 2013 340 263
Aster CMI Bengaluru, Karnataka 2014 508 374
Aster Medcity Kochi, Kerala 2014 759 615
Aster Prime Hyderabad, Telangana 2014 158 98
Dr. Ramesh Hospital Guntur, Andhra Pradesh 2016 350 225
Dr. Ramesh Hospital Main Centre, Vijayawada, Andhra Pradesh 2016 135 125
Dr. Ramesh Hospital Labbipet, Vijayawada, Andhra Pradesh 2016 54 47
Dr. Ramesh Sanghamitra Hospital Ongole, Andhra Pradesh 2018 150 130
Aster MIMS Kannur Kannur, Kerala 2019 302 237
Aster RV Bengaluru, Karnataka 2019 237 172
Aster Whitefield Women and Children Bengaluru, Karnataka 2021 61 51
Aster Mother Hospital Areekode, Kerala 2022 140 101
Aster Narayanadri Tirupati, Andhra Pradesh 2023 150 113
Ramesh (IB) Vijayawada, Andhra Pradesh 2023 50 42
Total 4317 3304

Aster Labs The omni-channel allows patients to communicate with Aster DM

Healthcare through their preferred channels, improving accessibility
With the introduction of Aster Lab, Aster DM Healthcare gained
and convenience of healthcare services.
more control over diagnostic services, resulting in faster turnaround
times and precise test findings. A more simplified and effective The omni-channel approach has contributed to improved revenue
patient experience was the result of this integration. In addition to generation by:
having a sizable presence in Kerala and Karnataka, Aster Labs have
made headway in regions like Andhra Pradesh and Maharashtra. • Expanding the customer reach: The availability of online
The Company shall consider broadening the scope of its diagnostic appointments, teleconsultations, and health monitoring apps
offerings in order to meet the changing needs of the healthcare attracts a broader customer base, resulting in increased revenue
industry and accommodate a wider range of medical specializations. opportunities.

The Company’s operational performance, which included 189 Patient • Improving patient engagement: The convenience and ease of
Experience Centres (PEC), 15 Satellite Labs, and 1 Reference Lab, was using digital channels lead to higher patient engagement and
successful. Through this network, it was made sure that patients satisfaction, increasing loyalty and repeat visits.
could easily receive diagnostic services in various locations.
• Cost-effective operations: Digital solutions can streamline
Aster Pharmacy processes, reduce overhead costs, and optimize resource
utilization, contributing to improved efficiency.
Aster DM Healthcare established the Aster Pharmacy business
to provide the southern states of India with pharmaceutical and
wellness products. The pharmacy division aims to provide accessibility
OPERATIONAL OVERVIEW
to healthcare products and services by providing items across a Bed Capacity
variety of markets, including nutrition, baby care, skincare, and home
The total bed capacity increased from 5,065 beds to 5,756 beds
healthcare.
by the end of FY2023. In GCC, the number of beds increased from
Aster Pharmacy increased the size of its network in FY23, opening 1,160 to 1,439. In India, the total number of beds increased from
106 locations in Karnataka, 85 in Kerala, 61 in Telangana, and 5 in 3,905 to 4,317. The total number of operational beds have increased
Andhra Pradesh. The expansion of stores gave the business the from 3,822 to 4,418. In India, the total number of operational beds
ability to serve a bigger client base and offer a variety of services, increased YOY from 2,899 to 3,304 and in the GCC, it increased from
which helped to improve operational performance. 923 to 1,114.

Omni-channel presence of Aster pharmacy On capacity management, we prioritize allocating the appropriate
space to each bed based on qualitative operational key metrics. Our
The Aster Pharmacy's omni-channel refers to its thorough strategy
focus lies in ensuring that the allocation is optimized to enhance
for offering services through a variety of channels, including internet
overall operational efficiency and patient experience. By carefully
platforms, mobile apps, and in-person visits to medical institutions.
considering the specific needs and requirements of each bed, we

106
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

strive to provide a conducive environment for quality care delivery. FINANCIAL OVERVIEW
This approach allows us to maximize resource utilization and maintain
On the financial performance of Aster for the year 2023, while there
a high standard of service throughout our facilities.
has been significant revenue and profit growth in India, the EBITDA
Hospital Patient Visits growth and percentage was muted. The margins were muted in
GCC due to the major expansions leading to early EBITDA loss. At
The number of in-patient visits increased from 273,350+ in FY2022
a consolidated level in financial year 2023, we posted a revenue of
to 326,300+ in FY2023. In GCC, in-patient visits jumped from
INR 11,933 crores, an increase of 16% as compared with the last
90,900+ in FY2022 to 100,600+ in FY2023 and in India it rose from
financial year. EBITDA stood at INR 1,565 crores when compared to
182,400+ in FY2022 to 225,650+ in FY23. The number of out-patient
INR 1,483 crores in financial year 2022, an increase of 6%. The EBITDA
visits increased from ~4.09 mn in FY2022 to ~4.70 mn in FY2023. In
growth was impacted due to losses from new hospitals. Adjusted for
India, the out-patient count increased from ~2.03 mn in FY2022 to
this loss, EBITDA was INR 1,655 crore, an increase of 11% over the
~2.70 mn in FY2023 and in GCC from ~2.06 mn in FY2022 to ~2.01
last year.
mn in FY2023.
Profit after tax post-NCI stands at INR 425 crores when compared to
ALOS (Days) and ARPOB (INR.)
INR 526 crores in financial year 2022. The impact of new hospitals,
The average length of stay reduced from 3.1 days in FY2022 to 2.9 including the depreciation and interest costs on account of the capital
days in FY2023. Although, for the GCC hospitals, this number stood allocation towards these investments was visible. Profit after tax
constant at 1.9 in FY2022 and FY2023, it reduced for the India post-NCI excluding losses from new hospitals and post adjusting
business from 3.7 in FY2022 to 3.4 in FY2023. The average revenue for onetime other income is INR 581 crore, a growth of 7%. Figure 3
per occupied bed grew from INR 66,000+ in FY22 to INR 69,550+ tabulates the change in key financials from FY2022 to FY2023. Table
in FY2023 for the consolidated business. The numbers showed an 3 details the changes in key financials and Table 4 depicts the YOY
increasing trend for both GCC and India Business segment. For GCC, it changes in the financial ratios.
grew from INR 192,600+ in FY2022 to INR 200,650+ in FY2023 and
for India, it increased from INR 33,500+ in FY2022 to INR 36,500+ in
the year ended March, 2023.

India Performance

In FY2023, Aster India's revenue from operations increased from INR 2,384 crores in FY22 to INR 2,983 crores, reflecting a notable growth of
25%. The EBITDA for the India segment also showed a positive trend, increasing from INR 353 crores in FY22 to INR 453 crores, representing
a growth of 28%. The profit after tax (post-NCI) improved significantly from INR 60 crores in FY22 to INR 147 crores in FY23, indicating a
substantial growth of 146%.

Table 3: Change in Key Financials

Parameters FY 2022-2023 FY 2021-2022 Growth %

Revenue from Operation (INR Cr.) 11,933 10,253 16

EBITDA 1,565 1,483 6
PAT(Post- NCI) 425 526 -19

Table 4: Changes in Financial Ratios

Ratio FY 2022-2023 FY 2021-2022 Change

Debtor Turnover Ratio (times) 5.48 5.08 0.4

Inventory Turnover Ratio (times) 3.03 3.09 -0.06
Interest Coverage Ratio (times) 2.37 3.28 -0.91
Current Ratio 1.06 1.15 -0.09
Net Debt Equity Ratio 1.08 1.01 0.07
EBITDA Margin(%) 13.1% 14.5% -1.4%
PAT (Post-NCI) Margin (%) 3.6% 5.1% -1.5%
Return on Net Worth (%) 10.2% 14.5% -4.3%

107
Aster DM Healthcare Limited

STRATEGIC PLANS • The average length of stay (ALOS) for patients reduced from 3.7
days in FY22 to 3.4 days in FY23, indicating improved efficiency
GCC Market Expansion
in patient care.
The Company launched the 179 bed Aster Royal Hospital in Muscat,
Oman and the 101 bed Aster Hospital in Sharjah in 2022. In Qusais, • Aster India expanded its pharmacy network, reaching a milestone
it plans to open a 126 bed hospital called ‘Aster Royal Hospital’ by Q4 of 106 stores in Karnataka, 85 stores in Kerala, 61 stores in
FY 24. In Qatar, a 60 bed hospital is being planned to be launched at Telangana, and 5 stores in Andhra Pradesh by the end of FY23.
the end of FY 25. In Saudi, we plan to launch a 59 bed Annex Building
• Aster Labs increased its foot prints to 189 Patient Experience
in the first quarter of FY 24. Aster DM Healthcare is expanding its
Centres (PEC), 15 Satellite Labs, and 1 Reference Lab.
footprint in Saudi Arabia with the Aster Pharmacy division tie-up with
Al Hokair Holding Group. The division, through this partnership, aims Key Strategies that contributed to the Success of Aster India
to provide pharmaceutical and wellness products across segments during FY23:
such as nutrition, baby care, skincare and home healthcare to the
• Expansion Strategy: Aster India focused on expanding its
communities in Saud Arabia. The joint venture plans to open and
hospital, clinic, and pharmacy network in key states like Kerala,
operate pharmacies in high streets, communities and shopping malls,
Karnataka, Maharashtra, Andhra Pradesh, and Telangana. This
beginning with Riyadh.
strategy allowed the company to reach a broader patient base
Our foray into digital health with MyAster has seen significant traction and serve more communities.
in FY23. We are ranked the #1 free medical app in the UAE, across
• Patient-Centric Care: The emphasis on evidence-based
both App Store and Play Store. We are currently at about 4,00,000+
medicine, multidisciplinary collaboration, and personalized
net downloads in Q4 FY2023, double from what it was in Q3 FY223.
treatment plans ensured that patients received high-quality
Both Consultation and e-Pharmacy services that are live on the healthcare services, leading to positive patient experiences and
platform saw significant growth during this time. This is owing loyalty.
to the improvements that we rolled out on the platform across -
• Digital Innovation: The introduction of digital platform, allowed
smoother appointment booking flows, quicker search, conversion
patients to access healthcare services through various digital
focused product listing and product detail pages - all of which were
channels, improving accessibility and convenience for patients.
done based on consumer research and feedback we obtained in our
pilot days. • Quality Assurance: Aster India prioritized patient safety and
quality assurance, adhering to international standards and
In FY23, about 69,000+ appointments were booked through MyAster.
implementing rigorous protocols and continuous monitoring in
This number has continued to scale since the e-Pharmacy orders,
its healthcare facilities.
including non-prescription orders, have increased significantly. We
are working on improving efficiencies of our rider base using state • Talent Development: Investments in the professional
of the art technology which shall help us to scale the digital orders development of employees, including doctors, nurses, and other
further without major increase to our cost base. healthcare workers, ensured a skilled and competent workforce
capable of delivering clinical excellence.
Aster Pharmacy has entered a strategic partnership with UAE’s
largest online food delivery and q-commerce platform Talabat to bring
prescription medicines directly to the front door of patients in Dubai. Human Resources
Under the strategic pact, Aster Pharmacy customers can upload their The company priorities its human resources and aims to strengthen its
medical prescriptions securely and easily through the Talabat app to people policies. In order to maintain a competitive edge, it continually
make prescription medicine purchases, beginning February 1st, 2023. makes investments in the professional development of employees.
The partnership is designed to save consumers time and money in Aster consistently offers its staff high-quality training to make them
line with Dubai’s vision to provide the highest quality of specialized future-ready and equipped to handle advanced medical procedures.
and accessible health care to its community members by pursuing As of March 31, 2023, the Company has a workforce of 30,330
efficiency, appropriate allocation and utilization of resources. It including 3,863 doctors, 8,975 nurses, 13,318 other healthcare
aims to create a complete ecosystem of care that fully utilizes the workers and 4,174 outsourced staff.
latest technologies to enhance patient-centred care and help ensure
medication adherence compliance in line with Aster DM Healthcare’s
Risk Management
mission to continue to improve accessibility to healthcare.
Risk management is the set of methods by which companies evaluate
India Market expansion potential losses and take action to reduce or eliminate such threats.
• The number of hospital patient visits increased from 182,400+ Risks are inevitable to any business activity. Risks and controls are key
in FY22 to 225,650+ in FY23, reflecting the growing demand for components of our Company’s Enterprise Risk Management (ERM)
Aster's healthcare services. protocol. Our Risk Management framework is robust that helps us
proactively identify potential risks, analyze them, and take measures
• In India, the total number of beds increased from 3,905 to 4,317 to reduce/mitigate the risk. This facilitates us to set up procedures
operational beds increased YOY from 2,899 to 3,304. to avoid the risk, minimize its impact, or at the very least help cope
with its impact. Essentially, the goal of risk management is to identify

108
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

potential problems before they occur and have a plan for addressing ESG risks
them. Our Risk Management includes internal and external risks
• Implementation of ESG Risk framework and policy to monitor
that could negatively impact our organization and we have a strong
and mitigate any ESG risks.
regulatory framework for timely identification and mitigation of
such risks. • Detailed SOPs and templates drafted and approved for ESG
reporting across Energy, Water, Emissions, Environmental
Since the inception of the ERM team, there were several risk initiatives
Compliance, and Employment.
driven across the organization, thereby adding value to the business.
These include: - • Carrying out a stakeholder engagement process (both internal and
external) via a survey to ascertain ESG Material topics to guide our
Risk Identification and Assessment Process
ESG reporting and disclosures and to ensure transparency into ESG
• Carrying out Board Risk identification workshop to gain insights issues of greatest importance to the organization. The results of the
into risks and opportunities from a top-down approach. survey are used for our ESG Materiality Assessment.

• Surveying top 100 employees of the organization to discuss Risk Acceptance

and challenge critical thinking around risks developing a more
Embedding of a Risk acceptance process with monthly reporting to
nuanced understanding of risks at the organization and helping
the Chairman and Deputy Managing Director.
eradicate siloed thinking.
Risk Events
• Preparation and drafting of the Risk registers for the business
along with assessment of each risk and review of controls for Embedding of a Risk events process with an escalation matrix for
Hospitals, Clinics, Retail and Homecare businesses. all High, Medium and Low events with appropriate reporting to the
Chairman and Deputy Managing Director.
• Discussing the top risks with the Business leaders, challenging
where appropriate and updating these for reporting to the External Reviews
Risk Committee
Implementation and successful certification of the ‘Abu Dhabi Health
• Discussing risks and controls monthly with the Executive Information and Cyber Security’ (ADHICS) regulatory compliance which
Directors, CEOs, and COOs across various business verticals to Healthcare facilities are required to meet the standard requirements
identify emerging risks, optimize assurance efforts and report to integrate within the new 'Malaffi' system. The standard is
risk interconnectivity. mandatory for licensing healthcare practitioners and facilities.

Scenario workshop Sessions- Crisis Management • Implementation and successful certification of the ISO 9001-
2015 Quality Management Systems standard for Aster Retail
Conducted multiple Crisis Simulation scenario workshop sessions demonstrating our ability to consistently provide services that
with Business Leaders and Department Heads focused on the unique meet customer and regulatory requirements.
executive-level decision-making and communication strategies that
are critical to any crisis response. Enclosed below, in Table 5, is a summary of the top risks for Aster
DM Healthcare as agreed and approved at the Executive Risk
Risk Awareness Sessions Committee along with the potential impact, appetite, and our
Imparting risk and compliance awareness sessions across various mitigation strategies.
teams to increase understanding of risks and familiarizing teams with
risk assessments and control activity via new joinee induction and Bi-
weekly newsletter named ‘Risky Times’.

109
Aster DM Healthcare Limited

Table 5: Summary of top risks for Aster DM

Risks Impact Mitigation

At Aster, we maintain a low-risk appetite when it comes The organisation remains committed to its IT
to security breach involving the compromise of confidential transformation strategy to ensure the robustness
data that could impact our patients, customers, employees, of systems across the landscape. Several IT
or shareholders, as well as proprietary information. controls are in place to ensure that patient data isn’t
We recognize that such breach can lead to regulatory compromised. Engaged with third party agencies
Information and notifications, financial penalties, legal liabilities, and for enhancement of overall security posture of the
Data Security Risks damage to our reputation. organization. Ongoing vendor due diligence in place
to review data security and privacy risks before
onboarding suppliers.

The growth of the Company is highly dependent on its The Company continuously works to improve
ability to acquire a talented workforce. The expertise and its work environment to retain a pool of trained
engagement of employees drives organisational success. medical and non-medical professionals with a low-
Inability to acquire such talent can significantly impact the risk appetite for any deviation from the Aster Code
People Risks company’s operations. As our largest area of expenditure, of Conduct and ethical Governance standards.
we have a medium risk appetite for pursuing outcomes
that lead to more efficient and economic people outcomes.

With its vast network in seven countries, the Company Aster constantly keeps track of regulatory
provides services within highly regulated environments and frameworks in different countries and implements
must meet high level of compliance and legal expectations them within the stipulated timelines within the
from regulatory bodies. Failure to comply with regulations business. All permits are renewed in countries
Legal and could lead to legal consequences and/or regulatory censure where it operates. The Company abides by all
Compliance Risks and we have a low-risk appetite for the same. laws and regulations set by various Governments,
ensuring smooth and seamless operations across
geographies.

With its widespread operations the company expects The company has created a Centre of Excellence
strong internal controls to be maintained which ensures for Revenue Cycle Management (RCM) aiming for
compliance with governance and accounting principles in better payer relationship and uniformity. There is an
line with the credit risk policy. We have no tolerance for increased focus on Medical Value travel, rejection
risks that may lead to fraud or financial misconduct leading control, digitalization, consolidation, offshoring, and
Financial Risks to brand and reputational damage, decreased revenue and/ other cost controlling initiatives. All deviations from our
or market share. code of conduct and ethical governance standards are
investigated and mitigated accordingly.

Healthcare providers need to ensure that patients/ Disaster management plan and emergency
customers can always avail their services. The Company response plans as per the emergency codes
has Business continuity strategy ensuring that even during available for all our facilities. The company is taking
incidents we continue to operate critical businesses with a adequate measures to backup business applications
predetermined recovery time. Failure to do so would cause and systems thereby reducing instances of data
an impact on our business operations adversely affecting losses.
Business Continuity our patients, resulting in loss, or declined revenue and/or
and Resilience Risk brand and reputation damage. Crisis Simulation scenario workshop sessions
with Business Leaders and Department Heads
conducted focussing on the unique executive-level
decision-making and communication strategies
that are critical to any crisis response.

Healthcare providers must follow stipulated norms for Aster DM continuously strives to deliver quality care
meeting quality and safety standards. Failure to do so could to achieve desired results by following evidence
Clinical and Patient cause patient harm and may have an impact on patient based clinical practise guidelines. Patient safety and
Health and Safety care and impact the future of the Company. advanced medical care are, therefore, a priority for
Risks the Company.

110
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Risks Impact Mitigation

The Company accepts that some level of reputational risk Aster operates within three brands namely, Aster
is inherent in all our activities which include the effect of Medcare and Access. The brand value and reputation
factors such as regulatory intervention, employee conduct, of the organization has grown tremendous in the
human resource practices, information security and patient last 30 years since it began operations. Several
experience. Negative perceptions by patients, staff or brand and marketing strategies are in place and
Reputational Risks
other stakeholders may jeopardize the Group’s credibility social media listening tools and ORM practices have
and impede the achievement of delivering our strategic been deployed to monitor events both internal and
objectives. external that could pose a reputational risk.

Technology is changing every day and it is critical for Aster adopts new and emerging technology
the Company to stay up to date with new and updated regularly to provide superior quality patient-
innovations in the industry. Insufficient embrace of digital centric care. The organisation has state-of-the-art
Strategic, capabilities may not meet performance expectations equipment to aid complex treatments and deliver
Transformation and related to quality, cost, and innovation as well as our new excellent care to each one of its patients.
Innovation Risks digitally born competitors with hyper scalable business
model and low cost of operations.

The healthcare sector is dynamic and growing demand With over 30 years of industry experience, the
for healthcare continues to attract more players to the Company has a vigorous business model that lends
industry. As a result, inadequate competitive strategies it a competitive edge over its peers. To leverage
may deteriorate the company’s value proposition which industry trends and prevailing technology stack,
Competition and can result in reduced brand value and loss of customers an external partner has been engaged as the
Market Share Risks and patients. implementation partners with a clear governance
mechanism established reporting into the Steering
Committee.

The company works with numerous suppliers who provide The company has obtained a CIPS certification
services to ensure we have a smooth business operation. for Procurement Ethics Compliance for the Group
We recognize that optimizing our supply chain and Supply Chain Management. ERP rollout for verticals
Vendor and Supply enhancing its sustainability as a key element in achieving in a phased manner is underway. Also, introduction
Chain Management our strategic aims. Failure to do so could have an impact of an E-capex platform would further strengthen
Risks on clinical quality and lead to inability in delivering quality the overall Vendor and Supply Chain management
services to our patients/customers. process.

111
Aster DM Healthcare Limited

Internal Control System and their adequacy of the internal audit function is derived from the audit charter
approved by the Audit Committee. The internal audit function
The Management has laid down internal financial controls to be
develops an internal audit plan to assess control design and operating
followed by the Company. The Company has adopted policies and
effectiveness, as per the risk assessment methodology. The internal
procedures for ensuring orderly and efficient conduct of the business,
audit function provides assurance to the Board that a system of
including adherence to the Company’s policies, the safeguarding of
internal control is designed and deployed to manage key business
its assets, the prevention and detection of frauds and errors, the
risks and is operating effectively.
accuracy and completeness of the accounting records, and the timely
preparation of reliable financial disclosures. The internal control system
is commensurate with the nature of business, size and complexity of
Cautionary Statement
operations and has been designed to provide reasonable assurance Certain statements in the Management Discussion and Analysis
on the achievement of objectives, effectiveness and efficiency of section concerning future prospects may be forward-looking
operations, reliability of financial reporting and compliance with statements which involve several underlying identified / non identified
applicable laws and regulations. risks and uncertainties that could cause actual results to differ
materially. Besides the foregoing changes in the macro environment,
As part of the Corporate Governance Report, CFO certification is
some unprecedented challenges may pose an unforeseen,
provided, for assurance on the existence of effective internal control
unprecedented, unascertainable and constantly evolving risk(s), inter
systems and procedures in the Company.
alia, to the Company and the environment in which it operates. The
The internal control framework is supplemented with an internal results of these assumptions made, relying on available internal
audit program that provides an independent view of the efficacy and and external information, are the basis for determining certain facts
effectiveness of the process and control environment and supports and figures stated in the report. Since the factors underlying these
a continuous improvement program. The internal audit program assumptions are subject to change over time, the estimates on which
is managed by an in-house internal audit function and by Grant they are based are also subject to change accordingly. These forward-
Thornton Bharat LLP, external firm. The Audit Committee of the Board looking statements represent only the Company’s current intentions,
oversees the internal audit function. beliefs or expectations, and any forward-looking statement speaks
only as of the date on which it was made. The Company assumes
The Audit Committee is regularly apprised by the internal auditors no obligation to revise or update any forward-looking statements,
through various reports and presentations. The scope and authority whether because of new information, future events, or otherwise.

112
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Board’s Report

Dear Members,

Your Directors have immense pleasure in presenting the Annual Report on the business and operations of your Company along with the audited
financial statements for the financial year ended March 31, 2023.

1. RESULTS OF OPERATION AND STATE OF AFFAIRS

Financial Results
(INR in crores except per share data)
Standalone Consolidated
Particulars
2023 2022 2023 2022
Revenue from operations 1,533.74 1,116.47 11,932.88 10,253.28
Other income 49.77 82.20 78.25 50.66
Total income 1,583.51 1,198.67 12,011.13 10,303.94
Total expenditure 1,401.18 1,108.71 11,477.27 9,667.63
Profit/(loss) before exceptional items and tax 182.33 89.96 533.86 636.31
Exceptional item - - - -
Profit before tax 182.33 89.96 533.86 636.31
Share of net profit/ (loss) of equity accounted investees - - 1.22 0.54
Profit/(loss) before tax /(benefit) 182.33 89.96 535.08 636.85
Less: Tax expense 9 .04 (0.22) 59.59 35.80
Profit for the year 173.29 90.18 475.49 601.05
Other comprehensive income/(loss), net of taxes 0 .41 0.46 198.95 93.45
Total comprehensive income/ (loss) 173.70 90.64 674.44 694.50
Profit attributable to
Owners of the company 173.29 90.18 424.91 525.99
Non-controlling interest - - 50.58 75.06
Total 173.29 90.18 475.49 601.05
Total comprehensive income attributable to
Owners of the company 173.70 90.64 598.82 608.65
Non-controlling interest - - 75.62 85.85
Total 173.70 90.64 674.44 694.50
Earnings per share
Basic 3 .48 1.81 8.54 10.58
Diluted 3 .48 1.81 8.53 10.57

Financial position
(INR in crores except per share data)
Particulars Standalone Consolidated
2023 2022 2023 2022
Cash and cash equivalents 24.38 18.27 378.53 343.37
Trade receivables 111.33 61.55 2,336.31 2,020.52
Other current assets 179.17 119.96 2206.72 1,732.57
Total current assets 314.88 199.78 4,921.56 4,096.46
Property, plant and equipment (including capital work in progress) 807.66 782.51 4,883.64 4,335.55
Goodwill - - 1,159.67 1,087.91
Other intangible assets (including Intangible asset under 2.90 2.15 368.08 278.09
development)
Other non-current assets 2,976.63 2,777.56 3,548.25 2,748.23
Total non-current assets 3,787.19 3,562.22 9,959.64 8,449.78
Total Assets 4,102.07 3,762.00 14,881.20 12,546.24
Non-current liabilities 565.85 463.95 5,365.46 4,505.04
Current liabilities 405.66 342.84 4,655.28 3,558.58
Total current and non-current liabilities 971.51 806.79 10,020.74 8063.62
Equity 499.52 499.52 499.52 499.52
Other equity 2,631.04 2,455.69 3,948.55 3,453.89
Non-controlling interest - - 412.39 529.21
Total equity 3,130.56 2,955.21 4,860.46 4,482.62
Total equity and liabilities 4,102.07 3,762.00 14,881.20 12,546.24

113
Aster DM Healthcare Limited

Performance Overview 6. CORPORATE RESTRUCTURING

During the year under review the Company reported, on a The Board of Directors approved the appointment of the
consolidated basis, a total income from operations of INR investment bankers by the Company on June 10, 2022 to explore
11,932.88 crores as compared to INR 10,253.28 crores. Of options which present an opportunity to unlock value for the
the total revenues from operations for fiscal 2023, our hospital Company and its Stakeholders. The investment bankers have
segment accounted for INR 6,795.29 crores, our clinic segment received interest and indicative terms from potential buyers for
accounted for INR 2,374.64 crores, our Retail pharmacy segment the Company’s business in the Gulf Co-operation Council region
including opticals accounted for INR 2,733.24 crores and other (‘GCC’). The investment bankers are working actively with the
segment accounted for INR 29.71 crores. The Company reported, potential buyers and their advisors who have expressed a strong
on a standalone basis, a total income from operations of INR commitment to complete the transaction soon. Appropriate
1,533.74 crores as compared to INR 1,116.47 crores. intimations and disclosures will be made as and when any
conclusions are arrived at and approved by the Board.
Our strategies for the financial year 2023-24 are explained in the
Management Discussion and Analysis section, which forms part
of this Annual Report. 7. LOANS, GUARANTEE AND INVESTMENTS

Pursuant to Section 186 of the Companies Act, 2013 and

2. TRANSFER TO RESERVES Schedule V of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015, disclosure relating to loans/
There were no appropriations to/from the general reserves of advances given, guarantees provided and investments made are
the Company during the year under review. provided as part of the financial statements.

3. DIVIDEND 8. SUBSIDIARY, JOINT VENTURES AND ASSOCIATE

COMPANIES
The Company continues to look at growth prospects through
new investment opportunities. The past years of the pandemic The Company along with its subsidiaries are engaged in the
has presented healthcare companies across the world with many business of setting up hospitals, clinics and pharmacies in India
challenges, and it is imperative that the Company looks at available and GCC. At the beginning of the year your Company had 73
options for organic as well as inorganic growth. The key objective subsidiaries and 8 associate companies. As on March 31, 2023,
of the Company is to achieve a consistent sustainable growth the Company has 75 subsidiaries and 9 associate companies.
over the years to come and consolidate the Company’s position. Aster Pharmacies Group LLC a material subsidiary of Aster DM
Keeping in view the growth strategy of the Company, the Board of Healthcare Limited has incorporated Joint Venture, Aster Arabia
Directors have decided to plough back the profits and thus do not Trading Company LLC, a limited liability Company in Riyadh,
recommend any dividend for the financial year under review. Kingdom of Saudi Arabia on March 09, 2023. There has been no
material change in the nature of the business of the subsidiaries.
The Dividend Distribution Policy, in terms of Regulation 43A of
the Securities and Exchange Board of India (Listing Obligations Adiran IB Healthcare Private Limited, Komali Fertility Centre Ongole
and Disclosure Requirements) Regulations, 2015 (“Listing LLP, Cantown Infra Developers LLP and Zest Wellness Pharmacy
Regulations”) is available on the Company’s website on LLC, have become subsidiaries of the Company and Skin III Ltd has
https://www.asterdmhealthcare.com/fileadmin/user_upload/ become associate of the Company during the year under review.
Dividend_Distribution_Policy.pdf
Pursuant to provisions of Section 129(3) of the Companies Act,
2013, a statement containing salient features of the financial
4. SHARE CAPITAL
statements of the Company’s subsidiaries/associates in Form
The share capital of the Company as on March 31, 2023 stands AOC-1 is annexed as Annexure 1 to this report.
at INR 499.52 Crores consisting of 49,95,13,060 equity shares
of INR 10 each. During the year under review, the Company has 9. CONTRACTS AND ARRANGEMENTS WITH RELATED
not issued any shares with differential voting rights or any sweat PARTIES
equity shares. Details of Employee Stock Options granted by the
Company are provided separately in annexure to this report. In line with the requirements of the Companies Act, 2013 and
Listing Regulations, the Company has formulated a policy on
During the year under review, the Company has not issued any dealing with related party transactions, which is also available on
shares. the Company’s website at https://www.asterdmhealthcare.com/
fileadmin/user_upload/Policy_on_dealing_with_Related_
5. PUBLIC DEPOSITS party_transactions_09.pdf .The policy intends to ensure that
proper reporting, approval and disclosure processes are in place
The Company has not accepted any public deposits within the for all transactions between the Company and related parties.
meaning of Section 73 of the Companies Act, 2013 and the
Companies (Acceptance of Deposits) Rules, 2014.

114
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

All related party transactions are placed before the Audit • Ms. Purana Housdurgamvijaya Deepti (DIN: 08125456)
Committee for review and approval. Prior omnibus approval was appointed as an Independent Director of the Company
is obtained for related party transactions on yearly basis for effective from March 27, 2023 till the conclusion of 18th
transactions which are of repetitive nature and /or entered Annual General Meeting of the Company to be held in the
in the ordinary course of business. No material related party year 2026 and the same was approved by the Members
transactions were entered into by the Company during the year. through postal ballot completed on April 08, 2023 and
results declared on April 10, 2023.
A statement giving details of all related party transactions
entered pursuant to the omnibus approval so obtained is placed In the opinion of the Board, the Independent Directors
before the Audit Committee for their review on a quarterly basis. appointed during the year possess requisite integrity,
Disclosures as required under Section 134(3) (h) read with Rule expertise, experience and proficiency.
8(2) of the Companies (Accounts) Rules, 2014 are given in Form
AOC-2 as specified under Companies Act, 2013 which is annexed Re-appointments
as Annexure 2 to this report.
• In accordance with Articles of Association, Mr. Daniel Robert
Mintz (DIN: 00960928), Non-Executive Director shall retire
10. DIRECTORS’ RESPONSIBILITY STATEMENT by rotation at the ensuing Annual General Meeting. The
Director being eligible offers himself for re-appointment.
In terms of Section 134 (5) of the Companies Act, 2013 the The Notice of 15th Annual General Meeting of the Company
Directors confirm that: contains the above proposal for the approval of the
Members.
a) in the preparation of the annual accounts, the applicable
accounting standards have been followed and there has • The Board of Directors on recommendation of the
been no material departures; Nomination and Remuneration Committee, re-appointed
Mr. Chenayappillil John George (DIN: 00003132) as an
b) the Directors have selected such accounting policies
Independent Director of the Company for a second term
and applied them consistently and made judgments and
with effect from April 11, 2023 till the conclusion of 18th
estimates that are reasonable and prudent so as to give a
Annual General Meeting of the Company to be held in the
true and fair view of the state of affairs of the Company at
year 2026 and the same was approved by the Members
the end of the financial year and of the profit and loss of the
through postal ballot completed on April 08, 2023 and
Company for that period;
results were declared on April 10, 2023.
c) the Directors have taken proper and sufficient care for the
• The Board of Directors on recommendation of the
maintenance of adequate accounting records in accordance
Nomination and Remuneration Committee, re-appointed
with the provisions of the Companies Act, 2013 for
Dr. James Mathew (DIN: 07572909) as an Independent
safeguarding the assets of the Company and for preventing
Director of the Company for a second term with effect from
and detecting fraud and other irregularities;
June 23, 2023 till the conclusion of 19th Annual General
d) the Directors have prepared the annual accounts on a going Meeting of the Company to be held in the year 2027 and the
concern basis; same was approved by the Members through postal ballot
completed on April 08, 2023 and results were declared on
e) they have laid down internal financial controls to be followed April 10, 2023.
by the Company, which are adequate and are operating
effectively; • The Board of Directors at their meeting held on May 24, 2022,
on recommendation of the Nomination and Remuneration
f) they have devised proper systems to ensure compliance Committee has recommended the reappointment of Dr.
with the provisions of all applicable laws and such systems Mandayapurath Azad Moopen (DIN:00159403) as Managing
are adequate and operating effectively. Director of the Company for a term of three (3) years. The
Members of the Company at the Annual General Meeting
11. DIRECTORS AND KEY MANAGERIAL PERSONNEL held on August 25, 2022 passed a special resolution to re-
appoint Dr. Mandayapurath Azad Moopen as Managing
Appointments Director of the Company for a term of three (3) years with
effect from April 15, 2023 subject to approval of the Central
• Mr. Emmanuel David Gootam (DIN:09771151) was Government. The Company has applied for the approval of
appointed as an Independent Director of the Company the Central Government under section 196 read with Part-I
effective from November 10, 2022 for a term of three (e) of schedule-V of the Companies Act, 2013 and approval is
consecutive years and the same was approved by the awaited.
Members through postal ballot completed on December 17,
2022 and results declared on December 19, 2022.

115
Aster DM Healthcare Limited

Retirements was adopted for evaluation based on the criteria formulated

by the members of the Nomination and Remuneration
• Prof. Biju Varkkey (DIN: 01298281), retired as an Independent Committee (“NRC”). The evaluation was made to assess the
Director of the Company from the Board of Directors of the performance of individual Directors, Committees of the Board,
Company on completion of his two terms with effect from Board as a whole and the Chairman. Adherence to the Code
the close of the business hours on November 11, 2022. of Conduct, display of leadership qualities, independence of
judgement, integrity and confidentiality were the criterion
• Dr. Layla Mohamed Hassan Ali Almarzooqi (DIN: 08401425),
based on which the performance evaluation was conducted.
retired as an Independent Director of the Company from the
Further, the evaluation of Management was conducted based
Board of Directors of the Company on completion of her
on the factors such as timeliness in the flow of information,
two terms with effect from the close of the business hours
transparency and quality of information provided to the Board
on March 27, 2023.
for decision making and adoption of suggestions provided by
Resignation the Board etc.

Mr. Sridar Arvamudhan Iyengar (DIN: 00278512) has resigned The Independent Directors at their meeting held on May 23, 2023,
from the position of Non-Executive Independent Director of reviewed the performance of the Non-Independent Directors,
the Company due to personal reasons with effect from May Committees of the Board, the Board as a whole and Chairman
23, 2023. Further, as per the requirement of Regulation 30 read based on the evaluation of other Directors. The NRC at their
with Schedule III, Part A, Clause 7B of Listing Regulations, he has meeting reviewed the outcome of the evaluation process.
confirmed that there are no material reasons for his resignation
other than that mentioned in his resignation letter dated May 23, 14. DECLARATION BY INDEPENDENT DIRECTORS
2023.
The Company has received the declaration from Independent
Key Managerial Personnel Directors in accordance with Section 149(7) of the Companies
Act, 2013 (“the Act”) and Regulations 25(8) of the Listing
In terms of the provisions of Section 203 of the Companies Act,
Regulations that he/she meets the criteria of independence as
2013, the Company has appointed the following Key Managerial
laid out in Section 149(6) of the Act and Regulation 16(1)(b) of
Personnel:
the Listing Regulations. The Board of Directors is of the opinion
S. Name of the Key that all the Independent Directors meet the criteria regarding
Designation integrity, expertise, experience and proficiency.
No Managerial Personnel
1 Dr. Azad Moopen Chairman and Managing In terms of Section 150 of the Companies Act, 2013 read with
Director Rule 6 of the Companies (Appointment and Qualification of
2 Ms. Alisha Moopen Deputy Managing Director Directors) Rules, 2014, Independent Directors of the Company
3 Mr. Hemish Company Secretary and
have confirmed that they have registered themselves with the
Purushottam Compliance Officer
databank maintained by the Indian Institute of Corporate Affairs
4 Mr. Amitabh Johri Joint Chief Financial Officer
5 Mr. Sunil Kumar M R Joint Chief Financial Officer (“IICA“).

Notes:
1. Mr. Sreenath Pocha Reddy resigned as Group Chief Financial Officer and
15. POLICY ON APPOINTMENT OF DIRECTORS AND
Key Managerial Personnel of the Company with effect from January 05, REMUNERATION
2023.
The Company’s policy on Directors’ appointment and
2. Mr. Amitabh Johri and Mr. Sunil Kumar M R appointed as Joint Chief
Financial Officers and Key Managerial Personnel of the Company with remuneration and other matters provided in Section 178 (3)
effect from May 25, 2023. of the Companies Act, 2013, is available on the website of the
Company at https://www.asterdmhealthcare.com/fileadmin/
user_upload/Policy_on_Nomination_Remuneration_and_
12. COMMITTEES OF DIRECTORS
Evaluation.pdf .
The Company has constituted Committees as required under the
We affirm that the remuneration paid to the Directors is as per
Companies Act, 2013 and the Listing Regulations and the details
the terms laid out in the Nomination and Remuneration Policy of
of the said Committees forms part of the Corporate Governance
the Company.
Report.

16. BOARD MEETINGS AND ANNUAL GENERAL MEETING

13. BOARD EVALUATION
The Board of Directors met 7 times during the financial year viz
Pursuant to the provisions of Companies Act, 2013 and the
May 24, 2022; June 10, 2022; August 11, 2022; November 10,
Listing Regulations the evaluation of Board of Directors was
2022; December 02, 2022; February 14, 2023 and March 27,
conducted for the financial year 2022-23. The evaluation was
2023. The intervening gap between the meetings was within the
conducted by engaging an external independent firm having the
period prescribed under the Companies Act, 2013 and Listing
requisite expertise in this field. An online questionnaire method

116
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Regulations. Detailed information regarding the meetings of the 20. INTERNAL CONTROL SYSTEMS
Board and Committees of the Board is included in the report on
Corporate Governance. The Management has laid down internal financial controls to be
followed by the Company. The Company has adopted policies
The Annual General Meeting for the financial year 2021-22 was and procedures for ensuring orderly and efficient conduct of the
held on August 25, 2022, through Video Conferencing (‘VC’)/ business, including adherence to the Company’s policies, the
Other Audio-Visual Means (‘OAVM’). safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting
17. SECRETARIAL STANDARDS records, and the timely preparation of reliable financial
disclosures. The internal control system is commensurate
The Company has devised proper systems to ensure compliance with the nature of business, size and complexity of operations
with all applicable Secretarial Standards issued by the Institute and has been designed to provide reasonable assurance on
of Company Secretaries of India (“ICSI”) as required under Section the achievement of objectives, effectiveness and efficiency of
118 (10) of the Companies Act, 2013 and such systems are operations, reliability of financial reporting and compliance with
adequate and operating effectively. applicable laws and regulations.

As part of the Corporate Governance Report, Chief Financial

18. PARTICULARS OF EMPLOYEES Officer (CFO) certification is provided, for assurance on the
existence of effective internal control systems and procedures in
The statement containing particulars of employees as required
the Company.
under Section 197 (12) of the Companies Act, 2013, read with
Rule 5(1) of the Companies (Appointment and Remuneration of The internal control framework is supplemented with an internal
Managerial Personnel) Rules, 2014, is provided in Annexure 3 to audit program that provides an independent view of the efficacy
this report. and effectiveness of the process and control environment and
supports a continuous improvement program. The internal audit
19. EMPLOYEE STOCK OPTION SCHEME program is managed by an in-house internal audit function
and by KPMG India Private Limited, external firm. The Audit
The Nomination and Remuneration Committee of the Board inter Committee of the Board oversees the internal audit function.
alia administers and monitors the Company’s Employees Stock
Option Plan “Aster DM Healthcare Employees Stock Option Plan The Audit Committee is regularly apprised by the internal
2013” in accordance with Securities and Exchange Board of India auditors through various reports and presentations. The scope
(Share Based Employee Benefits and Sweat Equity) Regulations, and authority of the internal audit function is derived from the
2021 and the plan is implemented through DM Healthcare audit charter approved by the Audit Committee. The internal
Employees Welfare Trust. audit function develops an internal audit plan to assess control
design and operating effectiveness, as per the risk assessment
During the year, 1,50,717 shares were transferred from the methodology. The internal audit function provides assurance
ESOP Trust to the eligible employees under the Company’s to the Board that a system of internal control is designed
prevailing ESOP Plan. As on March 31, 2023, the ESOP Trust held and deployed to manage key business risks and is operating
21,43,386 (0.43%) equity shares of the Company. effectively.

Disclosures as required under Rule 12 of Companies (Share

Capital and Debentures) Rules, 2014, Securities and Exchange 21. VIGIL MECHANISM
Board of India (Share Based Employee Benefits and Sweat
The Company believes in conducting its affairs in a transparent
Equity) Regulations, 2021, read with SEBI Circular CIR/CFD/
manner and adopts highest standards of professionalism
POLICY CELL/2/2015 dated June 16, 2015 have been provided
and ethical behaviour. Integrity is one of the key values of the
separately in Annexure 4 to this report. The same can be accessed
Company that it strictly abides by. Keeping that in view the
on the Company’s website at https://www.asterdmhealthcare.
Company has established a vigil mechanism for Directors and
com/investors/stock-exchange-disclosures/esop-disclosure.
employees to report concerns about unethical behaviour, actual
There have been no material changes in the Employee Stock
or suspected fraud or violation of the Company’s code of conduct
Option Scheme during the financial year 2022-23.
or ethics. The Whistle Blower Policy is available on the website of
The certificate from the Secretarial Auditor that the scheme has the Company at https://www.asterdmhealthcare.com/fileadmin/
been implemented in accordance with Securities and Exchange user_upload/Whistle_Blowing_Policy_Aug22_01.pdf
Board of India (Share Based Employee Benefits and Sweat
The Company, as a policy, condemns any kind of discrimination,
Equity) Regulations, 2021 and the resolutions passed by the
harassment, victimization, or any other unfair employment
shareholders shall be placed at the Annual General Meeting for
practice being adopted against whistle blowers and provides
inspection by the Members.
adequate safeguard measures. It also provides a direct access to
the Chairman of the Audit Committee to raise concerns.

117
Aster DM Healthcare Limited

In addition to this, the Company has also engaged an independent the Companies Act, 2013. The CSR activities of the Company
agency called ‘Integrity Matters’ that provides an electronic and undertaken by Aster Volunteers broadly includes providing free
digital platform to report any unethical practices or harassment/ healthcare services to the under-privileged children and the
injustice at the workplace confidentially and, if desired, needy, village adoption, providing education, and sustainability
anonymously by any employees or vendors of the Company or programmes. The CSR activities are being carried out under the
any of its subsidiaries anywhere in the world to ensure fairness broad umbrella of our registered charitable organization – Aster
and transparency in the process. DM Foundation (‘the Foundation”). The Foundation is established
and endowed as a non-profitable charity and philanthropic
organization by Dr. Azad Moopen as the Managing Trustee is
22. RISK MANAGEMENT POLICY
registered under Ministry of Corporate Affairs.
Risk is the effect of uncertainty on an expected result and every
The CSR Policy of the Company is available on the website of
business is exposed to it. The ability to effectively identify and
the Company at https://www.asterdmhealthcare.com/fileadmin/
manage risk is a vital element of business success for all parts
user_upload/CSR_Policy_01.pdf. Details on Corporate Social
of the Company’s business. During the period under review, the
Responsibility activities undertaken during the year is provided
Company has strategized to handle the risks by:
in Annexure 5 forming part of this report.
- carrying out risk identification sessions for the Board, Senior
Management, and other staff members; 24. AUDITORS
- defining, analysing and prioritizing various kinds of risks;
i. Statutory Auditors
- giving frequent training and support to the risk owners,
M/s. Deloitte Haskins & Sells, Chartered Accountants [Firm
employees, and others as appropriate; and
registration number: 008072S] were appointed as the
- commencing the standardization and digitalization of Statutory Auditor of the Company for a period of 5 years
risk reporting, planning risk management activities, and from the conclusion of 12th AGM till the conclusion of the
reviewing the risks periodically. 17th AGM.

In order to bring in further accountability, transparency and ii. Secretarial Auditor

expertise in the risk management, the Company has commenced
M/s. M Damodaran & Associates LLP, Practising Company
periodic reporting to the Risk Management Committee. The Risk
Secretaries, [Firm registration number: L2019TN006000]
Management Committee oversees how management monitors
were appointed as Secretarial Auditor of the Company for
compliance with the risk management policies and procedures
the financial year 2022-23, as required under Section 204
and reviews the adequacy of the risk management framework in
of the Companies Act, 2013 and Rules thereunder.
relation to the risks being faced by the Company.
The Board of Directors, on the recommendation of the
The Company has identified its top ten risks that are monitored
Audit Committee, have re-appointed M/s. M Damodaran
on a monthly basis and reported on a quarterly basis to the Risk
& Associates LLP, Practising Company Secretaries, [Firm
Management Committee These include:
registration number: L2019TN006000] as Secretarial
1. Information and Data Security risk Auditor of the Company for the financial year 2023-24, as
2. People risk required under Section 204 of the Companies Act, 2013 and
Rules thereunder.
3. Legal and Compliance risk
4. Financial risk iii. Cost Auditor
5. Business Continuity and Resilience risk
The Company has maintained cost records and accounts as
6. Clinical and Patient Health and Safety risk specified by the Central Government under Section 148(1)
7. Reputational risk of the Companies Act, 2013 and rules made thereunder
8. Strategic, Transformation and Innovation risk and M/s. Jitender, Navneet & Co, Cost Accountants [Firm
Registration No: 000119] were appointed as the Cost
9. Competition and Market share risk and
Auditor of the Company to conduct the audit of cost records
10. Vendor and Supply Chain management risk for the financial year 2022-23.

The Risk management policy is available on the website of the The Board of Directors, on the recommendation of the Audit
Company at https://www.asterdmhealthcare.com/fileadmin/ Committee, have reappointed M/s. Jitender, Navneet & Co,
user_upload/Risk_Management_Policy.pdf Cost Accountants [Firm Registration No: 000119] as the Cost
Auditor of the Company to conduct the audit of cost records for
23. CORPORATE SOCIAL RESPONSIBILITY the financial year 2023-24 at a remuneration of INR 2,25,000
(Rupees Two Lakhs and Twenty Five Thousand only) per annum
The Company has a well-defined policy on Corporate Social plus out of pocket expenses & taxes as applicable, if any, in
Responsibility (“CSR”) as per the requirement of Section 135 of connection with the cost audit.

118
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

The Board of Directors of the Company proposes the 26. MATERIAL CHANGES AND COMMITMENTS
ratification of remuneration of M/s. Jitender, Navneet & Co, Cost AFFECTING FINANCIAL POSITION
Accountants for financial year 2023-24 at the ensuing Annual
General Meeting. The Notice of 15th Annual General Meeting of There have been no material changes and commitments which
the Company contains the above proposal for the approval of the affect the financial position of the Company that have occurred
Members. between the end of the financial year to which the financial
statements relate and the date of this report.

25. AUDIT REPORT

27. ANNUAL RETURN
i. Statutory Audit Report
Pursuant to Section 92(3) of the Act and Rule 12 of the
Audit report on the financial statements of the Company Companies (Management and Administration) Rules, 2014, the
for the financial year 2022-23 is being circulated to the Annual Return for FY 2022-23 is available on Company’s website
shareholders along with the financial statements. There are at https://www.asterdmhealthcare.com/investors/corporate-
no qualifications or adverse remarks made by the Statutory governance/annual-returns.
Auditors in their report for the financial year ended March
31, 2023.
28. SIGNIFICANT AND MATERIAL ORDERS
During the year under review, the Statutory Auditors have
There are no significant or material orders passed by any
not reported to the Audit Committee any incident of material
regulators or courts or tribunals impacting the going concern
fraud committed against the Company by its officers or
status and Company’s operations in future.
employees under Section 143 (12) of the Companies Act,
2013.
29. BUSINESS OF THE COMPANY
ii. Secretarial Audit Report
The Company is into the business of setting up and running of
The Secretarial Audit report issued by M/s. M Damodaran hospitals and healthcare centres. There has been no change in
& Associates LLP, Practising Company Secretaries for the the nature of business during the last financial year.
financial year 2022-23 is annexed as Annexure 6 to this
report. There are no qualifications or observations made by
the Secretarial Auditor in their report for the financial year
30. DISCLOSURE UNDER SEXUAL HARASSMENT OF
ended March 31, 2023.
WOMEN AT WORKPLACE

The Company has in place a Policy on Prevention of Sexual

Pursuant to Regulation 24A of the Listing Regulations read
Harassment at workplace framed under Sexual Harassment of
with SEBI circular dated February 08, 2019, listed entities are
Women at Workplace (Prevention, Prohibition & Redressal) Act,
required to submit the Annual Secretarial Compliance report
2013. Internal Complaints Committee (ICC) has been constituted
with the stock exchanges within sixty days from the end of the
as per the said Act to redress the complaints with respect to
financial year. The Company has received the Annual Secretarial
sexual harassment. All employees (permanent, contractual,
Compliance report from M/s. M Damodaran & Associates LLP,
temporary, trainees) are covered under this policy. During the
Practising Company Secretaries, [Firm registration number:
year there were 3 cases reported (standalone basis) on sexual
L2019TN006000] and the same has been submitted to the
harassment and all cases were disposed off.
stock exchanges within the stipulated date and a copy of the
report is annexed as Annexure 6A to this report.
31. CONSERVATION OF ENERGY, TECHNOLOGY
Pursuant to amendment made to Regulation 24A of the Listing ABSORPTION, FOREX EARNINGS AND OUTGO
Regulations, the Secretarial Audit report of Malabar Institute
of Medical Sciences Ltd, material unlisted subsidiary of the The information on conservation of energy, technology
Company issued by M/s. Ashique Sameer Associates, Practising absorption and foreign exchange earnings and outgo stipulated
Company Secretaries for the financial year 2022-23 is annexed under Section 134(3)(m) of the Companies Act, 2013, read with
as Annexure 6B to this report. Rule 8 of the Companies (Accounts) Rules, 2014 is annexed as
Annexure 7 to this report.
During the year under review, the Secretarial Auditors have not
reported to the Audit Committee any incident of fraud committed
against the Company by its officers or employees under Section
143 (12) of the Companies Act, 2013.

119
Aster DM Healthcare Limited

32. MANAGEMENT DISCUSSION AND ANALYSIS 35. ACKNOWLEDGEMENT

The Management Discussion and Analysis as required under the Your Directors thank the Company’s Shareholders, customers,
Regulation 34 (3) of the Listing Regulations and Schedule V (B) to banks, financial institutions, and well-wishers for their continued
the said regulation forms part of the Annual report. support during the year. Your Directors place on record their
appreciation of the contribution made by the employees at all
levels. The Company’s consistent growth was made possible
33. CORPORATE GOVERNANCE
by their hard work, solidarity, co-operation, and support. The
As per Regulation 34 and Schedule V (C) to the Listing Regulations, Board sincerely expresses its gratitude to Government of India,
the Corporate Governance Report with the Compliance certificate Ministry of Corporate Affairs, Reserve Bank of India, Foreign
from the Practicing Company Secretary is annexed as Annexure Investment Promotion Board, Securities and Exchange Board of
8 to this report. India, Bombay Stock Exchange Limited, National Stock Exchange
of India Limited and Governments of Kerala, Karnataka, Andhra
Pradesh, Telangana, Tamil Nadu and Maharashtra for the
34. BUSINESS RESPONSIBILITY AND SUSTAINIBILITY
guidance and support received from them from time to time.
REPORT

In terms of SEBI Circular No.: SEBI/HO/CFD/CMD-2/P/

For and on behalf of the Board of Directors
CIR/2021/562 and as per the Regulation 34 (2) (f) of the Listing
Regulations, the Business Responsibility and Sustainability
Report for the year under review is annexed as Annexure 9 to Dr. Azad Moopen
this report. Date : May 25, 2023 Chairman and Managing Director
Place : Bengaluru DIN: 00159403

120
 Annexure-1
Form No AOC-1
(Pursuant to the first proviso to sub-section (3) of Section 129 of read with Rule 5 of the Company (Accounts) Rules, 2014)
Statement containing salient features of the financial statements of subsidiaries or associate companies or joint ventures

(INR in crores)
S. Name of Subsidiary/ Step down subsidiary Company Country Currency Exchange Share Other Total Total Investments Turnover Profit Profit Proposed Percentage Percentage
No (GI) Rate Capital equity Assets Liabilities before after Dividend of beneficial of legal
(excluding taxation taxation holding holding*
share capital
and other
Integrated Annual Report FY 2022-2023

equity)
Direct Subsidiries
1 DM Med City Hospitals India Private Limited India INR 1.00 0.01 67.80 169.06 101.24 0.12 55.22 2.54 1.38 - 100% 100%
2 Ambady Infrastructure Private Limited India INR 1.00 15.01 53.21 93.30 25.09 - 0.71 (0.65) (0.65) - 100% 100%
3 Aster DM Healthcare (Trivandrum) Private Limited India INR 1.00 8.01 (41.88) 96.26 130.13 0.00 0.06 (9.70) (9.70) - 100% 100%
4 Malabar Institute of Medical Sciences Ltd India INR 1.00 99.91 461.02 975.16 414.23 33.77 907.79 94.83 70.36 - 76% 76%
5 Prerana Hospital Limited India INR 1.00 4.14 49.43 117.35 63.78 0.00 106.54 11.90 11.90 - 87% 87%
6 Sri Sainatha Multispeciality Hospitals Private Limited India INR 1.00 7.02 33.67 93.18 52.49 - 63.10 (4.50) (4.48) - 100% 100%
7 Dr. Ramesh Cardiac and Multispecialty Hospital India INR 1.00 10.79 115.86 248.26 121.62 90.30 216.04 1.33 4.22 - 57% 57%
Private Limited
8 Aster Clinical Lab LLP India INR 1.00 1.00 (90.19) 83.46 172.65 - 93.71 (44.06) (44.06) - 100% 100%
9 Hindustan Pharma Distributors Private Limited India INR 1.00 0.10 6.46 83.55 77.00 - 123.85 (8.28) (7.34) 86% 86%
10 Affinity Holdings Private Limited Mauritius USD 82.16 0.01 1,989.57 2,315.13 325.55 2,295.12 29.09 25.54 21.60 - 100% 100%
Step-down Subsidiries
11 EMED Human Resources (India) Private Limited India INR 1.00 0.02 0.81 1.18 0.35 - 0.63 0.18 0.14 - 100% 100%
12 Ezhimala Infrastructure LLP India INR 1.00 9.26 0.09 9.38 0.03 - 0.03 0.02 0.02 - 76% 76%
13 Warseps Healthcare LLP India INR 1.00 0.10 0.00 0.11 0.00 - - (0.00) (0.00) - 100% 100%
14 Sanghamitra Hospitals Private Limited India INR 1.00 6.27 29.34 49.41 13.80 - 55.91 6.36 4.27 - 53% 53%
15 Aster Ramesh Duhita LLP India INR 1.00 0.51 (0.46) 0.56 0.51 - 0.00 (0.07) (0.07) - 29% 29%
16 Komali Fertility Centre LLP (earlier Ramesh Fertility India INR 1.00 0.80 0.59 1.82 0.43 0.62 5.77 1.84 1.18 - 29% 29%
Centre LLP)
17 Cantown Infra Developers LLP India INR 1.00 3.43 (0.22) 3.25 0.04 - 0.59 0.10 0.07 - 76% 76%
18 Adiran IB Healthcare Private Limited India INR 1.00 3.00 (0.47) 15.37 12.85 - 2.65 (0.66) (0.70) - 57% 57%
19 Komali Fertility Centre -Ongole LLP India INR 1.00 1.00 (0.18) 1.25 0.43 - 0.14 (0.18) (0.18) - 29% 29%
20 Aster Caribbean Holdings Limited Cayman USD 82.16 - - - - - - - - - 100% 100%
Island
21 Aster Cayman Hospital Limited Cayman USD 82.16 - - - - - - - - - 100% 100%
Island
STATUTORY REPORTS

22 Aster DM Healthcare FZC UAE AED 22.37 2,291.28 772.05 8,407.83 5,344.50 1,062.03 1,209.43 98.64 98.64 - 100% 100%
23 Aster Hospital Sonapur L.L.C UAE AED 22.37 0.67 (50.75) 194.88 244.96 - 25.00 (31.66) (31.66) - 90% 39%
24 Radiant Healthcare LLC UAE AED 22.37 0.67 33.37 125.95 91.90 - 70.40 1.94 1.94 - 76% 25%
25 Aster Day Surgery Centre LLC UAE AED 22.37 0.67 (15.56) 100.47 115.35 - 23.08 1.21 1.21 - 82% 49%

121
 (INR in crores)

122
S. Name of Subsidiary/ Step down subsidiary Company Country Currency Exchange Share Other Total Total Investments Turnover Profit Profit Proposed Percentage Percentage
No (GI) Rate Capital equity Assets Liabilities before after Dividend of beneficial of legal
(excluding taxation taxation holding holding*
share capital
and other
equity)

26 DM Healthcare LLC UAE AED 22.37 22.37 498.78 1,932.45 1,411.30 1.14 1,192.98 66.09 66.09 - 100% 100%
27 Wahat Al Aman Home Healthcare LLC UAE AED 22.37 0.34 56.77 85.37 28.27 - 152.49 26.43 26.43 - 100% 49%
Aster DM Healthcare Limited

28 Aster Grace Nursing and Physiotherapy LLC UAE AED 22.37 0.67 (2.02) 1.45 2.80 - 0.00 (0.02) (0.02) - 60% 29%
29 Aster Pharmacies Group LLC UAE AED 22.37 0.67 878.17 1,666.07 787.23 - 2,053.74 242.41 242.41 - 100% 49%
30 New Aster Pharmacy DMCC UAE AED 22.37 0.45 14.19 19.31 4.67 - 23.24 2.62 2.62 - 100% 100%
31 Aster DCC Pharmacy LLC UAE AED 22.37 0.67 (10.66) 16.26 26.25 - 18.74 (0.86) (0.86) - 100% 49%
32 Aster Al Shafar Pharmacies Group LLC UAE AED 22.37 6.71 10.88 63.87 46.28 - 112.76 5.07 5.07 - 51% 49%
33 Rafa Pharmacy LLC UAE AED 22.37 0.67 (2.44) 10.22 11.98 - 17.42 (0.69) (0.69) - 100% 49%
34 Aster Pharmacy LLC, AUH UAE AED 22.37 0.67 2.14 7.39 4.58 - 17.77 (0.29) (0.29) - 100% 49%
35 Med Shop Drugs Store LLC UAE AED 22.37 0.67 6.04 1,256.82 1,250.11 - 619.00 (50.66) (50.66) - 100% 49%
36 Alfa Drug Store LLC UAE AED 22.37 0.67 206.53 207.21 - - - - - - 100% 49%
37 Alfa One Drug Store LLC UAE AED 22.37 0.67 94.13 450.73 355.93 - 286.32 55.58 55.58 - 100% 49%
38 Alfaone FZ LLC UAE AED 22.37 0.22 - 0.22 - - - - - - 100% 100%
39 DM Pharmacies LLC UAE AED 22.37 0.67 2.46 3.13 - - - - - - 100% 49%
40 Aster Opticals LLC UAE AED 22.37 0.67 (21.04) 72.85 93.22 - 17.93 (0.45) (0.45) - 60% 49%
41 Medcare Hospital LLC UAE AED 22.37 22.37 1,613.05 3,223.66 1,588.24 36.83 2,359.19 215.45 215.45 - 87% 75%
42 Premium Healthcare Limited UAE AED 22.37 0.41 2.01 5.70 3.28 - 17.41 0.65 0.65 - 80% 80%
43 Dr. Moopens Healthcare Management Services LLC UAE AED 22.37 0.67 (594.05) 139.99 733.37 - 53.95 (212.93) (212.93) - 100% 49%
44 Eurohealth Systems FZ LLC UAE AED 22.37 0.22 19.93 43.01 22.85 - 24.02 (4.94) (4.94) - 100% 95%
45 Al Rafa Investments Limited UAE AED 22.37 0.41 (2.33) 0.86 2.79 0.41 - (0.20) (0.20) - 100% 0%
46 Al Rafa Holdings Limited UAE AED 22.37 0.41 (1.15) 0.45 1.19 - - (0.07) (0.07) - 100% 0%
47 Alfa Investments Limited # UAE AED 22.37 0.41 (0.79) 15.78 16.16 0.41 - (0.14) (0.14) - 0% 0%
48 Active Holdings Limited UAE AED 22.37 0.41 (0.46) 15.36 15.42 13.42 - (0.06) (0.06) - 100% 0%
49 Al Rafa Medical Centre LLC UAE AED 22.37 0.67 (45.74) 37.39 82.46 - 31.11 (1.42) (1.42) - 51% 40%
50 Dar Al Shifa Medical Centre LLC UAE AED 22.37 0.67 (1.54) 13.15 14.02 - 13.69 0.39 0.39 - 51% 40%
51 Aster Primary Care LLC UAE AED 22.37 0.67 (1.69) 8.82 9.83 - 3.77 (0.03) (0.03) - 71% 40%
52 Modern Dar Al Shifa Pharmacy LLC UAE AED 22.37 0.67 2.89 18.75 15.18 - 32.77 0.08 0.08 - 51% 40%
53 Harley Street LLC UAE AED 22.37 0.34 (0.12) 12.46 12.25 - - - - - 60% 9%
54 Harley Street Pharmacy LLC UAE AED 22.37 0.34 5.04 20.35 14.97 - 29.97 3.23 3.23 - 60% 9%
55 Harley Street Medical Centre LLC UAE AED 22.37 0.34 67.32 163.13 95.47 - 212.97 2.43 2.43 - 60% 9%
56 Harley Street Dental LLC UAE AED 22.37 0.34 (2.51) 9.91 12.09 - 15.76 0.96 0.96 - 38% 2%
57 Grand Optics LLC UAE AED 22.37 0.67 (91.62) 85.97 176.92 - 78.94 7.53 7.53 - 85% 34%
58 Zahrath Al Shefa Medical Center LLC UAE AED 22.37 0.67 2.83 18.62 15.12 - 16.10 (1.56) (1.56) - 70% 19%
59 Samary Pharmacy LLC UAE AED 22.37 0.67 13.15 20.58 6.75 - 9.39 1.18 1.18 - 70% 19%
60 Metro Meds Pharmacy L.L.C UAE AED 22.37 0.67 6.12 14.55 7.76 - 12.41 2.58 2.58 - 66% 15%
61 Metro Medical Center L.L.C UAE AED 22.37 0.67 6.71 17.07 9.69 - 23.65 3.22 3.22 - 66% 15%
62 Symphony Healthcare Management Services LLC UAE AED 22.37 0.67 (49.97) 63.40 112.70 - - (1.67) (1.67) - 100% 0%
63 E-Care International Medical Billing Services Co. LLC UAE AED 22.37 11.19 30.39 72.08 30.51 - 25.43 12.45 12.45 - 80% 0%
64 Zest Wellness Pharmacy LLC UAE AED 22.37 0.67 (0.03) 4.98 4.34 - - (0.03) (0.03) - 50% 50%
65 Al Raffah Hospital LLC Oman AED 22.37 6.44 53.66 1,120.19 1,060.09 - 442.82 (21.91) (21.39) - 100% 100%
 (INR in crores)
S. Name of Subsidiary/ Step down subsidiary Company Country Currency Exchange Share Other Total Total Investments Turnover Profit Profit Proposed Percentage Percentage
No (GI) Rate Capital equity Assets Liabilities before after Dividend of beneficial of legal
(excluding taxation taxation holding holding*
share capital
and other
equity)

66 Al Raffah Pharmacies Group LLC Oman AED 22.37 3.22 2.50 7.41 1.69 - 6.62 1.02 0.92 - 100% 70%
67 Oman Al Khair Hospital L.L.C Oman AED 22.37 10.74 (4.69) 37.38 31.33 - 39.54 (5.05) (5.73) - 60% 42%
68 Dr. Moopen's Healthcare Management Services WLL Qatar AED 22.37 3.80 199.51 382.79 179.47 1.36 252.73 1.78 2.38 - 99% 49%
69 Welcare Polyclinic W.L.L Qatar AED 22.37 0.45 3.86 9.39 5.08 - 20.69 2.05 1.65 - 100% 45%
70 Dr. Moopens Aster Hospital WLL Qatar AED 22.37 0.45 (61.21) 235.88 296.64 - 151.97 19.87 16.26 - 99% 49%
71 Sanad Al Rahma for Medical Care LLC Kingdom AED 22.37 54.79 365.77 641.97 221.41 - 404.28 9.81 (2.12) - 100% 100%
Integrated Annual Report FY 2022-2023

of Saudi
Arabia
72 Aster DM Healthcare WLL (earlier Aster DM Bahrain AED 22.37 1.12 (66.63) 22.33 87.84 - 45.16 1.36 1.36 - 100% 100%
Healthcare SPC)
73 Orange Pharmacies LLC Jordan AED 22.37 0.35 (30.19) 35.57 65.41 - 76.38 1.70 1.70 - 51% 0%
74 Al Shafar Pharmacy LLC, AUH UAE AED 22.37 0.67 (2.03) 0.05 1.41 - - (0.06) (0.06) - 51% 49%
75 Aster DM Healthcare INC Philippines AED 22.37 - 0.00 0.00 0.00 - - (0.61) (0.61) - 90% 90%
76 Aster Medical Centre LLC UAE AED 22.37 0.67 (30.62) 0.52 30.47 - - - - - 90% 39%
77 Aster Kuwait Pharmaceuticals and Medical Equipment Kuwait AED 22.37 - - (0.00) - - - (3.40) (3.40) - 54% 2%
Company W.L.L

Name of the subsidiaries which are yet to commence operations:

- Alfaone FZ LLC

- Aster Caribbean Holdings Limited

- Aster Cayman Hospital Limited

Name of the subsidiries which have been liquidated or sold during the year - Two entities namely Aster DM Healthcare INC & Aster Kuwait Pharmaceuticals and Medical Equipment Company W.L.L has
been liquidated in the current year

* 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
substantially 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.
# Although the percentage of voting rights as a result of legal holding by the Group is Nil, the Group has the power to appoint/replace all members of the Board of Directors. Consequently Group has control over the entity.

All numbers have been converted from foreign currency to INR at the closing rate
STATUTORY REPORTS

123
 PART B-Associates or Joint Ventures
(INR in crores)

124
Name of the Associate or Joint Venture AAQ Aries Al Aries Skin III Aster MIMS Alfaone Medicals Alfaone Retail Mindriot
Healthcare Holdings Mutamaizah Investments Arabia Infrastructure Private Limited Pharmacies Private Research
Investments FZC Medcare LLC Trading and Properties Limited and
LLC Healthcare Company Private Limited Innovation
Investment LLC Foundation
Co. LLC
1 Latest Audited Balance Sheet Date March March December 31, March March 31, None March 31, 2023 March 31, 2023 March 31, 2023 March
Aster DM Healthcare Limited

31, 2023 31, 2023 2022 31, 2023 2023 31, 2023
2 Date on which the associate was March July May 6, 2018 February September March July 6, 2010 February 1,2021 January 2, 2021 March
associated or acquired 27, 2016 10, 2013 1, 2021 21, 2022 02, 2023 10, 2021
3 Shares of associate held by
Company on the year end
No. 99 equity 7,500 735 equity 2,970 equity 60 equity 0 0.66 crores of 0.02 crores of 990 equity shares of 4900 equity
shares of AED equity shares shares of AED shares of equity shares equity shares Rs. 10 each shares of
1,000 each shares of of AED 100 1,000 each USD 500 of Rs. 10 each of Rs. 10 each Rs. 10 each
AED each each and 0.27 crores
1,000 of preference
each shares of Rs. 10
each
Amount of investment in associate - - - - 0.25 - 9.29 0.23 0.00 0.00

Extent of holding - Percentage of 33% 25% 49% 25% 60% 49% 37% 16% 16% 49%
beneficial holding
- Percentage of legal holding 33% 25% 49% 25% 60% 49% 37% 16% 16% 49%
4 Description of how there is a (Due to percentage of share capital/ Board control)
significant influence
5 Reason why the associate/joint (Consolidated as per IND-AS 28)
venture is not consolidated
6 Networth attributable to 8.71 23.78 (21.39) 1.66 9.72 - 9.12 0.14 (15.47) (0.03)
shareholding as per the latest
audited balance sheet
7 Profit /(loss) for the year
i. considered in consolidation* 2.68 4.38 - - 5.31 - 0.24 (0.04) (11.44) (0.04)
ii. Not considered in consolidation - - - - - - - - - -
*Groups share in profit/ (loss) for the year

Name of associate/ joint venture which are yet to commence operations - Aries Investments LLC & Aster Arabia Trading Company LLC

Name of associate/ joint venture which have been liquidated or sold during the year- NIL
 Annexure-2
Form No AOC-2
(Pursuant to clause (h) of sub-section (3) of Section 134 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)
Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in sub- section (1) of
Section 188 of the Companies Act, 2013 including certain arm’s length transactions under the third proviso thereto

1. Details of contracts or arrangements or transactions not at arm’s length basis: Nil

2. Details of contracts or arrangements or transactions at arm’s length basis:

Integrated Annual Report FY 2022-2023

(INR in crores)
S. Name(s) of the related Nature of contract/ Duration of Salient terms of the contracts or arrangements or transactions Date(s) of Amount
No party and Nature of arrangements/transactions the contracts / including the value, if any approval by paid as
relationship arrangements/ the Board advances,
transactions if any
1 DM Med City Hospitals Leasing of property of any kind On going Lease rental for land paid. Value of transactions for financial year February 08, 2022 Nil
(India) Private Limited, 2022-23 is Rs. 0.05 crore.
Wholly-owned subsidiary Leasing of property of any kind On going Sublease of premises for Registered Office paid. Value of transactions February 08, 2022 Nil
for financial year 2022-23 is Rs. 0.05 crore.
Sale, purchase or supply of any On going Sale, purchase or supply of any goods or materials. Value of February 08, 2022 Nil
goods or materials transactions for financial year 2022-23 is Rs. 0.01 crore.
Availing or rendering of any On going Availing or rendering of any services. Value of transactions for financial February 08, 2022 Nil
services year 2022-23 is Rs. 0.41 crore.
2 Ambady Infrastructure Availing or rendering of any On going Availing or rendering of any services. Value of transactions for financial February 08, 2022 Nil
Private Limited, Wholly- services year 2022-23 is Rs. 0.23 crore
owned subsidiary
3 Sri Sainatha Expenses incurred on behalf of On going Expenses incurred on behalf of subsidiary. Value of transactions for February 08, 2022 Nil
Multispeciality Hospitals subsidiary financial year 2022-23 is Rs.1.20 crore.
Private Limited, Wholly- Availing or rendering of any On going Rendering of sevices relating to Telehealth- Medical imaging and February 08, 2022 Nil
owned subsidiary services Telemedicine. Value of transactions for financial year 2022-23 is Rs.
1.14 crore.
Sale, purchase or supply of any On going Sale of Covid Vaccines. Value of transactions for financial year 2022-23 February 08, 2022 Nil
goods or materials is Rs.0.13 crore.
4 Prerana Hospital Limited, Expenses incurred on behalf of On going Expenses incurred on behalf of subsidiary. Value of transactions for February 08, 2022 Nil
Subsidiary in which the subsidiary financial year 2022-23 is Rs.1.36 crore.
Company holds 86.99% Guarantee commission On going Guarantee commission received on the corporate guarantee extended February 08, 2022 Nil
STATUTORY REPORTS

stake received on behalf of the loans availed by the subsidiary. Value of transactions
for financial year 2022-23 is Rs. 0.27 crore.
Availing or rendering of any On going Rendering of sevices relating to Telehealth- Medical imaging and February 08, 2022 Nil
services Telemedicine. Value of transactions for financial year 2022-23 is Rs.

125
1.69 crore.
 (INR in crores)

126
S. Name(s) of the related Nature of contract/ Duration of Salient terms of the contracts or arrangements or transactions Date(s) of Amount
No party and Nature of arrangements/transactions the contracts / including the value, if any approval by paid as
relationship arrangements/ the Board advances,
transactions if any
5 Dr.Ramesh Cardiac Expenses incurred on behalf of On going Expenses incurred on behalf of subsidiary. Value of transactions for February 08, 2022 Nil
and Multispeciality subsidiariy financial year 2022-23 is Rs. 1.66 crore.
Hospital Private Limited, Availing or rendering of any On going Rendering of sevices relating to Telehealth- Medical imaging and February 08, 2022 Nil
Aster DM Healthcare Limited

Subsidiary in which the services Telemedicine. Value of transactions for financial year 2022-23 is Rs.
Company holds 57.49% 0.13 crore.
stake Availing or rendering of any On going Availing or rendering of any services. Value of transactions for financial February 08, 2022 Nil
services year 2022-23 is Rs. 0.20 crore
6 Sanghamitra Hospital Expenses incurred on behalf of On going Expenses incurred on behalf of subsidiary. Value of transactions for February 08, 2022 Nil
Private Limited, Step subsidiary financial year 2022-23 is Rs. 0.29 crore.
Down Subsidiary in which Sale, purchase or supply of any On going Sale, purchase or supply of any goods or materials. Value of February 08, 2022 Nil
the Company holds goods or materials transactions for financial year 2022-23 is Rs. 0.02 crore.
indirectly 36.57% stake
7 Malabar Institute of Expenses incurred on behalf of On going Expenses incurred on behalf of subsidiary. Value of transactions for February 08, 2022 Nil
Medical Sciences Ltd, subsidiary financial year 2022-23 is Rs.10.00 crores.
Subsidiary in which the Guarantee commission On going Guarantee commission received on the corporate guarantee extended February 08, 2022 Nil
Company holds 76.01% received on behalf of the loans availed by the subsidiary.Value of transactions
stake for financial year 2022-23 is Rs.0.62 crore.
Availing or rendering of any On going Rendering of sevices relating to Telehealth- Medical imaging and February 08, 2022 Nil
services Telemedicine. Value of transactions for financial year 2022-23 is Rs.
13.56 crores.
Availing or rendering of any On going Medical service Agreement to manage the plastic surgery department February 08, 2022 Nil
services of Aster DM Healthcare Limited. Value of transactions for financial year
2022-23 is Rs. 0.29 crore.
Sale, purchase or supply of any On going Sale and purchase of Medical Consumables. Value of transactions for February 08, 2022 Nil
goods or materials financial year 2022-23 is Rs. 0.03 crore.
8 Emed Human Resources Availing or rendering of any On going Rendering of sevices. Value of transactions for financial year 2022-23 February 08, 2022 Nil
India Private Limited, services is Rs. 0.01 crore.
Wholly-owned step
down subsidiary
9 Aster Clinical Lab LLP, Availing or rendering of any On going Lab testing fees. Value of transactions for financial year 2022-23 is Rs. February 08, 2022 Nil
Company holds 100% services 39.64 crores.
stake Sale, purchase or supply of any On going Medical Consumables incurred by Company on behalf of subsidiary. February 08, 2022 Nil
goods or materials Value of transactions for financial year 2022-23 is Rs.0.89 crore.
Availing or rendering of any On going Availing or rendering of any services. Value of transactions for financial February 08, 2022 Nil
services year 2022-23 is Rs. 0.13 crore
10 Alfaone Medicals Private Interest on loan to related On going Interest on loan given to related party. Value of transactions for February 08, 2022 Nil
Limited, Company holds parties financial year 2022-23 is Rs. 9.69 crores.
15.98% Stake
 (INR in crores)
S. Name(s) of the related Nature of contract/ Duration of Salient terms of the contracts or arrangements or transactions Date(s) of Amount
No party and Nature of arrangements/transactions the contracts / including the value, if any approval by paid as
relationship arrangements/ the Board advances,
transactions if any
11 Alfaone Retail Availing or rendering of any On going Brand license fees. Value of transactions for financial year 2022-23 is February 08, 2022 Nil
Pharmacies Private services Rs. 1.47 crore.
Limited, Subsidiary of
Alfaone Medicals Private
Limited
12 Hindustan Pharma Availing or rendering of any On going Brand license fees. Value of transactions for financial year 2022-23 is February 08, 2022 Nil
Distributors Private services Rs. 0.01 crore.
Integrated Annual Report FY 2022-2023

Limited, Subsidiary in Guarantee commission On going Guarantee commission received on the corporate guarantee extended February 08, 2022 Nil
which the Company received on behalf of the loans availed by the subsidiary.Value of transactions
holds 86% stake for financial year 2022-23 is Rs.0.07 crore.
Interest on loan to related On going Interest on loan given to related party. Value of transactions for February 08, 2022 Nil
parties financial year 2022-23 is Rs. 0.80 crore.
Sale, purchase or supply of any On going Sale, purchase or supply of any goods or materials. Value of February 08, 2022 Nil
goods or materials transactions for financial year 2022-23 is Rs. 10.37 crores.
13 DM Education & Income from consultancy On going Income from consultancy services. Value of transactions for financial February 08, 2022 Nil
Research Foundation, Dr. services year 2022-23 is Rs. 2.22 crores.
Azad Moopen (Chairman Other expenses On going Other expenses. Value of transactions for financial year 2022-23 is Rs. February 08, 2022 Nil
and Managing Director), 9.98 crores.
Ms. Alisha Moopen Collection by Subsidiaries/ On going Insurance amount collected by DM Education & Research Foundation February 08, 2022 Nil
(Deputy Managing associates/related parties on on behalf of Company. Value of transactions for financial year 2022-23
Director), Mrs. Naseera behalf of company is Rs. 4.98 crores.
Azad (relative of Dr.
Azad Moopen), Ms.
Zeba Moopen (relative
of Dr. Azad Moopen) are
Trustees in this trust
14 Aster MIMS Academy Availing or rendering of any On going Income from Allied Health Science Program. Value of transactions for February 08, 2022 Nil
Trust, Dr. Azad Moopen services financial year 2022-23 is Rs. 1.00 crore.
(Chairman and Managing
Director), Mr. T . J Wilson
(Non-executive Director)
are Trustees in this trust

For and on behalf of the Board of Directors

STATUTORY REPORTS

Dr. Azad Moopen

Date : May 25, 2023 Chairman and Managing Director

127
Place : Bengaluru DIN: 00159403
Aster DM Healthcare Limited

Annexure-3
PARTICULARS OF EMPLOYEES
(Pursuant to Section 197 read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014)

a. The ratio of the remuneration of Directors and Key Managerial Personnel to the median remuneration of the employees of the Company for
the financial year 2022-23:
(Amount in INR crores except ratio to median)
Name of the Director/KMP and designation Remuneration paid Percentage increase Ratio to median
for FY 2022-23 in remuneration remuneration
Dr. Azad Moopen1 0.60 Nil 15.48
Chairman and Managing Director
Ms. Alisha Moopen2 0.30 Nil 7.74
Deputy Managing Director
Mr. T J Wilson3 Nil NA NA
Non-Executive Director
Mr. Anoop Moopen Nil NA NA
Non-Executive Director
Mr. Shamsudheen Bin Mohideen Mammu Haji Nil NA NA
Non-Executive Director
Mr. Daniel Robert Mintz Nil NA NA
Non-Executive Director
Prof. Biju Varkkey4 0.13 Nil 3.35
Non-Executive Independent Director
Dr. Layla Mohamad Hassan Ali Almarzooqi5 0.15 Nil 3.87
Non-Executive Independent Director
Mr. Chenayappillil John George 0.16 Nil 4.13
Non-Executive Independent Director
Dr. James Mathew 0.25 Nil 6.45
Non-Executive Independent Director
Mr. Sridar Arvamudhan Iyengar6 Nil NA NA
Non-Executive Independent Director
Mr. Wayne Earl Keathley 0.05 Nil 1.29
Non-Executive Independent Director
Mr. Emmanuel David Gootam7 0.04 Nil 1.03
Non-Executive Independent Director
Ms. Purana Housdurgamvijaya Deepti8 Nil Nil NA
Non-Executive Independent Director
Mr. Sreenath Reddy9 1.72 NA 44.32
Group Chief Financial Officer
Mr. Hemish Purushottam 0.28 8.6% 7.22
Company Secretary and Compliance Officer
Remuneration paid to Independent Directors comprises solely of sitting fees of INR 1,00,000 paid per Board / Committee meeting attended.
Hence, the total remuneration received will be based on the number of Board and committee meetings attended during the year. Additionally,
the Independent Directors are reimbursed for their expenses incurred in performance of official duties.

1. Dr. Azad Moopen received a gross remuneration of INR 0.60 crore during FY 2022-23. He has also received remuneration of AED 6.12 million and variable incentive of AED
1.8 million during FY 2022-23 from Dr. Moopen’s Healthcare Management Services LLC. He is entitled to gratuity payments and leave encashments as per the policies.
2. Ms. Alisha Moopen received a gross remuneration of INR 0.30 crore during FY 2022-23. She has also received remuneration of AED 2.70 million and variable
incentive of AED 0.52 million during FY 2022-23 from Dr. Moopen’s Healthcare Management Services LLC. She is entitled to gratuity payments and leave
encashments as per the policies.
3. Mr. T J Wilson received a remuneration of AED 1.76 million and variable incentive of AED 0.34 million during FY 2022-23 from Dr. Moopen’s Healthcare Management
Services LLC. He is entitled to gratuity payments and leave encashments as per the policies.
4. Prof. Biju Varkkey retired from the Board of Directors of the Company with effect from November 11, 2022.
5. Dr. Layla Mohamed Hassan Ali Almarzooqi retired from the Board of Directors of the Company with effect from March 27, 2023.
6. Mr. Sridar Arvamudhan Iyengar had waived off sitting fees for attending all the Board and Committee meetings for financial year ended March 31, 2023. He is
resigned as a Non-executive Independent Director of the Company with effect from May 23, 2023.

128
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

7. Mr. Emmanuel David Gootam was appointed as a Non-Executive Independent Director of the Company with effect from November 10, 2022.
8. Ms. Purana Housdurgamvijaya Deepti was appointed as a Non-Executive Independent Director of the Company with effect from March 27, 2023.
9. Mr. Sreenath Reddy resigned as Chief Financial officer of the Company with effect from January 05, 2023. He received remuneration of AED 0.62 million from Dr.
Moopen’s Healthcare Management Services LLC for the period April 01, 2022 to June 30, 2022. He has also received a gross remuneration of INR 1.72 crore from
Aster DM Healthcare Limited for the period July 01, 2022 to January 05, 2023. He is entitled to gratuity payments and leave encashments as per the policies.

b. The percentage increase in the median remuneration of employees in the financial year: 8%

c. The number of permanent employees on the rolls of Company: 4,993 (Standalone)

d. Average percentile increases already made in the salaries of employees other than the managerial personnel in the last financial year and its
comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional
circumstances for increase in the managerial remuneration: The average increase in the salaries of employees other than the managerial
personnel is 5.60% while there has been no change in the managerial remuneration during the financial year 2022-23.

e. The key parameters for any variable component of remuneration availed by the Directors: No variable component of remuneration availed
by the Directors.

f. The Company affirms that the remuneration is as per the remuneration policy adopted by the Company.

g. The names of the top ten employees in terms of remuneration drawn*

S. Name Designation Remuneration Nature of Qualification Experience Date of Age Previous % of If relative of
No of the received (in employment, in no. of commencement employer equity any Director
employee INR crores) whether years of employment shares or Manager
contractual or held of the
otherwise by the Company
employee and if
in the so, name
Company of such
Director or
Manager
1 Dr. Nitish Regional 2.13 Permanent MBBS, MD 31 24-10-2014 52 BGS Global 0.0063 NA
Shetty Director - Hospital
Karnataka &
Maharashtra
2 Mr. Sunil Country 1.31 Permanent CA 22 06-01-2014 39 Narayana Nil NA
Kumar Head Finance Hrudayalaya
MR & Accounts - Limited
Aster India
3 Mr. Country Head 1.23 Permanent PGDHR 27 28-09-2018 49 Columbia 0.0056 NA
Kalappa HR - Aster Asia Hospital
KB India Limited
4 Mr. S Chief 1.10 Permanent MBA, EGMP 31 12-10-2017 51 Apollo Nil NA
Ramesh Executive Hospital
Kumar Officer- Aster Limited
CMI
5 Dr. Harsha COO-Aster 1.10 Permanent BDS, MHM, 24 16-09-2019 48 Columbia 0.0009 NA
Rajaram Telehealth- PGDML Asia Hospital
India & GCC Limited

Notes:
*The employees in receipt of remuneration of not less than one crore and two lakh rupees per annum and not less than eight lakh and fifty thousand rupees per month
are covered in the list above.

h. If employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case
may be, at a rate which, in the aggregate, is in excess of that drawn by the Managing Director or Whole-time Director or Manager and holds by
himself or along with his spouse and dependent children, not less than two percent of the equity shares of the Company - Not Applicable

For and on behalf of the Board of Directors

Dr. Azad Moopen

Date : May 25, 2023 Chairman and Managing Director
Place : Bengaluru DIN: 00159403

129
Aster DM Healthcare Limited

Annexure-4
DISCLOSURE WITH RESPECT TO EMPLOYEES STOCK
OPTION PLAN (ESOP) OF THE COMPANY
(Pursuant to Rule 12 (9) of the Companies (Share Capital and Debentures) Rules, 2014 and SEBI Circular CIR/CFD/POLICY CELL/2/2015
dated June 16, 2015) and Regulation 14 of Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity)
Regulations, 2021)

A. Description on the ESOP Scheme

(a) Date of Shareholders’ approval – March 2, 2013 and December 22, 2018

(b) Total number of options approved under ESOP – 46,28,250

(c) Vesting requirements- Options granted shall not vest prior to expiry of 12 months from the date of grant. The details of vesting are
provided in Note 41 of standalone financial statements.

(d) Exercise price or pricing formula – The exercise price shall be in the range of from Rs.10 to a maximum of 25% discount on the fair
market value (Average of opening and closing price) on the latest trading day in NSE prior to Nomination & Remuneration Committee
meeting at which grant is made.

(e) Maximum term of options granted - 14 years

(f) Source of shares –Secondary

(g) Variation in terms of options – There has been no variation in the terms of options during the period under review.

(h) Material changes in the scheme and whether the scheme(s) is/are in compliance with the regulations – There has been no change in
the scheme during the period under review. The ESOP Scheme is in compliance with the Securities and Exchange Board of India (Share
Based Employee Benefits and Sweat Equity) Regulations, 2021

B. Accounting of ESOP

(a) Method used to account for ESOP’s -Fair value method is used for accounting of ESOPs.

(b) The impact on the profits and EPS of the Company- Refer Note 33 and 32 of standalone and consolidated financial statements
respectively.

(c) Relevant disclosures in terms of the 'Guidance note on accounting for employee share-based payments' issued by ICAI or any other
relevant accounting standards as prescribed from time to time -Refer Note 41 of standalone financial statements.

C. Option movement during the year

Particulars Milestone Incentive Performance Loyalty Total
Number of options outstanding at the beginning of the period - - 708,725 395,830 1,104,555
Number of options granted during the year - - 15,000 10,000 25,000
Number of options forfeited / lapsed during the year - - 112,889 51,000 163,889
Number of options vested during the year - - 301,294 41,430 342,724
Number of options exercised during the year - - 114,945 20,900 135,845
Number of shares arising as a result of exercise of options - - 114,945 20,900 135,845
Money realized by exercise of options (INR), if scheme is - - - - -
implemented directly by the company
Loan repaid by the Trust during the year from exerciseprice received - - - - -
Number of options outstanding at the end of the year - - 495,891 333,930 829,821
Number of options exercisable at the end of the year - - 309,741 156,775 466,516
Weighted-average exercise prices of options outstanding at the Refer Note 41 of standalone financial statements
end of year
Weighted-average fair values of options granted Refer Note 41 of standalone financial statements
Note: Includes options transferred post March 31, 2023 (Performance: 6,954, Loyalty:2,400)

130
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

D. Options granted to the employees of the Company during the year

(a) Options granted to Senior managerial personnel during the year:

Name of the employee Designation Type of No. of options Exercise Price
option granted (in J)
Mr. Amitabh Johri Chief Financial Officer- GCC Performance 15,000 155.71
Loyalty 10,000 10

(b) Any other employee who received a grant during the year, options amounting to 5% or more of option granted
during the year - NIL

(c) Identified employees who were granted options during the year, equal to or exceeding 1% of the issued capital
excluding outstanding warrants and conversions of the Company at the time of grant – NIL

E. Disclosures in respect of transactions made by Trust under ESOP Scheme

(a) General information on the scheme

S. No Particulars Details
1 Name of the Trust DM Healthcare Employees Welfare Trust
2 Details of the Trustee(s) Mr. Sooraj P and Mr. Monu Kurian
3 Amount of loan disbursed by Company/any Company in the group, Nil
during the year
4 Amount of loan outstanding (repayable to Company/ any Company INR 10.69 crore
in the group) as at the end of the year
5 Amount of loan, if any, taken from any other source for which Nil
Company/any Company in the group has provided any security or
guarantee
6 Any other contribution made to the Trust during the year Nil

(b) Brief details of transactions in shares by the Trust

Number of shares As a percentage of paid-up equity capital as at the end of the year
immediately preceding the year in which shareholders’ approval was obtained
Held at the beginning of the year 22,94,103 (0.46%)
Acquired during the year Nil
Sold during the year Nil
Transferred to the employees during the year 1,50,717 (0.03%)
Held at the end of the year 21,43,386 (0.43%)

F. A description of the method and significant assumptions used during the year to estimate the fair value of options
including the following information:

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.

(a) the weighted-average values of share price, exercise price, expected Refer Note 41 of standalone financial statements
volatility, expected option life, expected dividends, the risk-free interest
rate and any other inputs to the model
(b) the method used and the assumptions made to incorporate the effects of Refer Note 41 of standalone financial statements
expected early exercise
(c) Determination of expected volatility, including an explanation of the Refer Note 41 of standalone financial statements
extent to which expected volatility was based on historical volatility
(d) Other features of the option grant incorporated into the measurement of Refer Note 41 of standalone financial statements
fair value

131
Aster DM Healthcare Limited

G. Grants made in three years prior to IPO

Disclosures in respect of grants made in three years prior to IPO under DM Healthcare Employees Stock Option Plan:

Particulars Milestone Incentive Performance Loyalty Total

Number of options outstanding at the beginning of the period 5,747 5,372 38,110 40,180 89,409
Number of options granted during the period NA NA NA NA NA
Number of options forfeited / lapsed during the period - - 2,234 800 3,034
Number of options vested during the period - - 35,876 2,280 38,156
Number of options exercised during the period 5,747 5,372 35,876 15,350 62,345
Number of shares arising as a result of exercise of options 5,747 5,372 35,876 15,350 62,345
Number of options outstanding at the end of the period - - - 24,030 24,030

For and on behalf of the Board of Directors

Dr. Azad Moopen

Date : May 25, 2023 Chairman and Managing Director
Place : Bengaluru DIN: 00159403

132
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Annexure-5
ANNUAL REPORT ON CSR ACTIVITIES
(Pursuant to Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended)

1. Brief outline on CSR Policy of the Company: Aster strongly believes in giving back to the society. With the deeply ingrained values
like integrity and compassion, the organisation does not leave a stone unturned to contribute to the community at large. Sustainability and
community connect is one of the pillars on which the Mission 2025 of Aster DM is based on. Corporate Social Responsibility (CSR) is not
considered to be just a statutory requirement for the organisation, but the logical extension of its core values. Our CSR Policy aims to be
committed to all its stakeholders and implement community enablement programmes for sustainable socio-economic development. The
Company’s governance principles and the leadership has laid a strong foundation of giving back to the society that is imbibed in the culture.

Objectives of Aster’s CSR Policy:

• To undertake social projects in designated communities, in a focused manner to generate maximum positive impact.

• The Company is committed to all its stakeholders to conduct business in a socially and environmentally sustainable manner that is
transparent and ethical.

• Develop and implement community enablement programmes for sustainable socio-economic development.

• The Company is part of a bigger ecosystem of people, values, organizations, nature and environment, and the company understands
that it is its social responsibility to give back to the world.

2. Composition of CSR committee as on March 31, 2023 is as under:

Sl. Name of the Director Designation/ Number of meetings Number of meetings of
No Nature of of CSR Committee held CSR Committee attended
Directorship during the year during the year
1 Dr. Azad Moopen Chairman 2 2
2 Mr. Shamsudheen Bin Mohideen Mammu Haji Member 2 1
3 Mr. Anoop Moopen Member 2 1
4 Prof. Biju Varkkey1 Member 2 1
5 Dr. Layla Mohamed Hassan Ali Almarzooqi2 Member 2 2
6 Mr. Sridar Arvamudhan Iyengar3 Member 2 2
Note:

1. Prof. Biju Varkkey retired from the Board of Directors of the Company with effect from November 11, 2022.
2. Dr. Layla Mohamed Hassan Ali Almarzooqi retired from the Board of Directors of the Company with effect from March 27, 2023.
3. Mr. Sridar Arvamudhan Iyengar resigned as a Non-executive Independent Director of the Company with effect from May 23, 2023.

3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the board
are disclosed on the website of the company:

Composition of CSR Committee- https://www.asterdmhealthcare.com/investors/corporate-governance/board-committees

CSR Policy- https://www.asterdmhealthcare.com/fileadmin/user_upload/CSR_Policy_01.pdf

CSR Projects approved by the Board- https://www.asterdmhealthcare.com/fileadmin/user_upload/CSR_Projects_approved_for_

FY_2022-23_08.pdf

4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of Rule 8 of the
Companies (Corporate Social responsibility Policy) Rules, 2014, if applicable (attach the report): This is not applicable
as the CSR obligation does not exceed INR Ten crores. However, an impact study of all the CSR activities of the Company is conducted
through an internal organisation set-up.

133
Aster DM Healthcare Limited

5. Details of the amount available for set off in pursuance of sub-rule (3) of Rule 7 of the Companies (Corporate Social
responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: Not applicable

6. Average net profit of the Company as per Section 135(5): INR 27.78 crores

7. (a) Two percent of average net profit of the Company as per Section 135(5) - INR 0.57 crore

(b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years - Nil

(c) Amount required to be set off for the financial year, if any - Nil

(d) Total CSR obligation for the financial year (7a+7b-7c) - INR 0.57 crore

8. (a) CSR amount spent or unspent for the financial year:

Amount Unspent (in INR crores)
Total Amount transferred to Unspent Amount transferred to any fund specified under Schedule
CSR amount spent
CSR Account as per section 135(6) VII as per second proviso to section 135(5)
Amount Date of transfer Name of the Fund Amount Date of transfer
0.72 Not applicable Not applicable

(b) Details of CSR amount spent against ongoing projects for the financial year: Not applicable

(c) Details of CSR amount spent against other than ongoing projects for the financial year:

Sl. Name of the Item from the Local Location of the project Amount Mode of Mode of
No Project list of activities area spent implementation implementation -
in schedule VII to (Yes/ on the - Direct (Yes/ through implementing
the Act No) project No) agency
State District (in INR Name CSR
crores) registration
number
1 The Academy Promoting No Kerala Trivandrum 0.25 No The Academy of Magical
of Magical education, Sciences (Charitable
Sciences including special Trust)
education and
employment (CSR Registration
enhancing Number-
vocation skills CSR00003855)
especially among
children, women,
elderly and the
differently abled
and livelihood
enhancement
projects.
2 Mobile Medical Promotion Yes Karnataka Bengaluru 0.22 Yes Not applicable
Clinics - of healthcare
Operational including
Expenses preventive
healthcare
3 Mobile Medical Promotion No Kerala Ernakulam 0.25 No Aster DM Foundation
Clinic- Capital of healthcare (CSR Registration
Expenditure including Number -
preventive CSR00008601)
healthcare

134
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

(d) Amount spent in Administrative Overheads : Nil

(e) Amount spent on Impact Assessment, if applicable : Not applicable

(f) Total amount spent for the Financial Year (8b+8c+8d+8e) : INR 0.72 crore

(g) Excess amount for set off, if any

Sl. Particular Amount (in INR crores)
No
(i) Two percent of average net profit of the Company as per Section 135(5) 0.57
(ii) Total amount spent for the Financial Year 0.72
(iii) Excess amount spent for the financial year [(ii)-(i)] 0.15
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any -
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 0.15

Note: Though there is an excess spending of CSR for FY 2022-2023, the Board of Directors have decided to not set off the amount in
the coming years.

9. (a) Details of Unspent CSR amount for the preceding three financial years : Not applicable

(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s) : Not applicable

10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired
through CSR spent in the financial year: Not applicable

11. Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per Section
135(5): Not applicable

For and on behalf of the Board of Directors

Dr. Azad Moopen

Chairman and Managing Director
Date : May 25, 2023 and Chairman of CSR Committee
Place : Bengaluru DIN: 00159403

135
Aster DM Healthcare Limited

Annexure-6
Form MR 3

Secretarial Audit Report

For the financial year ended March 31, 2023

(Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 and

Regulation 24A(1) of the Securities and Exchange Board of India

(Listing Obligations and Disclosure Requirements) Regulations, 2015

To
The Members,
Aster DM Healthcare Limited
(CIN: L85110KA2008PLC147259)
No.1785, Sarjapur Road, Sector -1,
HSR Layout, Ward No.174, Agara Extension,
Bengaluru, Karnataka–560102, India.

I, M. Damodaran, Managing Partner of M Damodaran & Associates (v) The following Regulations and Guidelines prescribed under the
LLP, Practicing Company Secretaries have conducted the Secretarial Securities and Exchange Board of India Act, 1992 (‘SEBI Act’);
Audit of the compliance of applicable statutory provisions and the including amendment/ re-enactment made thereto;
adherence to good corporate practices by Aster DM Healthcare
Limited (hereinafter called the Company). Secretarial Audit was a) Securities and Exchange Board of India (Substantial
conducted in a manner that provided me a reasonable basis for Acquisition of Shares and Takeovers) Regulations, 2011;
evaluating the corporate conducts/statutory compliances and
b) Securities and Exchange Board of India (Prohibition of
expressing my opinion thereon.
Insider Trading) Regulations, 2015;
Based on my verification of the Company’s books, papers, minute
c) Securities and Exchange Board of India (Issue of Capital and
books, forms and returns filed and other records maintained by the
Disclosure Requirements) Regulations, 2018;
Company and also the information provided by the Company, its
officers, agents and authorized representatives during the conduct of d) Securities and Exchange Board of India (Share Based
secretarial audit, I hereby report that in my opinion, the Company has, Employee Benefits and Sweat Equity) Regulations, 2021;
during the audit period covering the financial year ended on March
31, 2023 complied with the statutory provisions listed hereunder and e) Securities and Exchange Board of India (Registrars to
also that the Company has proper Board-processes and Compliance- an Issue and Share Transfer Agents) Regulations, 1993
mechanism in place to the extent, in the manner and subject to the regarding the Companies Act and dealing with client;
reporting made herein:
f) Securities and Exchange Board of India (Listing Obligations
I have examined the books, papers, minute books, forms and returns and Disclosure Requirements) Regulations, 2015 [SEBI
filed and other records maintained by the Company for the financial (LODR)] ;
year ended on March 31, 2023 according to the provisions of:
(vi) The Management has identified and confirmed compliances with
(i) The Companies Act, 2013 (the Act) and the rules made certain laws as specifically applicable to the Company: Refer
thereunder; Annexure- A.

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the I have also examined compliance with the applicable Clauses of the
rules made thereunder; following:

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws i. The Listing Agreements entered into by the Company with BSE
framed thereunder; Limited and National Stock Exchange of India Limited and

(iv) Foreign Exchange Management Act, 1999 and the rules and ii. Secretarial Standards (SS-1) for Board Meeting and Secretarial
regulations made thereunder to the extent of Foreign Direct Standards (SS-2) – for General Meeting issued by the Institute of
Investment and Overseas Direct Investment; Company Secretaries of India.

136
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

During the period under review the Company has complied with I further report that the Company is in compliance with Regulation
the provisions of the Act, Rules, Regulations, Guidelines, Standards, 3(5) & 3(6) of SEBI (Prohibition of Insider Trading) Regulations, 2015
etc. mentioned above and there are no other specific observations with respect to Structured Digital Database.
requiring any qualification on non-compliances.
I further report that during the audit period there was no specific/
I further report that the Board of Directors of the Company is duly major events in the Company.
constituted with Executive Directors, Non-executive Directors and
Independent Directors. The changes in the composition of the Board
of Directors that took place during the period under review were
carried out in compliance with the provisions of the Act.
For M DAMODARAN & ASSOCIATES LLP
Adequate notice is given to all Directors to schedule the Board &
Committee Meetings, agenda and detailed notes on agenda were
sent at least seven days in advance, and a system exists for seeking M. Damodaran
and obtaining further information and clarifications on the agenda Managing Partner
items before the meeting and for meaningful participation at the FCS No.: 5837
meeting. As per the minutes of the meetings duly recorded and COP. No.:5081
signed by the Chairman, the decisions of the Board were unanimous FRN: L2019TN006000
and no dissenting views have been recorded. Place: Chennai PR 1374/2021
Date: May 25, 2023 ICSI UDIN: F005837E000380508
I further report that there are adequate systems and processes in
the Company commensurate with the size and operations of the (This report is to be read with my letter of even date which is annexed as
company to monitor and ensure compliance with applicable laws, Annexure B and forms an integral part of this report)
rules, regulations and guidelines.

137
Aster DM Healthcare Limited

Annexure-A
The Management has identified and confirmed compliances with following laws as specifically applicable to the
Company during the Audit period 2022-23:

1. Air (Prevention & Control of Pollution) Act 1981 and rules 32. Kerala Fire Force Act, 1962
thereunder.
33. Kerala Lifts and Escalators Act, 2013 and Kerala Lifts and
2. Atomic Energy (Radiation Protection) Rules, 2004 Escalators Rules, 2012

3. Atomic Energy Act, 1962 34. Transplantation Of Human Organs and Tissues Act, 1994

4. Batteries (Management and Handling) Rules, 2001 35. Kerala Panchayat Raj Act, 1994 and Kerala Panchayat
Raj (Registration of Private Hospitals and Paramedical
5. Bio-Medical Waste Management Rules, 2016
Establishments) Rules, 1997
6. Registration of Births and Deaths Act, 1969
36. Legal Metrology Act, 2009
7. Indian Medical Council (Professional conduct, Etiquette and
37. Medical Termination of Pregnancy Act, 1971
Ethics) Regulations, 2002
38. Minimum Wages Act, 1948
8. Contract Labour (Regulation & Abolition) Act, 1970
39. Narcotic Drugs and Psychotropic Substances Act, 1985
9. Copyright Act, 1957
40. Payment of Bonus Act, 1965
10. Drugs (Prices Control) Order, 2013
41. Payment of Gratuity Act, 1972
11. Drugs and Cosmetics Act, 1940
42. Payment of Wages Act, 1936
12. Electricity Act, 2003
43. Pre-Conception and Pre-Natal Diagnostic Techniques
13. Employees' Compensation Act, 1923
(Prohibition of Sex Selection) Act, 1994
14. Employees' Provident Funds and Miscellaneous Provisions Act,
44. Radiation Surveillance Procedures for Medical Application of
1952
Radiation, 1989
15. Employers State Insurance Act,1948
45. Sexual Harassment of Women at Workplace (Prevention,
16. Environment Protection Act, 1986 Prohibition arid Redressal) Act, 2013
17. Equal Remuneration Act, 1976 46. Shops and Commercial Establishment Acts, and
18. Food Safety and Standards Act, 2006 and Rules 2011 along with 47. The Drugs and Magic Remedies (Objectionable Advertisements)
regulations. Act, 1954
19. Goods and Service Act, 2014 48. The Explosives Act, 1884
20. Human Immunodeficiency Virus and Acquired Immune Deficiency 49. The Indian Boilers Act, 1923
Syndrome (Prevention and Control) Act, 2017
50. The Safety Code for Medical Diagnostic X-Ray Equipment and
21. Hazardous and Other Wastes (Management and Trans boundary Installations, 2001
Movement) Rules, 2016
51. Trademarks Act, 1999
22. Income Tax Act, 1961
52. Water (Prevention & Control of Poll ution) Act 1974 and rules
23. Indian Medical Council Act, 1956 thereunder
24. Indian Medical Degree Act, 1916 53. Water (Prevention & Control of Pollution) Cess Act, 1977
25. Indian Nursing Council Act, 1947

26. Indian Stamp Act,1999 For M DAMODARAN & ASSOCIATES LLP

27. Industrial Disputes Act, 1947

28. Inter-State Migrant Workers (Regulation of Employment and M. Damodaran

Conditions of Services) Act, 1979 Managing Partner
FCS No.: 5837
29. Karnataka Lifts, Escalators and Passenger Conveyors Act, 2012
COP. No.:5081
30. Karnataka Private Medical Establishments Act, 2007 FRN: L2019TN006000
Place: Chennai PR 1374/2021
31. Karnataka Fire Force Act, 1964
Date: May 25, 2023 ICSI UDIN: F005837E000380508

138
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Annexure-B

Disclaimer Certificate
To,
The Members,
Aster DM Healthcare Limited
(CIN: L85110KA2008PLC147259)
No.1785, Sarjapur Road, Sector -1,
HSR Layout, Ward No.174, Agara Extension,
Bengaluru, Karnataka - 560102, India.

My Secretarial Audit Report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the Company. My responsibility is to express an opinion on
these secretarial records based on my audit.

2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents
of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. I believe
that the processes and practices, I followed provide a reasonable basis for my opinion.

3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.

4. Wherever required, I have obtained the Management representation about the compliance of laws, rules and regulations and happening of
events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of management.
My examination was limited to the verification of procedures on test basis.

6. 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.

For M DAMODARAN & ASSOCIATES LLP

M. Damodaran
Managing Partner
FCS No.: 5837
COP. No.:5081
FRN: L2019TN006000
Place: Chennai PR 1374/2021
Date: May 25, 2023 ICSI UDIN: F005837E000380508

139
Aster DM Healthcare Limited

Annexure-6A
SECRETARIAL COMPLIANCE REPORT OF ASTER DM HEALTHCARE
LIMITED FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
(Pursuant to Regulation 24A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
read with SEBI Circular No. CIR/CFD/CMD1/27/2019 dated February 08, 2019)

I have conducted the review of the compliance of the applicable b) Securities and Exchange Board of India (Issue of Capital and
statutory provisions and the adherence to good corporate practices by Disclosure Requirements) Regulations, 2018.
Aster DM Healthcare Limited (hereinafter referred as ‘the Company’),
having its Registered Office at No.1785, Sarjapur Road, Sector -1, c) Securities and Exchange Board of India (Substantial Acquisition
HSR Layout, Ward No.174, Agara Extension, Bengaluru - 560102. of Shares and Takeovers) Regulations, 2011.
Secretarial Review was conducted in a manner that provided me a
d) Securities and Exchange Board of India (Buyback of Securities)
reasonable basis for evaluating the corporate conducts/statutory
Regulations, 2018 – Not applicable during the review period.
compliances and to provide my observations thereon.
e) Securities and Exchange Board of India (Share Based Employee
Based on my verification of the Company’s books, papers, minutes
Benefits and Sweat Equity) Regulations, 2021.
books, forms and returns filed and other records maintained by the
company and also the information provided by the company, its f) Securities and Exchange Board of India (Issue and Listing of Non-
officers, agents and authorized representatives during the conduct Convertible Securities) Regulations, 2021 - Not applicable during
of Secretarial Review, I hereby report that the company has, during the review period.
the review period covering the financial year ended on March 31,
2023 complied with the statutory provisions listed hereunder in the g) Securities and Exchange Board of India (Prohibition of Insider
manner and subject to the reporting made hereinafter : Trading) Regulations, 2015.

I, M. Damodaran, Managing Partner of M Damodaran & Associates h) Securities and Exchange Board of India (Registrars to an Issue
LLP, Practicing Company Secretaries have examined: and Share Transfer Agents) Regulations, 1993 regarding the
Companies Act and dealing with client and ESOP.
a) all the documents and records made available to me and
explanation provided by the Company, i) Securities and Exchange Board of India (Depositories and
Participants) Regulations, 2018.
b) the filings/ submissions made by the Company to the stock
exchanges, j) Securities and Exchange Board of India (Delisting of Equity
Shares) Regulations, 2021 - Not Applicable during the review
c) website of the Company, period.

d) any other document/ filing, as may be relevant, which has been and circulars/ guidelines issued thereunder;
relied upon to make this certification, for the year ended March
31, 2023 (“Review Period”) in respect of compliance with the and based on the above examination, I hereby report that, during the
provisions of: Review Period:

i. Securities and Exchange Board of India Act, 1992 (“SEBI a) The Company has complied with the provisions of the above
Act”) and the Regulations, circulars, guidelines issued there Regulations and circulars/ guidelines issued thereunder, during
under; and the review period.

ii. Securities Contracts (Regulation) Act, 1956 (“SCRA”), rules b) The action taken by the Company to comply with the observations
made there under and the Regulations, circulars, guidelines made by the Auditor in the previous reports are specified in
issued there under by the Securities and Exchange Board of Annexure – A:
India (“SEBI”);
c) The Company has suitably included the conditions as
The specific Regulations prescribed under the SEBI Act whose mentioned in Para 6(A) and Para 6(B) of the SEBI Circular CIR/
provisions and the circulars/guidelines issued thereunder, (wherever CFD/CMD1/114/2019, dated October 18, 2019 in terms of
applicable), have been examined, include:- appointment of Statutory Auditor of the Company.

a) Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’)

140
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

I hereby report that, during the Review Period the compliance status of the Company is appended as below:

Sr. Compliance Status Observations/Remarks by

Particulars
No (Yes/No/NA) PCS
1. Secretarial Standards: Yes -
The compliances of the Company are in accordance with the applicable
Secretarial Standards (SS) issued by the Institute of Company Secretaries
India (ICSI), as notified by the Central Government under Section 118(10) of
the Companies Act, 2013 and mandatorily applicable.
2. Adoption and timely updation of the Policies: Yes -
• All applicable policies under SEBI Regulations are adopted with the
approval of Board of Directors of the Company
• All the policies are in conformity with SEBI Regulations and have been
reviewed & updated on time, as per the regulations/circulars/guidelines
issued by SEBI.
3. Maintenance and disclosures on Website: Yes -

• The Company is maintaining a functional website.

• Timely dissemination of the documents/ information under a separate
section on the website.
• Web-links provided in annual corporate governance reports under
Regulation 27(2) are accurate and specific which re-directs to the
relevant document(s)/ section of the website.
4. Disqualification of Director: Yes -
None of the Director(s) of the Company is disqualified under Section 164 of
Companies Act, 2013 as confirmed by the Company.
5. Details related to Subsidiaries of the Company have been examined w.r.t.: Yes -

(a) Identification of material subsidiary companies.

(b) Disclosure requirement of material as well as other subsidiaries.
6. Preservation of Documents: Yes -
The Company is preserving and maintaining records as prescribed under
SEBI Regulations and disposal of records as per Policy of Preservation of
Documents and Archival policy prescribed under SEBI LODR Regulations,
2015.
7. Performance Evaluation: Yes -
The Company has conducted performance evaluation of the Board,
Independent Directors and the Committees at the start of every financial
year as prescribed in SEBI Regulations.
8. Related Party Transactions: Yes -
(a) The Company has obtained prior approval of Audit Committee for all
related party transactions; or
(b) The Company has provided detailed reasons along with confirmation
whether the transactions were subsequently approved/ratified/rejected
by the Audit Committee, in case no prior approval has been obtained.
9. Disclosure of events or information: Yes -
The Company has provided all the required disclosure(s) under Regulation
30 along with Schedule III of SEBI LODR Regulations, 2015 within the time
limits prescribed thereunder.
10. Prohibition of Insider Trading: Yes -
The Company is in compliance with Regulation 3(5) & 3(6) of SEBI (Prohibition
of Insider Trading) Regulations, 2015.

141
Aster DM Healthcare Limited

Sr. Compliance Status Observations/Remarks by

Particulars
No (Yes/No/NA) PCS
11. Actions taken by SEBI or Stock Exchange(s), if any: NA No action(s) has been taken
against the Company /
No action(s) has been taken against the Company / its Promoters/ Directors/ its Promoters/ Directors/
Subsidiaries either by SEBI or by Stock Exchanges (including under the Subsidiaries either by SEBI or
Standard Operating Procedures issued by SEBI through various circulars) by Stock Exchanges
under SEBI Regulations and circulars/ guidelines issued thereunder.
12. Additional Non-compliances, if any: NA No additional non-compliance
No additional non-compliance observed for any SEBI regulation/circular/ observed
guidance note etc.

Assumptions & Limitation of scope and Review:

1. Compliance of the applicable laws and ensuring the authenticity of documents and information furnished, are the responsibilities of the
management of the Company.

2. My responsibility is to report based upon my examination of relevant documents and information. This is neither an audit nor an expression
of opinion.

3. I have not verified the correctness and appropriateness of financial Records and Books of Accounts of the Company.

4. This Report is solely for the intended purpose of compliance in terms of Regulation 24A (2) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 and 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.

For M DAMODARAN & ASSOCIATES LLP

M. Damodaran
Managing Partner
FCS No.: 5837
COP. No.:5081
FRN: L2019TN006000
Place: Chennai PR 1374/2021
Date: May 25, 2023 ICSI UDIN: F005837E000380530

142
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Annexure- A
The Company has taken the following actions to comply with the observations made in previous reports:

Compliance Type of Action

Requirement (Advisory/ Observations/
(Regulations/ Clarification/ Remarks of
Sr. Regulation/ Action Details of Fine Management
circulars / Deviations Fine/Show the Practicing Remarks
No Circular No. Taken by Violation Amount Response
guidelines Cause Notice/ Company
including specific Warning, Secretary
clause) etc.)

1. As per Regulation Regulation The composition No action NA The Company NA The Company The Company has NA
17 (1) (b) of SEBI 17 (1) (b) of of the Board was taken has complied has complied complied with
LODR, where the SEBI LODR 12 Directors with with Regulation with regulation regulation
listed entity does 6 Independent 17(1) (b) of SEBI 17(1) (b) of SEBI during the period
not have a regular Directors and 6 LODR during LODR during the except for 18
non-executive non Independent the period period except for days i.e., from
chairperson, at Directors. except for 18 18 days i.e., from September
least half of the days i.e., from September 16, 16, 2021 to
Board of Directors Mr. Suresh September 2021 to October October 03, 2021.
shall comprise Muthukrishna 16, 2021 to 03, 2021. The lag was due
of Independent Kumar, an October 03, to the
Directors Independent 2021. delay in obtaining
Director of the DIN of the
Company, retired Independent
from the Board Director resident
from the closure in USA due to
of business hours Covid-19.
on September 15,
2021. Subsequently,
Mr. Wayne Earl
Due to the Keathley was
retirement of the appointed
above Director, the as an Independent
total strength of Director of the
the Independent Company w.e.f.
Directors on the October
Board came down 04, 2021.
from 6 to 5.

Subsequently, Mr.
Wayne Earl Keathley
was appointed as
an Independent
Director of the
Company w.e.f.
October 04, 2021.

143
Aster DM Healthcare Limited

Annexure-6B
Form No. MR – 3

Secretarial Audit Report

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014

To,
The Members,
Malabar Institute of Medical Sciences Ltd
Govindapuram P O, Calicut – 673 016, Kerala

We have conducted the secretarial audit of the compliance of f) Payment of Gratuity Act, 1972 and rules made thereunder
applicable statutory provisions and adherence to good corporate
practices by MALABAR INSTITUTE OF MEDICAL SCIENCES LTD g) Contract Labour (Regulation & Abolition) Act, 1970
(CIN: U85110KL1995PLC008677) (hereinafter called the Company)
h) The Water (Prevention and Control of Pollution) Act, 1974
for the year ended March 31, 2023. Secretarial Audit was conducted
read with the Water (Prevention and Control of Pollution)
in a manner that provided us a reasonable basis for evaluating the
Rules, 1975
corporate conducts/statutory compliances based on the available
books, documents and returns provided by the Company and i) The Air (Prevention & Control of Pollution) Act, 1981
expressing our opinion thereon.
j) Hazardous Waste Handling and Management Act, 1989
Based on our verification of the available books, papers, minute
books, forms and returns filed and other records maintained by the k) Food Safety and Standard Act, 2006 and rules made
Company and also with the available information provided by the thereunder
Company, its officers, agents and authorized representatives during
l) The Foreign Exchange Management Act, 1999
the conduct of secretarial audit, we hereby report that in our opinion,
the Company has, during the audit period covering the financial year m) The Sexual Harassment of Women at Workplace
ended on March 31, 2023 has more over complied with the statutory (Prevention, Prohibition and Redressal) Act, 2013
provisions listed hereunder and also that the Company has proper
board-processes and compliance-mechanism in place to the extent, n) Indian Trust Act, 1882
in the manner and subject to the reporting made hereinafter:
o) Depositories Act, 1996
We have examined the available books, papers, minute books,
forms and returns filed and other records maintained by MALABAR (iii) The following Act, Rules and Regulations applicable specifically
INSTITUTE OF MEDICAL SCIENCES LTD (“the Company”) for the to the Company;
financial year ended on March 31, 2023 according to the provisions of:
a) Drugs and Cosmetics Act, 1940
(i) The Companies Act, 2013 (the Act) and the rules made there
b) Pharmacy Act, 1948
under;
c) Pre – natal Diagnostic Techniques (Regulation and
(ii) Other applicable Acts and Rules:
Prevention of misuse) Act, 1994
a) Payment of Wages Act, 1936 and rules made thereunder
d) Transplantation of Human Organs Act, 1994
b) The Minimum Wages Act, 1948 and the rules made
e) The Indian Medical Council Act, 1956
thereunder
f) The Indian Medical Degree Act, 1960
c) Employee State Insurance Act, 1948 and rules made
thereunder g) The Indian Nursing Council Act, 1947

d) The Employee Provident Fund and Miscellaneous Provisions h) The Dentist Act, 1948
Act, 1952 and the rules made thereunder
i) Atomic Energy Act, 1962
e) The Payment of Bonus Act, 1965 and the rules made
thereunder

144
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

(iv) The Company being an unlisted public Company, regulations of of Independent Directors have been made by the Company by
Securities and Exchange Board of India (SEBI) are not applicable changing the designation of existing directors to Independent
to it. The Company was also not required to enter into listing Directors.
agreements with any stock exchange in India.
We further report that there are adequate systems and processes
We Report that: in the Company commensurate with the size and operations of the
Company to monitor and ensure compliance with applicable laws,
During the period under review, the Company has moreover complied rules, regulations and guidelines.
with the provisions of the Act, Rules, Regulations and Guidelines
mentioned.
For Ashique and Associates
We further report that the compliance by the Company of applicable
Practicing Company Secretaries
financial laws like Direct and indirect tax laws has not been reviewed
in this Audit since the same have been subject to review by statutory
financial audit carried out by other designated professionals.
CS Ashique A M
We Further Report That: Managing Partner
FCS No: 6900
The Board of Directors of the Company is constituted with Executive Place: Calicut COP No: 7377
Directors and Non – Executive Directors. However the appointments Date: July 06, 2023 ICSI UDIN: F006900E000556592

145
Aster DM Healthcare Limited

Annexure-7
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND
FOREIGN EXCHANGE EARNINGS AND OUTGO

The information on conservation of energy, technology absorption is amounting to INR 32.58 Lakhs savings from October 2022 to
and foreign exchange earnings and outgo stipulated under Section Mar 2023.
134(3)(m) of the Companies Act, 2013 read with Rule 8 of the
Companies (Accounts) Rules,2014 is given below: Water: At Aster CMI, we have been successful in utilizing 100%
recycled water about 45745 KL annually for the FY 2022-23
for landscaping and other non-critical utilities with a savings of
A. CONSERVATION OF ENERGY around INR 2.5 Lakh per month amounting to INR 30.49 Lakhs
per annum.
The Company constantly strives towards conservation of energy
and energy optimisation by taking several steps to integrate At Aster Women & Children Hospital Whitefield, Bengaluru we
renewable energy into our operations. At Aster, we have mapped have been successful in utilizing 100% recycled water for toilet
our entire energy footprint and have set strategy to manage the flushing and other non-critical utilities on an average about
same. Substantial quality interventions have given a new insight 449.5KL of water is saved and annually 5394 KL. Further, we
and scope for improvements in the engineering infrastructure of have also installed water aerators on all public restrooms and
the hospitals. Rapid technological advancement has paved way handwash basin/sinks, by which we are able to save 6 litres
for the growth of intelligent infrastructural designing leading to water saving per minute/unit leading to total water savings per
the stronger infrastructure and effective use of resources that month is about 1,20,000 litres and 1440 KL approximately.
in turn involves in providing quality services. To invoke a sense
of a continuous process and creating an environment physically At Aster RV, we have been successful in utilizing 100% recycled
healthy and psychologically appropriate, “Healing Architecture” water for landscaping and other non-critical utilities annually
is adopted by hospitals. This architecture would indirectly 30495 KL fresh water is saved and monthly 2541 KL.
contribute to the patient’s outcome such as shorter length of
stay, reduced stress, increased patient satisfaction, therefore Aster Medcity is having 1 MLD (Million Litters per day) capacity
leading to the delivery of quality care. STP. It treats average 635 KL of water per day and reuses treated
effluent water for cooling tower, landscaping and Toilet flushing.
Proficient hospital design may lead a great business outcome, This use of recycled water helps in saving 1,57,842 KL of fresh/
as patients are looking for quality care in a safe and healthy potable water use per annum which is amounting to INR 1.42
environment. Aster CMI Hospital is one such hospital under crore. In addition, tap aerators and water pressure compensators
Aster DM Healthcare has strived to execute the best engineering are fitted in all water taps and health faucets to save 50-70 %
Infrastructure by adopting to the Green Hospital Concept. water consumed through water taps and health faucets. The
amount of water saved through this initiative is 11,000 KL per
Our hospital has effectively implemented the energy and water annum.
conservation initiatives with utilization of Solar, Hydel and Wind
Power.
B. TECHNOLOGY ABSORPTION
Solar & Wind energy: Aster CMI Hospital in Bengaluru is one
of the first hospitals to get GREEN POWER tag under Aster DM Our leadership believes that ultimate health attainment is
Healthcare. 90% of our hospital power utilization is from Solar, physical, mental, spiritual, and social and, innovation and
Hydel and Wind Energy. Our savings by utilizing solar and wind sustainable care go hand-in hand. During the financial year
power is about 40.35% of the total power cost for the financial 2022-23, the Company has taken the following steps related to
year 2022-23. Savings in terms of INR is 23.19 Lakhs per month technology absorption.
i.e INR 22.78 crores per annum.
Intra Operative Neuro Monitoring (IONM) System: Intra
At Aster RV Hospital, Bengaluru we have continued to wheel Operative Neurophysiological Monitoring (IONM) helps assess
energy from green sources that has helped in reducing the cost the integrity of neural structures and consciousness during
of the electricity utilized in the hospital. The introduction of Green surgical procedures. It includes both continuous monitoring of
Power has fetched us a savings of around INR 5.25 Lakhs per neural tissue as well as the localization of vital neural structures.
month aggregating to INR 63 Lakhs per annum. IONM is a procedure to continuously monitor the nervous
system's functional integrity during operations involving the
Aster Medcity implemented HVAC plant room automation brain and spinal cord. Electrodes or needles attached to the
to save 15 % of power consumption in HVAC high side. Power patient's relevant anatomy continuously transmit information,
saving achieved through this initiative is 3,62,000 KWh , which which can be viewed on a monitor.

146
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Neuro Navigation System & MER: Neuronavigation is the set surgeon’s ability to visualize blood flow in vessels and related
of computer-assisted technologies used by neurosurgeons to tissue perfusion during plastic, microsurgical, reconstructive and
guide or "navigate” within the confines of the skull or vertebral gastrointestinal procedures.
column during surgery and used by psychiatrists to accurately
target TMS (Transcranial Magnetic Stimulation). It provides Ortho Robotic System (Robot Assisted Orthopedic Surgery
intraoperative orientation to the surgeon, helps in planning a System): Robot Assisted Orthopedic Surgery enables precise
precise surgical approach to the targeted lesion and defines the movements that preserve bone and tissue and often result
surrounding neurovascular structures. Mechanical endovascular in a faster recovery and less muscle and soft tissue damage.
reperfusion (MER) is an intervention that physically removes Computer-assisted surgery uses technology such as robots,
the blood clot from the vessel when a patient is suffering from accelerometers, gyroscopes, and pressure sensors, which help
a large vessel occlusion or blockage. The procedure is primarily doctors properly position implants. It is ideal for total joint
performed on patients with acute ischemic strokes. replacement, such as hip and knee, as the bone can be treated as
a fixed object.
Optical Coherence Tomography (OCT): Optical Coherence
Tomography (OCT) is a non-invasive diagnostic instrument used AcuPulse™ DUO CO2 Laser System: C02 laser resurfacing uses
for imaging the retina. It has the ability to detect problems in pulses of laser light. These beams penetrate the skin's surface,
the eye prior to any symptoms being present in the patient. OCT where water in the skin cells absorbs them. When this happens,
images aids in viewing many layers beneath the surface of the the epidermis, or superficial layer of the skin, is vaporized. The
retina, which helps to spot changes to eye health earlier than just dermis, or middle layer, heats up, stimulating the growth of
looking at the surface. new collagen fibers. Carbon dioxide laser skin resurfacing is a
technique effective for both cosmetic and medical applications.
Robotic System: Robotic surgery, also called robot-assisted It is an excellent modality for treating and preventing wrinkles
surgery, allows doctors to perform many types of complex and skin laxity that occur with photoaging. It is also effective
procedures with more precision, flexibility and control than is in the treatment and prevention of keratinocyte skin cancers.
possible with conventional techniques. Robotic surgery is usually AcuPulse™ DUO CO2 Laser System offers three power and
associated with minimally invasive surgery — procedures time exposure modes to enable customized energy delivery for
performed through tiny incisions. Robot Assisted Surgery controlled laser-tissue interaction:
System consists of three primary components:
CW - Steady, continuous beam of energy, when coagulation is
(1) a viewing and control console that is used by surgeon, required.

(2) a vision cart that holds the endoscopes and provides visual Pulser - Constant frequency with variable pulse length, yielding
feedback and the required average power.

(3) manipulator arm unit that includes three or four arms, Super Pulse - Continuous series of short-duration, high-peak
depending on the model. power pulses, for char-free outcomes.

LAP Tower (3D, 4K & HD): Laparoscopic surgery refers to surgical Gamma Probe: A gamma probe is a hand-held device for
procedures that are performed through one or multiple small intraoperative use following interstitial injection of a radionuclide,
incisions, rather than through a larger, usually single, incision to locate sentinel lymph nodes by their radioactivity. It is used
through the abdominal wall. Laparoscopy Tower provides primarily for sentinel lymph node mapping and parathyroid
visualization and documentation of procedures. It has the surgery. The EuroProbe 3.2 surgical probe is used for easy
capacity for arthroscopy and other rigid endoscopy procedures. and accurate detection of the Tc-99m labeled sentinel node.
The laparoscopic tower has a monitor (HD/3D/4K) that makes it The system can also be used to detect I-125 seeds for tumor
possible to distinguish whether the blood perfusion to organs and localization. Both procedures can be performed separate or
tissues is adequate. The components of a laparoscope are light simultaneously.
post, light fibers, lens system, lens train, the shaft carrying the lens
train, lens assembly at the proximal end and the eye-piece. ElectroPhysiology (EP): An electrophysiology (EP) study is a test
performed to assess the heart's electrical system or activity and
ICG Camera & Fluorescence Imaging Sytem: ICG is a is used to diagnose abnormal heartbeats or arrhythmia. The test
tricarbocyanine dye which fluoresces, i.e. emits light, after is performed by inserting catheters and then wire electrodes,
excitation under near-infrared light at 806 nm light. ICG is which measure electrical activity, through blood vessels that
highly soluble in water and binds to ß-lipoproteins, particularly enter the heart. The WorkMate Claris™ System is a highly
to albumin. Because of the high protein content of lymph, ICG sophisticated workstation that provides electrogram acquisition
accumulates in the lymphatic pathways and lymph nodes. while serving as the technology platform for the seamless
ICG is used as a marker in the assessment of the perfusion of integration with other systems and products used in the EP lab.
tissues and organs. The light needed for the excitation of the
fluorescence is generated by a near infrared light source which Spine Endoscopy: Endoscopic spine surgery (ESS) is an ultra-
is attached directly to a camera. This visualization platform minimally invasive surgical procedure that effectively relieves
delivers high level visualization for both minimally invasive and chronic low back and leg pain. This state-of-the-art spine
open surgeries. The platforms distinct modalities enhance the surgery utilizes an 4K camera attached to an endoscope inserted

147
Aster DM Healthcare Limited

through a ¼ inch skin incision to the target pain generator in are cancers that are not leukemia or lymphoma. Scalp cooling
the spine. RIWOspine pain therapy instruments are specially involves wearing a cold cap on the head before, during, and
developed for precise 4 MHz radiofrequency application. Safe after receiving chemotherapy. By cooling the scalp, scalp blood
coagulation and ablation of the nerve structures can be achieved vessels narrow, which results in less chemotherapy reaching
by working frequency of 4 MHz, an effective tissue-preserving the hair follicles. In addition, cooler hair follicles become inactive,
coagulation system. making them less susceptible to the treatment. The result can
be reduced hair loss. Paxman Scalp Cooling System provides the
Scalp Cooling System: Scalp cooling is a way to reduce hair loss leading scalp-cooling technology for preventing chemotherapy-
for patients on chemotherapy to treat solid tumors. Solid tumors induced alopecia.

a. Imported Technology (imported during last three years)

Details of technology imported Year of import Whether technology If not fully absorbed,
has been fully areas where absorption
absorbed has not taken place and
reasons
Physiological Patient Monitoring Systems 2020-21 Yes NA
Anaesthesia Machine 2020-21 Yes NA
High-frequency Oscillatory Ventilation 2020-21 Yes NA
Medical Furniture 2020-21 Yes NA
OT Tables & Lights 2020-21 Yes NA
Steam Sterilizer 2020-21 Yes NA
Syringe & Infusion Pumps 2020-21 Yes NA
Intensive care Ventilators 2020-21 Yes NA
Ventilators HFO 2021-22 Yes NA
Nitric Oxide Delivery Unit 2021-22 Yes NA
Cryoablation 2021-22 Yes NA
ERBE CRYO2 2021-22 Yes NA
DBS Programmer 2021-22 Yes NA
Apheresis Machine 2021-22 Yes NA
Intra Operative Neuro Monitoring (IONM) System 2022-23 Yes NA
Neuro Navigation System & MER 2022-23 Yes NA
Optical Coherence Tomography (OCT) 2022-23 Yes NA
Robotic System 2022-23 Yes NA
LAP Tower (3D, 4K & HD) 2022-23 Yes NA
ICG Camera & Fluorescence Imaging System 2022-23 Yes NA
Ortho Robotic System (Robot Assisted Orthopedic 2022-23 Yes NA
Surgery System)
AcuPulse™ DUO CO2 Laser System 2022-23 Yes NA
Gamma Probe 2022-23 Yes NA
ElectroPhysiology (EP) 2022-23 Yes NA
Spine Endoscopy 2022-23 Yes NA
Scalp Cooling System 2022-23 Yes NA

b. Expenditure on Research and Development: Nil (Standalone)

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

(in INR crores)
Particulars 2022-23 2021-22
Earnings 62.17 80.68
Expenditure 14.48 4.58
Net Foreign Exchange earnings 47.70 76.10
NFE/earnings (%) 76.72% 94.32%

For and on behalf of the Board of Directors

Dr. Azad Moopen

Date : May 25, 2023 Chairman and Managing Director
Place : Bengaluru DIN: 00159403

148
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Annexure-8
CORPORATE GOVERNANCE REPORT

1. Company's philosophy on corporate governance and subsidiary companies, the significant transactions and
arrangements entered into by the subsidiary companies,
Your Company’s philosophy on Corporate Governance is based adoption of financial results, transaction pertaining to
on holistic approach not only towards its own growth but purchase or disposal of properties, major accounting
also towards maximization of benefits to the shareholders, provisions and write-offs, details of any joint ventures or
employees, customers, Government and also the general public collaboration agreement, etc.
at large. Transparency and accountability are the fundamental
principles of sound Corporate Governance, which ensures that The Company Secretary records minutes of the proceedings
the Organization is managed and monitored in a responsible of each Board and Committee meetings. Draft minutes are
manner for creating and sharing stakeholder’s value. circulated to Board /Committee members within fifteen
days from the meeting for their comments. Directors
Your Company is always committed to good Corporate communicate their comments (if any) in writing on the draft
Governance and its adherence to best practices and its philosophy minutes within seven days from the date of circulation.
is based on five basic elements namely, Board’s accountability, The Minutes are entered in the Minute Books within thirty
value creation, strategic-guidance, transparency and equitable days from the conclusion of the meeting and signed by the
treatment to all stakeholders. The Company has adopted a Code Chairperson at the subsequent meeting.
of Conduct for its Directors and Senior Management, the Code for
prevention of Insider Trading which strengthens the Company’s The guidelines for Board and Committee meetings facilitate
corporate governance philosophy and through the timely an effective post meeting follow-up, review and reporting
disclosure of various material events through the Exchanges as process for decisions taken by the Board and Committees
well as the Company’s website, we ensure that the Company thereof. Important decisions taken at Board/Committee
strictly adheres to the values of Corporate Governance. meetings are promptly communicated to the concerned
departments/ divisions. Action taken Report on decisions/
Your Company is not only in compliance with the requirements minutes of the previous meeting(s) is placed at the
stipulated under SEBI (Listing Obligations & Disclosure succeeding meeting of the Board/Committee for noting.
Requirements) Regulations, 2015 (“Listing Regulations”) with
regard to corporate governance but is also committed to sound b. Composition and category of Directors,
corporate governance principles and practice and constantly attendance of Directors at meetings and
strives to adopt emerging best corporate governance practises disclosure of relationship between Directors
being followed worldwide. inter-se

A report on compliance with corporate governance principles as Your Board consists of an optimal combination of Executive,
prescribed under the Listing Regulations is given below. Non-Executive and Independent Directors, representing a
judicious mix of in-depth knowledge and experience. The
composition of the Board of your Company is in conformity
2. Board of Directors
with Regulation 17 of the Listing Regulations and Section
a. Board Procedure 149 of Companies Act, 2013 (“the Act”).

A detailed agenda and notes thereon are sent to As on March 31, 2023, the Board of Directors has 12 Members
each Director at least seven days in advance of Board viz. 10 Non-Executive Directors including 6 Independent
and Committee Meetings. All material information is Directors, 1 Managing Director and 1 Deputy Managing
incorporated in the agenda for facilitating meaningful and Director. The profiles of Directors are available on the website
focused discussions at the meeting. The Board reviews of the Company at https://www.asterdmhealthcare.com/
strategy and business plans, annual operating plans and investors/corporate-governance/board-of-directors. Dr. Azad
capital expenditure budgets, investments, compliance Moopen is related to Ms. Alisha Moopen (Daughter) and Mr.
reports, as well as steps taken by the Company to rectify Anoop Moopen (son-in-law). Apart from the said Directors, no
instances of non-compliances, if any. The Board also reviews other Director on our Board is related to each other.
minutes of meeting of various Committees of the Board

149
 The names and categories of the Directors on the Board, their attendance at Board Meetings held during the year and at the last Annual General Meeting (AGM) are given below.

150
Attendance of Directors during financial year 2022-2023
Board attendance
Name of the Director DIN Designation Category AGM held Number of Board meeting Entitled % of attendance
on August 1 2 3 4 5 6 7 to attend
25, 2022 
May 24, June 10, August November December February March 27,
2022 2022 11, 2022 10, 2022 02, 2022 14, 2023 2023
Dr. Azad Moopen 00159403 Chairman and Promoter,
Aster DM Healthcare Limited

7 7 100
Managing Director Executive
Ms. Alisha Moopen 02432525 Deputy Managing Executive
7 7 100
Director
Mr. T J Wilson 02135108 Director Non-Executive
7 7 100

Mr. Anoop Moopen 02301362 Director Non-Executive

7 7 100

Mr. Shamsudheen Bin 02007279 Director Non-Executive

L 7 7 100
Mohideen Mammu Haji
Mr. Daniel Robert Mintz 00960928 Director Non-Executive
L 7 7 100
1
Prof. Biju Varkkey 01298281 Director Non-Executive,
4 4 100
Independent
Dr. Layla Mohamed 08401425 Director Non-Executive,
L 7 6 86
Hassan Ali Almarzooqi2 Independent
Mr. Chenayappillil John 00003132 Director Non-Executive,
L L 7 6 86
George Independent
Dr. James Mathew 07572909 Director Non-Executive,
7 7 100
Independent
Mr. Sridar Arvamudhan 00278512 Director Non-Executive,
7 7 100
Iyengar5 Independent
Mr. Wayne Earl Keathley 09331921 Director Non-Executive,
L L 7 5 71
Independent
Mr. Emmanuel David 09771151 Director Non-Executive,
3 3 100
Gootam3 Independent
Ms. Purana 08125456 Director Non-Executive,
NA
Housdurgamvijaya Deepti4 Independent
% of attendance 75 100 83 92 100 100 100 92

In Present L Leave of absence Attended through video call Not Applicable

 Attended
Notes:
1. Prof. Biju Varkkey retired from the Board of Directors of the Company with effect from November 11, 2022.
2. Dr. Layla Mohamed Hassan Ali Almarzooqi retired from the Board of Directors of the Company with effect from March 27, 2023.
3. Mr. Emmanuel David Gootam was appointed as a Non-Executive Independent Director of the Company with effect from November 10, 2022.
4. Ms. Purana Housdurgamvijaya Deepti was appointed as a Non-Executive Independent Director of the Company with effect from March 27, 2023.
5. Mr. Sridar Arvamudhan Iyengar resigned as a Non-executive Independent Director of the Company with effect from May 23, 2023.
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Number of other Board of Directors or Committees in which Director is a member/chairperson:

The number of Directorships and Committee Chairmanships/Memberships held by the Directors in other companies as on March 31, 2023
are given herein below. Other directorships do not include directorships in foreign companies. For the purpose of determination of limit of
the Board Committees, Chairpersonship and membership of the Audit Committee and Stakeholders’ Relationship Committee has been
considered as per Regulation 26(1)(b) of Listing Regulations.
Name of the Director Number of Number of committee positions held in Name of the other Category of
directorships in Public companies* listed companies directorship in
other companies* listed companies
Director Chairman Member
Dr. Azad Moopen 5 Nil Nil Nil Nil
Ms. Alisha Moopen 1 Nil Nil Nil Nil
Mr. T J Wilson 7 Nil 1 Nil Nil
Mr. Anoop Moopen 3 Nil Nil Nil Nil
Mr. Shamsudheen Bin 1 Nil Nil Nil Nil
Mohideen Mammu Haji
Mr. Daniel Robert Mintz Nil Nil Nil Nil Nil
Mr. Chenayappillil John 6 Nil 3 Geojit Financial Managing Director
George Services Limited and CEO

V Guard Industries Non-Executive

Limited Independent
Director
Dr. James Mathew 2 Nil Nil Nil Nil
Mr. Sridar Arvamudhan 2 2 2 Dr. Reddy’s Non-Executive
Iyengar Laboratories Ltd Independent
Director
Mr. Wayne Earl Keathley Nil Nil Nil Nil Nil
Mr. Emmanuel David Nil Nil Nil Nil Nil
Gootam
Ms. Purana 1 Nil Nil Nil Nil
Housdurgamvijaya Deepti
Note:
The above details is as on March 31, 2023 and excludes the directorship and committee positions held in Aster DM Healthcare Limited

c. Number of Board Meetings held:

Seven Board Meetings were held during the year and the gap between two meetings did not exceed one hundred and twenty days
as provided under the Act, Listing Regulations and Circulars issued by MCA and SEBI from time to time. The dates on which the said
meetings were held are as follows:

Sr. Number of days from

Date of meeting Requirement of quorum met
No previous meeting
1 May 24, 2022 57 Yes
2 June 10, 2022 17 Yes
3 August 11, 2022 62 Yes
4 November 10, 2022 91 Yes
5 December 02, 2022 22 Yes
6 February 14, 2023 74 Yes
7 March 27, 2023 41 Yes

151
Aster DM Healthcare Limited

d. Details of equity shares of the Company held by the Directors as on March 31, 2023 are given below:
Sr. No Name of the Director Category Number of equity shares
1. Dr. Azad Moopen Promoter, Executive 17,33,536
2. Ms. Alisha Moopen Executive 2,15,842
3. Mr. T J Wilson Non-Executive 27,08,590
4. Mr. Anoop Moopen Non-Executive 12,76,114
5. Mr. Shamsudheen Bin Mohideen Mammu Haji Non-Executive 56,61,732
TOTAL 1,15,95,814

e. Familiarization Programs for Board Members: quarterly Board and Committee meetings. Various business
cluster heads make presentations to the Board periodically
Current Executive Directors and Senior Management provide pertaining to the Company’s performance and future strategy
an overview of operations and familiarize the new Directors
for their respective cluster. Your Board also convenes strategy
on matters related to the vision and values of the Company.
meetings from time to time to review long term growth/
Your Company also has a practice of sharing a handbook with plans of the Company. The Board is regularly apprised on all
the Directors at the time of induction containing informative regulatory and policy changes relevant to the business by the
documents like Annual Report, Memorandum & Articles of Senior Management and the Auditors of the Company.
Association, Organization Structure, Composition of Board and
Committees, Duties and terms of reference of the Committees The details of the familiarisation programs imparted to
of the Board, Code of Ethics & Business Conduct, Code for the Independent Directors is also available on the website
prevention of Insider Trading, Directors & Officers Insurance of the Company at https://www.asterdmhealthcare.
policy, contact details of the Senior Management, etc. com/fileadmin/user_upload/Familiarization_Program_
Independent_Directors_2022-23.pdf
Your Company regularly conducts various familiarization
programs for the Independent Directors as a part of the

f. Core skills/ expertise/ competencies of the Board of Directors

The skill/competencies for the members of the Board as identified by the Board of Directors of the Company that is required in the
context of Healthcare Business are as follows:
Areas of Core Skills/Expertise/Competence

1 Healthcare Understanding the complexities of the healthcare sector.

Finance,
In-depth knowledge in the field of accounts and ability to read, understand and analyse the
2 Accountancy &
financial statements, financial controls, risk management and other business projections.
Audit

3 Law Experience in understanding the dynamics of the legal and regulatory aspect at a global level.

Providing support and guidance in relation to information technology upgradation of the

4 Technology
organisation as a whole.

Risk Experience in mitigation of risk by actively getting involved in the risk management of the
5
Management Organisation.

Strategy &
6 Exposure in managing the sales and marketing needs of the sector adequately.
Marketing

Experience in implementing good corporate governance practices, reviewing compliance and

Board and
7 governance practices for a sustainable growth of the company and protecting stakeholder’s
Governance
interest.
Experience in driving business success in markets around the world, with an understanding
8 Global business of diverse business environments, economic conditions, cultures, and regulatory frameworks,
and a broad perspective on global market opportunities.
Extended leadership experience for a significant enterprise, resulting in a practical understanding
9 Leadership of organizations, processes, strategic planning, and risk management. Demonstrated strengths in
developing talent, planning succession, and driving change and long-term growth.

152
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

The details of the Board members are available in the following pages.

Dr. Azad Moopen Ms. Alisha Moopen

Chairman and Managing Director Deputy Managing Director
Age 70 Age 41
Date of appointment April 15, 2023 Date of appointment August 07, 2019
Term ending date April 14, 2026 Term ending date August 06, 2024
Shareholding 17,33,536 Shareholding 2,15,842

Areas of expertise Areas of expertise

Healthcare Finance, Law Technology Risk Healthcare Finance, Law Technology Risk
Accountancy & Management Accountancy & Management
Audit Audit

Strategy & Board and Global Leadership Strategy & Board and Global Leadership
Marketing Governance Business Marketing Governance Business
Profile available at: https://www.asterdmhealthcare.com/investors/ Profile available at: https://www.asterdmhealthcare.com/investors/
corporate-governance/board-of-directors corporate-governance/board-of-directors

Mr. T J Wilson Mr. Anoop Moopen

Non-Executive Director Non-Executive Director
Age 62 Age 46
Date of appointment April 20, 2009 Date of appointment April 20, 2009
Term ending date NA Term ending date NA
Shareholding 27,08,590 Shareholding 12,76,114

Areas of expertise Areas of expertise

Healthcare Finance, Law Technology Risk Healthcare Finance, Technology Strategy &
Accountancy & Audit Management Accountancy & Audit Marketing

Strategy & Board and Global Leadership Board and Global Leadership
Marketing Governance Business Governance Business
Profile available at: https://www.asterdmhealthcare.com/investors/ Profile available at: https://www.asterdmhealthcare.com/investors/
corporate-governance/board-of-directors corporate-governance/board-of-directors

153
Aster DM Healthcare Limited

Mr. Shamsudheen Bin Mohideen Mammu Haji Mr. Daniel Robert Mintz
Non-Executive Director Non-Executive Director
Age 60 Age 61
Date of appointment September 16, 2015 Date of appointment January 18, 2012
Term ending date NA Term ending date NA
Shareholding 56,61,732 Shareholding Nil

Areas of expertise Areas of expertise

Finance, Risk Strategy & Finance, Risk

Healthcare Management Marketing Healthcare Law
Accountancy & Audit Accountancy & Audit Management

Board and Global Leadership Strategy & Board and Global Leadership
Governance Business Marketing Governance Business
Profile available at: https://www.asterdmhealthcare.com/investors/ Profile available at: https://www.asterdmhealthcare.com/investors/
corporate-governance/board-of-directors corporate-governance/board-of-directors

Mr. Chenayappillil John George Dr. James Mathew

Non-Executive Independent Director Non-Executive Independent Director
Age 64 Age 57
Date of appointment April 11, 2020 Date of appointment June 23, 2020
18th Annual General Meeting to be 19th Annual General Meeting to be
held in the year 2026 (Re-appointed held in the year 2027 (Re-appointed
Term ending date Term ending date
for a second term with effect from for a second term with effect from
April 11, 2023) June 23, 2023)
Shareholding Nil Shareholding Nil

Areas of expertise Areas of expertise

Risk Board and Finance, Risk Strategy &

Finance, Law Law
Management Governance Accountancy & Audit Management Marketing
Accountancy & Audit

Strategy & Board and Global Leadership

Global Leadership
Marketing Business Governance Business
Profile available at: https://www.asterdmhealthcare.com/investors/ Profile available at: https://www.asterdmhealthcare.com/investors/
corporate-governance/board-of-directors corporate-governance/board-of-directors

154
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Mr. Sridar Arvamudhan Iyengar Mr. Wayne Earl Keathley

Non-Executive Independent Director Non-Executive Independent Director

Age 75 Age 72
Date of appointment July 19, 2020 Date of appointment October 04, 2021
July 18, 2023 (Resigned with effect Term ending date October 03, 2024
Term ending date
from May 23, 2023)
Shareholding Nil
Shareholding Nil
Areas of expertise
Areas of expertise

Finance, Risk Board and

Healthcare Technology Healthcare Technology Global
Accountancy & Audit Management Governance Business

Strategy & Board and Global Leadership

Marketing Leadership
Governance Business
Profile available at: https://www.asterdmhealthcare.com/investors/corporate- Profile available at: https://www.asterdmhealthcare.com/investors/
governance/board-of-directors corporate-governance/board-of-directors

Mr. Emmanuel David Gootam Ms. Purana Housdurgamvijaya Deepti

Non-Executive Independent Director Non-Executive Independent Director

Age 63 Age 61
Date of appointment November 10, 2022 Date of appointment March 27, 2023
Term ending date November 09, 2025 18th Annual General Meeting to
Term ending date
be held in the year 2026
Shareholding Nil
Shareholding Nil
Areas of expertise
Areas of expertise

Finance, Risk Strategy &

Technology Finance, Risk Strategy &
Accountancy & Audit Management Marketing Technology
Accountancy & Audit Management Marketing

Board and Leadership Board and Leadership

Governance
Governance
Profile available at: https://www.asterdmhealthcare.com/investors/ Profile available at: https://www.asterdmhealthcare.com/investors/corporate-
corporate-governance/board-of-directors governance/board-of-directors

155
Aster DM Healthcare Limited

g. Declaration by Independent Directors The criteria based on which the performance evaluation of
the Independent Directors was carried out are:
Your Company has received necessary declaration from each
Independent Director under Section 149(7) and Section 150 • Engagement level and participation at the Board/
of the Act and under Regulation 25(8) of Listing Regulations, Committee meetings;
that he/she meets the criteria of independence laid down
• Commitment, including guidance provided to senior
in Section 149(6) of the Act and Regulation 16(1)(b) of the
management outside of Board/ Committee meetings;
Listing Regulations.
• Effective deployment of knowledge of the industry,
In the opinion of the Board of Directors, the Independent experience and expertise;
Directors fulfils the conditions specified in the Act and Listing
• Integrity and maintaining of confidentiality;
Regulations and are Independent of the Management.
• Independence of behaviour and judgment;
h. Reason for resignation of the Independent
Directors • Impact and influence; and

• Adherence to the code of conduct for Independent

None of the Directors have resigned during the financial
Directors.
year 2022-2023. Mr. Sridar Arvamudhan Iyengar (DIN:
00278512) has resigned from the position of Non-Executive j. Meeting of Independent Directors
Independent Director of the Company due to personal
reasons with effect from May 23, 2023. Further, as per the During the year, one meeting of the Independent Directors
requirement of Regulation 30 read with Schedule III, Part A, was held on May 16, 2022, to discuss the Board evaluation
Clause 7B of Listing Regulations, he has confirmed that there results for the financial year 2021-22. The Independent
are no material reasons for his resignation other than that Directors also met on May 23, 2023, to discuss the Board
mentioned in his resignation letter dated May 23, 2023. evaluation results for the financial year 2022-23.

i. Board member evaluation Further, Independent Directors have regularly meetings with
statutory auditors of the Company without the presence of
The Nomination and Remuneration Committee at their non-Independent Directors and members of management.
meeting held on February 13, 2023, had formulated the The said meetings were held on May 23, 2022, August 11,
criteria for conducting the performance evaluation of the 2022, November 09, 2022 and February 13, 2023 before
individual Directors, Committees of Board, Board as a the Audit Committee Meeting.
whole, Chairman and the Management. The evaluation was
conducted by way of an online questionnaire method which
consisted of questions with quantitative parameters. The 3. Committees of the Board
Independent Directors and the members of Nomination
Board has constituted nine committees including statutory
and Remuneration Committee at their meeting on May 23,
committees as required under the Listing Regulations and the Act
2023 and May 24, 2023 respectively discussed the outcome
and Non-statutory Committees. Details of various committees,
of evaluation. The Directors took note of the constructive
its terms of reference, composition and details of meetings held
feedback received from their counterparts.
during financial year 2022-23 are as follows:

156
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

STATUTORY COMMITTEES

Audit Committee

10. Reviewing and monitoring the auditor’s independence and

performance, and effectiveness of audit process;

Dr. James Mathew 11. Monitoring, reviewing, assessing the policies and procedures
Chairman relating to the proper functioning of the system for prevention of
insider trading;

12. Reviewing and approving the inter- corporate loans and

The Audit Committee has been constituted in terms of Section 177 of investments, including that made by the unlisted material
the Act, read with Regulation 18 of the Listing Regulations. The scope subsidiaries;
and function of the Audit Committee is in accordance with Section
177 of the Act, read with Regulation 18 and Part C of Schedule II of 13. Approving the budget and business plan;
the Listing Regulations. Brief description of terms of reference of
Audit Committee are as follows: 14. Reviewing the functioning of the Whistle Blower mechanism;

1. Overseeing the Company’s financial reporting process to ensure 15. Consider and comment on rationale, cost-benefits and impact of
transparency, sufficiency, fairness and credibility of financial schemes involving merger, demerger, amalgamation etc., on the
statements etc; listed entity and its shareholders.

2. Reviewing the quarterly, half yearly and annual financial The composition of the Audit Committee as on March 31, 2023 is as
statements and report of auditor before submission to the under:
Board; S. Name of the Member Category Designation
No
3. Reviewing of management discussion and analysis of financial
1. Dr. James Mathew Non-Executive Chairman
condition and results of operation;
Independent
4. Approval or any subsequent material modification of transactions 2. Mr. Chenayappillil John Non-Executive Member
of the Company with related parties, including omnibus approval George Independent
for related party transactions proposed to be entered into by the 3. Mr. Emmanuel David Non-Executive Member
Company subject to such conditions as may be prescribed; Gootam2 Independent
4. Ms. Alisha Moopen Executive Member
5. Reviewing the effectiveness of Internal Audit function and
Notes:
Internal control system;
1. Dr. Layla Mohamed Hassan Ali Almarzooqi ceased to be a Member of the
6. Discussion with Internal Auditors any significant findings and Committee with effect from March 27, 2023.
follow up there on; 2. Mr. Emmanuel David Gootam appointed as a Member of the Committee with
effect from March 27, 2023.
7. Reviewing the actions taken by Management to implement the
recommendations of internal audit; The Audit Committee met five times during the financial year 2022-
23. The said meetings were held on May 23, 2022; August 11, 2022;
8. Reviewing and assessing the annual Internal Audit plan to ensure November 09, 2022; February 13, 2023, and March 27, 2023 and the
it is aligned to the key risks of the business; necessary quorum was present for all the meetings.

9. Recommendation for appointment, remuneration and terms of

appointment of auditors;

157
Aster DM Healthcare Limited

Attendance details of the Audit Committee

Audit Committee
Name of the Director Committee meeting details Entitled % of attendance
1 2 3 4 5 to
May 23, August 11, November 09, February 13, March 27, attend 
2022 2022 2022 2023 2023

Dr. James Mathew 5 5 100

Mr. Chenayappillil John
George
L 5 4 80
Dr. Layla Mohamed Hassan
5 5 100
Ali Almarzooqi1
Mr. Emmanuel David
NA
Gootam2
Ms. Alisha Moopen 5 5 100
% of attendance 100 100 100 100 75

In Present  Attended L Leave of absence Attended through video call Not Applicable

Notes:
1. Dr. Layla Mohamed Hassan Ali Almarzooqi ceased to be a Member of the Committee with effect from March 27, 2023.
2. Mr. Emmanuel David Gootam appointed as a Member of the Committee with effect from March 27, 2023.

158
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Nomination and Remuneration Committee

8. Determining the succession plan for the Board and the Senior
Management;

Mr. Emmanuel David Gootam 9. Overseeing and administrating ESOP plan of the Company;
Chairman
The composition of the Nomination and Remuneration Committee as
on March 31, 2023 is as under:
The Nomination and Remuneration Committee has been constituted
in terms of Section 178 of the Act, read with Regulation 19 of the S. Name of the Member Category Designation
Listing Regulations. The scope and function of the Nomination and No
Remuneration Committee is in accordance with Section 178 of the 1. Mr. Emmanuel David Non-Executive Chairman
Act, read with Regulation 19 and Part D of Schedule II of the Listing Gootam Independent
Regulations. Brief description of terms of reference of Nomination 2. Mr. Sridar Arvamudhan Non-Executive Member
and Remuneration Committee are as follows: Iyengar Independent
3. Ms. Purana Non-Executive Member
1. Formulation of the criteria for determining qualifications, positive Housdurgamvijaya Independent
attributes and independence of a director and recommend to the Deepti
Board a policy, relating to the remuneration of the directors, key 4. Dr. Azad Moopen Promoter, Executive Member
managerial personnel and other employees;
Notes:
2. Formulation of criteria for evaluation of performance of 1. Prof. Biju Varkkey ceased to be a Member and Chairman of the Committee with
Independent Directors and the Board; effect from November 11, 2022.
2. Mr. Emmanuel David Gootam appointed as a Member and Chairman of the
3. Evaluation of skills, knowledge and experience on the Board for Committee with effect from November 11, 2022.
appointment of Independent Director and on the basis of such 3. Ms. Purana Housdurgamvijaya Deepti appointed as a Member of the
evaluation, prepare a description of the role and capabilities Committee with effect from March 27, 2023.
required of an Independent Director; 4. Mr. Sridar Arvamudhan Iyengar ceased to be a Member of the Committee with
effect from May 23, 2023.
4. Devising a policy on Board diversity;
5. Dr. Azad Moopen resigned as a Member of the Committee with effect from
May 25, 2023.
5. Identifying persons who are qualified to become Directors and
6. Mr. T J Wilson appointed as Member of the Committee with effect from May
who may be appointed in senior management in accordance
25, 2023.
with the criteria laid down and recommend to the Board their
appointment and removal; The Nomination and Remuneration Committee met four times during
the financial year 2022-23. The said meetings were held on May 23,
6. Deciding to extend or continue the term of appointment of the
2022; July 13, 2022; November 09, 2022 and February 13, 2023 and
independent director on the basis of the report of performance
the necessary quorum was present for all the meetings.
evaluation of independent directors;

7. Reviewing and approving for the Managing Director, other

Executive Directors on the Board of Directors and Key Managerial
Personnel;

159
Aster DM Healthcare Limited

Attendance details of the Nomination and Remuneration Committee

Nomination and Remuneration Committee
Name of the Director Committee meeting details Entitled % of attendance
1 2 3 4 to
May 23, July 13, November 09, February 13, attend 
2022 2022 2022 2023

Prof. Biju Varkkey1 3 3 100

Mr. Sridar Arvamudhan Iyengar 4 4 100

Dr. Azad Moopen 4 4 100

Mr. Emmanuel David Gootam2 1 1 100

Ms. Purana Housdurgamvijaya Deepti 3
NA
% of attendance 100 100 100 100

In Present  Attended Attended through video call Not Applicable

Notes:
1. Prof. Biju Varkkey ceased to be a Member and Chairman of the Committee with effect from November 11, 2022.
2. Mr. Emmanuel David Gootam appointed as a Member and Chairman of the Committee with effect from November 11, 2022.
3. Ms. Purana Housdurgamvijaya Deepti appointed as a Member of the Committee with effect from March 27, 2023.

160
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Stakeholders Relationship Committee

determines whether and how these are incorporated into or

reflected in the Company’s ESG policies and objectives;

Dr. James Mathew 9. Set appropriate strategic goals, as well as shorter term KPIs
Chairman and associated targets related to ESG matters and oversee the
ongoing measurement and reporting of performance against
those KPIs and targets;
The Stakeholders Relationship Committee has been constituted in 10. Work in conjunction with the Risk Committee to oversee the
terms of Section 178 of the Act read with Regulation 20 of the Listing identification and mitigation of risks relating to ESG, as well as
Regulations.The scope and function of the Committee is in accordance the identification of opportunities related to ESG matters;
with Section 178 of the Act read with Regulation 20 and Part D of
Schedule II of the Listing Regulations. Brief description of terms of 11. Make recommendations to the Board in relation to the required
reference of Stakeholders Relationship Committee are as follows: resourcing and funding of ESG-related activity and, on behalf of
the Board, oversee the deployment and control of any resources
1. Review various aspects of interest of the security holders; and funds;
2. Resolving the grievances of the security holders of the Company 12. Ensure that the Company provides appropriate information
including complaints related to transfer/transmission of shares, and is transparent regarding its ESG related policies with the
non-receipt of annual reports, non- receipt of declared dividends, investment community, particularly ethical/socially conscious
issue of new/duplicate certificates, general meetings etc; investment funds, by whatever means are deemed to be most
effective;
3. Review of measures taken for effective exercise of voting rights
by Shareholders; The composition of the Stakeholders’ Relationship Committee as on
March 31, 2023 is as under:
4. Review of adherence to the service standards adopted by the
Company in respect of various services being rendered by the
S. Name of the Member Category Designation
Registrar & Share Transfer Agent;
No
5. Review of the various measures and initiatives taken by the 1. Dr. James Mathew Non-Executive Chairman
Company for reducing the quantum of unclaimed dividends and Independent
ensuring timely receipt of dividend warrants/annual reports/ 2. Mr. Chenayappillil John Non-Executive Member
statutory notices by the shareholders of the Company; George Independent
3. Mr. Sridar Arvamudhan Non-Executive Member
6. Oversee the development of and make recommendations to the Iyengar Independent
Board regarding the Group’s Overall ESG strategy. Oversee the 4. Mr. T J Wilson Non-Executive Member
implementation of ESG policy, BRR policy and codes of practice 5. Mr. Anoop Moopen Non-Executive Member
and their effective implementation, and monitor and review their
ongoing relevance, effectiveness, and further development; Note:
1. Mr. Sridar Arvamudhan Iyengar ceased to be a Member of the Committee with
7. Identify the relevant ESG matters that do or are likely to affect effect from May 23, 2023.
the operation of the Company and/or its strategy;
The Stakeholder’s Relationship Committee met twice during the
8. Ensure that the Company monitors and reviews current and financial year 2022-23. The said meetings were held on May 23, 2022
emerging ESG trends, relevant international standards and and November 09, 2022 and the necessary quorum was present for
legislative requirements, identifies how those are likely to impact all the meetings.
on the strategy, operations, and reputation of the Company and

161
Aster DM Healthcare Limited

Attendance details of the Stakeholders Relationship Committee

Stakeholders Relationship Committee
Name of the Director Committee meeting details Entitled to % of attendance
1
May 23, 2022
2
November 09, 2022
attend

Dr. James Mathew 2 2 100

Mr. Chenayappillil John George 2 2 100

Mr. Sridar Arvamudhan Iyengar 2 2 100

Mr. T J Wilson 2 2 100

Mr. Anoop Moopen 2 2 100

% of attendance 100 100

In Present  Attended Attended through video call

Notes:
1. Prof. Biju Varkkey ceased to be a Member and Chairman of the Committee with effect from November 11, 2022.
2. Mr. Emmanuel David Gootam appointed as a Member and Chairman of the Committee with effect from November 11, 2022.
3. Ms. Purana Housdurgamvijaya Deepti appointed as a Member of the Committee with effect from March 27, 2023.

The details with regard to Stakeholder’s grievances as on March 31, 2023 are as under:
S.
Particulars Related Details
No
1. Name of the Non-executive Director heading the Committee Dr. James Mathew (Non-Executive Independent Director)
2. Name and Designation of Compliance Officer Mr. Hemish Purushottam Company Secretary and Compliance
Officer
3. Number of shareholders complaints received as on March 31, 2023 1
4. Number of complaints not solved to the satisfaction of 0
shareholders as on March 31, 2023
5. Number of pending complaints as on March 31, 2023 0

162
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Risk Management Committee

social developments and trends that may be relevant for the

company’s risk policies;

Ms. Alisha Moopen 8. Undertaking horizon-scanning of the risk landscape, including

Chairperson material risks, reputational impacts and undertake deep-dive
reviews into significant risks at the request of the Board or
where, in the Committee’s view, further scrutiny is required;

The Risk Management Committee has been constituted in terms of The composition of the Risk Management Committee as on March
Regulation 21 of the Listing Regulations. Brief description of terms of 31, 2023 is as under:
reference of Risk Management Committee are as follows:
S. Name of the Member Category Designation
1. Reviewing the risk identification and management process No
developed by management to confirm it is consistent with the 1. Ms. Alisha Moopen Executive Chairperson
Company’s strategy and business plan; 2. Mr. T J Wilson Non-Executive Member
3. Mr. Daniel Robert Mintz Non-Executive Member
2. Reviewing the risk management plan including the plan on cyber
4. Dr. James Mathew Non-Executive Member
security;
Independent
3. Reviewing Management’s assessment of risk at least annually; 5. Mr. Sridar Arvamudhan Non-Executive Member
Iyengar Independent
4. Reviewing of significant business, political, financial and control
risks or exposure to such risk; Notes:

5. Overseeing and monitoring Management’s documentation of 1. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from
November 11, 2022.
the material risks that the Company faces and Company’s policy
2. Mr. Sridar Arvamudhan Iyengar ceased to be a Member of the Committee with
for Risk assessment and risk management;
effect from May 23, 2023.
6. Assessment of the steps implemented by management to 3. Ms. Purana Housdurgamvijaya Deepti appointed as a Member of the
manage and mitigate identifiable risk, including the use of Committee with effect from May 25, 2023.
hedging and insurance;
The Risk Management Committee met twice during the financial
7. Advising the Board in relation to its determination of overall year 2022-23. The said meetings were held on August 05, 2022 and
risk appetite, tolerance and strategy, taking account Aster December 08, 2022 and the gap between two meetings was not
DM’s values purpose, as well as the current and prospective more than one hundred and eighty days. The necessary quorum was
regulatory, macroeconomic, technological, environmental and present for all the meetings.

Attendance details of the Risk Management Committee

Risk Management Committee
Name of the Director Committee meeting details Entitled to % of attendance
1
August 05, 2022
2
December 08, 2022
attend

Ms. Alisha Moopen 2 2 100
Mr. T J Wilson 2 2 100
Mr. Daniel Robert Mintz L L 2 0 0
Dr. James Mathew 2 2 100
Mr. Sridar Arvamudhan Iyengar 2 2 100
Prof. Biju Varkkey1 1 1 100
% of attendance 83 80

 Attended L Leave of absence Attended through video call Not Applicable

Note:
1. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from November 11, 2022.

163
Aster DM Healthcare Limited

Corporate Social Responsibility Committee

8. Instituting a transparent monitoring mechanism for

implementation of the corporate social responsibility projects or
programs or activities undertaken by the Company;
Dr. Azad Moopen
Chairman The composition of the Corporate Social Responsibility Committee as
on March 31, 2023 is as under:

The Committee was constituted under the provisions of Section 135 S. Name of the Member Category Designation
of the Act and the rules and guidelines framed thereunder. The scope No
and functions of the Committee is framed as per the said provisions.
1. Dr. Azad Moopen Promoter, Executive Chairman
Brief description of terms of reference of the Corporate Social
2. Mr. Shamsudheen Bin Non-Executive Member
Responsibility Committee are as follows:
Mohideen Mammu Haji
1. Formulation of a corporate social responsibility policy of the 3. Mr. Anoop Moopen Non-Executive Member
Company; 4. Mr. Sridar Arvamudhan Non-Executive Member
Iyengar Independent
2. Formulate and recommend to the Board, an annual CSR plan in
pursuance of its CSR policy; Notes:

3. Review the progress made on the implementation of approved 1. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from
CSR activities every six months and report the same to the Board November 11, 2022.
once every six months; 2. Dr. Layla Mohamed Hassan Ali Almarzooqi ceased to be a Member of the
Committee with effect from March 27, 2023.
4. The Committee shall monitor the identification and implementation 3. Mr. Sridar Arvamudhan Iyengar ceased to be a Member of the Committee with
of multi-year projects / programs (“Ongoing Projects”); effect from May 23, 2023.

5. Identification of corporate social responsibility activities; 4. Ms. Purana Housdurgamvijaya Deepti appointed as a Member of the
Committee with effect from May 25, 2023.
6. Approving the budget for carrying out corporate social
responsibility activities; The Corporate Social Responsibility Committee met twice during the
financial year 2022-23. The said meetings were held on May 23,
7. Monitoring the expenditure and activities relating to corporate
2022 and March 21, 2023 and the necessary quorum was present
social responsibility and recommendation of the same to the
for all the meetings.
Board for approval;

Attendance details of the Corporate Social Responsibility Committee

Corporate Social Responsibility Committee
Name of the Director Committee meeting details Entitled to % of attendance
1
May 23, 2022
2
March 21, 2023
attend

Dr. Azad Moopen 2 2 100
Mr. Shamsudheen Bin Mohideen Mammu Haji L 2 1 50
Mr. Anoop Moopen L 2 1 50
Mr. Sridar Arvamudhan Iyengar 2 2 100
Prof. Biju Varkkey1 1 1 100
Dr. Layla Mohamed Hassan Ali Almarzooqi2 2 2 100
% of attendance 83 80

In Present  Attended L Leave of absence Attended through video call Not Applicable

Notes:
1. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from November 11, 2022.
2. Dr. Layla Mohamed Hassan Ali Almarzooqi ceased to be a Member of the Committee with effect from March 27, 2023.

164
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

NON-STATUTORY COMMITTEES

Investment and Finance Committee

6. Review and approve Capital Expenditures and expansion projects

of the Company as per Annual Operation Plan/ Budget or within
the limits approved by the Board and Audit Committee.
Dr. Azad Moopen
Chairman The composition of the Investment and Finance Committee as on
March 31, 2023 is as under:

S. Name of the Member Category Designation

The Board of Directors have constituted Investment and Finance
No
Committee in terms of provision of the Act to monitor and review the
investments and investment plan and perform such other functions 1. Dr. Azad Moopen Promoter, Executive Chairman
as the Board may deem fit. Brief description of terms of reference of 2. Ms. Alisha Moopen Executive Member
Investment Committee are as follows: 3. Mr. T J Wilson Non-Executive Member
4. Dr. James Mathew Non-Executive Member
1. To approve investments and acquisitions of securities by the Independent
Company within the overall limits approved by the Board and
Audit Committee from time to time. Notes:

2. To provide approval for opening and closure of bank accounts. 1. Mr. Sreenath Reddy ceased to be a Member of the Committee
with effect from January 05, 2023.
3. Exercise all powers to borrow money (otherwise than by issue
of debentures) within limits approved by the Board and Audit 2. Mr. Amitabh Johri and Mr. Sunil Kumar M R appointed as a
Committee, and take necessary actions connected therewith, Member of the Committee with effect from May 25, 2023.
including refinancing for optimisation of borrowing costs.
The Investment and Finance Committee met five times during the
4. Give guarantees / issue letters of comfort / providing securities
financial year 2022-23. The said meetings were held on June 21,
within the limits approved by the Board and Audit Committee;
2022, August 10, 2022, August 29, 2022, November 08, 2022 and
5. Provide corporate guarantee / performance guarantee by the January 30, 2023 and the necessary quorum was present for all the
Company within the limits approved by the Board and Audit meetings.
Committee;

Attendance details of the Investment and Finance Committee

Investment and Finance Committee
Name of the Director Committee meeting details Entitled % of attendance
1 2 3 4 5 to
June 21, August 10, August 29, November January attend 
2022 2022 2022 08, 2022 30, 2023

Dr. Azad Moopen 5 5 100

Ms. Alisha Moopen 5 5 100

Mr. T J Wilson 5 5 100

Dr. James Mathew 5 5 100

Mr. Sreenath Reddy1 4 4 100

% of attendance 100 100 100 100 100

In Present  Attended Attended through video call Not Applicable

Note:
1. Mr. Sreenath Reddy ceased to be a Member of the Committee with effect from January 05, 2023.

165
Aster DM Healthcare Limited

Medical Excellence Committee

Dr. Azad Moopen

Chairman

The Board of Directors have constituted Medical Excellence Committee The composition of the Medical Excellence Committee as on March
to monitor and review the quality of medical services provided and 31, 2023 is as under:
perform such other functions as the Board may deem fit.
S. Name of the Member Category Designation
Brief description of terms of reference of Medical Excellence No
Committee are as follows:
1. Dr. Azad Moopen Promoter, Executive Chairman
1. Overseeing Culture of safety and adherence to ethical guidelines 2. Ms. Alisha Moopen Executive Member
in clinical practice and research; 3. Mr. Wayne Earl Keathley Non-Executive Member
Independent
2. Reviewing trends of key performance related to patient safety
Note:
and quality;
1. Dr. Layla Mohamed Hassan Ali Almarzooqi ceased to be a Member of the
Committee with effect from March 27, 2023.
3. Overseeing the clinical risk management strategies and
preparedness in case of any eventuality;
The Medical Excellence Committee met twice during the financial
4. Approving Quality & patient safety budget including infection year 2022-23. The said meetings were held on August 04, 2022 and
control; March 24, 2023 and the necessary quorum was present for all the
meetings.
5. Reviewing the road map of accreditations of the various units
across the group;

Attendance details of the Medical Excellence Committee

Medical Excellence Committee
Name of the Director Committee meeting details Entitled to % of attendance
1
August 04, 2022
2
March 24, 2023
attend

Dr. Azad Moopen 2 2 100
Ms. Alisha Moopen 2 2 100
Mr. Wayne Earl Keathley L L 2 0 0
Dr. Layla Mohamed Hassan Ali Almarzooqi1 2 2 100
% of attendance 75 75

 Attended L Leave of absence Attended through video call

Note:
1. Dr. Layla Mohamed Hassan Ali Almarzooqi ceased to be a Member of the Committee with effect from March 27, 2023.

166
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Digital Transformation Committee

Dr. Azad Moopen

Chairman

The Board of Directors have constituted Digital Transformation The composition of the Digital Transformation Committee as on
Committee to monitor, evaluate, and approve actions related to March 31, 2023 is as under:
technology maturity, fitment, malleability to the current technology
landscape, risk, cybersecurity, prioritization of major digital projects S. Name of the Member Category Designation
and to assist the management team by providing industry expertise No
to the digital transformation strategy and initiatives. Brief description 1. Dr. Azad Moopen Promoter, Executive Chairman
of terms of reference of Digital Transformation Committee are as 2. Ms. Alisha Moopen Executive Member
follows: 3. Mr. Sridar Arvamudhan Non-Executive Member
Iyengar Independent
1. Monitor, Evaluate and Prioritize Digital Projects;
4. Mr. Wayne Earl Keathley Non-Executive Member
2. Provide strategic advice and guidance to the Board on Initiatives Independent
currently in place; Note:
1. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from
3. Recommend investments and allocation of available funds to
November 11, 2022.
identified projects;
2. Mr. Sridar Arvamudhan Iyengar ceased to be a Member of the Committee with
effect from May 23, 2023.
4. Establish Task Forces/Sub committees if required to focus on a
particular project or business process. The Digital Transformation Committee met once during the financial
year 2022-23 on May 25, 2022 and the necessary quorum was
present for the meeting.

Attendance details of the Digital Transformation Committee

Digital Transformation Committee
Name of the Director Committee meeting details Entitled to % of attendance
1
May 25, 2022
attend

Dr. Azad Moopen 1 1 100

Ms. Alisha Moopen 1 1 100

Mr. Sridar Arvamudhan Iyengar 1 1 100

Mr. Wayne Earl Keathley L 1 0 0
Prof. Biju Varkkey 1
1 1 100
% of attendance 80

In Present  Attended L Leave of absence

Note:
1. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from November 11, 2022.

167
Aster DM Healthcare Limited

Corporate Restructuring Committee

The Board of Directors have constituted Corporate Restructuring 3. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from
Committee of Independent Directors of the Board to inter alia review November 11, 2022.
the corporate structure of the Company and evaluate various proposals 4. Mr. Sridar Arvamudhan Iyengar ceased to be a Member of the Committee with
for corporate restructuring options placed by the management and the effect from May 23, 2023.
advisors before the Committee for restructuring and/or enhancing value 5. Ms. Purana Housdurgamvijaya Deepti appointed as a Member of the
of the Company and provide guidance/ inputs as deemed appropriate. Committee with effect from May 25, 2023.
6. Mr. Emmanuel David Gootam appointed as a Member of the Committee with
The composition of the Corporate Restructuring Committee as on effect from May 25, 2023.
March 31, 2023 is as under:
The Committee met twice during the financial year 2022-23. The
S. Name of the Member Category Designation said meetings were held on June 08, 2022 and November 04, 2022
No and the necessary quorum was present for all the meetings. The
1. Dr. James Mathew Non-Executive Member Committee has served its purpose by providing guidance/ inputs
Independent on the corporate restructuring options placed by the management
2. Mr. Chenayappillil John Non-Executive Member and the advisors before the Committee. To ensure transparency
George Independent and maintain corporate governance oversight, the Committee shall
3. Mr. Sridar Arvamudhan Non-Executive Member continue to exist till the completion of the proposed restructuring of
Iyengar Independent the GCC Business.

Notes:

1. Mr. Wayne Earl Keathley ceased to be a Member of the Committee with effect
from April 16, 2022.
2. Prof. Biju Varkkey appointed as a Member of the Committee with effect from
April 16, 2022.

Attendance details of the Corporate Restructuring Committee

Corporate Restructuring Committee
Name of the Director Committee meeting details Entitled to % of attendance
1
June 08, 2022
2
November 04, 2022
attend

Dr. James Mathew 2 2 100
Mr. Chenayappillil John George 2 2 100
Mr. Sridar Arvamudhan Iyengar 2 2 100
Prof. Biju Varkkey2 2 2 100
% of attendance 100 100

 Attended Attended through video call Not Applicable

Notes:
1. Mr. Wayne Earl Keathley ceased to be a Member of the Committee with effect from April 16, 2022.
2. Prof. Biju Varkkey appointed as a Member of the Committee with effect from April 16, 2022.
3. Prof. Biju Varkkey ceased to be a Member of the Committee with effect from November 11, 2022.

168
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

4. Remuneration of Directors said Directors are within the limits prescribed under the
provisions of the Act and Listing Regulations. The Company
a. Remuneration Policy also reimburses any out-of-pocket expenses incurred by
the Directors for attending the meetings of the Company.
The Company’s remuneration policy is aimed at attracting,
Chairman and Managing Director is entitled to a fixed pay
motivating and retaining quality talent by creating a high-
of INR 5,00,000 per month as stipulated under the Act and
performance culture. In each country where the Company
which was agreed by the Shareholders through a resolution
operates, the remuneration structure is tailored to the
passed in the Annual General Meeting of the Company held
regulations, practices and benchmarks prevalent in the
on August 08, 2019 and August 25, 2022.
Healthcare industry of that geography.
Further, Ms. Alisha Moopen, Deputy Managing Director of
During the financial year under review, your Company
the Company, is entitled to a fixed pay of INR 30,00,000 per
paid sitting fees of INR 1,00,000 per sitting to each Non-
annum as stipulated under the Act and which was agreed by
Executive Independent Director for attending the meetings
the Shareholders through a resolution passed in the Annual
of Board/ Committees of the Board. The payment to
General Meeting of the Company held on August 13, 2021.

b. Details of the remuneration paid to the Directors for the year ended March 31, 2023
(amount in INR crores)
Name of the Director Designation Sitting fee/ Managerial
Remuneration
Executive
Dr. Azad Moopen1 Chairman and Managing Director 0.60
Ms. Alisha Moopen2 Deputy Managing Director 0.30
Non-Executive
Mr. T J Wilson3 Non-Executive Nil
Mr. Anoop Moopen Non-Executive Nil
Mr. Daniel Robert Mintz Non-Executive Nil
Mr. Shamsudheen Bin Mohideen Mammu Haji Non-Executive Nil
Non-Executive Independent
Prof. Biju Varkkey Non-Executive Independent 0.13
Dr. Layla Mohamed Hassan Ali Almarzooqi Non-Executive Independent 0.15
Mr. Chenayappillil John George Non-Executive Independent 0.16
Dr. James Mathew Non-Executive Independent 0.25
Mr. Sridar Arvamudhan Iyengar4 Non-Executive Independent Nil
Mr. Wayne Earl Keathley Non-Executive Independent 0.05
Mr. Emmanuel David Gootam Non-Executive Independent 0.04
Ms. Purana Housdurgamvijaya Deepti5 Non-Executive Independent Nil
1. Dr. Azad Moopen also received remuneration of AED 6.12 million and variable incentive of AED 1.8 million during financial year 2022-23 from Dr. Moopen’s
Healthcare Management Services LLC. He is entitled to gratuity payments and other benefits as per the policies.
2. Ms. Alisha Moopen also received remuneration of AED 2.70 million and variable incentive of AED 0.52 million during financial year 2022-23 from Dr. Moopen’s
Healthcare Management Services LLC. She is entitled to gratuity payments and other benefits as per the policies.
3. Mr. T J Wilson received remuneration of AED 1.76 million and variable incentive of AED 0.34 million during financial year 2022-23 from Dr. Moopen’s
Healthcare Management Services LLC. He is entitled to gratuity payments and other benefits as per the policies.
4. Mr. Sridar Arvamudhan Iyengar had waived off sitting fees for attending all the Board and Committee meetings for financial year ending March 31, 2023.
5. Ms. Purana Housdurgamvijaya Deepti appointed as an Independent Director with effect from March 27, 2023.

c. Criteria for making payment to Non-Executive of the Company and are subject to service conditions as per
Directors the Company’s Policy. There is no separate provision for
payment of severance fees to any of the Directors.
The policy for payment to Non-Executive Independent
directors has been made available on the website e. Stock option details
of the Company at https://www.asterdmhealthcare.
com/fileadmin/user_upload/Policy_on_Nomination_ During the year under review there were no stock options
Remuneration_and_Evaluation.pdf granted to any Directors of the Company.

d. Service Contracts, Notice and Severance Fees f. Pecuniary relationship or transactions of the
Non-Executive Directors
As on March 31, 2023, the Board of Directors has 12
Members viz. 10 Non-Executive Directors, including 6 During the year under review there were no pecuniary
Independent Directors, 1 Managing Director and 1 Deputy transactions with the Non-Executive Directors of the
Managing Director. The Executive Directors are employees Company.

169
Aster DM Healthcare Limited

5. General Body Meetings

a. Annual General Meeting (“AGM”)

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

Financial Year Date Time Venue

2019-20 August 14, 2020 11.00 AM-11.55 AM
Video Conferencing (‘VC’)/ Other Audio-Visual Means
2020-21 August 13, 2021 11:30 AM-12:45 PM
(‘OAVM’)
2021-22 August 25, 2022 11:30 AM-01:15 PM

b. Extraordinary General Meeting (“EGM”)

No Extraordinary General Meeting of the Company was called and convened during the financial year 2022-23.

c. Details of Special Resolutions passed during the last 3 AGMs are as under:
Financial Year Date Venue
2019-20 August 14, 2020 Appointment of Mr. Sridar Arvamudhan Iyengar (DIN:00278512) as Non-Executive
Independent Director of the Company for term of three consecutive years
2020-21 August 13, 2021 Reappointment of Mr. Suresh Muthukrishna Kumar (DIN: 00494479) as Non-Executive
Independent Director of the Company for a second term of one year
2021-22 August 25, 2022 Approve payment of remuneration to Dr. Mandayapurath Azad Moopen (DIN: 00159403),
Managing Director of the Company
Approval for re-appointment of Dr. Mandayapurath Azad Moopen, (DIN: 00159403), as
Managing Director of the Company for a term of three years with effect from April 15, 2023

d. Details of Special Resolution passed through postal ballot

The Company has passed the following special resolutions though postal ballot during financial year 2022-23 and till April 30, 2023

S. Agenda item Date of passing the resolution

No
1 Appointment of Mr. Emmanuel David Gootam (DIN: 09771151) as an Independent Director December 17, 2022
of the Company for a term of three consecutive years
2 Appointment of Ms. Purana Housdurgamvijaya Deepti (DIN: 08125456) as an Independent April 08, 2023
Director of the Company with effect from March 27, 2023 till the conclusion of 18th
Annual General Meeting of the Company
3 Re-appointment of Mr. Chenayappillil John George (DIN: 00003132) as an Independent
Director of the Company for a second term with effect from April 11, 2023 till the
conclusion of 18th Annual General Meeting of the Company
4 Re-appointment of Dr. James Mathew (DIN: 07572909) as an Independent Director of
the Company for a second term with effect from June 23, 2023 till the conclusion of 19th
Annual General Meeting of the Company

Mr. M Damodaran, Managing Partner of M Damodaran the related rules, the Company provides electronic voting
& Associates LLP, Practicing Company Secretaries, (ICSI (e-voting) facility to all its Members. The Company engages
Membership No. FCS 5837 COP: 5081) was appointed as the services of National Securities Depository Limited for
the Scrutinizer (“Scrutinizer”) for conducting the postal the purpose of providing e-voting facility to all its members.
ballot / e-Voting process in a fair and transparent manner
and in accordance with the provisions of the Companies Act, In accordance with MCA circulars, the Company has
2013 and the rules made there under. The details of voting dispatched the postal ballot notices and forms to the email
pattern are given as Annexure 8A to this report. addresses registered with depository participants (in case of
electronic shareholding)/the Company’s registrar and share
e. There is no special resolution proposed to be transfer agents (in case of physical shareholding) to all the
conducted through postal ballot. Members whose names appear on the Register of Members
/ list of beneficiaries as on a cut-off date. The Company
f. Procedure for postal ballot also publishes a notice in the newspaper declaring the
details of completion of dispatch and other requirements as
In compliance with Sections 108 and 110 and other
mandated under the Act and applicable Rules. Voting rights
applicable provisions of the Companies Act, 2013, read with

170
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

are reckoned on the paid-up value of the shares registered in 7. General shareholder information
the names of the Members as on the cut-off date. Members
are required to exercise their votes by electronic mode and a. Annual General Meeting
are requested to vote before close of business hours on
Annual General Meeting of the Company shall be held
the last date of e-voting. The scrutinizer submits his report
through Video Conferencing (VC)/ other Audio-Visual Means
to the Chairman, after the completion of scrutiny, and the
(OAVM) (Instruction and general guidelines for participation
consolidated results of the voting by postal ballot are then
through VC/OAVM has been given in Notice of the AGM).
announced by the Chairman/authorized officer. The results
are also displayed on the Company’s website, https://www. Date : August 31, 2023
asterdmhealthcare.com/investors/shareholders-services/
Time : 11.30 AM (IST)
postal-ballot , besides being communicated to the stock
exchanges. The last date for the receipt of duly completed b. Financial Year
postal ballot forms or e-voting shall be the date on which
the resolution would be deemed to have been passed, if Financial Year covers the period from April 01, 2022, to
approved by the requisite majority. March 31, 2023.

c. Dividend payment date

6. Means of Communication
Keeping in view the growth strategy of the Company, the Board
a. The quarterly, half-yearly and annual results of the Company of Directors have decided to plough back the profits and thus
are published in newspapers like Vijayavani (Kannada) and do not recommend any dividend for the financial year under
Financial Express (English). The results are also displayed on review and hence dividend payment date is not applicable.
the Company's website at https://www.asterdmhealthcare.
com/investors/stock-exchange-disclosures/newspaper- d. Listing on Stock Exchanges
advertisement .
Equity Shares of the Company are listed on following
b. Press releases made by the Company from time to time exchanges and the requisite listing fees have been paid in
and presentations made to the institutional investors and full to the Stock Exchanges.
analysts after the declaration of the quarterly, half-yearly
BSE Limited (BSE) National Stock Exchange of
and annual results are disseminated through the exchanges
Department of India Limited (NSE)
websites and are also displayed on the Company's website
Corporate Services, Exchange plaza, C-1, Block
Press Release- https://www.asterdmhealthcare.com/
Phiroze Jeejeebhoy G, Bandra Kurla Complex,
investors/stock-exchange-disclosures/press-release and
Towers, Dalal Street, Mumbai – 400051.
Investor Presentation https://www.asterdmhealthcare.com/
Mumbai – 400001
investors/financial-information/investors-presentation
Scrip code: 540975 Stock Code: ASTERDM
ISIN: INE914M01019

e. Market price data- high, low during each month in the financial year 2022-23
Month BSE NSE
High Price Low Price No. of Shares High Price Low Price No. of Shares
Apr-22 211.70 179.25 86,45,311 212.00 179.20 2,51,45,000
May-22 202.90 162.65 12,19,803 202.80 162.60 1,99,24,000
Jun-22 200.70 168.35 7,25,629 200.00 168.25 56,55,000
Jul-22 237.55 173.65 10,26,064 237.45 174.30 1,57,41,000
Aug-22 244.10 200.60 9,54,564 244.30 200.60 1,52,86,000
Sep-22 265.55 216.55 16,72,340 265.80 216.50 2,65,27,000
Oct-22 265.55 231.80 10,93,014 265.70 232.00 1,10,30,000
Nov-22 275.45 200.05 13,30,847 275.60 213.35 1,62,06,000
Dec-22 249.60 219.00 4,95,337 249.50 219.05 77,72,000
Jan-23 236.10 205.30 2,25,066 236.25 209.00 28,08,000
Feb-23 236.50 201.45 2,84,411 236.95 201.30 46,84,000
Mar-23 245.80 217.00 3,46,855 245.80 216.60 60,65,000

171
Aster DM Healthcare Limited

f. Performance of the share price of the Company in comparison to the Indices: S&P BSE SENSEX

160.00

140.00

120.00

100.00

80.00

60.00

40.00

20.00

0.00

r-2
2
-2
2 22 l-2
2 22 22 -2
2 22
-2
2 23 -2
3
-2
3
ay n- g- p- ct v- ec n- b ar
Ap Ju -Ju Au Se O No D Ja Fe M
01- 1-
M
01- 01 1- 1- 01- 1 - 1- 01- 1- 1-
0 0 0 0 0 0 0

Aster DM Healthcare Limited S & P BSE Sensex

Base 100 – Aster DM Healthcare Limited share price on April 1, 2022 and S&P BSE Sensex (Sensex) value on April 1, 2022 have been
baselined to 100.

g. Suspension of Trading i. Share transfer system

The securities of the Company were not suspended from Trading in equity shares of the Company through recognized
trading on stock exchanges during the year under review. stock exchanges is permitted only in dematerialized
form. Pursuant to amended in Regulation 40 of Listing
h. Registrar and Share Transfer Agents Regulations with effect from April 1, 2019, requests for
effecting transfer of Securities shall not be processed
Name: Link Intime India Pvt Ltd
unless the Securities are held in the dematerialised form
Address: C-101,1st Floor, 247 Park,
with a Depository hence shares shall be transferred only
Lal Bahadur Shastri. Marg,
through demat. However, investors are not barred from
Vikhroli (West), Mumbai -400 083
holding shares in physical form.
Maharashtra, India
Telephone: +91 2249186200
E-mail: [email protected]
Website: https://www.linkintime.co.in/

j. Shareholding as on March 31, 2023

i. Distribution of shareholdings as on March 31, 2023

Shares - Range Number of Percentage of total Total Shares for the Percentage of
Shareholders shareholders Range issued capital
1 - 500 78,544 94.6781 53,45,945 1.07
501 - 1000 1,964 2.3674 15,31,304 0.31
1001 - 2000 1,120 1.3501 16,87,767 0.34
2001 - 3000 419 0.5051 10,52,093 0.21
3001 - 4000 171 0.2061 6,08,143 0.12
4001 - 5000 127 0.1531 5,91,908 0.12
5001 - 10000 233 0.2809 17,22,532 0.34
10000 - above 381 0.4593 48,69,73,368 97.49
Grand Total 82,959 100.0000 49,95,13,060 100.00

172
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

ii. Category of Equity Shareholders as on March 31, 2023

Sl Category Number of shares % of holding
no.
1 Alternate Investment Funds – III 2,60,002 0.0521
2 Body Corporate - Ltd Liability Partnership 48,639 0.0097
3 Clearing Members 24,413 0.0049
4 Directors 1,13,79,972 2.2782
5 Employee Welfare Trust / ESOP's 21,43,386 0.4291
6 Foreign Company 13,22,97,525 26.4853
7 Foreign Nationals 2,15,410 0.0431
8 Foreign Portfolio Investors (Corporate)-I 3,70,77,511 7.4227
9 Foreign Portfolio Investors (Corporate)-II 1,06,13,865 2.1248
10 Foreign Promoter Company 20,68,34,332 41.4072
11 Foreign Venture Capital 1,29,99,534 2.6024
12 Hindu Undivided Family 5,03,264 0.1008
13 Mutual Funds 4,43,74,626 8.8836
14 Non -Resident Indians (Non Repatriable) 73,33,229 1.4681
15 Non-Resident Indians 1,54,01,999 3.0834
16 Other Bodies Corporate 1,52,3,296 0.3050
17 Public 1,56,33,449 3.1297
18 Relatives of Director 2,10,155 0.0421
19 Relatives of Director [NRI] 6,38,453 0.1278
Total 49,95,13,060 100.00%

k. Dematerialization of Shares & Liquidity n. Unit locations

As on March 31, 2023, INR 78,06,040 Paid-up Equity Share Your Company operates various hospitals and clinics in
Capital is held in physical form and INR 498,73,24,560 India. It also operates hospitals, clinics and pharmacies
Paid-up Equity Share Capital is held in dematerialized form through various subsidiaries in GCC Countries. Details of
with National Securities Depository Limited and Central various hospitals are available in the MDA report as well as
Depository Services (India) Limited. on the website of the Company.

l. Outstanding GDR’s/ ADR’s or Warrants or any o. Address for correspondence

convertible instruments, conversion date and
likely impact on equity Hemish Purushottam
Company Secretary and Compliance Officer
The Company has not issued any GDR’s/ ADR’s or warrants Aster DM Healthcare Limited
or any convertible instruments, hence as on March 31, #1785,19th Main, Sector 1,
2023, the Company does not have any outstanding GDR’s HSR Layout, Bengaluru -560102 India
/ ADR’s or Warrants or any convertible instruments. Contact : 0484 6699999
Email : [email protected]
m. Commodity price risk or foreign exchange risk Website : www.asterdmhealthcare.com
and hedging activities

Refer Note No 37 of the financial Statements for details on

commodity price risk, foreign exchange risk and hedging
activities.

173
Aster DM Healthcare Limited

p. Credit Rating

The following ratings assigned by the ICRA Limited and reaffirmed the ratings during the year under review:

Type of Facility/ Programme Revised Ratings assigned on August Revised Ratings assigned on October
02, 2021 13, 2022
Amount (J Crores) Rating Amount (J Crores) Rating
Bank loan facility (Long term) 274 A-(Stable) 454 A-(Stable)
Bank loan facility (Short term) 30 A2+ 30 A2+

q. Demat suspense account about unethical behaviour, actual or suspected fraud or

violation of the Company’s code of conduct or ethics. The
The Company does not have any equity shares in the Whistle Blower Policy is available on the website of the
suspense account. Company https://www.asterdmhealthcare.com/fileadmin/
user_upload/Whistle_Blowing_Policy_Aug22_01.pdf
r. Transfer of unclaimed/unpaid amount to the
Investor Education and Provident Fund

The Company does not have any instances of transferring The Company, as a policy, condemns any kind of
any amount to the Investor Education and Provident Fund. discrimination, harassment, victimization, or any other
unfair employment practice being adopted against whistle
8. Other Disclosures blowers and provides adequate safeguard measures. It
also provides a direct access to the Chairman of the Audit
a. Materially significant related party transactions Committee under extraordinary circumstances.

All transactions entered into with related parties during the In addition to this, the Company has also engaged an
financial year were in the ordinary course of business and independent agency called ‘Integrity Matters’ that
approved by the Audit Committee. During the year under provides an electronic and digital platform to report
review there were no materially significant transactions any unethical practices or harassment/injustice at the
entered into between the Company and its promoters, workplace confidentially and, if desired, anonymously by
Directors or the Management, or their relatives or Holding any employees or vendors of the Company or any of its
Company, Subsidiaries, Associates that may have potential subsidiaries anywhere in the world to ensure fairness and
conflict with the interest of the Company at large. The policy transparency in the process.
for dealing with the related party transactions, which has
been approved by the Board, is available on the website of d. Compliance with mandatory requirements and
the Company at www.asterdmhealthcare.com/fileadmin/ adoption of non-mandatory requirements
user_upload/Policy_on_dealing_with_Related_party_
The Company has complied with all mandatory requirements
transactions_09.pdf. Reference to the related party
to the extent applicable to the Company. Apart from
transactions entered during the year under review is
complying with the mandatory requirements prescribed by
attached as an annexure to the Boards report in form AOC-
the Listing Regulations, your Company has complied with a
2 as stipulated under the Act.
few non-mandatory requirements such as:
b. Details of non-compliance with respect to Capital
i. During the year under review, there is no audit
Markets and penalties
qualification in your Company’s Financial Statements.
There were no instances of non-compliances by the Your Company continues to adopt best practices to
Company and no penalties or strictures were imposed ensure regime of unqualified Financial Statements.
on the Company by the Stock Exchanges or SEBI or any
ii. Submission of Internal Auditors report directly to the
statutory authority, on any matter related to the capital
Audit Committee.
markets during the last three years.
e. Subsidiary Companies
c. Whistle blower policy and vigil mechanism
All subsidiary companies are managed by their Boards
The Company believes in conducting its affairs in a
having the rights and obligations to manage such
transparent manner and adopts highest standards of
Companies in the best interest of their stakeholders.
professionalism and ethical behaviour. Integrity is one of
Pursuant to Regulation 24(1) of Listing regulations at least
the key values of the Company that it strictly abides by.
one Independent Director on the Board of Directors of the
Keeping that in view, the Company has established a vigil
listed entity shall be a Director on the Board of Directors of
mechanism for Directors and employees to report concerns
an unlisted material subsidiary.

174
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

As per the audited financial statements of financial year 2021-22, the following subsidiaries have been considered as material and the
Company has appointed following Independent Directors on the Board of material subsidiary Companies:

S. Name of the Subsidiary Independent Director

No
1 Affinity Holdings Private Limited Mr. Emmanuel David Gootam
2 Aster DM Healthcare FZC Dr. James Mathew
3 Medcare Hospital LLC Dr. James Mathew

Notes:
1. Dr. Layla Mohamed Hassan Ali Almarzooqi ceased to be Director of Affinity Holdings Private Limited and Aster DM Healthcare FZC with effect from March 27,
2023
2. Mr. Emmanuel David Gootam has been appointed as Director of Affinity Holdings Private Limited and Dr. James Mathew has been appointed as Director of
Aster DM Healthcare FZC with effect from March 27, 2023.

Audit Committee reviews the financial statements of the unlisted subsidiary. The minutes of meetings of the Board of Directors and a
statement of all significant transactions and arrangements entered into by the unlisted subsidiary companies are periodically placed
before the Board of Directors of the Company for their review.

Pursuant to Regulation 24(4) of Listing Regulations, the following Companies shall be considered as material subsidiaries as per the
Audited financial statements of financial year 2021-22:

S. Name of the material Date of Place of Name of Statutory Date of appointment

No Subsidiary Company Incorporation Incorporation Auditor Statutory Auditor
1 Affinity Holdings Private Limited January 24, 2008 Republic of Mauritius Baker Tilly August 17, 2022
2 Aster DM Healthcare FZC December 4, 2007 Sharjah, UAE Deloitte & Touche (M.E.) September 09, 2020
3 Medcare Hospital LLC July 5, 2006 Dubai, UAE Deloitte & Touche (M.E.) September 09, 2020
4 Malabar Institute of Medical February 17, 1995 Calicut, Kerala Deloitte Haskins & Sells June 10, 2020
Sciences Ltd
5 DM Healthcare LLC November 2, 2008 Dubai, UAE Deloitte & Touche (M.E.) September 09, 2020
6 Aster Pharmacies Group LLC April 2, 2013 Dubai, UAE Deloitte & Touche (M.E.) September 09, 2020

The Company has a Policy for determining material subsidiaries which is available on the website of the Company at https://www.
asterdmhealthcare.com/fileadmin/user_upload/Material_Subsidiaries_Policy.pdf

f. Details of utilization of funds raised through preferential allotment or qualified institutions placement
During the year under review the Company has not raised any funds through the preferential allotment or Qualified Institutions
Placement.

g. Certificate from a Company Secretary in practice

A certificate from a Company secretary in practice that none of the Directors on the Board of the Company have been debarred or
disqualified from being appointed or continuing as Directors of Companies by the Board/Ministry of Corporate Affairs or any such
statutory authority is annexed to this report as Annexure 8B.

h. Recommendation of any committee of the Board which was not accepted

The Board had accepted all the recommendations made by its committee during the financial year.

i. Total fees to Statutory Auditors

The total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to the Statutory Auditor and all entities
in the network firm/network entity of which the Statutory Auditor is a part amounts to is as under:
(Amount in INR crore)
Category India Entities GCC Entities* Total
Audit 1.77 6.56 8.33
Tax Audit 0.02 - 0.02
Others 0.19 - 0.19
Total 1.98 6.56 8.54

*All numbers have been converted from foreign currency to INR at the average rate.
Note: The above fees exclude out-of-pocket expenses and taxes.

175
Aster DM Healthcare Limited

j. Disclosure in relation to the Sexual Harassment of Women at workplace (Prevention, Prohibition and
Redressal) Act, 2013
a. Number of complaints filed during the financial year - 3

b. Number of complaints disposed of during the financial year - 3

c. Number of complaints pending as on end of the financial year -0

Note: The above information is provided on standalone basis.

k. Loans and advances in the nature of loans to firms/companies in which Directors are interested by name and
amount
The Company has provided loans to the wholly owned subsidiaries for operational expenses. Following are the details of loans provided
and in which Directors of the Company are interested:
(In INR crore)
S. Name of the Company Name of Director Amount as on April Movement Amount as on March
No 01, 2022 31, 2023
1 Aster DM Healthcare Mr. T J Wilson 89.71 12.23 101.94
(Trivandrum) Private Limited
2 Ambady Infrastructure Private Mr. T J Wilson 5.77 0.67 6.44
Limited
3 DM Med City Hospitals (India) Dr. Azad Moopen 18.26 26.45 44.70
Private Limited

l. Secretarial Audit Report Companies (Indian Accounting Standards) Rules, 2015,

as amended, and the relevant amended rules prescribed
Pursuant to Regulation 24A of the Listing Regulations,
under Section 133 of the Companies Act, 2013, read with
every listed entity shall undertake secretarial audit and shall
relevant rules issued thereunder. On March 24, 2021, the
annex with its Annual Report, a Secretarial Audit Report,
Ministry of Corporate Affairs (MCA) through a notification,
given by a Company Secretary in Practice. The Company in
amended Schedule III of the Companies Act, 2013 and
this regard, has received the Secretarial Audit report from
the amendments are applicable for financial periods
M/s. M Damodaran & Associates LLP, Practising Company
commencing from April 01, 2021. The Company has
Secretaries, [Firm registration number: L2019TN006000]
evaluated the effect of the amendments on its financial
and the said report is annexed to this Annual Report.
statements and complied with the same. The significant
m. Code for Prevention of Insider Trading Practices accounting policies which are consistently applied have
been set out in the notes to the financial statements.
During the year under review, the Company adhered to
comprehensive Code of Conduct for prevention of Insider o. Other Polices
Trading for its Promoters, Directors, Key Managerial
The Company has adopted various policies prescribed under
Personnel and Connected Persons. The Code aims to ensure
the Act and Listing Regulation i.e a Policy on Determination
monitoring, timely reporting and adequate disclosure of
of Materiality for Disclosures, a Policy on Archival and
price sensitive information by the Promoters, Directors, Key
Preservation of Documents, a Dividend Distribution
Managerial Personnel and Connected Persons of Aster DM
Policy etc which are made available on the website of
Healthcare Limited. It also aims to bring transparency and
the Company at https://www.asterdmhealthcare.com/
fairness in dealing with the stakeholders and also ensuring
investors/corporate-governance/governance-documents-
the adherence to all applicable laws and regulations. This
and-policies .
Code lays down the guidelines, through which it advises on
procedures to be followed and disclosures to be made, while
dealing with shares of the Company. The Code has been 9. Discretionary requirements (Schedule II Part E of the
made available on the website of the Company at https:// SEBI Listing Regulations)
www.asterdmhealthcare.com/fileadmin/user_upload/
During the year under review, there was no audit qualification in
Code_for_prevention_of_Insider_Trading_09.pdf.
the Auditors’ Report on the Company’s financial statements. The
n. Accounting treatment in preparation of financial Company continues to adopt best practices to ensure a regime of
statement unqualified financial statements.

The financial statements have been prepared in accordance Also, KPMG India Private Limited, the Internal Auditors of the
with the Indian Accounting Standards (“Ind AS”), as per the Company, makes presentations directly to the Audit committee
on their reports.

176
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

The Company has been filing quarterly, half yearly results personnel and its compliance is affirmed by them annually. A
with stock exchanges within the stipulated timeline and also declaration signed by the Managing Director to this effect is
publishes in widely circulated newspapers and on the website of annexed to this report as Annexure 8C.
the Company at https://www.asterdmhealthcare.com/investors/
financial-information/quarterly-reports.
12. CFO Certification

10. Compliance with SEBI (Listing Obligations and Mr. Amitabh Johri and Mr. Sunil Kumar M R, Joint Chief Financial
Disclosure Requirements) Regulations, 2015 Officers of the Company has furnished to the Board, the requisite
Compliance Certificate under Regulation 17(8) of the Listing
The Company has complied compliance with corporate Regulations for the financial year ended March 31, 2023 and is
governance requirements specified in Regulation 17 to 27 and annexed to this report as Annexure 8D.
clauses (b) to (i) of sub-regulation (2) of Regulation 46 and all
other mandatory provisions of the SEBI (Listing Obligations and
13. Compliance Certificate on Corporate Governance
Disclosure Requirements) Regulations, 2015 as amended from
time to time. Certificate received from M/s. M Damodaran & Associates LLP,
Practising Company Secretaries, [Firm registration number:
11. Compliance with Code of Conduct L2019TN006000], confirming compliance with the conditions of
Corporate Governance as stipulated under Regulation 34(3) read
The Code of Conduct (“the Code”) for Board members and with Schedule V(E) of the Listing Regulations is annexed to this
Senior Management personnel as adopted by the Board, report as Annexure 8E.
is a comprehensive code applicable to Directors and Senior
Management personnel. The Code lays down in detail, the
For and on behalf of the Board of Directors
standards of business conduct, ethics and strict governance
norms for the Board and Senior Management personnel. A
copy of the Code has been made available on the website of Dr. Azad Moopen
the Company at www.asterdmhealthcare.com/investors. The Date : May 25, 2023 Chairman and Managing Director
Code has been circulated to Directors and Senior management Place : Bengaluru DIN: 00159403

177
Aster DM Healthcare Limited

Annexure 8A

Date of Postal Ballot Notice November 10, 2022

Voting start date November 18, 2022
Voting end date December 17, 2022
Results declared on December 19, 2022
Total number of shareholders on record date (cut-off date-November 11, 2022) 87,275

Resolution Required : (Special) 1 - Appointment of Mr. Emmanuel David Gootam (DIN: 09771151) as an Independent Director of the Company for
a term of three consecutive years.
Whether promoter/ promoter group are No
interested in the agenda/resolution?
Category Mode of No. of shares No. of votes % of Votes Polled on No. of Votes No. of Votes % of Votes in favour % of Votes against
Voting held polled outstanding shares – in favour –Against on votes polled on votes polled
[1] [2] [3]={[2]/[1]}*100 [4] [5] [6]={[4]/[2]}*100 [7]={[5]/[2]}*100
Promoter and E-Voting 189225799 189225799 100.0000 189225799 0 100.0000 0.0000
Promoter Group Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 189225799 100.0000 189225799 0 100.0000 0.0000
Public E-Voting 103306750 81987085 79.3628 80909012 1078073 98.6851 1.3149
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 81987085 79.3628 80909012 1078073 98.6851 1.3149
Public Non E-Voting 206980511 50678800 24.4848 50675595 3205 99.9937 0.0063
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 50678800 24.4848 50675595 3205 99.9937 0.0063
Total 499513060 321891684 64.4411 320810406 1081278 99.6641 0.3359

Date of Postal Ballot Notice March 04, 2023

Voting start date March 10, 2023
Voting end date April 08, 2023
Results declared on April 10, 2023
Total number of shareholders on record date (cut off date is March 03, 2023) 84,152

Resolution Required : (Special) 1 - Appointment of Ms. Purana Housdurgamvijaya Deepti (DIN: 08125456) as an Independent Director of the
Company with effect from March 27, 2023 till the conclusion of 18th Annual General Meeting of the Company.
Whether promoter/ promoter group are No
interested in the agenda/resolution?
Category Mode of No. of shares No. of votes % of Votes Polled on No. of Votes No. of Votes % of Votes in favour % of Votes against
Voting held polled outstanding shares – in favour –Against on votes polled on votes polled
[1] [2] [3]={[2]/[1]}*100 [4] [5] [6]={[4]/[2]}*100 [7]={[5]/[2]}*100
Promoter and E-Voting 189225799 189225799 100.0000 189225799 0 100.0000 0.0000
Promoter Group Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 189225799 100.0000 189225799 0 100.0000 0.0000
Public E-Voting 104836632 83499744 79.6475 83499744 0 100.0000 0.0000
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 83499744 79.6475 83499744 0 100.0000 0.0000
Public Non E-Voting 205450629 50643662 24.6500 50641631 2031 99.9960 0.0040
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 50643662 24.6500 50641631 2031 99.9960 0.0040
Total 499513060 323369205 64.7369 323367174 2031 99.9994 0.0006

178
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Resolution Required : (Special) 2 - Re-appointment of Mr. Chenayappillil John George (DIN: 00003132) as an Independent Director of the Company
for a second term with effect from April 11, 2023 till the conclusion of 18th Annual General Meeting of the
Company.
Whether promoter/ promoter group are No
interested in the agenda/resolution?
Category Mode of No. of shares No. of votes % of Votes Polled on No. of Votes No. of Votes % of Votes in favour % of Votes against
Voting held polled outstanding shares – in favour –Against on votes polled on votes polled
[1] [2] [3]={[2]/[1]}*100 [4] [5] [6]={[4]/[2]}*100 [7]={[5]/[2]}*100
Promoter and E-Voting 189225799 189225799 100.0000 189225799 0 100.0000 0.0000
Promoter Group Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 189225799 100.0000 189225799 0 100.0000 0.0000
Public E-Voting 104836632 83499744 79.6475 82626417 873327 98.9541 1.0459
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 83499744 79.6475 82626417 873327 98.9541 1.0459
Public Non E-Voting 205450629 50643249 24.6498 50641737 1512 99.9970 0.0030
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 50643249 24.6498 50641737 1512 99.9970 0.0030
Total 499513060 323368792 64.7368 322493953 874839 99.7295 0.2705

Resolution Required : (Special) 3 - Re-Appointment of Mr. James Mathew (DIN: 07572909) as an Independent Director of the Company for a
second term with effect from June 23, 2023 till the conclusion of 19th Annual General Meeting of the Company.
Whether promoter/ promoter group are No
interested in the agenda/resolution?
Category Mode of No. of shares No. of votes % of Votes Polled on No. of Votes No. of Votes % of Votes in favour % of Votes against
Voting held polled outstanding shares – in favour –Against on votes polled on votes polled
[1] [2] [3]={[2]/[1]}*100 [4] [5] [6]={[4]/[2]}*100 [7]={[5]/[2]}*100
Promoter and E-Voting 189225799 189225799 100.0000 189225799 0 100.0000 0.0000
Promoter Group Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 189225799 100.0000 189225799 0 100.0000 0.0000
Public E-Voting 104836632 83499744 79.6475 82890224 609520 99.2700 0.7300
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 83499744 79.6475 82890224 609520 99.2700 0.7300
Public Non E-Voting 205450629 50643151 24.6498 50641150 2001 99.9960 0.0040
Institutions Poll 0 0.0000 0 0 0.0000 0.0000
Postal Ballot 0 0.0000 0 0 0.0000 0.0000
Total 50643151 24.6498 50641150 2001 99.9960 0.0040
Total 499513060 323368694 64.7368 322757173 611521 99.8109 0.1891

179
Aster DM Healthcare Limited

Annexure 8B

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)

To
The Members,
Aster DM Healthcare Limited
(CIN: L85110KA2008PLC147259)
No.1785, Sarjapur Road, Sector -1,
HSR Layout, Ward No.174, Agara Extension,
Bengaluru-560102, Karnataka, India

I, M. Damodaran, Managing Partner of M Damodaran & Associates LLP, Practicing Company Secretaries have examined the relevant registers,
records, forms, returns and disclosures received from the Directors of Aster DM Healthcare Limited having CIN-L85110KA2008PLC147259
and having registered office at No.1785, Sarjapur Road, Sector -1, HSR Layout, Ward No. 174, Agara Extension, Bengaluru, Karnataka- 560102,
India (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose of issuing this Certificate, in accordance
with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015.

In my opinion and to the best of my information and according to the verifications (including Directors Identification Number (DIN) status at the
portal (www.mca.gov.in) as considered necessary and explanations furnished to me by the Company & its officers, I hereby certify that none of
the Directors on the Board of the Company as stated below for the financial year ending on March 31, 2023 have been debarred or disqualified
from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any
such other Statutory Authority.
S. Name of the Director DIN Original Date of
No appointment
1. Dr. Mandayapurath Azad Moopen 00159403 18/01/2008
2. Ms. Alisha Moopen 02432525 20/09/2013
3. Mr. Wilson Joseph Thadathil 02135108 20/04/2009
4. Mr. Anoop Moopen 02301362 20/04/2009
5. Mr. Daniel Robert Mintz 00960928 18/01/2012
6. Mr. Shamsudheen Bin Mohideen Mammu Haji 02007279 16/09/2015
7. Mr. Chenayappillil John George 00003132 11/04/2020
8. Mr. Sridar Arvamudhan Iyengar 00278512 19/07/2020
9. Dr. James Mathew 07572909 23/06/2020
10. Mr. Wayne Earl Keathley 09331921 04/10/2021
11. Mr. Emmanuel David Gootam 09771151 10/11/2022
12. Ms. Purana Housdurgamvijaya Deepti 08125456 27/03/2023

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company.
My responsibility is to express an opinion on these based on my verification. This certificate is neither an assurance as to the future viability of
the Company nor of the efficiency or effectiveness with which the Management has conducted the affairs of the Company.

For M DAMODARAN & ASSOCIATES LLP

M. Damodaran
Managing Partner
FCS No.: 5837
COP. No.:5081
FRN: L2019TN006000
Place: Chennai PR 1374/2021
Date: May 25, 2023 ICSI UDIN: F005837E000380574

180
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Annexure 8C

DECLARATION ON CODE OF CONDUCT

To
The Members,
Aster DM Healthcare Limited
(CIN: L85110KA2008PLC147259)
No.1785, Sarjapur Road, Sector -1,
HSR Layout, Ward No.174, Agara Extension,
Bengaluru-560102, Karnataka, India

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 of the Company have affirmed compliance with the Code of Conduct for the financial year 2022-23.

For Aster DM Healthcare Limited

Dr. Azad Moopen

Date : May 25, 2023 Chairman and Managing Director
Place : Bengaluru DIN: 00159403

181
Aster DM Healthcare Limited

Annexure 8D

CFO CERTIFICATION
As per Regulation 17(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

To
The Board of Directors,
Aster DM Healthcare Limited
(CIN: L85110KA2008PLC147259)
No.1785, Sarjapur Road, Sector -1,
HSR Layout, Ward No.174, Agara Extension,
Bengaluru-560102, Karnataka, India

Dear Sir/Madam,

We, Amitabh Johri (PAN: ACQPJ9716N) and Sunil Kumar M R (PAN: DFPPS6958E) Joint Chief Financial Officers of the Company certify to the
Board that:

a. We have reviewed Financial Statements and Cash Flow Statements for the year ended March 31, 2023 and that 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. There are, to the best of our knowledge and belief, no transactions entered into by the Company during the financial year under review
which are fraudulent, illegal or violation of the Company’s Code of Conduct.

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

d. We have indicated to the Auditors and the Audit Committee:

i. Significant changes in internal control over financial reporting during the year;

ii. Significant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial
statements; and

iii. There are no instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or
an employee having a significant role in the Company’s internal control system over financial reporting.

For Aster DM Healthcare Limited

Amitabh Johri Sunil Kumar M R

Chief Financial Officer Joint Chief Financial Officer
PAN: ACQPJ9716N PAN: DFPPS6958E

Date: May 25, 2023

Place: Bengaluru

182
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Annexure 8E

COMPLIANCE CERTIFICATE ON CORPORATE GOVERNANCE

To
The Members,
Aster DM Healthcare Limited
(CIN: L85110KA2008PLC147259)
No.1785, Sarjapur Road, Sector -1,
HSR Layout, Ward No.174, Agara Extension,
Bengaluru-560102, Karnataka, India

A. I , M. Damodaran, Managing Partner of M Damodaran & Associates LLP, Practicing Company Secretaries have examined the compliance of
conditions of Corporate Governance by Aster DM Healthcare Limited (CIN: L85110KA2008PLC147259) (“the Company”), for the financial
year ended March 31, 2023 as stipulated in Regulation 17 to 27 and Clause (b) to (i) and (t) of Regulation 46(2) and para C and D of Schedule
V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended from time to time [“SEBI ( LODR)”].

Management Responsibility

B. The compliance of conditions of Corporate Governance is the responsibility of the management. This responsibility includes the design,
implementation and maintenance of internal control and procedures to ensure the compliance with the conditions of the Corporate
Governance stipulated in the SEBI (LODR).

Certifier’s Responsibility

C. My Responsibility and examination was limited to examining the procedures and implementation thereof, adopted by the Company for
ensuring the compliance with the conditions of the corporate governance. It is neither an audit nor an expression of opinion on the financial
statement of the Company.

D. I have examined the books of accounts and other relevant records and documents maintained by the Company for the purpose of providing
reasonable assurance on the compliance with corporate governance requirements by the Company and also obtained all the information
and explanations which to the best of my knowledge and belief were necessary for the purposes of certification.

Opinion

E. In my opinion and to the best of my information and according to the explanations given to us, I certify that the Company has complied with
the conditions of Corporate Governance as stipulated in Regulations 17 to 27 and Clause (b) to (i) and (t) of Regulation 46(2) and para C and
D of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the year ended March 31, 2023.

F. I, further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness
with which the management has conducted the affairs of the Company.

For M DAMODARAN & ASSOCIATES LLP

M. Damodaran
Managing Partner
FCS No.: 5837
COP. No.:5081
FRN: L2019TN006000
Place: Chennai PR 1374/2021
Date: May 25, 2023 ICSI UDIN: F005837E000380607

183
Aster DM Healthcare Limited

Annexure 9

BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORTING

SECTION A: GENERAL DISCLOSURES

I. Details of the listed entity

1. Corporate Identity Number (CIN) of the Listed Entity: L85110KA2008PLC147259

2. Name of the Listed Entity: Aster DM Healthcare Limited

3. Year of incorporation: 2008

4. Registered office address: No. 1785, Sarjapur Road, Sector-1, HSR Layout, Ward No. 174, Agara Extension, Bengaluru- 560102,
Karnataka, India

5. Corporate address: Awfis, 2nd Floor Renaissance Centra, 27 & 27/1, Mission Road, Rama Nagar, Bengaluru, Karnataka- 560027

6. E-mail: [email protected]

7. Telephone: +91 484 669 9999

8. Website: www.asterdmhealthcare.com

9. Financial year for which reporting is being done: April 01, 2022-March 31, 2023

10. Name of the Stock Exchange(s) where shares are listed: National Stock Exchange of India Limited and BSE Limited

11. Paid-up Capital: INR 499.52 Crores

12. Name and contact details (telephone, email address) of the person who may be contacted in case of any queries on the BRSR
report: Mr. Hemish Purushottam, Company Secretary and Compliance Officer. +91 484 669 9999 Email: hemish.purushottam@
asterdmhealthcare.com

13. Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a consolidated
basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together) : Consolidated
basis unless otherwise specified.

II. Products/services

14. Details of business activities (accounting for 90% of the turnover):

S. Description of Main Activity Description of Business Activity % of Turnover of the entity

No.
1 Revenue from hospital and medical Healthcare services through hospitals 76.85%
services* and clinics

2 Revenue from pharmacy Sale of pharma, non-pharma products 22.91%

and opticals
*includes sale of pharmacy products to the in patients

15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):

S. Product/Service NIC Code % of total Turnover contributed

No.
1 Revenue from hospital and medical 86110 76.85%
services*
2 Revenue from pharmacy 4772 22.91%
*includes sale of pharmacy products to the in patients.

184
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

III. Operations

16. Number of locations where plants and/or operations/offices of the entity are situated:

Location Number of Hospitals/Clinics/Labs/Pharmacies Number of offices Total

National Hospitals -17 2 493
Clinics- 12
Pharmacies -257*
Labs & patient experience centers -205 (1 reference
lab, 15 Satellite labs, 189 patient experience centers)
International Hospitals-15, Clinics-115, Pharmacies-264 1 395
* (operated by Alfaone Retail Pharmacies Private Limited under brand license from Aster)

17. Markets served by the entity:

a. Number of locations

Locations Number
National (No. of States) 6 (Andhra Pradesh, Telangana, Tamil Nadu, Maharashtra,
Karnataka and Kerala)
International (No. of Countries) 6

b. What is the contribution of exports as a percentage of the total turnover of the entity: 4.05% (Standalone)

c. A brief on types of customers: Patients requiring medical assistance and healthcare services.

IV. Employees

18. Details as at the end of Financial Year: FY 2022-23

a. Employees (including differently abled):

S. Particulars Total Male Female

No. (A) No. (B) % (B / A) No. (C) % (C / A)
EMPLOYEES
1. Permanent (D) 24,653 9,513 39% 15,140 61%
2. Other than
5,677 3,241 57% 2,436 43%
Permanent (E)
3. Total employees (D + E) 30,330 12,754 42% 17,576 58%

Note: 1. The Company has no workers on rolls of the Company.

2. Other than Permanent category includes outsourced and fees-based Doctors/Retainer.

b. Differently abled Employees:

S. Particulars Total Male Female

No. (A) No. (B) % (B / A) No. (C) % (C / A)
DIFFERENTLY ABLED EMPLOYEES
1. Permanent (D) 112 77 69% 35 31%
2. Other than
0 0 - 0 -
Permanent (E)
3. Total employees (D + E) 112 77 69% 35 31%

185
Aster DM Healthcare Limited

19. Participation/Inclusion/Representation of women

Particulars Total No. and percentage of Females

(A) No. (B) % (B / A)
Board of Directors 12 2 17%
Key Management Personnel 3 1 33%

20. Turnover rate for permanent employees

FY 2022-23 FY 2021-22 FY 2020-21

(Turnover rate in current FY) (Turnover rate in previous FY) (Turnover rate in the year prior
to the previous FY)
Male Female Total Male Female Total Male Female Total
Permanent Employees 30% 34% 32% 25% 34% 30% 24% 33% 29%

V. Holding, Subsidiary and Associate Companies (including joint ventures)

21. (a) Names of holding / subsidiary / associate companies / joint ventures

Refer to Annexure 1 to the Board’s report for information on holding / subsidiary / associate companies / joint ventures.

VI. CSR Details

22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013: Yes

(ii) Turnover INR 1,116.47 crores (Standalone)

(iii) Net worth INR 2,579.54 crores (Standalone)

VII. Transparency and Disclosures Compliances

23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct:

Stakeholder Grievance Redressal FY 2022-23 Current Financial Year FY 2021-22 Previous Financial Year
group from whom Mechanism in Place Number of Number of
complaint is received (Yes/No) (If Yes, then Number of complaints Number of complaints
provide web-link for complaints pending complaints pending
grievance redress policy) Remarks Remarks
filed during resolution filed during resolution
the year at close the year at close
of the year of the year
Communities Yes https://www. 0 0 0 0
asterdmhealthcare.com/
about-us/corporate-
governance#
Investors (other Yes https://www. 0 0 0 0
than shareholders) asterdmhealthcare.com/
investor/contact-us
Shareholders Yes https://www. 1 0 - 2 0 -
asterdmhealthcare.com/
investors
Employees Yes https://www. 5 0 Aster Hospital: 01 Aster 37 4
asterdmhealthcare.com/ Clinic: 01 Aster Retail:
about-us/corporate- 01 Medcare: 02
governance#

186
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Stakeholder Grievance Redressal FY 2022-23 Current Financial Year FY 2021-22 Previous Financial Year
group from whom Mechanism in Place Number of Number of
complaint is received (Yes/No) (If Yes, then Number of complaints Number of complaints
provide web-link for complaints pending complaints pending
grievance redress policy) Remarks Remarks
filed during resolution filed during resolution
the year at close the year at close
of the year of the year
Customers Information on the 106 142 Number of complaints 116 387 Number of complaints
Litigations filed by the filed during the year filed during the year- India
Customers (Patients) are -India -18 Consumer -12 Consumer litigations
sent by the Courts to the litigations & 9 & 21 Consumer Notices.
registered office or to the Consumer Notices. Number of complaints
concerned hospital Number of complaints pending resolution at
pending resolution close of the year-
Legal Notices are sent by at close of the year India - 65 Consumer
the Customers (Patients) -India -73 Consumer litigations including
to the registered office or litigations including those accumulated
to the concerned hospital those accumulated from previous years & 0
directly from previous years & 0 Notices.
Notices. (For Notices, we have
Legal notices/litigation (For Notices, we responded appropriately
shall be sent to registered have responded and therefore it is deemed
office of the subsidiaries appropriately and closed).
in the GCC https://www. therefore it is deemed
asterdmhealthcare.com/ closed). Number of complaints
about-us/corporate- filed during the year-GCC
governance Number of complaints -7 Consumer litigations &
filed during the 73 Consumer Notices.
year-GCC -Aster Number of complaints
Hospital- 53, Medcare pending resolution at
Hospital- 26. close of the year- GCC-
Number of complaints 76 litigations Including
pending resolution at those accumulated from
close of the year previous years & 246
Aster Hospital- 43 & Consumer Notices.
Medcare Hospital -26.
These are the Medico- Complaints received on
legal complaints Ethics line- 3 and pending
received from DHA resolution Nil.
against our facilities
in UAE.
Value Chain Partners Yes https://www. 1 0 3 2
asterdmhealthcare.com/
about-us/corporate-
governance#

24. Overview of the entity’s material responsible business conduct issues

Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present
a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial
implications, as per the following format:

S. Material issue Indicate whether risk Rationale for In case of risk, Financial implications of
No. identified or opportunity (R/O) identifying the risk approach to adapt or the risk or opportunity
/ opportunity mitigate (Indicate positive or
negative implications)
1 Environment : Engaging Opportunity - Increased Positive : Scope to
patients on Climate revenue through improve Aster DM’s
actions through our development and competitiveness and
solutions / or expansion of capitalize on the shifting
services to help our patient preferences by
patients manage leveraging our expertise in
their climate change sustainability, low-carbon
risks. transition, and digital /
IT to help our patients in
– Savings through
their sustainability and
lower-emission
low-carbon journeys
energy sources

– Global leadership in
addressing climate
change through
advocacy

187
Aster DM Healthcare Limited

S. Material issue Indicate whether risk Rationale for In case of risk, Financial implications of
No. identified or opportunity (R/O) identifying the risk approach to adapt or the risk or opportunity
/ opportunity mitigate (Indicate positive or
negative implications)
2 Societal : Facilitating Risk Inability to facilitate - Employee Negative : Impact on
best-in-class employee best-in-class employee engagement and employer reputation,
experience experience may impact support increased cost of talent,
our ability to attract, etc.
– Holistic employee
hire, train, engage and
retention and
retain talent.
recognition efforts

– Focus on career
and leadership
development

– Occupational
health and safety
measures

- Succession planning
3 Governance : Risk Cyber attacks that - Robust Negative : Increased
breach our information cybersecurity operational cost for
Data privacy network and / or failure and data privacy technological investments
and information to protect sensitive and frameworks and and hiring and training
management confidential information controls talent
of our stakeholders
– Multi-layered
in accordance with
governance process
applicable laws and
with oversight by
contractual obligations
the executive and
may impact our
the Board
operations and patient
satisfaction or result in – Continued
significant regulatory investment in
penalties. technology

– Readiness to
respond to incidents

– Awareness
programs and
trainings

- Region-specific data
protection controls
and awareness
campaigns

188
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

SECTION B: MANAGEMENT AND PROCESS DISCLOSURES

This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC
Principles and Core Elements.

Disclosure Questions P P P P P P P P P
1 2 3 4 5 6 7 8 9
Policy and management processes
1. a. Whether your entity’s policy/policies cover each principle and its core elements Yes Yes Yes Yes Yes Yes Yes Yes Yes
of the NGRBCs. (Yes/No)
b. Has the policy been approved by the Board? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
c. Web Link of the Policies, if available https://www.asterdmhealthcare.com/fileadmin/user_
upload/BRR_Policy.pdf
2. Whether the entity has translated the policy into procedures. (Yes / No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
3. Do the enlisted policies extend to your value chain partners? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes
4. Name of the national and international codes/certifications/labels/ standards (e.g. GRI standards, Section 135 of the Companies Act, 2013 and
Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g. SEBI (Listing Obligations and Disclosure Requirements),
SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle. Regulations, 2015

5. Specific commitments, goals and targets set by the entity with defined timelines, if No
any.
6. Performance of the entity against the specific commitments, goals and targets No
along-with reasons in case the same are not met.
Governance, leadership and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements- At Aster,
we believe that our responsibility of ensuring sustained growth goes beyond our operations to ensuring societal growth through spearheading ESG
activities. We consider environmental leadership as a long-term strategic imperative and are involved very deeply in community connect through
the Aster Volunteers program in many geographies including India, the GCC and Africa, among others.
8. Details of the highest authority responsible for implementation and oversight of the The Stakeholders relationship committee of the Board
Business Responsibility policy (ies). oversees the Business Responsibility Policy.
9. Does the entity have a specified Committee of the Board/ Director responsible for Yes. Stakeholder Relationship Committee of the Board
decision making on sustainability related issues? (Yes / No). If yes, provide details.
10. Details of Review of NGRBCs by the Company:
Subject for Review Indicate whether review Frequency (Annually/
was undertaken by Director Half yearly/ Quarterly/
/ Committee of the Board/ Any other – please
Any other Committee specify)
P P P P P P P P P P P P P P P P P P
1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9

Performance against above policies and follow up action Committee of the Board Annually
Compliance with statutory requirements of relevance to the principles, and, rectification Committee of the Board Annually
of any non-compliances
11. Has the entity carried out independent assessment/ evaluation of the working of its P P P P P P P P P
policies by an external agency? (Yes/No). If yes, provide name of the agency. 1 2 3 4 5 6 7 8 9
No

12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated:

Questions P P P P P P P P P
1 2 3 4 5 6 7 8 9
Policy and management processes
The entity does not consider the Principles material to its business (Yes/No)
The entity is not at a stage where it is in a position to formulate and implement the
policies on specified principles (Yes/No)
The entity does not have the financial or/human and technical resources available Not applicable
for the task (Yes/No)
It is planned to be done in the next financial year (Yes/No)
Any other reason (please specify)

189
Aster DM Healthcare Limited

SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE

PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical,
Transparent and Accountable

Essential Indicators

1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year:

Segment % of persons in respective

Total number of training and Topics/Principles covered under
category covered by the
awareness programmes held the training and its impact
awareness programmes
Board of Directors 4 Principle 1,3,4,5 25%
Key Managerial Personnel 4 Principle 1,3,4,5 100%
Employees other than BOD and 134 Principle 3,4,5,7,8,9 < 30: 17%
KMP’s 30-50: 75%
> 50: 8%

2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors
/ KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity
shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations)
Regulations, 2015 and as disclosed on the entity’s website): There are no material monetary or non-monetary actions on the Company or
its directors / KMPs with regulators / law enforcement agencies / judicial institutions, in the financial year.

3. Of the instances disclosed in Question 2 above, details of the Appeal/ Revision preferred in cases where monetary or non-monetary action
has been appealed- Not Applicable

4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy.
Yes. As Asterians, we are committed to doing business in a honest and ethical manner. We follow all applicable laws, treaties and regulations
that prohibit bribery and other corruption in every country in which we do business. This is covered in our Whistle Blowing Policy and the
same is available on our website at https://www.asterdmhealthcare.com/fileadmin/user_upload/Whistle_Blowing_Policy_Aug22_01.pdf.

5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the
charges of bribery/ corruption: There have been no cases involving disciplinary action by any law enforcement agency for the charges of
bribery / corruption against directors / KMPs / employees that have been brought to our attention.

6. Details of complaints with regard to conflict of interest- None.

7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement
agencies/ judicial institutions, on cases of corruption and conflicts of interest- None.

Leadership Indicators

1. Awareness programmes conducted for value chain partners on any of the Principles during the financial year:

Total number of awareness programmes Topics/principles covered under the %age of value chain partners covered (by
held training value of business done with such partners)
under the awareness programmes
4 Principles – 1,3,4,5 0.01%

2. Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/No) If Yes, provide
details of the same.- Yes. The Company receives an annual declaration (changes from time to time) from its Board members and KMP on
the entities they are interested in and ensures requisite approvals as required under the Acts as well as the Company’s policies are in place
before transacting with such entities / individuals. Directors recuse themselves from participation and discussion on the agenda where they
are interested. All related party transactions are entered on arm’s length and CFO presents certificate on the same to the Audit Committee
and Board.

190
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe

Essential Indicators

1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of
product and processes to total R&D and capex investments made by the entity, respectively. None during the reporting period.

2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No)- No. The Company is in healthcare business and products
have to be sourced as per regulatory and patient safety requirements. Hence, this is not applicable to the Company. However, the
Company is reducing its carbon footprint through use of paper bags for our pharmacies and increased sourcing of green energy from
solar and wind energy.

3. b. If yes, what percentage of inputs were sourced sustainably? - Not applicable.

4. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including
packaging) (b) E-waste (c) Hazardous waste and (d) other waste- Not applicable as we are in healthcare services.

5. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan
is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address
the same- Not applicable.

Leadership Indicators

1. Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing industry) or for its services
(for service industry)? If yes, provide details in the following format?- This activity hasn’t been carried out for the financial year.

2. If there are any significant social or environmental concerns and/or risks arising from production or disposal of your products / services, as
identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly describe the same along- with action taken
to mitigate the same.- This activity hasn’t been carried out for the financial year.

3. Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing industry) or providing
services (for service industry):

Indicate input material Recycled or re-used input material to total material

FY 2022-23 FY 2021-22
Metal Scrap 2% Not available
Plastic Waste 7% Not available
Waste Cardboards 13% Not available
Paper Waste 17% Not available

4. Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and safely disposed, as per
the following format:

FY 2022-23 FY 2021-22
Safely Safely
Re-used Recycled Re-used Recycled
Disposed Disposed
Plastics (including packaging) - 70,611 - Not available Not available Not available
E-waste 3,795 Not available Not available Not available
Hazardous waste - - 1,054,043 Not available Not available Not available
Other waste - 354,790 - Not available Not available Not available

5. Reclaimed products and their packaging materials (as percentage of products sold) for each product category - Not applicable as we are in
healthcare services.

191
Aster DM Healthcare Limited

PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their value
chains

Essential Indicators

1. a. Details of measures for the well-being of employees:.

Category % of employees covered by

Total (A) Health insurance Accident insurance Maternity benefits Paternity Benefits
Number % (B/A) Number % (C/A) Number % (D/A) Number % (E/A)
(B) (C) (D) (E)
Permanent employees
Male 9,513 9,513 100% 9,513 100% NA NA 9,513 100%
Female 15,140 15,140 100% 15,140 100% 15,140 100% NA NA
Total 24,653 24,653 100% 24,653 100% 15,140 100% 9,513 100%

b. Details of measures for the well-being of workers: Not applicable

2. Details of retirement benefits, for Current Financial Year and Previous Financial Year.

Benefits FY 2022-23 FY 2021-22

Deducted
No. of No. of No. of No. of
and Deducted and
employees workers employees workers
deposited deposited with
covered as covered as covered as covered as
with the the authority
a % of total a % of total a % of total a % of total
authority (Y/N/N.A)
employees employees employees employees
(Y/N/N.A)
PF 100% NA Yes 100% NA Yes
Gratuity 100% NA Yes 100% NA Yes
ESI 20% NA Yes 20% NA Yes

3. Accessibility of workplaces

Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of
Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard- Yes. Considering that the Rights
of Persons with Disabilities Act 2016 is specific to India, our hospitals in India are in line with the law and are accessible to differently abled
employees.

4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the
policy. Yes - As an organization, the Company does not discriminate and has zero tolerance against behaviours that are against the ethics
and Code of Conduct. This is covered under our Code of Conduct – the ‘Asterian Ethos’. https://www.asterdmhealthcare.com/about-us/
corporate-governance#

5. Return to work and Retention rates of permanent employees and workers that took parental leave

Permanent employees
Gender Return to work rate Retention Rate
Male 100% 79%
Female 95% 77%
Total 97.5% 78%

6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details
of the mechanism in brief.

Yes/No (If yes, the give details of the mechanism in brief)

Permanent employees We have multiple channels for employees to raise concerns. These range
Other than Permanent employees from unit level grievance committees, whistle blower channel, anti-sexual
harassment channel, to the corporate employee wellbeing and grievances
channel. These are governed by the whistle blowing policy, anti-sexual
harassment policy, anti-discrimination policy and the code of conduct policy of
the Company.

192
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

7. Membership of employees and worker in association(s) or Unions recognised by the listed entity:

Category FY 2022-23 FY 2021-22

No of No of
employees employees
Total Total
in respective in respective
employees employees
category, who % B/A category, who %D/C
in respective in respective
are part of are part of
category (A) category (C)
association(s) association(s)
or union (B) or union (D)
Total permanent Employees 448 316 71% 483 379 78%
Male 209 154 74% 214 163 76%
Female 239 162 68% 269 216 80%
Note: This information is only for Prerana Hospital Limited, a subsidiary Company where there is a Union

8. Details of training given to employees and workers:

Category FY 2022-23 FY 2021-22

On Health and On Health and
Total On skill upgradation On skill upgradation
safety measures Total safety measures
(A)
No. No. (D) No.
%. (B/A) % (C/A) %. (E/D) No. (F ) % (F/D)
(B) (C) (E)
Employees
Male HSE Induction sessions total = 1,986 HSE Induction sessions total = 1,027
Female Number induction attendees = 5,671 Number induction attendees = 2,723
Total HSE Training sessions = 440 HSE Training sessions = 395
Number HSE Training attendees = 4,306 Number HSE Training attendees = 3,025
Tool Box Talk sessions = 751 Tool Box Talk sessions = 39
Number of TBT attendees = 4,829 Number of TBT attendees = 120

9. Details of performance and career development reviews of employees and worker:

Category FY 2022-23 FY 2021-22

Total (A) No. (B) & B/A Total (C ) No. (D) & D/C
Employees
Male 7,779 3,540 45% 8,165 5,595 68.5%
Female 13,065 5,002 38% 12,615 7,528 59.7%
Total 20,844 8,542 41% 20,780 13,123 63.2%

10. Health and safety management system:

a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage
such system?- Yes, All facility related activities and subcontractors activities are covered under the H & S management system except
H & S in clinical services

b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity?
Integrated method of statement and risk assessment procedure to identify work related hazards, Risk and opportunities process for
business risk identification.

c. Whether you have processes for workers to report the work related hazards and to remove themselves from such risks. (Y/N)- Yes

d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)- Yes

193
Aster DM Healthcare Limited

11. Details of safety related incidents, in the following format:

Safety Incident/Number Category FY 2022-23 FY 2021-22

Lost Time Injury Frequency Rate (LTIFR) (per one Employees 0 0
million-person hours worked) Workers 0 0
Total recordable work-related Injuries Employees 0 0
Workers 0 0
No. of fatalities Employees 0 0
Workers 0 0
High consequence work-related injury or ill-health Employees 0 0
(excluding fatalities) Workers 0 0

12. Describe the measures taken by the entity to ensure a safe and healthy work place.

i. Effective HSE plan and procedures implementation

ii. Periodic trainings to the staff

iii. Regular HSE inspections

iv. Appointment of safety officers in the hospitals.

v. Compliance to all local regulations etc.

13. Number of Complaints on the following made by employees:

Category FY 2022-23 FY 2021-22

Pending
Pending
resolution
Filed during resolution at Filed during
Remarks at the end of Remarks
the year the end of the year
year
year

Working Conditions 0 0 0 0
Health &Safety 0 0 0 0

14. Assessments for the year

% of your plants and offices that were assessed (by entity or

statutory authorities or third parties)
Health and safety practices 11% (98 facilities were assessed (Hospitals, clinics and
Working Conditions Pharmacies))

15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns
arising from assessments of health & safety practices and working conditions- Incident Management process in place where incidents if
any depending on its risk nature, get investigated and corrective actions are taken.

Leadership Indictors

1. Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B) Workers (Y/N). -Yes,
to all permanent employees.

2. Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the value chain
partners.- The Company obtains confirmation from various vendors on the compliance with statutory dues.

194
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

3. Provide the number of employees / workers having suffered high consequence work- related injury / ill-health / fatalities (as reported in
Q11 of Essential Indicators above), who have been are rehabilitated and placed in suitable employment or whose family members have
been placed in suitable employment- Nil

Total no of affected employees/ workers No. of employees/workers that are rehabilitated

and placed in suitable employment or whose family
Particulars
members have been placed in suitable Employment
FY 2022-23 FY 2021-22 FY 2022-23 FY 2021-22
Employees 0 0 0 0
Workers 0 0 0 0

4. Does the entity provide transition assistance programs to facilitate continued employability and the management of career endings
resulting from retirement or termination of employment? (Yes/ No)- No

5. Details on assessment of value chain partners:

% of value chain partners (by value of business done with such

partners) that were assessed
Health and safety practices Nil
Working Conditions Nil

6. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from assessments of health and
safety practices and working conditions of value chain partners- Nil

195
Aster DM Healthcare Limited

PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders

Essential Indicators

1. Describe the processes for identifying key stakeholder groups of the entity- Across different locations, we have identified specific functions
and departments to address the concerns of a particular set of stakeholders. We engage proactively and continuously with our stakeholders,
using formal and informal approaches such as performance reviews meetings, surveys, feedback systems, media, events etc.

2. List of stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group- Our stakeholders
are important to us, and engaging with them is key to our business strategy. Ongoing engagement with our stakeholders informs our
materiality process and helps us identify important sustainability issues central to our sustainability strategy. Details of stakeholder groups
identified and frequency of engagement is provided in page no. 24 of the Annual Report.

Leadership Indicators

1. Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social topics or if consultation
is delegated, how is feedback from such consultations provided to the Board. - A materiality assessment survey was conducted for all
stakeholder groups covering GRI standards to identify material topics for reporting for Aster DM Healthcare Limited.

2. Whether stakeholder consultation is used to support the identification and management of environmental, and social topics (Yes
/ No). If so, provide details of instances as to how the inputs received from stakeholders on these topics were incorporated into policies and
activities of the entity. The material topics from the survey are being reported in the current ESG report.

3. Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/ marginalized stakeholder
groups. No instances to report.

196
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

PRINCIPLE 5 Businesses should respect and promote human rights

Essential Indicators

1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format:

Category FY 2022-23 FY 2021-22

No. of No. of
employees/ employees/
Total (A) % (B / A) Total (C ) % (D / C)
workers workers
covered (B) covered (D)
Employees
Permanent 24,653 1,631 7% Not available Not available Not available
Other than permanent 0 0 0% Not available Not available Not available
Total Employees 24,653 1,631 7% Not available Not available Not available

2. Details of minimum wages paid to employees in the following format:

Category FY 2022-23 FY 2021-22

Total Equal More than Equal More than
Total
(A) Minimum Wage to Minimum Wage Minimum Wage to Minimum Wage
(D)
No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D)
Employees
Permanent
Male 3,182 989 31% 2,193 69% 2,528 885 35% 1,643 65%
Female 6,822 3,353 49% 3,469 51% 5,180 2,725 53% 2,455 47%
Total 10,004 4,342 43% 5,662 57% 7,708 3,610 47% 4,098 53%

3. Details of remuneration/salary/wages, in the following format:

Male Female
Number Median remuneration/ Number Median remuneration/
salary/ wages of salary/ wages of
respective category respective category

Board of Directors (BOD)

Key Managerial Refer Particulars of Employees section of Annual report
Personnel
Employees other than 4,273 AED 5,000 6,051 AED 4,450
BoD and KMP (GCC)
Employees other than 3,182 Rs. 17,147 6,822 Rs. 13,128
BoD and KMP
(India)

4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the
business? (Yes/No)- Yes

5. Describe the internal mechanisms in place to redress grievances related to human rights issues - Aster DM Healthcare Limited strives to
create and maintain an inclusive environment where all employees feel heard, empowered and respected. We encourage our employees to
share their concerns & grievances with us through the appropriate channels and forums to help us address them in a timely manner without
fear of reprisal while continuing to improve our people practices. Employee grievance can be defined as any concern or challenge that an
employee is facing at the workplace including dissatisfaction, behavioral concerns, psychological concerns and/or any issues pertaining
to power dynamics. Being a listening organization, we have multiple channels for employees to raise concerns. These range from unit
level grievance committees, whistle blower channel, anti-sexual harassment channel, to the corporate employee wellbeing and grievances
channel. These are governed by the whistle blowing policy, anti-sexual harassment policy, anti-discrimination policy and the code of conduct
policy.

197
Aster DM Healthcare Limited

6. Number of Complaints on the following made by employees and workers:

FY 2022-23 FY 2021-22
Pending
Pending
resolution
Filed during resolution at Filed during
Remarks at the end of Remarks
the year the end of the year
year
year

Sexual Harassment 16 0 16 0
Discrimination at workplace 1 0 134 0
Child Labour 0 0 0 0
Forced Labour /Involuntary Labour 0 0 0 0
Wages 0 0 0 0
Other human rights related issues 0 0 14 0
(involuntary
separation)

7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases - As stated in our Anti sexual
harassment policy: Regardless of the outcome of a complaint made in good faith, the Employee lodging the complaint and any person
providing information or any witness, will be protected from any form of retaliation. While dealing with complaints of sexual harassment, the
Committee shall ensure that the Employee or the witness are not victimized or discriminated against by the Respondent. Any unwarranted
pressures, retaliatory or any other type of unethical behavior from the Respondent against the Employee while the investigation is in
progress should be reported by the complainant to the Committee as soon as possible. Disciplinary action will be taken by the Committee
against any such complaints which are found genuine.

Further, Audit Committee noted that for instances where known employees have raised complaints/grievances all employees continue to
be on roll and it was noted that there were zero instances of retaliation.

8. Do human rights requirements form part of your business agreements and contracts? (Yes/No)- Yes

9. Assessment for the year

% of your plants and offices that were assessed

(by entity or statutory authorities or third parties)
Child labour
Forced/involuntary labour
Sexual harassment
Nil
Discrimination at workplace
Wages
Others – please specify

10. Provide details of any corrective actions taken or underway to address significant risks /concerns arising from the assessments at Question
9 above- There are no significant risks/concern that have been identified by the Ethics Committee.

Leadership Indicators

1. Details of a business process being modified / introduced as a result of addressing human rights grievances/complaints- None

2. Details of the scope and coverage of any Human rights due-diligence conducted- None

3. Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of Persons with
Disabilities Act, 2016? - Yes

4. Details on assessment of value chain partners- During the year the Company has not conducted any assessment of value chain
partners.

5. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at
Question 4 above.- Not applicable.

198
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

PRINCIPLE 6: Businesses should respect and make efforts to protect and restore the environment

Essential Indicators

1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:

Parameter FY 2022-23 FY 2021-22

Total electricity consumption (A) 90,039 MWh 61,039 MWh
Total fuel consumption (B) Diesel – 3,852 KL Diesel – 362 KL
Petrol –58 KL Petrol –77 KL
LPG – 242,967 Kg LPG – 229,475 Kg
Firewood - 3,108,761 Kg Firewood - 2,049,635 Kg
Energy consumption through other sources (C) Solar Energy – 3,675,000 kWh Solar– 5,625,000 kWh
Wind Energy – 2,300,000 kWh Wind – 1,770,000 kWh
Hydro Energy – 3,569,298 kWh
Total energy consumption (A+B+C) Electricity – 90,039 MWh Electricity – 61,039 MWh
Diesel – 3,852 KL Diesel – 362 KL
Petrol –58 KL Petrol –77 KL
LPG – 242,967 Kg LPG – 229,475 Kg
Firewood - 3,108,761 Kg Firewood - 2,049,635 Kg
Energy intensity per rupee of turnover (Total energy consumption/turnover in Electricity 7.55 MWh/Crore Electricity – 5.95 MWh/Crore
rupees) Diesel – 0.32 KL/Crore Diesel – 0.03 KL/Crore
Petrol –0.005 KL/Crore Petrol –0.006 KL/Crore
LPG – 20.36 Kg/Crore LPG – 19.23 Kg/Crore
Firewood – 260.5 Kg/Crore Firewood – 171.76 Kg/Crore
Energy intensity (Number of Hospitals) – the relevant metric may be selected Electricity Intensity – 3,215 Electricity Intensity – 2,180
by the entity Diesel Intensity - 138 Diesel Intensity - 13
Petrol Intensity – 2.1 Petrol Intensity – 2.75
LPG Intensity – 8,677 LPG Intensity – 8,195
Firewood Intensity – 111,027 Firewood Intensity – 73,201

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency. - No

2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme
of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not
been achieved, provide the remedial action taken, if any.- No

3. Provide details of the following disclosures related to water, in the following format:

Parameter FY 2022-23 FY 2021-22

Water withdrawal by source (in kilolitres)
(i) Rainwater Harvesting 222,360 -
(ii) Groundwater 225,989 KL 68,016 KL
(iii) Third party water (Water Tanker) 7,360 KL 395,432 KL
(iv) Recycled Water 100,972 KL -
(v) Municipal Water Supply 804,714 KL 490,456 KL
Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 1,361,395 KL 953,904 KL
Total volume of water consumption (in kilolitres) 1,361,395 KL 953,904 KL
Water intensity per rupee of turnover (Water consumed/turnover) 114 KL/Crore 93 KL/Crore
Water intensity (Number of Hospitals) – the relevant metric may be 48,621 KL/Hospital 34,068 KL/Hospital
selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency.-No

4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation.- No

199
Aster DM Healthcare Limited

5. Please provide details of air emissions (other than GHG emissions) by the entity: Not calculating this metric.

6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:

Parameter Unit FY 2022-23 FY 2021-22

Total Scope 1 emissions Tonnes of CO2 19,036 6,046
(Break-up of the GHG into CO2, CH4, Equivalent
N2O, HFCs, PFCs, SF6, NF3, if available)
Total Scope 2 emissions Tonnes of CO2 55,469 55,567
(Break-up of the GHG into CO2, CH4, Equivalent
N2O, HFCs, PFCs, SF6, NF3, if available)
Total Scope 1 and Scope 2 emissions 6.24 tCO2e/Crore 6 tCO2/Crore
per rupee of turnover
Total Scope 1 and Scope 2 emission Tonnes of CO2 2,660 2,200
intensity (No. of Hospitals) – the equivalent/Hospital
relevant metric may be selected by the
entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency.-No

7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details. -Yes, current projects related
to Sewage Treatment Plants (STPs), energy efficient lightings, energy audits, and green medical equipment’s

8. Provide details related to waste management by the entity, in the following format:

Parameter FY 2022-23 FY 2021-22

Total Waste generated (in metric tonnes)
Plastic waste (A) 70,611 Not available
E-waste (B) 3,795 Not available
Bio-medical waste (C) 1,054,042 Not available
Construction and demolition waste (D) 5,075 Not available
Battery waste (E) 5,070 Not available
Radioactive waste (F) - Not available
Other Hazardous waste. Please specify, if any. (G) - Not available
Waste Cardboards 141,290 Not available
Metal Scrap 24,788 Not available
Paper Waste 183,322 Not available
Food Waste 270,858 Not available
Garden Waste 315 Not available
Total (A+B + C + D + E + F + G + H) 1,759,167 Not available
For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric
tonnes)
Category of waste
(i) Recycled 696,259 Not available
(ii) Re-used - Not available
(iii) Other recovery operations - Not available
Total 696,259 Not available
For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes)
Category of waste - Not available
(i) Incineration - Not available
(ii) Landfilling - Not available
(iii) Other disposal operations 1,062,908 Not available
Total 1,062,908 Not available
Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency.- No

200
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to
reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes.-
Aster DM Healthcare Limited has well established waste management practices adopted by the whole organization. The main intention of
these practices is to identify, segregate and further recycle the waste generated as part of our operations. Currently we have a network of
different vendors and various procedures for the collection and recycling of recyclable materials like metals, old newspapers, plastic cans,
plastics and waste cartons.
10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves,
wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please
specify details in the following format:

S. Location of operations/offices Type of operations Whether the conditions of

No. environmental approval / clearance are
being complied with? (Y/N) If no, the
reasons thereof and corrective action
taken, if any.

1. Aster Medcity, Cheranalloor Village, Hospital, Healthcare Industry Yes

Kanayannur Taluk, Ernakulam District,
Kerala State, India – 682027

11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year:
None.

12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control of
Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of
all such non-compliances, in the following format:

S. Specify the law / regulation Provide details of the non- Any fines / penalties / Corrective action taken, if any
No. / guidelines which was not compliance action taken by regulatory
complied with agencies such as pollution
control boards or by courts

1 Andhra Pradesh Electricity Non-fulfilment of the As there has been a On going discussions with the
Regulatory Commission obligation towards violation, the ops team is business to pay the penalty.
under Reg 1 of 2012 and consumption from having a discussion with
Reg 1 of 2017 (Renewable renewable energy management to deposit an
Power Purchase Obligation sources - non-solar power amount of Rs. 5,19,000.
Regulations). consumption.

201
Aster DM Healthcare Limited

Leadership Indicators
1. Provide break-up of the total energy consumed (in Joules or multiples) from renewable and non-renewable sources, in the following format:

Parameter FY 2022-23 FY 2021-22

From renewable sources
Total electricity consumption (A) Solar Energy – 3,675,000 kWh Solar– 5,625,000 kWh
Wind Energy – 2,300,000 kWh Wind – 1,770,000 kWh
Hydro Energy – 3,569,298 kWh
Total fuel consumption (B) - -
Energy consumption through other sources (C) - -
Total energy consumed from renewable sources (A+B+C) Solar Energy – 3,675,000 kWh Solar– 5,625,000 kWh
Wind Energy – 2,300,000 kWh Wind – 1,770,000 kWh
Hydro Energy – 3,569,298 kWh
From non-renewable sources
Total electricity consumption (D) 85,697 MWh 61,039 MWh
Total fuel consumption (E) Diesel – 3,852 KL Diesel – 362 KL
Petrol –58 KL Petrol –77 KL
LPG – 242,967 Kg LPG – 229,475 Kg
Firewood - 3,108,761 Kg Firewood - 2,049,635 Kg
Energy consumption through other sources (F) - -
Total energy consumed from non-renewable sources (D+E+F) 85,697 MWh 61,039 MWh
Diesel – 3,852 KL Diesel – 362 KL
Petrol –58 KL Petrol –77 KL
LPG – 242,967 Kg LPG – 229,475 Kg
Firewood - 3,108,761 Kg Firewood - 2,049,635 Kg

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency.-No

2. Provide the following details related to water discharged:

Parameter FY 2022-23 FY 2021-22

Water discharge by destination and level of treatment (in kilolitres)
(i) To Surface water - Not available
- No treatment - Not available
- With treatment – please specify level of Treatment - Not available
(ii) To Groundwater - Not available
- No treatment - Not available
- With treatment – please specify level of Treatment - Not available
(iii) To Seawater 14,592 Not available
- No treatment - Not available
- With treatment – please specify level of Treatment - Not available
(iv) Sent to third-parties 63,922 Not Available
- No treatment - Not available
- With treatment – please specify level of Treatment - Not available
(v) Others - Not available
- No treatment - Not available
- With treatment – please specify level of Treatment - Not available
Total water discharged (in kilolitres) 78,514 Not available

Note: All the water discharged from our GCC operations are handled and treated by third parties. For India operations most of our hospitals
have a STP where waste water is treated and reused within the facility for flushing, horticulture and cooling towers.

3. Water withdrawal, consumption and discharge in areas of water stress (in kilolitres): Not applicable

202
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

4. Please provide details of total Scope 3 emissions & its intensity, in the following format

Parameter Unit FY 2022-23 FY 2021-22

Total Scope 3 emissions (Break-up of tonnes of CO2 equivalent 469 436
the GHG into CO2, CH4, N2O, HFCs,
PFCs, SF6, NF3, if available)
Total Scope 3 emissions per rupee of 0.04 tCO2e/Crore 0.04 tCO2e/Crore
turnover
Total Scope 3 emission intensity (No of tonnes of CO2 16 15.5
Hospitals) – the relevant metric may be equivalent/ Hospital
selected by the entity

Note: Indicate if any independent assessment/ evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the
external agency.-No

5. With respect to the ecologically sensitive areas reported at Question 10 of Essential Indicators above, provide details of significant direct &
indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities. There has been no significant
direct or indirect impact on biodiversity

6. If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource efficiency, or reduce
impact due to emissions / effluent discharge / waste generated, please provide details of the same as well as outcome of such initiatives,
as per the following format:

S. Initiative undertaken Details of the initiative (Web-link, if any, may Outcome of the initiative
No. be provided along-with summary)
1. None for the reporting period

7. Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.-

Each facility has a Disaster Recovery Plan (DRP) for addressing facility related disasters such as earthquakes, sandstorms, flood, explosions,
power outages etc. Vertical risk assessment register is aligned with HVA and Risks against all hazards identified identified in the Vertical
Risk Assessment Register. Disaster Management Plan and related policy is periodically reviewed and updated for recommendation made
by DHA. Half yearly process of risk assessment and risk register in place to review and update with last review and next review date.

8. Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation or adaptation
measures have been taken by the entity in this regard- Not done.

9. Percentage of value chain partners (by value of business done with such partners) that were assessed for environmental impacts.-
Not done.

203
Aster DM Healthcare Limited

PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is
responsible and transparent

Essential Indicators

1. a. Number of affiliations with trade and industry chambers/ associations.

b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is a
member of/ affiliated to.

S. Name of the trade and industry chambers/ Reach of trade and industry chambers/
No. Associations associations (State/National)

1 Chamber of Commerce National- UAE

2 Association of Healthcare Providers – India (AHPI) National- India
3 Healthcare Federation of India (NATHEALTH) National- India
4 Federation of Indian Chambers of Commerce & Industry (FICCI) National- India
5 Confederation of Indian Industry (CII) National- India
6 Kerala Private Hospital Association (KPHA) State-Kerala
7 Private Hospitals & Nursing Homes Association (PHANA) National-India

2. Provide details of corrective action taken or underway on any issues related to anti- competitive conduct by the entity, based on
adverse orders from regulatory authorities. None for the reporting period

Leadership Indicators

1. Details of public policy positions advocated by the entity: None for the reporting period.

204
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

PRINCIPLE 8 Businesses should promote inclusive growth and equitable development

Essential Indicators

1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year.

Name and brief SIA Notification Date of Whether conducted Results Relevant Web link
details of the project No. Notification by Independent Communicated
external agency in public domain
(Yes/ No) (Yes/ No)
None for the reporting period

2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the
following format:

Name of the project State District No of project % of PAF’s covered Amounts paid to
for which R & R is affected families by R & R PAF’s in the FY (in
ongoing (PAF’s) INR)
Not applicable

3. Describe the mechanisms to receive and redress grievances of the community - Aster DM Healthcare Limited strives to create and maintain
an inclusive environment where all stakeholders feel heard and respected. Being a listening organization, we have whistle blower channel
to receive and redress grievances of the community.

4. Percentage of input material (inputs to total inputs by value) sourced from suppliers:

Parameter FY 2022-23 FY 2021-22

Directly sourced from MSMEs/ small producers 8.76% 3.56%
Sourced directly from within the district and neighbouring districts 67.48% 85.70%

Leadership Indicators

1. Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments (Reference: Question 1
of Essential Indicators above)- Not applicable

2. Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as identified by government
bodies- Please refer CSR report of this Annual report

3. (a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising marginalized /
vulnerable groups? (Yes/No)- No. The Company has a procurement policy. In Healthcare setup quality compliance is the only parameter
that is adhered to.

(b) From which marginalized /vulnerable groups do you procure- Not applicable

(c) What percentage of total procurement (by value) does it constitute- Not applicable

4. Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the current financial year),
based on traditional knowledge- Nil

5. Details of corrective actions taken or underway, based on any adverse order in intellectual property related disputes wherein usage of
traditional knowledge is involved- Nil

6. Details of beneficiaries of CSR Projects:

S. CSR Project No. of persons benefitted from CSR % of beneficiaries from vulnerable and
No. Projects marginalized groups

1 Aster Volunteer Mobile Medical Clinics 944,131 100%

2 Treatment Aid 50,915 100%
3 BLS Awareness Training 223,326 NA
4 Disaster Aid 304,161 NA

205
Aster DM Healthcare Limited

PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner

Essential Indicators
1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback- Consumer Complaints received in the
form of legal notices or litigations which is sent to the registered office of the Company. A peer review of the allegations made by the
Patients/Consumers is done with the help of the Clinical Excellence Team and based on the outcome of the peer review, response to the
legal notice is provided within the framework of law. Apart from these we receive and act on consumer complaints raised to us via the
Service excellence team. These complaints can come as an email, response to an SMS, surveys etc.

2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:

As a percentage of total turnover

Environmental and social parameters relevant to the product
Safe and responsible usage Not Applicable
Recycling and/or safe disposal

3. Number of consumer complaints in respect of the following:

FY 2022-23 FY 2021-22
Received Pending Received Pending
during the resolution at during the resolution at
year end of year year end of year
Data privacy Nil Nil Nil Nil
Advertising Nil Nil Nil Nil
Cyber-security Nil Nil Nil Nil
Delivery of essential services Please refer S.no 23 of this report, Complaints/Grievances
on any of the principles (Principles 1 to 9) under the National
Guidelines on Responsible Business Conduct.
Restrictive Trade Practices Nil Nil Nil Nil
Unfair Trade Practices Nil Nil Nil Nil
Other Nil Nil Nil Nil

4. Details of instances of product recalls on account of safety issues: Nil

5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the
policy- Yes.

https://www.asterdmhealthcare.com/fileadmin/user_upload/Risk_Management_Policy.pdf

6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber
security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on
safety of products / services.-Nil

206
 STATUTORY REPORTS
Integrated Annual Report FY 2022-2023

Leadership Indicators

1. Channels / platforms where information on products and services of the entity can be accessed (provide web link, if available).-
https://www.asterdmhealthcare.com/investors/about-asterdm

2. Steps taken to inform and educate consumers about safe and responsible usage of products and/or services- Not applicable as we are in
healthcare services.

3. Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services- All communications will be made
via the Public Relations team in Corporate head quarters and key messages to consumers will be passed on via them.

4. Does the entity display product information on the product over and above what is mandated as per local laws? (Yes/No/Not Applicable) If
yes, provide details in brief. -No.

Did your entity carry out any survey with regard to consumer satisfaction relating to the major products / services of the entity, significant
locations of operation of the entity or the entity as a whole? (Yes/No) -No.

5. Provide the following information relating to data breaches:

a. Number of instances of data breaches along-with impact-1

1 data breach reported in March 2023 where 3 patients data were compromised for Aster Medcity (1 patient) and Aster RV (2) patients.
As actions, enhanced the surveillance and security measures internally. Multi Factor Authentication and Restriction of Power Users
Reassessment of the security and possible vulnerabilities in the Aster as well as vendor environment concluded. User awareness and
training post incident concluded Lessons learnt workshop concluded.

b. Percentage of data breaches involving personally identifiable information of customers-100%

207
Standalone
Financial
Statements
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

INDEPENDENT AUDITOR’S REPORT

To
The Members of
Aster DM Healthcare Limited

Report on the Audit of the Standalone Financial Basis for Opinion

Statements
We conducted our audit of the standalone financial statements in
Opinion accordance with the Standards on Auditing (SAs) specified under
section 143(10) of the Act. Our responsibilities under those Standards
We have audited the accompanying standalone financial statements are further described in the Auditor’s Responsibility for the Audit of
of Aster DM Healthcare Limited (“the Company”), which comprise the the Standalone Financial Statements section of our report. We are
Balance Sheet as at 31 March 2023, and the Statement of Profit independent of the Company in accordance with the Code of Ethics
and Loss (including Other Comprehensive Income), the Statement of issued by the Institute of Chartered Accountants of India (ICAI)
Cash Flows and the Statement of Changes in Equity for the year then together with the ethical requirements that are relevant to our audit
ended, and a summary of significant accounting policies and other of the standalone financial statements under the provisions of the
explanatory information which includes financial statements of DM Act and the Rules made thereunder, and we have fulfilled our other
Healthcare Employees Welfare Trust (the “ESOP trust”) for the year ethical responsibilities in accordance with these requirements and
ended on that date audited by the ESOP trust auditor. the ICAI’s Code of Ethics. We believe that the audit evidence obtained
by us and the audit evidence obtained by the ESOP trust auditor in
In our opinion and to the best of our information and according to the
terms of their report referred to in the Other Matters section below, is
explanations given to us, and based on the consideration of report of
sufficient and appropriate to provide a basis for our audit opinion on
the ESOP trust auditor on separate financial statements referred to
the standalone financial statements.
in the Other Matters section below, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013
(“the Act”) in the manner so required and give a true and fair view in Key Audit Matters
conformity with the Indian Accounting Standards prescribed under
Key audit matters are those matters that, in our professional judgment,
section 133 of the Act read with the Companies (Indian Accounting
were of most significance in our audit of the standalone financial
Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting
statements of the current period. These matters were addressed in the
principles generally accepted in India, of the state of affairs of the
context of our audit of the standalone financial statements as a whole,
Company as at 31 March 2023, and its profit, total comprehensive
and in forming our opinion thereon, and we do not provide a separate
income, its cash flows and the changes in equity for the year ended
opinion on these matters. We have determined the matters described
on that date.
below to be the key audit matters to be communicated in our report.

Sr.
Key Audit Matter Auditor’s Response
No.
1 Evaluation of Impairment Assessment of Investment in Principal audit procedures performed:
Subsidiaries We tested the design, implementation and operating effectiveness
As at 31 March 2023, the Company has Rs. 2,141.10 crores of internal controls over the Company’s impairment evaluation by
of investments in subsidiaries. The management tests such testing on a sample basis:
investments for impairment annually or more frequently, if there • The forecasting process including controls related to the
is a trigger for assessing impairment. development of the revenue growth rates and EBITDA margins
The Company’s evaluation of impairment of its investments in • The impairment review specifically the assumptions used to
subsidiaries involves a comparison of its expected recoverable develop the terminal growth rate, the discount rates and the
values against its carrying values. The recoverable amount of the mathematical accuracy of the workings and basis for final
investment is based on Value in Use (VIU) calculations determined conclusion.
based on a discounted cash flow model. Determination of VIU
We received the managements evaluation of the impairment
involves significant estimates, assumptions and judgements as
assessment for sample investments and evaluated
regards reasonableness of assumptions involved in developing
reasonableness of management’s assumptions related to revenue
projections of financial performance and discount rates to be
growth rates, EBITDA margins and discount rates by considering
considered.
(i) the current and past performance of each of the investments,
Given the above complexities, the determination of recoverable (ii) the consistency of internal assumptions with external market
amount is subjective as it involves specific assumptions applicable information and (iii) whether these assumptions were consistent
to each investment which includes revenue growth rates, Earning with evidence obtained in other areas of the audit and also (iv)
Before Interest, Tax, Depreciation and Amortisation (EBITDA) subjected the various assumptions to certain sensitivity to key
margins, terminal growth rates and discount rates applied to inputs and (v) testing the integrity and mathematical accuracy of
estimated future cash flows. the impairment models.

209
Aster DM Healthcare Limited

Sr.
Key Audit Matter Auditor’s Response
No.
Refer note for policy on “Impairment of financial assets”- We involved our internal fair value specialists to assist in the
Investments, note on “Critical accounting estimates and evaluation of the appropriateness of the Company’s model
assumptions” related to impairment reviews and note for calculating value in use for each of the investments and
“Investments” for disclosures related to impairment review of reasonableness of certain significant assumptions, such as
investments in the standalone financial statements. terminal growth rate and discount rate.
We reviewed the investments disclosed in the financial statements
in accordance with the Companies Act, 2013.
2 Implementation of new IT system used for accounting/financial Principal audit procedures performed:
reporting
We have performed the following principal audit procedures
The Company implemented a new IT system which is an enterprise involving our IT Specialists in relation to the new IT system
resource planning application used for accounting/financial implementation:
reporting during the year (“Go-Live date”). Matters which required
• We understood the Management’s implementation plan of the
significant audit attention in relation to the above implementation
new IT system and the changes from legacy versus the new IT
included:
system in so far as accounting/ financial reporting is concerned.
1. Complete and accurate migration of relevant financial and
• We reviewed the post-implementation report obtained by the
accounting data/ information/balances from legacy IT system
Management from an independent third-party IT specialist.
to the new IT system.
• Tested the completeness and accuracy of migration of relevant
2. Assessment and evaluation of relevant application systems,
financial and accounting data/information/balances from
programs, processes, interfaces, reports, controls and
legacy IT system to the new IT system.
segregation of duties (SOD) conflicts insofar as they relate to
accounting and financial reporting. • We tested the IT general controls of the new IT system relevant
to financial reporting, including relevant interfaces.
3. IT general controls and IT Application controls relevant for
financial reporting. • We tested the design and implementation, and operating
effectiveness of the relevant business cycle automated
controls of the new IT system.
• We tested the completeness and accuracy of information used
for controls and also the information produced by the new IT
system.
• We tested the SOD conflicts implemented by the management.

Information Other than the Financial Statements and the matter to those charged with governance as required under SA
Auditor’s Report Thereon 720 ‘The Auditor’s responsibilities relating to other information.

• The Company’s Board of Directors is responsible for the other

information. The other information comprises the information Responsibilities of Management and Those Charged with
included in the Company’s Annual report, but does not include Governance for the Standalone Financial Statements
the consolidated financial statements, standalone financial
The Company’s Board of Directors is responsible for the matters
statements and our auditor’s report theron. The report is
stated in section 134(5) of the Act with respect to the preparation
expected to be made available to us after the date of this
of these standalone financial statements that give a true and
auditor’s report.
fair view of the financial position, financial performance including
• Our opinion on the standalone financial statements does not other comprehensive income, cash flows and changes in equity of
cover the other information and we do not express and will not the Company in accordance with the Ind AS and other accounting
express any form of assurance conclusion thereon. principles generally accepted in India. This responsibility also includes
maintenance of adequate accounting records in accordance with
• In connection with our audit of the standalone financial the provisions of the Act for safeguarding the assets of the Company
statements, our responsibility is to read the other information and for preventing and detecting frauds and other irregularities;
identified above when it becomes available and, in doing so, selection and application of appropriate accounting policies;
consider whether the other information is materially inconsistent making judgments and estimates that are reasonable and
with the standalone financial statements or our knowledge prudent; and design, implementation and maintenance of adequate
obtained during the course of our audit or otherwise appears to internal financial controls, that were operating effectively for ensuring
be materially misstated. Other information in so far as it relates to the accuracy and completeness of the accounting records, relevant
the ESOP trust is traced from their fianancial statements audited to the preparation and presentation of the financial statement that
by the ESOP trust auditor. give a true and fair view and are free from material misstatement,
whether due to fraud or error.
• When we read the Annual Report, if we conclude that there is
material misstatement therein, we are required to communicate

210
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

In preparing the standalone financial statements, management draw attention in our auditor’s report to the related disclosures
is responsible for assessing the Company’s ability to continue as a in the standalone financial statements or, if such disclosures are
going concern, disclosing, as applicable, matters related to going inadequate, to modify our opinion. Our conclusions are based
concern and using the going concern basis of accounting unless the on the audit evidence obtained up to the date of our auditor’s
Board of Directors either intends to liquidate the Company or to cease report. However, future events or conditions may cause the
operations, or has no realistic alternative but to do so. Company to cease to continue as a going concern.

The Company’s Board of Directors are also responsible for overseeing • Evaluate the overall presentation, structure and content of the
the Company’s financial reporting process. standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the
underlying transactions and events in a manner that achieves
Auditor’s Responsibility for the Audit of the Standalone
fair presentation.
Financial Statements
• Obtain sufficient appropriate audit evidence regarding the
Our objectives are to obtain reasonable assurance about whether the
financial information of the Company and the ESOP trust to
standalone financial statements as a whole are free from material
express an opinion on the standalone financial statements. We
misstatement, whether due to fraud or error, and to issue an auditor’s
are responsible for the direction, supervision and performance of
report that includes our opinion. Reasonable assurance is a high
the audit of the financial statements of such entities or business
level of assurance, but is not a guarantee that an audit conducted
activities included in the standalone financial statements of
in accordance with SAs will always detect a material misstatement
which we are the independent auditors. For the other equity
when it exists. Misstatements can arise from fraud or error and are
included in the standalone financial statements, which has
considered material if, individually or in the aggregate, they could
been audited by the other auditor, such other auditor remains
reasonably be expected to influence the economic decisions of users
responsible for the direction, supervision and performance of
taken on the basis of these standalone financial statements.
the audits carried out by them. We remain solely responsible for
As part of an audit in accordance with SAs, we exercise professional our audit opinion.
judgment and maintain professional skepticism throughout the audit.
Materiality is the magnitude of misstatements in the standalone
We also:
financial statements that, individually or in aggregate, makes it
• Identify and assess the risks of material misstatement of the probable that the economic decisions of a reasonably knowledgeable
standalone financial statements, whether due to fraud or error, user of the standalone financial statements may be influenced. We
design and perform audit procedures responsive to those risks, consider quantitative materiality and qualitative factors in (i) planning
and obtain audit evidence that is sufficient and appropriate the scope of our audit work and in evaluating the results of our work;
to provide a basis for our opinion. The risk of not detecting a and (ii) to evaluate the effect of any identified misstatements in the
material misstatement resulting from fraud is higher than for standalone financial statements.
one resulting from error, as fraud may involve collusion, forgery,
We communicate with those charged with governance regarding,
intentional omissions, misrepresentations, or the override of
among other matters, the planned scope and timing of the audit
internal control.
and significant audit findings, including any significant deficiencies in
• Obtain an understanding of internal financial control relevant internal control that we identify during our audit.
to the audit in order to design audit procedures that are
We also provide those charged with governance with a statement
appropriate in the circumstances. Under section 143(3)(i) of
that we have complied with relevant ethical requirements regarding
the Act, we are also responsible for expressing our opinion on
independence, and to communicate with them all relationships
whether the Company has adequate internal financial controls
and other matters that may reasonably be thought to bear on our
with reference to standalone financial statements in place and
independence, and where applicable, related safeguards.
the operating effectiveness of such controls.
From the matters communicated with those charged with governance,
• Evaluate the appropriateness of accounting policies used
we determine those matters that were of most significance in the
and the reasonableness of accounting estimates and related
audit of the standalone financial statements of the current period and
disclosures made by the management.
are therefore the key audit matters. We describe these matters in our
• Conclude on the appropriateness of management’s use of auditor’s report unless law or regulation precludes public disclosure
the going concern basis of accounting and, based on the audit about the matter or when, in extremely rare circumstances, we
evidence obtained, whether a material uncertainty exists determine that a matter should not be communicated in our report
related to events or conditions that may cast significant doubt because the adverse consequences of doing so would reasonably
on the Company’s ability to continue as a going concern. If we be expected to outweigh the public interest benefits of such
conclude that a material uncertainty exists, we are required to communication.

211
Aster DM Healthcare Limited

Other Matters g) With respect to the other matters to be included in the

Auditor’s Report in accordance with the requirements of
We did not audit the financial statements of the ESOP trust included section 197(16) of the Act, as amended, in our opinion
in the standalone financial statements of the Company whose and to the best of our information and according to the
financial statements reflect total assets of INR 11.13 crores (before explanations given to us, the remuneration paid by the
elimination) as at 31 March 2023 and total revenue of INR 0.01 crores Company to its directors during the year is in accordance
for the year ended on that date, as considered in the standalone with the provisions of section 197 of the Act.
financial statements. The financial statements of the ESOP trust
has been audited by the ESOP trust auditor whose report has been h) With respect to the other matters to be included in
furnished to us, and our opinion in so far as it relates to the amounts the Auditor’s Report in accordance with Rule 11 of the
and disclosures included in respect of this ESOP trust and our report Companies (Audit and Auditors) Rules, 2014, as amended
in terms of subsection (3) of Section 143 of the Act, in so far as it in our opinion and to the best of our information and
relates to the aforesaid ESOP trust, is based solely on the report of according to the explanations given to us:
such ESOP trust auditor.
i. The Company has disclosed the impact of pending
Our opinion on the standalone financial statements and our report on litigations on its financial position in its standalone
Other Legal and Regulatory Requirements below is not modified in financial statements;
respect of this matter.
ii. The Company did not have any long-term contracts
including derivative contracts for which there were
Report on Other Legal and Regulatory Requirements any material foreseeable losses.

1. As required by Section 143(3) of the Act, based on our audit iii. There were no amounts which were required to be
and on the consideration of the report of the other auditor on transferred to the Investor Education and Protection
the separate financial statements of the ESOP trust referred Fund by the company;
to in the Other Matters section above we report, to the extent
applicable, that: iv. (a) The Management has represented that, to the
best of it’s knowledge and belief, as disclosed
a) We have sought and obtained all the information and in the standalone financial statements, no
explanations which to the best of our knowledge and funds (which are material either individually or
belief were necessary for the purposes of our audit. in aggregate) have been advanced or loaned or
b) In our opinion, proper books of account as required by invested (either from borrowed funds or share
law have been kept by the Company so far as it appears premium or any other sources or kind of funds)
from our examination of those books and the report of the by the Company to or in any other person(s)
ESOP trust auditor. or entity(ies), including foreign entities
(“Intermediaries”), with the understanding,
c) The Balance Sheet, the Statement of Profit and Loss whether recorded in writing or otherwise, that
including Other Comprehensive Income, the Statement of the Intermediary shall, directly or indirectly lend
Cash Flows and Statement of Changes in Equity dealt with or invest in other persons or entities identified
by this Report are in agreement with the relevent books of in any manner whatsoever by or on behalf
account and with the financial statements received from of the Company (“Ultimate Beneficiaries”) or
the ESOP trust auditor. provide any guarantee, security or the like on
d) In our opinion, the aforesaid standalone financial behalf of the Ultimate Beneficiaries.
statements comply with the Ind AS specified under
(b) The Management has represented, that, to the
Section 133 of the Act.
best of it’s knowledge and belief, as disclosed
e) On the basis of the written representations received from in the standalone financial statements, no
the directors as on 31 March 2023, taken on record by the funds(which are material either individually
Board of Directors, none of the directors is disqualified as or in aggregate) have been received by the
on 31 March 2023, from being appointed as a director in Company from any person(s) or entity(ies),
terms of Section 164(2) of the Act. including foreign entities (“Funding Parties”),
with the understanding, whether recorded in
f) With respect to the adequacy of the internal financial
writing or otherwise, that the Company shall,
controls with reference to standalone financial statements
directly or indirectly, lend or invest in other
of the Company and the operating effectiveness of such
persons or entities identified in any manner
controls, refer to our separate Report in “Annexure A”. Our
whatsoever by or on behalf of the Funding
report expresses an unmodified opinion on the adequacy
Party (“Ultimate Beneficiaries”) or provide any
and operating effectiveness of the Company’s internal
guarantee, security or the like on behalf of the
financial controls with reference to standalone financial
Ultimate Beneficiaries.
statements.

212
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

(c) Based on the audit procedures performed and Auditors) Rules, 2014 is not applicable for the
that have been considered reasonable and financial year ended 31 March 2023.
appropriate in the circumstances, nothing
has come to our notice that has caused us to 2. As required by the Companies (Auditor’s Report) Order, 2020
believe that the representations under sub- (“the Order”) issued by the Central Government in terms of
clause (i) and (ii) of Rule 11(e), as provided Section 143(11) of the Act, we give in “Annexure B” a statement
under (a) and (b) above, contain any material on the matters specified in paragraphs 3 and 4 of the Order.
misstatement.

v. The company has not declared or paid any dividend

For Deloitte Haskins & Sells
during the year and has not proposed final dividend
Chartered Accountants
for the year.
(Firm’s Registration No. 008072S)
vi. Proviso to Rule 3(1) of the Companies (Accounts)
Rules, 2014 for maintaining books of account
using accounting software which has a feature of Vikas Bagaria
recording audit trail (edit log) facility is applicable to Partner
the Company w.e.f. 01 April 2023 and accordingly, Place: Bengaluru (Membership No. 60408)
reporting under Rule 11(g) of Companies (Audit Date: 25 May 2023 (UDIN 23060408BGYGPB1293)

213
Aster DM Healthcare Limited

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls with reference Our audit involves performing procedures to obtain audit evidence
to standalone financial statements under Clause (i) of about the adequacy of the internal financial controls with reference
Sub-section 3 of Section 143 of the Companies Act, 2013 to standalone financial statements and their operating effectiveness.
(“the Act”) Our audit of internal financial controls with reference to standalone
financial statements included obtaining an understanding of internal
We have audited the internal financial controls with reference to financial controls with reference to standalone financial statements,
standalone financial statements of Aster DM Healthcare Limited (“the assessing the risk that a material weakness exists, and testing and
Company”) as of 31 March 2023 in conjunction with our audit of the evaluating the design and operating effectiveness of internal control
standalone financial statements of the Company for the year ended based on the assessed risk. The procedures selected depend on the
on that date. auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
Management’s Responsibility for Internal Financial error.
Controls
We believe that the audit evidence we have obtained is sufficient and
The Company’s management is responsible for establishing and appropriate to provide a basis for our audit opinion on the Company’s
maintaining internal financial controls with reference to standalone internal financial controls with reference to standalone financial
financial statements based on the internal control with reference to statements.
standalone financial statements criteria established by the Company
considering the essential components of internal control stated Meaning of Internal Financial Controls with reference to
in the Guidance Note on Audit of Internal Financial Controls Over standalone financial statements
Financial Reporting issued by the Institute of Chartered Accountants
of India. These responsibilities include the design, implementation A company's internal financial control with reference to standalone
and maintenance of adequate internal financial controls that were financial statements is a process designed to provide reasonable
operating effectively for ensuring the orderly and efficient conduct assurance regarding the reliability of financial reporting and the
of its business, including adherence to company’s policies, the preparation of financial statements for external purposes in accordance
safeguarding of its assets, the prevention and detection of frauds and with generally accepted accounting principles. A company's internal
errors, the accuracy and completeness of the accounting records, and financial control with reference to standalone financial statements
the timely preparation of reliable financial information, as required includes those policies and procedures that (1) pertain to the
under the Companies Act, 2013. maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as
Auditor’s Responsibility
necessary to permit preparation of financial statements in accordance
Our responsibility is to express an opinion on the Company's internal with generally accepted accounting principles, and that receipts and
financial controls with reference to standalone financial statements expenditures of the company are being made only in accordance with
of the Company based on our audit. We conducted our audit in authorisations of management and directors of the company; and (3)
accordance with the Guidance Note on Audit of Internal Financial provide reasonable assurance regarding prevention or timely detection
Controls Over Financial Reporting (the “Guidance Note”) issued by of unauthorised acquisition, use, or disposition of the company's assets
the Institute of Chartered Accountants of India and the Standards that could have a material effect on the financial statements.
on Auditing prescribed under Section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal financial Inherent Limitations of Internal Financial Controls with
controls with reference to standalone financial statements. Those reference to standalone financial statements
Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable Because of the inherent limitations of internal financial controls with
assurance about whether adequate internal financial controls with reference to standalone financial statements, including the possibility
reference to standalone financial statements was established and of collusion or improper management override of controls, material
maintained and if such controls operated effectively in all material misstatements due to error or fraud may occur and not be detected.
respects. Also, projections of any evaluation of the internal financial controls

214
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

with reference to standalone financial statements to future periods established by the Company considering the essential components
are subject to the risk that the internal financial control with reference of internal control stated in the Guidance Note on Audit of Internal
to standalone financial statements may become inadequate because Financial Controls Over Financial Reporting issued by the Institute of
of changes in conditions, or that the degree of compliance with the Chartered Accountants of India.
policies or procedures may deteriorate.

For Deloitte Haskins & Sells

Opinion
Chartered Accountants
In our opinion, to the best of our information and according to the (Firm’s Registration No. 008072S)
explanations given to us the Company has, in all material respects,
an adequate internal financial controls with reference to standalone
financial statements and such internal financial controls with Vikas Bagaria
reference to standalone financial statements were operating Partner
effectively as at 31 March 2023, based on the criteria for internal Place: Bengaluru (Membership No. 60408)
financial control with reference to standalone financial statements Date: 25 May 2023 (UDIN 23060408BGYGPB1293)

215
Aster DM Healthcare Limited

ANNEXURE “B” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

In terms of the information and explanations sought by us and given progress are held in the name of the Company as at the
by the Company and the books of account and records examined by balance sheet date.
us in the normal course of audit and to the best of our knowledge and
belief, we state that (d) The Company has not revalued any of its property,
plant and equipment (including right of use assets) and
(i) (a) (A) The Company has maintained proper records intangible assets during the year.
showing full particulars, including quantitative
details and situation of property, plant and (e) No proceedings have been initiated during the year or
equipment, capital work-in-progress, and relevant are pending against the Company as at 31 March 2023,
details of right-of-use assets. for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (as amended in 2016)
(B) The Company has maintained proper records and rules made thereunder.
showing full particulars of intangible assets.
(ii) (a) The inventories were physically verified during the year by
(b) The Company has a program of verification of property, the management at reasonable intervals. In our opinion
plant and equipment, capital work-in-progress, and right- and according to the information and explanations given
of-use assets so to cover all the items in a phased manner to us, the coverage and procedure of such verification
over a period of 2 years, which, in our opinion, is reasonable by the management is appropriate having regard to the
having regard to the size of the Company and the nature size of the Company and the nature of its operations.
of its assets. Pursuant to the program, certain property, No discrepancies of 10% or more in the aggregate for
plant and equipment, capital work-in-progress, and right- each class of inventories were noticed on such physical
of-use assets were due for verification during the year verification of inventories when compared with books of
and were physically verified by the management during account.
the year. According to the information and explanations
given to us, no material discrepancies were noticed on (b) According to the information and explanations given to us,
such verification. the Company has been sanctioned working capital limits
in excess of INR 5 crores, in aggregate, at points of time
(c) Based on our examination of the registered sale deed during the year, from banks or financial institutions on the
provided to us, we report that, the title deeds of all the basis of security of current assets.
immovable properties, (other than immovable properties
where the Company is the lessee, and the lease (iii) The Company has made investments in, provided guarantee
agreements are duly executed in favour of the Company) and granted unsecured loans or advances in the nature of loans,
disclosed in the standalone financial statements included unsecured, to companies and Limited Liability Partnerships
in property, plant and equipment and capital work-in during the year, in respect of which:

(a) The Company has provided unsecured loans and stood guarantee during the year and details of which are given below:
Guarantees (INR
Loans (INR crores)
crores)
A. Aggregate amount granted / provided during the year:
- Subsidiaries 61.08 25.00
- Associates 82.57 -
B. Balance outstanding as at balance sheet date: *
- Subsidiaries 255.89 341.50
- Associates 110.64 -

* The amounts reported are at gross amounts, without considering provisions made.
(b) The investments made, and the terms and conditions of the grant of all the above-mentioned loans and guarantees provided, during
the year are, in our opinion, prima facie, not prejudicial to the Company’s interest.

216
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

(c) In respect of loans granted by the Company, the schedule of repayment of principal and payment of interest has been stipulated and
the repayments of principal amounts and receipts of interest are regular as per stipulation.
Certain loans are payable on demand and during the year, the Company has not demanded such loans. Having regard to the fact that
the repayment of principal or payment of interest has not been demanded by the Company, in our opinion the repayments of principal
amounts and receipts of interest are regular (refer reporting under clause (iii)(f)).

(d) In respect of loans granted by the company, there is no amount overdue for more than 90 days at the balance sheet date

(e) None of the loans granted by the Company have fallen during the year.
(f) The company has granted loans which are repayable on demand details of which are given below:
Amount in INR Crores
Name of the entity All Parties Promoters Related Parties
Aggregate of loans
- Repayable on demand (A) 213.43 - 213.43
- Agreement does not specify any terms or period of repayment (B) - -
Total of (A+B) 213.43 - 213.43
Percentage of loans to the total loans 58.24% 58.24%

(iv) The Company has complied with the provisions of Sections 185 a detailed examination of the cost records with a view to
and 186 of the Companies Act, 2013 in respect of loans granted, determine whether they are accurate or complete.
investments made and guarantees, and securities provided, as
applicable. (vii) In respect of statutory dues:

(v) The Company has not accepted any deposit or amounts which (a) Undisputed statutory dues, including Goods and Services
are deemed to be deposits. Hence, reporting under clause (v) of tax, Provident Fund, Employees’ State Insurance, Income-
the Order is not applicable. tax, Sales Tax, Service Tax, duty of Custom, duty of Excise,
Value Added Tax, cess and other material statutory dues
(vi) The maintenance of cost records has been specified by the applicable to the Company have generally been regularly
Central Government under Section 148(1) of the Companies deposited by it with the appropriate authorities.
Act, 2013 in respect of healthcare services rendered. We
have broadly reviewed the books of account maintained by There were no undisputed amounts payable in respect
the Company pursuant to the Companies (Cost Records and of Goods and Services tax, Provident Fund, Employees’
Audit) Rules, 2014, as amended, prescribed by the Central State Insurance, Income-tax, Sales Tax, Service Tax, duty
Government for maintenance of cost records under Section of Custom, duty of Excise, Value Added Tax, cess and other
148(1) of the Companies Act, 2013, and are of the opinion material statutory dues in arrears as at 31 March 2023,
that, prima facie, the prescribed cost records have been made for a period of more than six months from the date they
and maintained by the Company. We have, however, not made became payable.

217
Aster DM Healthcare Limited

(b) Details of statutory dues referred to in sub-clause (a) above which have not been deposited as on 31 March 2023, on account of
disputes are given below:

Period to which Amount

Amount
Forum where Dispute the Amount remaining
Name of Statute Nature of Dues involved (INR
is Pending Relates unpaid (INR
crores)
(financial year) crores)
Income Tax Act, 1961 Income tax Commissioner of 2011-12 0.18 0.14
Income Tax Appeals
Income Tax Act, 1961 Income tax Commissioner of 2013-14 19.78 14.63
Income Tax Appeals
Income Tax Act, 1961 Income tax Commissioner of 2014-15 4.58 2.29
Income Tax Appeals
Income Tax Act, 1961 Income tax Commissioner of 2016-17 0.20 0.16
Income Tax Appeals
Income Tax Act, 1961 Income tax Commissioner of 2015-16 2.28 2.28
Income Tax Appeals

(viii) There were no transactions relating to previously unrecorded (b) To the best of our knowledge, no report under sub-section
income that were surrendered or disclosed as income in the (12) of Section 143 of the Companies Act has been filed in
tax assessments under the Income Tax Act, 1961 (43 of 1961) Form ADT-4 as prescribed under Rule 13 of Companies (Audit
during the year. and Auditors) Rules, 2014 with the Central Government,
during the year and upto the date of this report.
(ix) (a) In our opinion, the Company has not defaulted in the
repayment of loans or other borrowings or in the payment (c) We have taken into consideration the whistle blower
of interest thereon to any lender during the year. complaints received by the Company during the year and
provided to us, when performing our audit.
(b) The Company has not been declared wilful defaulter by
any bank or financial institution or government or any (xii) The Company is not a Nidhi Company and hence reporting under
government authority. clause (xii) of the Order is not applicable.
(c) To the best of our knowledge and belief, in our opinion, (xiii) In our opinion, the Company is in compliance with Section
term loans availed by the Company were, applied by the 177 and 188 of the Companies Act, where applicable, for all
Company during the year for the purposes for which the transactions with the related parties and the details of related
loans were obtained. party transactions have been disclosed in the standalone
(d) On an overall examination of the standalone financial financial statements etc. as required by the applicable
statements of the Company, funds raised on short-term accounting standards.
basis have, prima facie, not been used during the year for
(xiv) (a) In our opinion the Company has an adequate internal audit
long-term purposes by the Company.
system commensurate with the size and the nature of its
(e) On an overall examination of the standalone financial business.
statements of the Company, the Company has not taken
(b) We have considered, the internal audit reports issued to
any funds from any entity or person on account of or to
the Company during the year and covering the period up
meet the obligations of its subsidiaries and associates.
to March 2023 and the draft of the internal audit reports
(f) The Company has not raised loans during the year on the issued after the balance sheet date covering the period 01
pledge of securities held in its subsidiaries or associate April 2022 to 31 March 2023 for the period under audit.
companies.
(xv) In our opinion, during the year, the Company has not entered into
(x) (a) The Company has not issued any of its securities (including any non-cash transactions with any of its directors or directors
debt instruments) during the year and hence reporting of its subsidiary or associate companies or persons connected
under clause (x)(a) of the Order is not applicable. with its directors and hence provisions of Section 192 of the
Companies Act, 2013 are not applicable to the Company.
(b) During the year, the Company has not made any
preferential allotment or private placement of shares or (xvi) (a) The Company is not required to be registered under
convertible debentures (fully or partly or optionally) and Section 45-IA of the Reserve Bank of India Act, 1934.
hence reporting under clause (x)(b) of the Order is not Hence, reporting under clause (xvi)(a), (b) and (c) of the
applicable to the Company. Order is not applicable.

(xi) (a) To the best of our knowledge, no fraud by the Company (b) The Group does not have any core investment company as
and no material fraud on the Company has been noticed part of the group and accordingly reporting under clause
or reported during the year. (xvi)(d) of the Order is not applicable.

218
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

(xvii) The Company has not incurred cash losses during the financial within a period of one year from the balance sheet date, will get
year covered by our audit and the immediately preceding discharged by the Company as and when they fall due.
financial year.
(xx) The Company has fully spent the required amount towards
(xviii) There has been no resignation of the statutory auditors of the Corporate Social Responsibility (CSR) and there are no unspent
Company during the year. CSR amount for the year requiring a transfer to a Fund specified
in Schedule VII to the Companies Act or special account in
(xix) On the basis of the financial ratios, ageing and expected dates of compliance with the provision of sub-section (6) of Section 135
realization of financial assets and payment of financial liabilities, of the said Act. Accordingly, reporting under clause (xx) of the
other information accompanying the standalone financial Order is not applicable for the year.
statements and our knowledge of the Board of Directors
and management plans and based on our examination of the
evidence supporting the assumptions, nothing has come to
For Deloitte Haskins & Sells
our attention, which causes us to believe that any material
Chartered Accountants
uncertainty exists as on the date of the audit report indicating
(Firm’s Registration No. 008072S)
that Company is not capable of meeting its liabilities existing at
the date of balance sheet as and when they fall due within a
period of one year from the balance sheet date. We, however,
state that this is not an assurance as to the future viability of Vikas Bagaria
the Company. We further state that our reporting is based on Partner
the facts up to the date of the audit report and we neither give Place: Bengaluru (Membership No. 60408)
any guarantee nor any assurance that all liabilities falling due Date: 25 May 2023 (UDIN 23060408BGYGPB1293)

219
Aster DM Healthcare Limited

Standalone Balance Sheet as at 31 March 2023

All amounts in INR crores, unless otherwise stated

As at As at
Particulars Note
31 March 2023 31 March 2022

Assets
Non-current assets
Property, plant and equipment 4 741.13 759.60
Right-of-use assets 39 264.28 251.51
Capital work-in-progress 4 66.53 22.91
Other intangible assets 5 2.88 2.15
Intangible assets under development 5 0.02 -
Financial assets
Investments 6 2,141.10 2,166.03
Loans 11 353.05 209.39
Other financial assets 12 70.44 60.69
Income tax assets (net) 31 51.52 68.67
Deferred tax assets (net) 31 7.34 -
Other non-current assets 13 88.90 21.27
Total non-current assets 3,787.19 3,562.22
Current assets
Inventories 7 34.28 23.63
Financial assets
Trade receivables 8 111.33 61.55
Cash and cash equivalents 9 24.38 18.27
Other bank balances 10 6.91 6.75
Other financial assets 12 109.87 76.15
Other current assets 13 28.11 13.43
Total current assets 314.88 199.78
Total assets 4,102.07 3,762.00
Equity and liabilities
Equity
Equity share capital 14 499.52 499.52
Other equity 15 2,631.04 2,455.69
Equity attributable to the owners of the company 3,130.56 2,955.21
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 16 193.46 105.05
Lease liabilities 39 347.11 315.84
Provisions 19 8.42 7.40
Deferred tax liabilities (net) 31 - 16.35
Other non-current liabilities 20 16.86 19.31
Total non-current liabilities 565.85 463.95
Current liabilities
Financial liabilities
Borrowings 16 146.52 92.76
Lease liabilities 39 10.18 6.87
Trade payables 17
- Total outstanding dues of micro and small enterprises 2.82 1.10
- Total outstanding dues of creditors other than micro and small enterprises 200.60 128.72
Other financial liabilities 18 27.09 99.62
Provisions 19 1.25 1.23
Other current liabilities 20 17.20 12.54
Total current liabilities 405.66 342.84
Total equity and liabilities 4,102.07 3,762.00

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

As per our report of even date attached

for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

220
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Standalone Statement of Profit and Loss for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

For the year ended For the year ended

Particulars Note
31 March 2023 31 March 2022
Income
Revenue from operations 21 1,533.74 1,116.47
Other income 22 49.77 82.20
Total income 1,583.51 1,198.67
Expenses
Purchases of medicines and consumables 23 336.63 277.64
Changes in inventories 24 (10.65) (4.10)
Professional Fees paid to consultant doctors 25 346.00 248.24
Laboratory outsourcing charges 26 48.94 44.74
Employee benefits expense 27 230.59 172.09
Finance costs 28 51.81 44.02
Depreciation and amortisation expenses 29 104.02 98.72
Other expenses 30 293.84 227.36
Total expenses 1,401.18 1,108.71
Profit before tax 182.33 89.96
Tax expense / (benefit) 31
Current tax 26.06 -
Current tax for earlier years 6.86 -
Deferred tax (23.88) (0.22)
Total tax expense 9.04 (0.22)
Profit for the year 173.29 90.18
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of net defined benefit liability 0.60 0.68
Income tax relating to items that will not be reclassified to profit or loss (0.19) (0.22)
Total comprehensive income for the year 173.70 90.64
Earnings per share (equity share of face value of INR 10 each) 33
Basic 3.48 1.81
Diluted 3.48 1.81

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

As per our report of even date attached

for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

221
Aster DM Healthcare Limited

Standalone Statement of Cash Flows for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Cash flows from operating activities
Profit before tax for the year 182.33 89.96
Adjustments for non cash and non operating items :
Depreciation and amortisation expenses 104.02 98.72
Finance costs 51.81 44.02
Dividend on non-current investments (7.41) (54.84)
Interest income (Including effective interest method) (33.21) (20.73)
Allowances for credit losses on financial assets 2.77 5.15
Equity settled share based payments (0.05) (0.94)
Loss on sale of property, plant and equipment (net) 0.26 0.12
Operating cash flows before movements in working capital 300.52 161.46
Working capital adjustments :
Changes in trade receivables (52.55) (23.78)
Changes in inventories (10.65) (4.10)
Changes in other financial assets and other assets (50.50) (30.62)
Changes in trade payables 73.60 (7.49)
Changes in provisions 1.64 1.60
Changes in other liabilities (0.43) (14.33)
Cash generated from operating activities 261.63 82.74
Taxes paid, net of refund received (15.77) (4.40)
Net cash generated from operating activities (A) 245.86 78.34
Cash flows from investing activities
Movement in other bank balances and restricted deposits (1.07) 3.14
Investments in subsidiaries (64.86) (15.38)
Interest received 0.55 0.88
Dividend received 7.41 54.84
Addition to intangible assets (2.37) (1.01)
Addition to property, plant and equipment (157.54) (45.99)
Loan to subsidiary and associate (114.24) (45.82)
Proceeds on sale of property, plant and equipment 0.17 0.17
Net cash used in investing activities (B) (331.95) (49.17)
Cash flows from financing activities
Payment of lease liabilities (29.90) (30.95)
Finance cost (20.07) (16.66)
Long term secured loans availed 132.02 -
Long term secured loans repaid (23.97) (0.26)
Current borrowings (repaid)/availed, net 34.12 30.18
Net cash generated from / (used in) financing activities (C) 92.20 (17.69)
Net increase / (decrease) in cash and cash equivalents (A+B+C) 6.11 11.48
Cash and cash equivalents at the beginning of the year 18.27 6.79
Cash and cash equivalents at the end of the year (Refer Note 9) 24.38 18.27

222
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Standalone Statement of Cash Flows for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

Changes in liabilities arising from financing activities for the year ended 31 March 2023

Non cash changes

As at Cash Fair value/ As at
Particulars Foreign
1 April 2022 flows other 31 March 2023
exchange
changes
Non-current borrowings (including current maturities) 128.92 108.05 - - 236.97
Current borrowings 68.89 34.12 - - 103.01
Lease liabilities 322.71 (29.90) 64.48 - 357.29
Total 520.52 112.27 64.48 - 697.27

Changes in liabilities arising from financing activities for the year ended 31 March 2022
Non cash changes
As at Cash Fair value/ As at
Particulars Foreign
1 April 2021 flows other 31 March 2023
exchange
changes
Non-current borrowings (including current maturities) 129.18 (0.26) - - 128.92
Current borrowings 38.71 30.18 - - 68.89
Lease liabilities 249.25 (30.95) 104.41 - 322.71
Total 417.14 (1.03) 104.41 - 520.52

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

As per our report of even date attached

for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

223
224
Standalone Statement of Changes in Equity for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

A Equity Share Capital

No. of equity shares
Particulars Note Amount
(In crores)
Balance as at 1 April 2021 49.95 499.52
Aster DM Healthcare Limited

Changes in equity share capital during 2021-22 14 - -

As at 31 March 2022 49.95 499.52
Changes in equity share capital during 2022-23 14 - -
As at 31 March 2023 49.95 499.52

B Other Equity
Equity Items of other
Reserves and surplus
component of comprehensive income Total other
(refer Note 15)
compulsorily (refer Note 15) equity
Particulars convertible Share Remeasurement of attributable to
preference Capital equity holders
Securities Treasury General options Retained net defined benefit
shares (refer redemption of the Company
premium shares reserve outstanding earnings liability/ (asset), net
Note 15) reserve
account of tax
Balance as at 1 April 2021 374.38 2,215.93 5.71 (15.71) 7.04 9.87 (232.62) - 2,364.60
Total comprehensive income for the
year ended 31 March 2022
Profit for the year - - - - - - 90.18 - 90.18
Other comprehensive income for - - - - - - - 0.46 0.46
the year, net of tax
Total comprehensive income - - - - - - 90.18 0.46 90.64
Transferred to retained earnings - - - - - - 0.46 (0.46) -
Transactions recorded directly
in equity
Change in reserve of ESOP Trust - - - 1.18 - - - - 1.18
 Equity settled share based - - - - - (0.12) - - (0.12)
payment expense
 Allotment of equity shares by - 1.60 - - - (2.21) - - (0.61)
ESOP Trust
Total transactions recorded directly - 1.60 - 1.18 - (2.33) 0.46 (0.46) 0.45
in equity
Balance as at 31 March 2022 374.38 2,217.53 5.71 (14.53) 7.04 7.54 (141.98) - 2,455.69
 Standalone Statement of Changes in Equity for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

B Other Equity (Contd..)

Items of other
Equity Reserves and surplus comprehensive
component of (refer Note 15) Income Total other equity
compulsorily (refer Note 15) attributable to
Particulars convertible
Share Remeasurement of equity holders of
preference Capital
Securities Treasury General options Retained net defined benefit the Company
shares (refer redemption
Note 15) premium shares reserve outstanding earnings liability/ (asset), net
reserve
Integrated Annual Report FY 2022-2023

account of tax
Balance as at 1 April 2022 374.38 2,217.53 5.71 (14.53) 7.04 7.54 (141.98) - 2,455.69
Total comprehensive income for the
year ended 31 March 2023
Profit for the year - - - - - - 173.29 - 173.29
Other comprehensive income for - - - - - - - 0.41 0.41
the year, net of tax
Total comprehensive income - - - - - 173.29 0.41 173.70
Transferred to retained earnings - - - - - 0.41 (0.41) -
Transactions recorded directly
in equity
Change in reserve of ESOP Trust - - - 1.04 - - - - 1.04
 Equity settled share based - - - - - 0.61 - - 0.61
payment expense
 Allotment of equity shares by - 1.64 - - - (1.64) - - -
ESOP Trust
Total transactions recorded directly - 1.64 - 1.04 - (1.03) 0.41 (0.41) 1.65
in equity
Balance as at 31 March 2023 374.38 2,219.17 5.71 (13.49) 7.04 6.51 31.72 - 2,631.04

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

As per our report of even date attached

for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
FINANCIAL STATEMENTS

25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru

225
25 May 2023 25 May 2023
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

1. Company overview Estimates and underlying assumptions are reviewed by the

Management on an ongoing basis. Revisions to accounting
Aster DM Healthcare Limited (“the Company”) primarily carries estimates are recognised prospectively.
on the business of rendering healthcare and allied services in
India. The Company is a public limited company and is listed Information about judgements, assumptions and estimation
on the Bombay Stock Exchange Limited and National Stock uncertainties that have a significant risk of resulting in a material
Exchange Limited. The registered office of the Company is in adjustment during the year ended 31 March 2023 is included in
Bengaluru, Karnataka, India. the following notes:

The Company is primarily involved in the operations of healthcare - Note 4 and 5 - Measurement of useful life and
facilities, retail pharmacies, and providing consultancy in areas residual value of property, plant and equipment and
relating to healthcare. The Company has subsidiaries in United intangible assets;
Arab Emirates (‘UAE’), Kingdom of Saudi Arabia (KSA), Oman,
- Note 6 - Impairment of investment in subsidiaries and
Qatar, Jordan, Bahrain, Cayman Islands and India.
associates;

- Note 38 - Measurement of defined benefit obligations:

2. Basis of preparation
key actuarial assumptions;
2.1 Statement of compliance - Note 31 - Recognition of deferred tax asset: availability
of future taxable profit against which tax losses carried
These standalone financial statements (the 'financial statements')
forward can be used;
have been prepared in accordance with the Indian Accounting
Standards (“Ind AS”) as per the Companies (Indian Accounting - Note 32 - Recognition and measurement of provisions
Standards) Rules, 2015, as amended, and the relevant amended and contingencies: key assumptions about the likelihood
rules prescribed under Section 133 of the Companies Act, 2013 and magnitude of an outflow of resources;
('the Act'), read with relevant rules issued thereunder.
- Note 37 - Impairment of financial assets;
These financial statements were authorised for issuance by the - Note 39 - Leases;
Company's Board of Directors on 25 May 2023.
- Note 40 - Employee share-based payment expenses."
The Company’s significant accounting policies are included in
Note 3. 2.5 Measurement of fair values

A number of the Company’s accounting policies and disclosures

2.2 Functional and presentation currency
require the measurement of fair values, for both financial
These financial statements are presented in Indian Rupees (INR), and non-financial assets and liabilities. The Company has an
which is also the Company’s functional currency. All amounts are established control framework with respect to the measurement
presented in Indian Rupees in crores, unless otherwise stated. of fair values. Significant valuation issues are reported to the
Company’s audit committee.
2.3 Basis of measurement
Fair values are categorised into different levels in a fair value
These financial statements have been prepared on the historical
hierarchy based on the inputs used in the valuation techniques
cost basis except for the following material items that have
as follows:
been measured at fair value as required by relevant Ind AS:
- Level 1: quoted prices (unadjusted) in active markets for
i. Certain financial assets and liabilities (including derivatives
identical assets or liabilities;
instruments);

ii. Liabilities for equity-settled share-based payment - Level 2: inputs other than quoted prices included in Level 1
arrangements; and that are observable for the asset or liability, either directly
(i.e., as prices) or indirectly (i.e., derived from prices); and
iii. Net defined benefit (asset)/ liability.
- Level 3: inputs for the asset or liability that are not based
2.4 Use of estimates and judgements on observable market data (unobservable inputs)."
In preparing these financial statements, the Management has
When measuring the fair value of an asset or a liability, the
made judgements, estimates and assumptions that affect the
Company uses observable market data as far as possible. If the
application of accounting policies and the reported amounts
inputs used to measure the fair value of an asset or a liability
of assets, liabilities, income, and expenses. Actual results may
fall into different levels of the fair value hierarchy, then the fair
differ from these estimates.

226
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

value measurement is categorised in its entirety in the same Any gain or loss on disposal of an item of property, plant
level of the fair value hierarchy as the lowest level input that is and equipment is recognised in the statement of profit
significant to the entire measurement. and loss.

The Company recognises transfers between levels of the fair Advances paid towards the acquisition of property, plant
value hierarchy at the end of the reporting period during which and equipment, outstanding at each balance sheet date
the change has occurred. are shown under other non-current assets. The cost of
property, plant and equipment not ready for its intended
Further information about the assumptions made in measuring
use at each balance sheet date are disclosed as capital
fair values is included in the following notes:
work-in-progress.
- Share-based payment arrangements;
ii. Subsequent expenditure and derecognition
- Financial instruments; and
Subsequent expenditure is capitalised only if it is probable
- Fair value of property, plant and equipment and intangible that the future economic benefits associated with the
assets. expenditure will flow to the Company.

2.6 Recent accounting pronouncements An item of property, plant and equipment is derecognised
Ministry of Corporate Affairs (“MCA”) notifies new standards or upon disposal or when no future economic benefits are
amendments to the existing standards under Companies (Indian expected to arise from the continued use of the asset.
Accounting Standards) Rules as issued from time to time. On 31 The gain or loss arising on the disposal or retirement of
March 2023, MCA amended the Companies (Indian Accounting an asset is determined as the difference between the net
Standards) Amendment Rules, 2023. The effective date for disposal proceeds and the carrying amount of the asset
adoption of the amendments is annual periods beginning on or and is recognised in the statement of profit and loss.
after 1 April 2023. The Company is evaluating the amendments
on its financial statements and does not expect to have any iii. Depreciation
significant impact. Depreciation on property, plant and equipment are
provided on the straight-line method over the useful
3. Significant accounting policies lives of the assets estimated by the Management.
Depreciation for assets purchased / sold during a period
3.1 Property, plant and equipment is proportionately charged. Leasehold improvements are
amortized over the lease term or useful lives of assets,
i. Recognition and measurement
whichever is lower. The estimated useful lives of items
Items of property, plant and equipment are measured of property, plant and equipment for the current and
at cost, which includes capitalised borrowing costs, less comparative years are as follows:
accumulated depreciation and accumulated impairment
losses, if any. Class of assets Useful life (in years)
Buildings 60
Cost of an item of property, plant and equipment
Plant and equipment 15
comprises its purchase price, including import duties and
Medical equipment* 10-13
non-refundable purchase taxes, after deducting trade
Motor vehicles * 5
discounts and rebates, any directly attributable cost of
Computer equipment 3
bringing the item to its working condition for its intended
Servers and networks 6
use and estimated costs of dismantling and removing the
item and restoring the site on which it is located. Furniture and fixtures * 5-10
Electrical equipment 10
The cost of a self-constructed item of property, plant and * For the above-mentioned classes of assets, the Company believes
equipment comprises the cost of materials and direct that the useful lives as given above best represent the useful lives
labour, any other costs directly attributable to bringing of these assets based on internal assessment and supported by
technical advice, where necessary, which is different from the useful
the item to working condition for its intended use, and lives as prescribed under Part C of Schedule II of the Companies
estimated costs of dismantling and removing the item and Act, 2013.
restoring the site on which it is located.
Depreciation method, useful lives and residual values
If significant parts of an item of property, plant and are reviewed at each financial year-end and adjusted if
equipment have different useful lives, then they are appropriate.
accounted for as separate items (major components) of
property, plant and equipment.

227
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

3.2 Intangible assets - the ability to measure reliably the expenditure attributable
to the intangible asset during its development.
Intangible assets – acquired separately

Intangible assets with finite useful lives that are acquired The amount initially recognised for internally-generated
separately are carried at cost less accumulated amortisation intangible assets is the sum of the expenditure incurred from
and accumulated impairment losses. Intangible assets are the date when the intangible asset first meets the recognition
amortised over their respective individual estimated useful lives criteria listed above. Where no internally-generated intangible
on a straight-line basis, commencing from the date the asset is asset can be recognised, development expenditure is recognised
available to the Company for its use and is included in depreciation in the statement of profit and loss in the period in which
and amortisation expenses in the statement of profit and loss. it is incurred.
The estimated useful life and amortisation method are reviewed
Subsequent to initial recognition, internally-generated intangible
at the end of each reporting period, with the effect of any changes
assets are reported at cost less accumulated amortisation and
in estimate being accounted for on a prospective basis.
accumulated impairment losses, on the same basis as intangible
The estimated useful lives for the current and comparative assets that are acquired separately.
years are as follows:
Subsequent expenditure is capitalised only when it increases
Class of assets Useful life (in years) the future economic benefits embodied in the specific asset
Computer software 3 to which it relates. All other expenditure is recognised in the
Trademarks 3 statement of profit and loss as incurred.

The estimated useful life of an identifiable intangible asset An intangible asset is derecognised on disposal, or when no
is based on a number of factors including the effects of future economic benefits are expected from use or disposal.
obsolescence, demand, competition and other economic factors Gains or losses arising from derecognition of an intangible asset,
(such as the stability of the industry and known technological measured as the difference between the net disposal proceeds
advances) and the level of maintenance expenditures required and the carrying amount of the asset, are recognised in the
to obtain the expected future cash flows from the asset. statement of profit and loss when the asset is derecognised.

An intangible asset is derecognised on disposal, or when no 3.3 Inventories

future economic benefits are expected from use or disposal.
Inventories are measured at the lower of cost and net realisable
Gains or losses arising from derecognition of an intangible asset,
value. The cost of inventories comprises purchase price, and
measured as the difference between the net disposal proceeds
other cost incurred in bringing the inventories to their present
and the carrying amount of the asset, are recognised in the
location and condition. The Company uses the weighted
statement of profit and loss when the asset is derecognised.
average method to determine the cost of inventory consisting
of medicines and medical consumables.

Internally-generated intangible assets – research and
development expenditure
Net realisable value is the estimated selling price in the ordinary
Expenditure on research activities is recognised course of business less the estimated costs of completion and
as an expense in the period in which it is incurred. the estimated costs necessary to make the sale. The comparison
An internally-generated intangible asset arising from of cost and net realisable values is made on an item-by-item
development (or from the development phase of an internal basis.
project) is recognised if, and only if, all of the following conditions
have been demonstrated: 3.4 Impairment

- the technical feasibility of completing the intangible asset i. Impairment of financial assets
so that it will be available for use or sale; The Company recognises loss allowances for expected
credit losses ('ECL') on financial assets measured at
- the intention to complete the intangible asset and use or
amortised cost.
sell it;

- the ability to use or sell the intangible asset; At each reporting date, the Company assesses whether
financial assets carried at amortised cost are credit
- how the intangible asset will generate probable future impaired. A financial asset is ‘credit impaired’ when
economic benefits; one or more events that have a detrimental impact on
the estimated future cash flows of the financial asset
- the availability of adequate technical, financial and other
have occurred.
resources to complete the development and to use or sell
the intangible asset; and

228
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

The Company always measures the loss allowance for The recoverable amount of a CGU (or an individual asset)
trade receivables at an amount equal to lifetime ECL. The is the higher of its value in use and its fair value less costs
expected credit losses on trade receivables are estimated to sell. Value in use is based on the estimated future cash
using a provision matrix by reference to past default flows, discounted to their present value using a pre-tax
experience of the debtors and an analysis of the debtors' discount rate that reflects current market assessments of
current financial position, adjusted for factors that are the time value of money and the risks specific to the CGU
specific to the debtors, general economic conditions of the (or the asset).
industry in which the debtors operate, and an assessment
of both the current as well as the forecast direction of Intangible assets, intangible assets under development
conditions at the reporting date. and property, plant and equipment are evaluated
for recoverability whenever events or changes in
In all cases, the maximum period considered when circumstances indicate that their carrying amounts may
estimating expected credit losses is the maximum not be recoverable. For the purpose of impairment testing,
contractual period over which the Company is exposed to the recoverable amount i.e., the higher of the fair value
credit risk. less cost to sell and the value-in-use is determined on an
individual asset basis unless the asset does not generate
Measurement of expected credit losses cash flows that are largely independent of those from
other assets. In such cases, the recoverable amount is
Expected credit losses are a probability weighted estimate
determined for the CGU to which the asset belongs.
of credit losses. Credit losses are measured as the present
value of all cash shortfalls (i.e., the difference between the If such assets are considered to be impaired, the
cash flows due to the Company in accordance with the impairment to be recognized in the statement of profit
contract and the cash flows that the Company expects to and loss is measured by the amount by which the carrying
receive). value of the assets exceeds the estimated recoverable
amount of the asset.
Presentation of allowance for expected credit losses in the
standalone balance sheet: An impairment loss is reversed in the statement of profit
and loss if there has been a change in the estimates
Loss allowances for financial assets measured at
used to determine the recoverable amount. The carrying
amortised cost are deducted from the gross carrying
amount of the asset is increased to its revised recoverable
amount of the assets.
amount, provided that this amount does not exceed the
Write-off carrying amount that would have been determined (net
of any accumulated amortization or depreciation) had no
The gross carrying amount of a financial asset is written impairment loss been recognized for the asset in prior years.
off (either partially or in full) to the extent that there is no
realistic prospect of recovery. This is generally the case 3.5 Employee benefits
when the Company determines that the debtor does not
Short-term employee benefits
have assets or sources of income that could generate
sufficient cash flows to repay the amounts subject to the Employee benefits payable wholly within twelve months
write off. of receiving employee services are classified as short-term
employee benefits. These benefits include salaries and wages,
ii. Impairment of non- financial assets bonus and ex-gratia. Short-term employee benefit obligations
The Company’s non-financial assets, other than are measured on an undiscounted basis and are expensed
inventories and deferred tax assets, are reviewed at as the related service is provided. A liability is recognised for
each reporting date to determine whether there is any the amount expected to be paid e.g., under short-term cash
indication of impairment. If any such indication exists, then bonus, if the Company has a present legal or constructive
the asset’s recoverable amount is estimated to determine obligation to pay this amount as a result of past service
the extent of impairment loss, if any. provided by the employee and the amount of obligation can be
estimated reliably.
For impairment testing, assets that do not generate
independent cash inflows are grouped together into Post-employment benefits
cash-generating units (CGUs). Each CGU represents the Defined contribution plans
smallest group of assets that generates cash inflows
A defined contribution plan is a post-employment benefit plan
that are largely independent of the cash inflows of other
under which an entity pays fixed contributions and will have
assets or CGUs.
no legal or constructive obligation to pay further amounts.

229
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

The Company makes specified monthly contributions towards such that the amount ultimately recognised as an expense is
Government administered provident fund scheme. Obligations based on the number of awards that do meet the related service
for contributions to defined contribution plans are recognised as and non-market vesting conditions at the vesting date. For
an employee benefit expense in the statement of profit and loss share-based payment awards with non-vesting conditions, the
in the periods during which the related services are rendered grant date fair value of the share-based payment is measured
by employees. to reflect such conditions and there is no true-up for differences
between expected and actual outcomes.
Defined Benefit plans
3.6 Provisions (other than employee benefits)
Under a defined benefit plan, it is the Company’s obligation to
provide agreed benefits to the employees. A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation that
The calculation of defined benefit obligation is performed can be estimated reliably, and it is probable that an outflow of
annually by a qualified actuary using the projected unit economic benefits will be required to settle the obligation. The
credit method. amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the
Re-measurements of the net defined benefit liability, which
reporting date, taking into account the risks and uncertainties
comprise actuarial gains and losses are recognised in other
surrounding the obligation. Where a provision is measured using
comprehensive income (OCI) in the period in which they occur.
the cash flows estimated to settle the present obligation, its
Remeasurements of the net defined benefit liability (asset)
carrying amount is the present value of those cash flows (when
recognised in other comprehensive income shall not be
the effect of the time value of money is material).
reclassified to statement of profit and loss in a subsequent
period. However, the Company transfers those amounts A contract is considered to be onerous when the expected
recognised in other comprehensive income within equity. The economic benefits to be derived by the Company from the
Company determines the net interest expense on the net contract are lower than the unavoidable cost of meeting its
defined benefit liability for the period by applying the discount obligations under the contract. The provision for an onerous
rate used to measure the defined benefit obligation at the contract is measured at the present value of the lower of the
beginning of the annual period to the then-net defined benefit expected cost of terminating the contract and the expected net
liability, taking into account any changes in the net defined cost of continuing with the contract. Before such a provision
benefit liability during the period as a result of contributions and is made, the Company recognises any impairment loss on the
benefit payments. Net interest expense and other expenses assets associated with that contract.
related to defined benefit plans are recognised in the statement
of profit and loss. 3.7 Revenue

Other long term employee benefits The Company generates revenue from rendering of medical
and healthcare services, sale of medicines and other related
The Company’s net obligation in respect of long-term employee activities. Ind AS 115, Revenue from Contracts with Customers,
benefits other than post-employment benefits is the amount establishes a comprehensive framework for determining
of future benefit that employees have earned in return for whether, how much and when revenue is recognised. Under
their service in the current and prior periods; that benefit is Ind AS 115, revenue is recognised when a customer obtains
discounted to determine its present value, and the fair value of control of the goods or services in an amount that reflects
any related assets is deducted. The obligation is measured on the consideration which the Company expects to receive in
the basis of an annual independent actuarial valuation using the exchange for those products or services. In calculating the
projected unit credit method. Remeasurement gains or losses variable considerations, the Company considers the nature and
are recognised in other comprehensive income in the period in coverage through insurance and other parties, the history of
which they arise. adjustments and rejections, and the probability of rejections,
discounts, rebates, price concessions, or other similar items.
Share- based payment transactions
Disaggregation of revenue
The grant date fair value of equity settled share-based payment
awards granted to employees is recognised as an employee The Company disaggregates revenue from hospital services
expense, with a corresponding increase in equity, over the (medical and healthcare services), sale of medicines and
period that the employees unconditionally become entitled to other operating income. The Company believes that this
the awards. The amount recognised as expense is based on the disaggregation best depicts how the nature, amount, timing and
estimate of the number of awards for which the related service certainty of Company’s revenues and cash flows are affected by
and non-market vesting conditions are expected to be met, industry, market and other economic factors.

230
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

Contract balances service is performed. Income from sale of food and

beverages is recognised at a point in time when control is
The Company classifies the right to consideration in exchange transferred.
for sale of services where invoice is raised as trade receivables,
where invoice has not been raised as unbilled revenue and 3.8 Foreign currency transactions
advance consideration as advance from customers.
Transactions in foreign currencies are translated into the
Performance obligations and revenue recognition policies functional currency of the Company at the exchange rates at the
dates of the transactions or an average rate if the average rate
Revenue is measured based on the consideration specified in approximates the actual rate at the date of the transaction.
a contract with a customer. The Company recognises revenue
when it transfers control over a good or service to a customer. Monetary assets and liabilities denominated in foreign
The following details provide information about the nature currencies are translated into the functional currency at the
and timing of the satisfaction of performance obligations in exchange rate at the reporting date. Non-monetary assets and
contracts with customers, including significant payment terms, liabilities that are measured at fair value in a foreign currency
and the related revenue recognition policies. are translated into the functional currency at the exchange rate
when the fair value was determined. Non-monetary assets
(a) Medical and healthcare services and liabilities that are measured based on historical cost in a
foreign currency are translated at the exchange rate at the date
The Company’s revenue from medical and healthcare
of the transaction. Exchange differences are recognised in the
services comprises of income from hospital services.
statement of profit and loss.
Revenue from hospital services to patients is recognised
as revenue when the related services are rendered unless 3.9 Leases
significant future uncertainties exist. Revenue is also Determining whether an arrangement contains a lease
recognised in relation to the services rendered to the
patients who are undergoing treatment/ observation At inception of an arrangement, it is determined whether
on the balance sheet date to the extent of the services the arrangement is or contains a lease. At inception or on
rendered. Revenue is recognised net of discounts, reassessment of the arrangement that contains a lease,
concessions given to the patients and estimated the payments and other consideration required by such an
disallowances for patients covered under insurance. arrangement are separated into those for the lease and those
for other elements on the basis of their relative fair values.
Unbilled receivable represents value to the extent of
medical and healthcare services are rendered to the i. Company as a lessee
patients who are undergoing treatment/observation on The Company accounts for each lease component
the balance sheet date and is not billed as at the balance within the contract as a lease separately from non-
sheet date. lease components of the contract and allocates the
consideration in the contract to each lease component
(b) Sale of medicines
on the basis of the relative stand-alone price of the lease
Revenue from sale of medical consumables and medicines component and the aggregate stand-alone price of the
within the hospital premises is recognised when the non-lease components.
control in the goods are transferred to the customer and
no significant uncertainty exists regarding the amount of The Company recognises right-of-use asset representing
the consideration that will be derived from the sale of the its right to use the underlying asset for the lease term at
goods and regarding its collection. The amount of revenue the lease commencement date. The cost of the right-of-
recognised is net of sales returns, taxes and duties, use asset measured at inception shall comprise of the
wherever applicable. amount of the initial measurement of the lease liability
adjusted for any lease payments made at or before the
(c) Other operating income commencement date less any lease incentives received,
plus any initial direct costs incurred and an estimate
The Company’s revenue from other operating income
of costs to be incurred by the lessee in dismantling and
comprises primarily of revenue from courses conducted
removing the underlying asset or restoring the underlying
at the hospital and income from revenue sharing
asset or site on which it is located. The right-of-use assets
agreements.
is subsequently measured at cost less any accumulated
Revenue from services rendered is based on the depreciation, accumulated impairment losses, if any and
agreements/arrangements with the customers as the adjusted for any remeasurement of the lease liability.

231
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

The right-of-use assets is depreciated using the straight- ii. Company as a lessor
line method from the commencement date over the
At the inception of the lease the Company classifies each
shorter of lease term or useful life of right-of-use asset.
of its leases as either an operating lease or a finance lease.
The estimated useful lives of right-of-use assets are
Whenever the terms of the lease transfer substantially
determined on the same basis as those of property,
all the risks and rewards of ownership to the lessee, the
plant and equipment. Right-of-use assets are tested for
contract is classified as a finance lease. All other leases are
impairment whenever there is any indication that their
classified as operating leases. The Company recognises
carrying amounts may not be recoverable. Impairment
lease payments received under operating leases as
loss, if any, is recognised in the statement of profit
income on a straight- line basis over the lease term. In
and loss.
case of a finance lease, finance income is recognised over
The Company measures the lease liability at the present the lease term based on a pattern reflecting a constant
value of the lease payments that are not paid at the periodic rate of return on the lessor’s net investment in
commencement date of the lease. The lease payments the lease.
are discounted using the interest rate implicit in the lease,
Amounts due from lessees under finance leases are
if that rate can be readily determined. If that rate cannot
recognised as receivables at the amount of the Company’s
be readily determined, the Company uses incremental
net investment in the leases. When the Company is an
borrowing rate. The lease payments shall include fixed
intermediate lessor, it accounts for its interests in the
payments, variable lease payments that depend on an
head lease and the sub-lease separately. It assesses
index or rate, initially measured using the index or rate
the lease classification of a sub-lease with reference to
at the commencement date, residual value guarantees,
the right-of-use asset arising from the head lease, not
exercise price of a purchase option where the Company is
with reference to the underlying asset. If a head lease
reasonably certain to exercise that option and payments
is a short-term lease to which the Company applies the
of penalties for terminating the lease, if the lease term
exemption described above, then it classifies the sub-
reflects the lessee exercising an option to terminate the
lease as an operating lease.
lease. The lease liability is subsequently remeasured
by increasing the carrying amount to reflect interest If an arrangement contains lease and non-lease
on the lease liability, reducing the carrying amount to components, the Company applies Ind AS 115
reflect the lease payments made and remeasuring the Revenue from contracts with customers to allocate the
carrying amount to reflect any reassessment or lease
consideration in the contract.
modifications or to reflect revised in-substance fixed
lease payments. The Company recognises the amount of 3.10 Recognition of dividend income, interest income or interest
the re-measurement of lease liability due to modification expense
as an adjustment to the right-of-use asset and the
Dividend income is recognised in the standalone statement of
statement of profit and loss depending upon the nature
profit and loss on the date on which the right to receive payment
of modification. Where the carrying amount of the right-
is established.
of-use asset is reduced to zero and there is a further
reduction in the measurement of the lease liability, the Interest on deployment of surplus funds is recognized using
Company recognises any remaining amount of the re- the time proportionate method, based on the transactional
measurement in the statement of profit and loss. interest rates.

The Company has elected not to apply the requirements Interest income or expense is recognised using the effective
of Ind AS 116, Leases, to short-term leases of all assets interest method.
that have a lease term of 12 months or less. The lease
payments associated with these leases are recognized as The ‘effective interest rate’ is the rate that exactly discounts
an expense on a straight-line basis over the lease term. estimated future cash payments or receipts through the
expected life of the financial instrument to the gross carrying
Variable rents that do not depend on an index or rate are amount of the financial asset or the amortised cost of the
not included in the measurement of the lease liability financial liability.
and the right-of-use asset. The related payments are
recognised as an expense in the period in which the event In calculating interest income and expense, the effective interest
or condition that triggers those payments occurs and are rate is applied to the gross carrying amount of the asset (when
included in the line “Other expenses” in the statement of the asset is not credit-impaired) or to the amortised cost of the
profit and loss. liability.

232
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

3.11 Income tax Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is realised
Income tax comprises current and deferred tax. It is recognised
or the liability is settled, based on the laws that have
in the statement of profit and loss except to the extent that
been enacted or substantively enacted by the reporting
it relates to an item recognised directly in equity or in other
date. The measurement of deferred tax reflects the tax
comprehensive income.
consequences that would follow from the manner in which
i. Current tax the Company expects, at the reporting date, to recover or
settle the carrying amount of its assets and liabilities.
Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and Deferred tax assets and liabilities are offset if there is a
any adjustment to the tax payable or receivable in respect legally enforceable right to offset current tax liabilities and
of previous years. The amount of current tax reflects assets, and they relate to income taxes levied by the same
the best estimate of the tax amount expected to be tax authority on the same taxable entity, or on different
paid or received after considering the uncertainty, if any, tax entities, but they intend to settle current tax liabilities
related to income taxes. It is measured using tax rates and assets on a net basis or their tax assets and liabilities
(and tax laws) enacted or substantively enacted by the will be realised simultaneously.
reporting date.
3.12 Borrowing cost
Current tax assets and current tax liabilities are offset
Borrowing costs are interest and other costs (including exchange
only if there is a legally enforceable right to set off the
differences relating to foreign currency borrowings to the extent
recognised amounts, and it is intended to realise the asset
that they are regarded as an adjustment to interest costs)
and settle the liability on a net basis or simultaneously.
incurred in connection with the borrowing of funds. Borrowing
A provision is recognised for those matters for which costs directly attributable to acquisition or construction of an
the tax determination is uncertain but it is considered asset which necessarily take a substantial period of time to get
probable that there will be a future outflow of funds to ready for their intended use are capitalised as part of the cost of
a tax authority. The provisions are measured at the best that asset until such time as the asset is substantially ready for
estimate of the amount expected to become payable. their intended use or sale. Other borrowing costs are recognised
The assessment is based on the judgement of tax as an expense in the period in which they are incurred.
professionals within the Company supported by previous
3.13 Financial instruments
experience in respect of such activities and in certain cases
based on specialist independent tax advice. i. Recognition and initial measurement

Trade receivables and debt securities issued are initially

ii. Deferred tax
recognised when they are originated. All other financial
Deferred tax is recognised in respect of temporary assets and financial liabilities are initially recognised
differences between the carrying amounts of assets when the Company becomes a party to the contractual
and liabilities for financial reporting purposes and the provisions of the instrument.
corresponding tax bases used for taxation purposes.
A financial asset or financial liability is initially measured
Deferred tax is also recognised in respect of carried
at fair value, except for trade receivables that do not have
forward tax losses and tax credits. Deferred tax assets
a significant financing component which are measured
are recognised to the extent that it is probable that
at transaction price. Transaction costs that are directly
future taxable profits will be available against which
attributable to the acquisition or issue of financial assets
they can be utilised. The existence of unused tax losses
and financial liabilities (other than financial assets and
is strong evidence that future taxable profit may not be
financial liabilities at fair value through profit or loss -
available. Therefore, in case of a history of recent losses,
FVTPL) are added to or deducted from the fair value of the
the Company recognises a deferred tax asset only to the
financial assets or financial liabilities, as appropriate, on
extent that it has sufficient taxable temporary differences
initial recognition. Transaction costs directly attributable
or there is convincing other evidence that sufficient taxable
to the acquisition of financial assets or financial liabilities
profit will be available against which such deferred tax
at fair value through profit or loss are recognised
asset can be realised. Deferred tax assets – unrecognised
immediately in statement of profit and loss.
or recognised, are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no
longer probable respectively that the related tax benefit
will be realised.

233
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

ii. Classification and subsequent measurement matching the duration of the financial assets to the
duration of any related liabilities or expected cash
Financial assets
outflows or realising cash flows through the sale of
On initial recognition, a financial asset is classified as the assets;
either at amortised cost, FVTPL or fair value through other
- the risks that affect the performance of the business
comprehensive income (FVOCI).
model (and the financial assets held within that
Financial assets are not reclassified subsequent to their business model) and how those risks are managed;
initial recognition, except if and in the period the Company
- the frequency, volume and timing of sales of financial
changes its business model for managing financial assets.
assets in prior periods, the reasons for such sales
A financial asset is measured at amortised cost if it meets and expectations about future sales activity.
both of the following conditions:
Transfers of financial assets to third parties in transactions
- the asset is held within a business model whose that do not qualify for derecognition are not considered
objective is to hold assets to collect contractual cash sales for this purpose, consistent with the Company’s
flows; and continuing recognition of the assets.

- the contractual terms of the financial asset give Financial assets that are held for trading or are managed
rise on specified dates to cash flows that are solely and whose performance is evaluated on a fair value basis
payments of principal and interest on the principal are measured at FVTPL.
amount outstanding."
Financial assets: Assessment whether contractual cash
On initial recognition of an equity investment that is not flows are solely payments of principal and interest
held for trading, the Company may irrevocably elect to
For the purposes of this assessment, ‘principal’ is defined
present subsequent changes in the investment’s fair value
as the fair value of the financial asset on initial recognition.
in OCI (designated as FVOCI – equity investment). This
‘Interest’ is defined as consideration for the time value of
election is made on an investment-by-investment basis.
money and for the credit risk associated with the principal
All financial assets not classified as measured at amortised amount outstanding during a particular period of time and
cost or FVOCI as described above are measured at FVTPL. for other basic lending risks and costs (e.g., liquidity risk
This includes all derivative financial assets. On initial and administrative costs), as well as a profit margin.
recognition, the Company may irrevocably designate a
In assessing whether the contractual cash flows are
financial asset that otherwise meets the requirements to
solely payments of principal and interest, the Company
be measured at amortised cost or at FVOCI as at FVTPL if
considers the contractual terms of the instrument. This
doing so eliminates or significantly reduces an accounting
includes assessing whether the financial asset contains a
mismatch that would otherwise arise.
contractual term that could change the timing or amount
Financial assets: Business model assessment of contractual cash flows such that it would not meet
this condition. In making this assessment, the Company
The Company makes an assessment of the objective considers:
of the business model in which a financial asset is held
at investment level because this best reflects the way - contingent events that would change the amount or
the business is managed and information is provided to timing of cash flows;
management. The information considered includes:
- terms that may adjust the contractual coupon rate,
- the stated policies and objectives for each of such including variable interest rate features;
investments and the operation of those policies in
- prepayment and extension features; and
practice. These include whether Management’s
strategy focuses on earning contractual interest - terms that limit the Company’s claim to cash flows
income, maintaining a particular interest rate profile, from specified assets (e.g., non-recourse features).

234
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

 Financial assets: Subsequent measurement and gains If the Company enters into transactions whereby it
and losses transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and
Financial assets These assets are subsequently rewards of the transferred assets, the transferred assets
at FVTPL measured at fair value. Net gains are not derecognised.
and losses, including any interest or
dividend income, are recognised in Financial liabilities
statement of profit and loss.
Financial assets These assets are subsequently The Company derecognises a financial liability when
at amortised measured at amortised cost using its contractual obligations are discharged or cancelled,
cost the effective interest method. or expire. The Company also derecognises a financial
The amortised cost is reduced by liability when its terms are modified and the cash flows
impairment losses. Interest income, under the modified terms are substantially different. In
foreign exchange gains and losses this case, a new financial liability based on the modified
and impairment are recognised in terms is recognised at fair value. The difference between
statement profit and loss. Any gain or the carrying amount of the financial liability extinguished
loss on derecognition is recognised in and the new financial liability with modified terms is
statement of profit and loss. recognised in statement of profit and loss.
Equity These assets are subsequently
investments at measured at fair value. Dividends are iv. Offsetting
FVOCI recognised as income in statement
profit and loss unless the dividend Financial assets and financial liabilities are offset and the
clearly represents a recovery of part net amount presented in the balance sheet when, and only
of the cost of the investment. Other when, the Company currently has a legally enforceable
net gains and losses are recognised right to set off the amounts and it intends either to settle
in OCI and are not reclassified to them on a net basis or to realise the asset and settle the
statement of profit and loss. liability simultaneously.

Financial
 liabilities: Classification, subsequent v. Derivative financial instruments
measurement and gains and losses
The Company holds derivative financial instruments to
Financial liabilities are classified as measured at amortised hedge its foreign currency and interest rate risk exposures.
cost or FVTPL. A financial liability is classified as FVTPL if Derivatives are initially measured at fair value. Subsequent
it is classified as held for trading, or it is a derivative or to initial recognition, derivatives are measured at fair value,
it is designated as such on initial recognition. Financial and changes therein are recognised in the statement of
liabilities at FVTPL are measured at fair value and net gains profit and loss.
and losses, including any interest expense, are recognised
in statement of profit and loss. 3.14 Earnings / (Loss) per share

The basic earnings / (loss) per share (‘EPS’) is computed by

Other financial liabilities are subsequently measured at
dividing the net profit / (loss) after tax for the year attributable
amortised cost using the effective interest method. Interest
to equity shareholders by the weighted average number of
expense and foreign exchange gains and losses are recognised
equity shares outstanding during the year.
in statement of profit and loss. Any gain or loss on derecognition
is also recognised in statement of profit and loss. Diluted earnings per share is computed by dividing the profit/
(loss) after tax (including the post tax effect of extraordinary
iii. Derecognition
items, if any) as adjusted for dividend, interest and other
Financial assets charges to expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares, by the weighted
The Company derecognises a financial asset when the
average number of equity shares considered for deriving basic
contractual rights to the cash flows from the financial asset
earnings per share and the weighted average number of equity
expire, or it transfers the rights to receive the contractual
shares which could have been issued on the conversion of all
cash flows in a transaction in which substantially all
dilutive potential equity shares.
of the risks and rewards of ownership of the financial
asset are transferred or in which the Company neither Dilutive potential equity shares are deemed converted as of
transfers nor retains substantially all of the risks and the beginning of the period unless issued at a later date. In
rewards of ownership and does not retain control of the computing dilutive earnings per share, only potential equity
financial asset. shares that are dilutive, i.e., which reduces earnings per share

235
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

or increases loss per share are included. The dilutive potential 3.17 Cash and cash equivalents
equity shares are adjusted for the proceeds receivable had the
Cash and cash equivalents comprise cash at bank and on hand
shares been actually issued at fair value (i.e. average market
and short-term deposits with an original maturity of three
value of the outstanding shares). Dilutive potential equity shares
months or less which are subject to insignificant risk of changes
are determined independently for each period presented. The
in value.
number of equity shares and potentially dilutive equity shares
are adjusted for share splits/reverse share splits and bonus 3.18 Operating segments
shares, as appropriate.
The Company publishes the standalone financial statement
3.15 Cash-flow statement along with the consolidated financial statements. In accordance
with Ind AS 108, Operating Segments, the Company has
Cash flows are reported using the indirect method, whereby
disclosed the segment information in the consolidated
profit before tax is adjusted for the effects of transactions of a
financial statements.
non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from regular revenue 3.19 Operating cycle
generating, investing and financing activities of the Company
are segregated. The operating cycle is the time between the acquisition of
assets for processing and their realisation in cash and cash
3.16 Government Grants equivalents. The Company has identified twelve months as its
operating cycle.
Government grants are recognised where there is reasonable
assurance that the grant will be received and all attached
conditions will be complied with. Where the Company receives
grants relating to assets, including non-monetary grants, the
asset and the related grants are accounted at fair value and
recognised in the statement of profit and loss over the expected
useful life of the asset.

236
 Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

4 Property, plant and equipment and capital work-in-progress

4.1 Property, plant and equipment

Furniture Plant Servers

Freehold Leasehold Electrical Computer Medical Motor
Particulars Buildings* and and and Total
land improvements equipment equipment equipment vehicles
fixtures equipment networks
Gross carrying value
Integrated Annual Report FY 2022-2023

Balance as at 1 April 2021 110.00 264.86 119.50 57.42 32.36 71.66 16.66 525.94 8.84 4.15 1,211.39
Additions 0.11 0.29 3.24 1.86 0.79 1.04 2.56 14.81 0.59 0.05 25.34
Disposals – 0.03 – 0.03 – – – 0.46 – 0.01 0.53
Balance as at 31 March 2022 110.11 265.12 122.74 59.25 33.15 72.70 19.22 540.29 9.43 4.19 1,236.20
Balance as at 1 April 2022 110.11 265.12 122.74 59.25 33.15 72.70 19.22 540.29 9.43 4.19 1,236.20
Additions 0.28 4.54 4.58 6.21 2.30 2.95 5.92 33.63 2.38 0.41 63.20
Adjustments – (49.11) 49.11 – – – – – – – –
Disposals – – – 0.09 0.02 0.08 0.25 5.15 – 0.08 5.67
Balance as at 31 March 2023 110.39 220.55 176.43 65.37 35.43 75.57 24.89 568.77 11.81 4.52 1,293.73
Accumulated depreciation
Balance as at 1 April 2021 – 21.01 59.09 40.00 22.92 35.28 12.36 195.49 8.16 3.52 397.83
Charge for the year – 3.60 15.07 4.65 2.28 3.94 2.47 46.32 0.42 0.27 79.02
Eliminated on disposals – 0.03 – 0.03 – – – 0.19 – – 0.25
Balance as at 31 March 2022 – 24.58 74.16 44.62 25.20 39.22 14.83 241.62 8.58 3.79 476.60
Balance as at 1 April 2022 – 24.58 74.16 44.62 25.20 39.22 14.83 241.62 8.58 3.79 476.60
Charge for the period – 3.65 10.59 4.90 2.44 3.97 2.81 51.88 0.73 0.27 81.24
Eliminated on disposals – – – 0.08 0.01 0.08 0.22 4.77 – 0.08 5.24
Balance as at 31 March 2023 – 28.23 84.75 49.44 27.63 43.11 17.42 288.73 9.31 3.98 552.60
Net carrying value
As at 31 March 2023 110.39 192.32 91.68 15.93 7.80 32.46 7.47 280.04 2.50 0.54 741.13
As at 31 March 2022 110.11 240.54 48.58 14.63 7.95 33.48 4.39 298.67 0.85 0.40 759.60
* 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 in Kochi,
Kerala (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 required DM Medcity 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. The phase I project was capitalised in
2014 and became operational in the same year. Phase II project has not yet started.
FINANCIAL STATEMENTS

Notes:

For details of property, plant and equipment pledged, refer Note 16.

237
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

4 Property, plant and equipment and capital work-in-progress (Contd..)

4.2 Capital work-in-progress (CWIP)

4.2.1 Ageing schedule of CWIP

Amount in CWIP for a period of

Particulars Less than 1 More than 3 Total
1-2 years 2-3 years
year years
Balance as at 31 March 2023
Projects in progress 46.22 13.83 0.40 6.08 66.53
Projects temporarily suspended - - - - -
Total 46.22 13.83 0.40 6.08 66.53
Balance as at 31 March 2022
Projects in progress 14.01 0.86 1.02 7.02 22.91
Projects temporarily suspended - - - - -
Total 14.01 0.86 1.02 7.02 22.91

4.2.2 As on the date of the balance sheet, there are no capital work-in-progress projects whose completion is overdue or has exceeded the cost
compared to its revised plan.

5 Other Intangible Assets and Intangible Assets Under Development

5.1 Other intangible assets

Particulars Computer software Trade marks Total

Gross carrying value
Balance as at 1 April 2021 16.22 0.11 16.33
Additions 1.00 0.01 1.01
Disposals 0.02 - 0.02
Balance as at 31 March 2022 17.20 0.12 17.32
Balance as at 1 April 2022 17.20 0.12 17.32
Additions 2.37 - 2.37
Disposals - - -
Balance as at 31 March 2023 19.57 0.12 19.69
Accumulated amortisation
Balance as at 1 April 2021 12.96 0.11 13.07
Amortisation for the year 2.11 - 2.11
Eliminated on disposals 0.01 - 0.01
Balance as at 31 March 2022 15.06 0.11 15.17
Balance as at 1 April 2022 15.06 0.11 15.17
Amortisation for the period 1.64 - 1.64
Eliminated on disposals - - -
Balance as at 31 March 2023 16.70 0.11 16.81
Net carrying value
As at 31 March 2023 2.87 0.01 2.88
As at 31 March 2022 2.14 0.01 2.15

5.2 Intangible assets under development

5.2.1 Ageing schedule of intangible assets under development

Amount in intangible assets under development for a period of

Particulars Less than 1 More than 3 Total
1-2 years 2-3 years
year years
Balance as at 31 March 2023
Projects in progress 0 .02 - - - 0 .02
Projects temporarily suspended - - - - -
Total 0 .02 - - - 0 .02

238
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

5 Other Intangible Assets and Intangible Assets Under Development (Contd..)

Amount in intangible assets under development for a period of
Particulars Less than 1 More than 3 Total
1-2 years 2-3 years
year years

Balance as at 31 March 2022

Projects in progress - - - - -
Projects temporarily suspended - - - - -
Total - - - - -

5.2.2 As on the date of the balance sheet, there are no intangible assets under development projects whose completion is overdue or has
exceeded the cost compared to its revised plan.

6 Investments
As at As at
Particulars
31 March 2023 31 March 2022
Non-current investments, unquoted
Investments in equity instruments of subsidiaries (at cost)
Aster DM Healthcare (Trivandrum) Private Limited, India** 33.97 33.97
8,009,999 (31 March 2022: 8,009,999) equity shares of INR 10 each
DM Med City Hospitals (India) Private Limited, India** 5.29 5.29
9,999 (31 March 2022: 9,999) equity shares of INR 10 each
Prerana Hospital Limited, India 42.94 42.94
3,600,991 (31 March 2022: 3,600,991) equity shares of INR 10 each
Ambady Infrastructure Private Limited, India** 20.84 20.84
1,501,000 (31 March 2022: 1,501,000) equity shares of INR 100 each
Affinity Holdings Private Limited, Mauritius * *
1,000 (31 March 2022 : 1,000) equity shares of USD 1 each
Sri Sainatha Multispeciality Hospitals Private Limited, India 0.01 0.01
1,000 (31 March 2022 : 1,000) Class A Equity shares of INR 10 each
Sri Sainatha Multispeciality Hospitals Private Limited, India 79.58 58.23
7,014,938 (31 March 2022 : 5,423,062) Class B Equity shares of INR 10 each
Malabar Institute Of Medical Sciences Limited, India 277.79 259.64
75,942,586 (31 March 2022 : 74,078,010) equity shares of INR 10 each
Dr. Ramesh Cardiac and Multispeciality Hospital Private Limited, India 208.25 272.68
6,200,771 (31 March 2022 : 5,500,771) equity shares of INR 10 each
Hindustan Pharma Distributors Private Limited 15.38 15.38
86,000 (31 March 2022 : 86,000) equity shares of INR 10 each
Investments in preference shares of subsidiaries (at cost)
Affinity Holdings Private Limited, Mauritius 1,455.82 1,455.82
219,324,675 (31 March 2022 : 219,324,675) non-cumulative redeemable preference
shares of USD 1 each
Investments in equity instruments of associates (at cost)
Alfaone Medicals Private Limited 0.23 0.23
228,572 (31 March 2022 : 228,572) equity shares of INR 10 each
Mindriot Research and Innovation Foundation * *
4,900 (31 March 2022: Nil) equity shares of INR 10 each
Capital contribution in subsidiaries (at cost)
Aster Clinical Lab LLP 1.00 1.00
Total 2,141.10 2,166.03
*Amount is below the rounding off norms adopted by the Company.

** The investment amount includes the following deemed capital contribution on account of interest-free/lower than market interest loan provided to subsidiaries.

239
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

6 Investments (Contd..)
As at As at
Particulars
31 March 2023 31 March 2022
Aster DM Healthcare (Trivandrum) Private Limited, India 25.96 25.96
DM Med City Hospitals (India) Private Limited, India 5.28 5.28
Ambady Infrastructure Private Limited, India 1.67 1.67
Total 32.91 32.91
Aggregate carrying amount of unquoted investments 2,141.10 2,166.03

7 Inventories
As at As at
Particulars
31 March 2023 31 March 2022
(Valued at lower of cost and net realisable value)
Medicines, medical consumables and others 34.28 23.63
Total 34.28 23.63
For details of inventories pledged, refer Note 16.

8 Trade Receivables
As at As at
Particulars
31 March 2023 31 March 2022
Current (Unsecured)
Considered good- unsecured 122.23 70.85
Less: Loss allowance (10.90) (9.30)
Net trade receivables 111.33 61.55

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

As at As at
Particulars
31 March 2023 31 March 2022
Trade receivables from related parties - 0.04
Less: Loss allowance - -
Net trade receivables from related parties - 0.04

For details of trade receivables pledged, refer Note 16.

The Company’s exposure to credit and currency risks and loss allowances related to trade receivables are disclosed in Note 37.

8.1 Trade receivables ageing schedule

As at As at
Particulars
31 March 2023 31 March 2022
Undisputed trade receivables- considered good, unsecured
Outstanding for following periods from due date of payment
Not due 41.20 21.15
Less than 6 months 63.25 36.60
6 months - 1 year 10.11 6.90
1-2 years 4.59 2.58
2-3 years 0.67 0.80
More than 3 years 2.41 2.82
Total 122.23 70.85

240
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

8.2 Loss allowance provision matrix- default rates applied at each reporting date

As at As at
Particulars
31 March 2023 31 March 2022
Due date to 1 year 9%-33% 7%-27%
1-2 years 26%-72% 27%-55%
More than 2 years 100% 100%

8.3 Movement of loss allowance

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Balance at the beginning of the year 9.30 8.68
Provision of loss allowance (net) 1.60 0.62
Balance at the end of the year 10.90 9.30

9 Cash and Cash Equivalents

As at As at
Particulars
31 March 2023 31 March 2022
Balances with banks
- In current accounts 18.36 14.73
- In deposits accounts (due to maturing within 3 months of the reporting date) 4.05 3.08
Cash on hand 1.51 0.46
Cash-in-transit / cheques in hand 0.46 -
Total 24.38 18.27

10 Other Bank Balances

As at As at
Particulars
31 March 2023 31 March 2022
Balance in banks for margin money 5.35 5.60
In deposit accounts (with original maturity of more than 3 months but less than 12 months) 1.56 1.15
Total 6.91 6.75

11 Loans
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Unsecured, considered good
Dues from related parties (refer Note 35) 353.05 209.39
Total 353.05 209.39
Current
Unsecured, considered good
Dues from related parties (refer Note 35) - -
Credit impaired
Dues from related parties (refer Note 35) 13.48 13.48
Less : Loss allowance (13.48) (13.48)
Total - -

241
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

12 Other Financial Assets

As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Fixed deposits with banks # 4.18 3.27
Rent and other deposits* 66.26 57.42
Total 70.44 60.69
# The above deposits are maintained against guarantees issued by Banks and are restricted for periods exceeding 12 months as at the Balance Sheet date.
Current
Unsecured, considered good
Unbilled receivables ^ 13.51 6.24
Rent and other deposits* 0.26 1.73
Dues from related parties (refer Note 35) 95.30 67.62
Interest accrued on fixed deposits with banks 0.80 0.56
Total 109.87 76.15
^ Net of Advance from patients of INR 19.17 crores (as at 31 March 2022: INR 14.40 crores).

* Includes deposits given to related parties. Refer Note 35.

13 Other Assets
As at As at
Particulars
31 March 2023 31 March 2022
Other non-current assets
Prepaid rent* 6.15 8.89
Prepaid expenses 0.76 0.98
Advances for capital goods 81.99 11.40
Total 88.90 21.27
Other current assets
Prepaid expenses 5.12 8.21
Prepaid rent* 1.84 0.94
Balance with statutory / government authorities 2.74 0.16
Advance for supply of goods and services 18.41 4.12
Total 28.11 13.43
* Includes prepaid rent recognised on rent deposits given to related parties. Refer Note 35.

14 Share Capital
As at 31 March 2023 As at 31 March 2022
Particulars Number of Number of
shares Amount shares Amount
(in crores) (in crores)
Authorised
Equity shares of INR 10 each 55.00 550.00 55.00 550.00
Compulsory convertible preference shares (CCPS) of INR 10 each 6.62 66.20 6.62 66.20
Total 61.62 616.20 61.62 616.20
Issued, subscribed and fully paid-up
Equity shares of INR 10 each 49.95 499.52 49.95 499.52
Total 49.95 499.52 49.95 499.52

The Company does not have any issued, subscribed and fully paid-up CCPS as on 31 March 2023 and 31 March 2022.

242
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

14.1 Reconciliation of shares outstanding at the beginning and at the end of the reporting period

As at 31 March 2023 As at 31 March 2022

Particulars Number of Number of
shares Amount shares Amount
(in crores) (in crores)
Equity shares of INR 10 each fully paid-up
Balance as at the beginning of the year 49.95 499.52 49.95 499.52
Issue of equity shares - - - -
Balance as at the end of the year 49.95 499.52 49.95 499.52

14.2 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
shareholder. 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.

14.3 Employee stock options

Terms attached to stock options granted to employees are described in Note 41 regarding employee share based payments.

14.4 Details of shareholders holding more than 5% shares of the Company

As at 31 March 2023 As at 31 March 2022

Particulars Number of Number of
shares % shares %
(in crores) (in crores)
Equity shares of INR 10 each fully paid -up held by
Union Investments Private Limited, Mauritius 18.69 37.41% 18.69 37.41%
Olympus Capital Asia Investments Limited, Mauritius 9.47 18.96% 11.47 22.96%
Rimco (Mauritius) Limited, Mauritius 5.06 10.13% 5.06 10.13%

14.5 Details of shareholding of Promoters

As at 31 March 2023
Percentage change
Promoter name Number of % of during the year ended
shares total 31 March 2023
(in crores) shares
Union Investments Private Limited, Mauritius 18.69 37.41% Nil
Union (Mauritius) Holdings Limited, Mauritius 2.00 4.00% 100%
Dr. Azad Moopen 0.17 0.35% Nil
Alisha Moopen 0.02 0.04% Nil
Ziham Moopen 0.02 0.03% Nil
Naseera Azad 0.01 0.03% Nil
Zeba Azad Moopen 0.01 0.02% Nil

243
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

14.6 Shares reserved for issue under options and contracts

As at 31 March As at 31 March
Particulars 2023 2022
Amount Amount
Under Employee Stock Option Scheme, 2013: Nil (31 March 2022: 49,229) equity shares of - 0.25
INR 10 each, at an exercise price of INR 50 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 336,330 (31 March 2022: 413,380) equity 0.34 0.41
shares of INR 10 each, at an exercise price of INR 10 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 48,829 (31 March 2022: 71,145) equity shares 0.57 0.83
of INR 10 each, at an exercise price of INR 116 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 322,910 (31 March 2022: 438,539) equity 2.87 3.90
shares of INR 10 each, at an exercise price of INR 89 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 5,400 (31 March 2022: 10,800) equity shares of 0.06 0.12
INR 10 each, at an exercise price of INR 107 per share (See note 41)
Under Employee Stock Option Scheme, 2013: Nil (31 March 2022: Nil) equity shares of INR 10 - -
each, at an exercise price of INR 91.85 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 14,662 (31 March 2022: 15,000) equity shares 0.17 0.17
of INR 10 each, at an exercise price of INR 115 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 32,444 (31 March 2022: 57,000) equity shares 0.38 0.67
of INR 10 each, at an exercise price of INR 118 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 24,000 (31 March 2022: 39,000) equity shares 0.35 0.57
of INR 10 each, at an exercise price of INR 145.31 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 39,600 (31 March 2022: 39,600) equity shares 0.55 0.55
of INR 10 each, at an exercise price of INR 139 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 15,000 equity shares of INR 10 each, at an 0.23 -
exercise price of INR 155.71 per share (See note 41)

14.7 Details of bonus shares issued during the past 5 years immediately preceeding 31 March 2023:

The Company has not issued bonus shares during the period of five years immediately preceding 31 March 2023.

14.8 Details of shares issued for consideration other than for cash during the past 5 years immediately preceeding 31 March 2023:

The Company has not allotted any equity shares as fully paid-up without consideration being received in cash during the past 5 years
immediately preceeding 31 March 2023.

14.9 Details of buyback of shares during the past 5 years immediately preceeding 31 March 2023:

The Company bought back 5,714,285 equity shares for an aggregate amount of INR 120 crores at INR 210 per equity share. The equity
shares bought back were extinguished on 18 March 2020.

244
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

15 Other Equity
As at As at
Particulars
31 March 2023 31 March 2022
Equity component of compulsorily convertible preference shares 374.38 374.38
-  Represents the equity component of compulsorily convertible
preference shares.
Reserves and surplus
Securities premium 2,219.17 2,217.53
- Used to record the premium received on issue of shares. It is utilised in
accordance with the provisions of the Companies Act, 2013.
Capital redemption reserve 5.71 5.71
- Created out of the Securities Premium/General Reserve, a sum equal to
nominal value of the share capital extinguished on buy back of fully paid up
own equity shares of the Company. The amount credited to such account
may be applied in paying up unissued shares of the Company to be issued to
members of the Company as fully paid bonus shares.
Treasury Shares (13.49) (14.53)
- 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.
General reserve 7.04 7.04
- Used from time to time to transfer profits from retained earnings for
appropriate purposes.
Share options outstanding account 6.51 7.54
- 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.
Retained earnings 31.72 (141.98)
- Retained earnings comprises of the amounts that can be distributed by the
Company as dividends to its equity share holders.
Items of other comprehensive Income
Remeasurement of net defined benefit liability/ (asset), net of tax - -
- Pertains to the remeasurement of the net defined benefit liability/ (asset)
recognised net of tax
Total 2,631.04 2,455.69

16 Borrowings
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Secured - at amortised cost
Term loans from bank 150.28 105.05
Term loans from financial institution 43.18 -
Total 193.46 105.05
Current
Unsecured - at amortised cost
Cash credit and overdraft facilities from banks 51.00 -
Secured - at amortised cost
Cash credit and overdraft facilities from banks 52.01 68.89
Current maturities of non-current borrowings -banks 36.69 23.87
Current maturities of non-current borrowings -financial institution 6.82 -
Total 146.52 92.76
Total (Non - Current and Current) 339.98 197.81

Information about the Company’s exposure to interest rate and liquidity risks are included in Note 37.

245
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

16 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 7.25% to 8.65% p.a (linked to RBI repo rate) These loans are originally repayable in 96 instalments (63
instalments remaining as at 31 March 2023). The term loans is secured by:

a) Hypothecation of all movable fixed assets relating to Aster Medcity Hospital, Kochi (comprising plant and machinery,
furniture fixture, vehicles and other movable assets), present and future;

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 Hospital, Kochi; and

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: The term loans from bank (including current portion) includes Indian rupee term loan taken from Federal Bank, which
carries interest at 7.25% to 8.65% p.a (linked to RBI repo rate). These loans are originally repayable in 60 instalments (28
instalments remaining as at 31 March 2023). The term loans is secured by:

a) Exclusive first charge by way of hypothecation on all movable fixed assets of the Company relating to Aster Medcity
Hospital, Kochi including plant & machinery, furniture, fixture, vehicles and other movable assets, both present and future;

b) Exclusive first charge by way of equitable mortgage on 13.43 acres of commercial landed property at Kochi owned by DM
Medcity Hospitals (India) Private Limited and 13.82 acres of commercial landed property at Kochi owned by Aster DM
Healthcare Limited. (Collateral); First charge on current assets of the Company.

Note 3: The term loans from bank (including current portion) includes Indian rupee term loan taken from HDFC Bank, which carries
interest at 7.25% to 8.75% p.a (linked to 3 months T-Bills). These loans are originally repayable in 20 instalments (11
instalments remaining as at 31 March 2023). The loans is secured by:

a) First pari passu charge by way of hypothecation on all movable fixed assets of the Company relating to Aster Medcity
Hospital, Kochi; Aster CMI, Bangalore and RV Hospital, Bangalore including plant & machinery, furniture, fixture, vehicles
and other movable assets, both present and future;

b) Exclusive first charge by way of equitable mortgage on 11.68 acres in Cheranellor belonging to Ambady Infrastructure
Private Limited, a wholly owned subsidiary of Aster DM Healthcare Limited (Collateral);

c) First charge on current assets, operating cashflows, receivables, commissions, revenues of whatsoever nature and
wherever arising, present and future of the Aster DM Healthcare Limited; and

d) Fixed Deposit- DSRA for 1 quarter for the Term Loan of INR 35 crores for INR 3 crores.

Note 4: The term loans from bank (including current portion) includes Indian rupee term loan taken from Axis Bank, which carries
interest at 7.9% to 9.3% p.a (linked to RBI repo rate). These loans are originally repayable in 24 instalments (23 instalments
remaining as at 31 March 2023). The loans is secured by:

a) Exclusive first charge on all movable fixed assets of the project.

b) Extension of first charge by way of equitable mortgage on 13.43 acres of commercial landed property at Kochi owned by
DM Medcity Hospitals (India) Private Limited and 13.82 acres of commercial landed property at Kochi owned by Aster DM
Healthcare Limited with hospital building. (Currently charged to Federal Bank)

c) Minimum collateral coverage of 100% to be maintained during the currency of the facility; and

d) Corporate Guarantee of DM Medcity Hospitals Private Limited.

246
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

16 Borrowings (Contd..)

Note 5: The term loans from bank (including current portion) includes Indian rupee term loan taken from Axis Bank, which
carries interest at 8.00% to 9.40% p.a (linked to RBI repo rate). These loans are originally repayable in 28 instalments (28
instalments remaining as at 31 March 2023). The loans is secured by:

a) Exclusive first charge on all movable fixed assets of the project;

b) Extension of first charge by way of equitable mortgage on 13.43 acres of commercial landed property at Kochi owned by
DM Medcity Hospitals (India) Private Limited and 13.82 acres of commercial landed property at Kochi owned by Aster DM
Healthcare Limited with hospital building. (Currently charged to Federal Bank);

c) Minimum collateral coverage of 100% to be maintained during the currency of the facility;

d) Corporate Guarantee of DM Medcity Hospitals Private Limited and Ambady Infrastructure Private Limited;

e) First paripasu charge by way of equitable mortgage on land commensuring 11.68 acres in Cheranelloor belonging to
Ambady Infrastructure Private Limited, a wholly owned subsidiary of Aster DM Healthcare Limited; and

f) Exclusive first charge on leasehold rights of the project building.

Note 6: The term loans from bank (including current portion) includes Indian rupee term loan taken from Federal Bank, which
carries interest at 7.25% to 8.65% p.a (linked to RBI repo rate). These loans are originally repayable in 48 instalments (36
instalments remaining as at 31 March 2023). The loans is secured by:

a) Exclusive first charge by way of hypothecation on all movable fixed assets of the Company created out of the said loan;

b) Second charge on current assets of the Company;

c) Hypothecation of machinery entire unencumbered movable fixed assets of the hospital; and

d) Cash margin @10% (Letter of Credit/ Bank Guarantee).

Note 7: The term loans from bank (including current portion) includes Indian rupee term loan taken from Federal Bank, which
carries interest at 7.25% to 8.65% (linked to RBI Repo rate ). These loans are originally repayable in 240 instalments (240
instalments remaining as at 31 March 2023). The loans is secured by:

a) Exclusively First charge by way of hypotecation on all the movable fixed assets of the company including plant and
machinery, furniture and fixtures, vehicles and other movable assets both present and future.

b) First Charge on the following properties for all limits of Aster DM Healthcare Ltd on pari pasu bases with Axis Bank and
HDFC Bank. 13.12 acres of landed property at Kochi owned by DM Medcity Hospital India Pvt Ltd, 13.53 acres of landed
property at kochi owned by Aster DM Healthcare Ltd with hospital buildings, 11.68 acres of landed property at kochi
owned by Ambady Infrastructure Pvt Ltd.

Note 8: The term loans from NBFC (including current portion) includes Indian rupee term loan taken from Bajaj Finserv, which carries
interest at 9.25% p.a . These loans are originally repayable in 22 instalments (22 instalments remaining as at 31 March 2023).
The loans is secured by:

a) First Pari Pasu Charge on immovable fixed assets with minimum FACR of 1.3x along with HDFC, AXIS and Federal Bank.

b) Immovable fixed asset details as below:

Pari Pasu charge on 13.43 acres of commercial landed property at Kochi owned by DM Medcity Hospital India Pvt Ltd,
13.82 acres of commercial landed property at Kochi owned by Aster DM Healthcare Ltd with hospital building and 11.68
acres in Cheranalloor owned by Ambady Infrastructure Pvt Ltd wholly subsidiary of Aster DM Healthcare Ltd ;and

c) Corporate Gurantee - DM Medcity Hospitals India Pvt Ltd and Ambady Infrastructure Pvt Ltd.

Note 9: There are no continuing defaults in the repayment of the principal loan and interest amounts.

247
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

16 Borrowings (Contd..)
B Secured overdraft/cash credit facilities from bank

Note 1: Overdraft and Working Capital Loan facility from Federal bank availed and carries and interest at 7.25% to 8.65% p.a (linked
to RBI repo rate). The facility is secured by way of exclusive first charge on the current assets of the Company (present and
future). Second charge on all primary and collateral securities, which includes:

a. Hypothecation of current assets;

b. Charge on entire fixed assets of the company (excluding those funded out of TL); and

c. Paripassu first charge on proportionate cash flows of 4 hospitals.

Note 2: Cash credit facility from Axis bank availed and carries interest of 7.9% to 9.00% p.a (linked to 3 months MCLR). The facility
is secured by way of exclusive first charge on the current assets of the Company (present and future).

Note 3: Bank Gurantee and Buyers credit facility availed from Federal Bank and secured by 10% cash margin and additional charge
on current assets and movable fixed assets with interest as per bank card rate.

Note 4 : Secondary collateral charge on the following properties for all limits of Aster DM Healthcare Ltd on pari pasu basis with
respect to note 1, note 2 & note 3; 13.12 acres of landed property at Kochi owned by DM Medcity Hospital India Pvt Ltd,
13.53 acres of landed property at Kochi owned by Aster DM Healthcare Ltd with hospital buildings, 11.68 acres of landed
property at Kochi owned by Ambady Infrastructure Pvt Ltd. Also, corporate gurantee given by DM Medcity Hospital India
Pvt Ltd and Ambady Infrastructure Pvt Ltd.

C Unsecured overdraft facilities from bank

Overdraft facility from Yes Bank availed and carries interest at 7.90% - 9.20% (linked to 1 month MCLR).

17 Trade Payables
As at As at
Particulars
31 March 2023 31 March 2022
Total outstanding dues of micro and small enterprises 2.82 1.10
Total outstanding dues of creditors other than micro and small enterprises 200.60 128.72
Total 203.42 129.82

All trade payables are ‘current’. The average credit period taken is 30-60 days.
The Company’s exposure to currency and liquidity risks related to trade payables is disclosed in Note 37.

17.1 Trade payables ageing schedule

Outstanding for following periods from due date of payment

Particulars Less than More than Total*
1-2 years 2-3 years
1 year 3 years
Balance as at 31 March 2023
Micro, small and medium enterprises 2.82 - - - 2.82
Others 198.26 1.16 0.35 0.83 200.60
Total 201.08 1.16 0.35 0.83 203.42
Balance as at 31 March 2022
Micro, small and medium enterprises 0.99 0.09 0.02 - 1.10
Others 127.22 0.10 0.64 0.76 128.72
Total 128.21 0.19 0.66 0.76 129.82
* Includes unbilled dues of INR 92.61 crores as at 31 March 2023 ( INR 57.15 crores as at 31 March 2022).

248
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

17.2 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:

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
The principal amount remaining unpaid to any supplier at the end of the year 2.82 0.99
The interest due on the principal remaining outstanding as at the end of the year 0.05 -
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
The amount of interest accrued and remaining unpaid at the end of the year 0.05 0.11
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

18 Other Financial Liabilities

As at As at
Particulars
31 March 2023 31 March 2022
Current
Interest accrued but not due on borrowings* 0.21 0.22
Dues to related party (refer Note 35) 2.53 2.21
Derivatives-put option - 91.20
Dues to creditors for capital goods 24.35 5.99
Total 27.09 99.62
* The details of interest rates, repayment and other terms are disclosed in Note 16.

The Company’s exposure to currency and liquidity risk related to the above financial liabilities is disclosed in Note 37.

19 Provisions
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Provision for employee benefits
Net defined benefit liability - Gratuity (refer Note 38) 8.40 7.38
Compensated absences 0.02 0.02
Total 8.42 7.40
Current
Provision for employee benefits
Net defined benefit liability - Gratuity (refer Note 38) 1.25 1.23
Compensated absences - -
Total 1.25 1.23

249
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

20 Other Liabilities
As at As at
Particulars
31 March 2023 31 March 2022
Other non-current liabilities
Deferred government grant * 16.86 19.31
Total 16.86 19.31
Other current liabilities
Unearned income 5.55 3.25
Statutory dues payables 8.45 6.55
Deferred government grant* 3.20 2.74
Total 17.20 12.54
*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.

21 Revenue from Operations

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Revenue from hospital and medical services (refer note ii below) 1,450.05 1,053.04
Revenue from consultancy services 1.97 2.16
Revenue from pharmacy 51.96 32.86
Revenue from canteen 10.14 6.51
Other operating income 19.62 21.90
Total 1,533.74 1,116.47

The Company’s revenue from other operating income comprises primarily of revenue from courses conducted at the hospital and income
from revenue sharing agreements.

Refer notes below

(i) Category of Customers

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Cash (Including Cards/UPI/wallets/bank transfer/Cheques) 817.97 614.83
Credit (Including CoPay) 684.04 471.07
Revenue from hospital and medical services and pharmacies 1,502.01 1,085.90
Others 31.73 30.57
Revenue from Operations 1,533.74 1,116.47

(ii) Nature of treatment

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
In- patient 1,184.11 836.90
Out- patient 265.94 216.14
Total 1,450.05 1,053.04

250
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

22 Other Income
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Interest income under the effective interest method on:
Lease deposits 3.00 2.74
Fixed deposits with banks 0.79 0.77
Loan to related parties 29.42 17.22
Dividend on non-current investments 7.41 54.84
Gain on fair valuation of put option (net) 1.41 -
Interest on income tax refund 0.85 1.59
Other non-operating income* 6.89 5.04
Total 49.77 82.20
*Includes Other non-operating income from related parties. Refer Note 35.

23 Purchases of Medicines and Consumables

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Medicines and consumables 336.63 277.64
Total 336.63 277.64

24 Changes in Inventories

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Opening stock 23.63 19.53
Closing stock (34.28) (23.63)
Total (10.65) (4.10)

25 Professional Fee Paid to Doctors

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Professional fees to consultant doctors 346.00 248.24
Total 346.00 248.24

26 Laboratory Outsourcing Charges

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Lab outsourcing charges 48.94 44.74
Total 48.94 44.74

27 Employee Benefits Expense

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Salaries and allowances 211.32 156.19
Contribution to provident and other funds (refer Note 38) 9.45 8.15
Staff welfare expense 6.84 6.15
Expenses related to post employment defined benefit plans (refer Note 38) 3.03 2.54
Equity settled share based payment expense* (refer Note 41) (0.05) (0.94)
Total 230.59 172.09
* Net of amounts cross-charged to subsidiaries

251
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

28 Finance Costs
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Interest on bank borrowings 20.86 15.75
Less : Amounts included in the cost of qualifying assets (2.69) -
18.17 15.75
Interest on lease liabilities (refer Note 39) 31.75 27.38
Other borrowing costs 1.89 0.89
Total 51.81 44.02

29 Depreciation and Amortisation Expenses

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Depreciation on property, plant and equipment (refer Note 4) 81.24 79.02
Depreciation on right-of-use assets (refer Note 39) 21.14 17.59
Amortisation on intangible assets (refer Note 5) 1.64 2.11
Total 104.02 98.72

30 Other Expenses
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Food and beverage 13.86 12.11
Power and fuel 26.56 22.04
Housekeeping, security and others 59.59 52.38
Legal, professional and other consultancy 15.66 12.13
Auditors remuneration (refer Note 34) 1.41 1.19
Rent (refer Note 39) 40.49 29.40
Repairs and maintenance - plant and equipment 29.85 21.18
Repairs and maintenance - building 1.93 0.76
Repairs and maintenance - others 9.95 5.93
Advertising and promotional 46.42 24.75
Rates and taxes 1.74 2.03
Bank Charges 4.69 2.80
Allowances for credit losses on financial assets 2.77 5.15
Travelling and conveyance 8.50 3.26
Loss on disposal of property, plant and equipment (net) 0.26 0.12
Net loss on account of foreign exchange fluctuations - 0.01
Water charges 2.80 2.34
Corporate social responsibility (refer Note 30.1) 0.47 3.80
Insurance 2.25 3.06
Communication 1.73 1.62
Office expenses 12.75 5.26
Donation & charity 0.05 2.35
Miscellaneous expenses 10.11 13.69
Total 293.84 227.36

252
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

30.1 Details of corporate social responsibility (CSR)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
- Amount required to be spent by the Company during the year 0.57 0.30
- Amount of expenditure incurred 0.47 3.80
- Shortfall at the end of the year NA NA
- Total of previous year shortfall NA NA
- Reason for shortfall NA NA
- Nature of CSR activities a) Promoting a) Promoting
education, education,
including special including special
education and education and
employment employment
enhancing enhancing
vocation skills vocation skills
especially among especially among
children, women, children, women,
elderly and the elderly and the
differently abled differently abled
and livelihood and livelihood
enhancement enhancement
projects. projects.
b) Disaster b) Disaster
management, management,
including relief, including relief,
rehabilitation and rehabilitation and
reconstruction reconstruction
activities activities
- Details of related party transactions INR 0.25 crores INR 3.64 crores
(Aster DM Foundation) (Aster DM Foundation)
- Whether provision is made with respect to a liability incurred by entering into a No No
contractual obligation
- Amount spent during the year on:
Construction/acquisition of an asset 0.25 -
On purposes other than above 0.22 3.80
Excess of previous year utilised 0.25 -
Total 0.72 3.80

31 Income Tax Assets (net)

(a) Income tax assets/(liability)

As at As at
Particulars
31 March 2023 31 March 2022
Income tax payments, including taxes withheld 90.79 75.02
Less: Provision made towards tax liabilities (39.27) (6.35)
Net income tax assets/(liability) at the end 51.52 68.67

(b) Amount recognised in statement of profit and loss

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Current tax 26.06 -
Current tax for earlier years 6.86 -
Deferred tax (including MAT credit entitlement) (23.88) (0.22)
Tax expense for the year 9.04 (0.22)

253
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

31 Income Tax Assets (net) (Contd..)

(c) Amount recognised in other comprehensive income

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Deferred tax (0.19) (0.22)
Tax expense for the year (0.19) (0.22)

(d) Reconciliation of effective tax rate

The standard rate of corporation tax applied to reported profit is 31.20 per cent (2021-22: 31.20 per cent). The Company has not opted for
concessional tax rate regime effective from financial year 2019-20.

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Profit before tax 182.33 89.96
Statutory income tax rate 31.20% 31.20%
Tax expenses /(asset) 56.89 28.07
Income chargeable at special rates - (14.80)
Non-deductible expenses/ permanent differences (2.63) 0.47
Additional deduction on investment allowance (12.64) (3.50)
Other temporary differences 13.59 20.67
On account of undistributed profits in subsidiaries 2.37 -
Current tax for earlier years 6.86 -
Un-recognised deferred tax assets (55.21) (30.91)
Income tax expense 9.23 (0.00)

(e) Recognised deferred tax assets and liabilities

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

As at As at
Particulars
31 March 2023 31 March 2022
Deferred tax asset
MAT (Minimum Alternate Tax) credit entitlement receivable 26.06 -
Unabsorbed business loss including from specified business 138.35 176.94
Total deferred tax asset 164.41 176.94
Deferred tax liability
On account of fair valuation of land * (16.35) (16.35)
On account of undistributed profits in subsidiaries (2.37) -
Excess of depreciation on property, plant and equipment under Income Tax Act, (138.35) (176.94)
1961 over depreciation under Companies Act.
Total deferred tax liability (157.07) (193.29)
Deferred tax asset / (liability) (net) 7.34 (16.35)
* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

The Company offsets deferred tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets
and current tax liabilities related to income taxes levied by the same taxation authority and the Company intends to settle its current
tax assets and liabilities on a net basis. The 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.

254
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

31 Income Tax Assets (net) (Contd..)

(ii) Movement in temporary differences

Balances Recognised Recognised Balances Recognised Recognised Balances

as at in Profit and in OCI as at in Profit and in OCI as at
Particulars
1 April loss during during 31 March loss during during 31 March
2021 2021-22 2021-22 2022 2022-23 2022-23 2023
Unabsorbed business 189.48 (12.54) - 176.94 (38.59) - 138.35
loss including from
specified business
Excess of depreciation (189.48) 12.54 - (176.94) 38.59 - (138.35)
on property, plant
and equipment under
Income Tax Act, 1961
over depreciation
under Companies Act.
MAT credit - - - - 26.06 - 26.06
entitlement receivable
On account of fair (16.35) - - (16.35) - - (16.35)
valuation of land *
On account of - - - - (2.37) - (2.37)
undistributed profits
Provision for - (0.22) 0.22 - 0.19 (0.19) 0.00
employee benefits
Net deferred tax (16.35) (0.22) 0.22 (16.35) 23.88 (0.19) 7.34
liabilities
* 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:

As at 31 March 2023 As at 31 March 2022

Particulars Gross Unrecognised Gross Unrecognised
amount tax effect amount tax effect
Deferred tax asset
Tax losses (business loss) 458.40 143.02 490.51 153.04
Tax losses (long term capital loss) 37.75 7.78 37.75 7.78
Tax losses (unabsorbed depreciation) 57.96 18.08 65.05 20.30
Total deferred tax asset 554.11 168.88 593.31 181.12

(iv) Tax losses carried forward

As at 31 March As at 31 March
Expiry date Expiry date
2023 2022
Brought forward losses 210.86 Various dates 210.86 Various dates
from FY 2022-23 from FY 2022-23
to 2028-29 to 2028-29
Brought forward losses from specified business 728.72 Infinite period 882.93 Infinite period
Brought forward losses 57.96 Infinite period 65.05 Infinite period
Total tax losses carried forward 997.54 1,158.84

Note i) Deferred tax assets have not been 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.

255
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

Note ii) The Company has recognised deferred tax liability on undistributed profits to the extent it is determined to receive the
undistributed profits from the subsidiary.

32 Contingent Liabilities and Commitments

As at As at
Particulars
31 March 2023 31 March 2022
Contingent liabilities
Claims against the Company not acknowledged as debts (Refer below note 1 and 5) 56.60 38.50
Export commitments under EPCG scheme (Note 2) 16.00 12.80
Corporate guarantees to various subsidiaries 341.50 319.50
Letter of credit 43.04 2.06
Additional salary payable under minimum wages act for retrospective periods (Note 3) 6.84 6.84
Bank guarantees 7.58 2.36
Commitments
Estimated amount of contracts remaining to be executed on capital account (net of 18.77 40.82
advances) and not provided for.

Note 1 : The Company has received income tax assessment orders for AY 2014-15 & 2015-16 wherein the assessing officer has raised net
demand of INR 20.08 crores (net of taxes paid amounting to INR 4.28 crores) on account of disallowance of Foreign Tax Credit claimed
as per provisions of Section 90/90A of Income Tax Act 1961 and the disallowance under section 14A. The Company had provision in
the books pertaining to the AY 2014-15 & 2015-16, amounting to INR 2.48 . The Company has also received income tax demand order
of INR 0.18 crore for AY 2012-13 where in assessing officer denied legal and professional fee and business promotion expenses. The
Company also received income tax demand order of INR 2.28 crore for AY 16-17 where assessing officer contended TDS dedcuted
from doctors are subject to section 192 rather than section 194J of income tax act 1961 based on the terms of arrangements with
the doctors . The Company had also recieved income tax demand order of INR 0.20 crore for AY 17-18 wherein assessing officer made
disallowances on account of delayed payment of provident fund deducted from employees. In all above cases, 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 obtained duty free / concessional duty licenses for import of capital goods by undertaking export obligations under
the EPCG scheme. As at 31 March 2023, the export obligations remaining to be fulfilled amounts to INR 16.00 crores (31 March 2022:
INR 12.80 crores). In the event that export obligations are not fulfilled, the Company would be liable to pay the levies.
Note 3 : On 23 April 2018, the Government of Kerala issued an order revising the minimum wages of medical and nursing staff. The
order mentions that the changes would be effective retrospectively from 1 October 2017. Since the legislation was issued in
April 2018, Management has started paying the revised salary with effect from 1 April 2018. The Company filed an appeal
against the retrospective application of this order with the High Court of Kerala which has issued an interim stay order on 26
July 2018. The Writ Petition WP (c) No. 25109/2018 challenging the retrospective effect of minimum wage order passed by
the Government of Kerala is pending before the Hon’ble High Court of Kerala in hearing list. Based on the stay order and legal
advise, Management believes that their position will be upheld and therefore has not provided for the incremental cost for the
period October 2017 to March 2018.
Note 4 : On 28 February 2019, the Hon’ble Supreme Court of India has delivered a judgment clarifying the principles that need to be applied in
determining the components of salaries and wages on which Provident Fund (PF) contributions need to be made by establishments.
Basis this judgment, the Company has re-computed its liability towards PF from the month of March 2019 and has paid PF as per
Supreme Court judgement. In respect of the earlier periods/years, the Company has been legally advised that there are numerous
interpretative challenges on the application of the judgment retrospectively. Based on such legal advice, the Management believes
that it is impracticable at this stage to reliably measure the provision required, if any, and accordingly, no provision has been made
towards the same. Necessary adjustments, if any, will be made to the books as more clarity emerges on this subject.
Note 5 : The Company has included claims of INR 32.06 crores under “Claims against the company not acknowledged as debt”. The
cases are compensation demanded by the patient/ their relatives and are pending with various Consumer Disputes Redressal
Commission. The management believes that the Company has good chance of success in these cases and has adequate
insurance coverage against all these claims.
Note 6 : The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are
required and disclosed as contingent liability where applicable, in its standalone financial statements. The Company does not
expect the outcome of these proceedings to have a materially adverse effect on its financial position. The Company does not
expect any reimbursement in respect of the above contingent liabilities.
Note 7 : The Company has given bank guarantee in respect of certain contingent liabilities listed above.

256
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

Note 8 : The Company does not have any long-term commitments or material non-cancellable contractual commitments/contracts,
including derivative contracts for which there were any material foreseeable losses other than disclosed in the standalone
financials statements.

33 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) Net profit attributable to equity share holders (basic)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Net profit for the year, attributable to the equity share holders 173.29 90.18

ii) Weighted average number of equity shares (basic)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Opening balance 49.71 49.70
Effect of share options exercised 0.01 0.01
Weighted average number of equity shares of INR 10 each for the year 49.72 49.71
Earnings per share, basic 3.48 1.81

B. Diluted earnings per share

The calculation of profit 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 attributable to equity share holders diluted

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Net profit for the year, attributable to the equity share holders 173.29 90.18

ii) Weighted average number of equity shares (diluted)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Weighted average number of equity shares of INR 10 each for the year (basic) 49.72 49.71
Effect of exercise of share options 0.06 0.07
Weighted average number of equity shares of INR 10 each for the year (diluted) 49.78 49.78
Earnings per share, diluted 3.48 1.81

34 Payment to Auditors (Net of Goods and Services Tax)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
For audit (including limited reviews) 1.29 1.11
For other services 0.12 0.06
For reimbursement of expenses - 0.02
Total 1.41 1.19

257
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 A. Related Parties (as per Ind AS)

Related Party Relationships
Names of related parties and description of relationship with the Company:
I) Enterprises where control / significant influence exists

(a) Enterprises exercising significant influence Union Investments Private Limited, Mauritius
(b) Subsidiaries and step down subsidiaries
1 Aster DM Healthcare (Trivandrum) Private Limited 40 Al Rafa Investments Limited
2 DM Med City Hospitals (India) Private Limited 41 Harley Street Dental LLC
3 Prerana Hospital Limited 42 Al Rafa Holdings Limited
4 Ambady Infrastructure Private Limited 43 Harley Street LLC
5 Affinity Holdings Private Limited 44 Harley Street Pharmacy LLC
6  Sri Sainatha Multispeciality Hospitals Private 45 Harley Street Medical Centre LLC
Limited
7 Malabar Institute of Medical Sciences Ltd 46 Al Raffah Hospital LLC **
8 Dr. Ramesh Cardiac and Multispeciality Hospitals 47 Dr. Moopen's Healthcare Management Services WLL
Private Limited
9 Aster Ramesh Duhita LLP 48 Welcare Polyclinic WLL
10 Sanghamitra Hospitals Private Limited 49 Dr. Moopens Aster Hospital WLL
11 Komali Fertility Centre LLP 50 Sanad Al Rahma for Medical Care LLC
(earlier Ramesh Fertility Centre LLP)
12 Komali Fertility Centre Ongole LLP 51 Cantown Infra Developers LLP (from 15 January 2023)
(from 26 October 2022)
13 Adiran IB Healthcare Private Limited 52 Aster Kuwait Pharmaceuticals and Medical Equipment
(from 03 February 2023) Company WLL**
14 Ezhimala Infrastructure LLP 53 Orange Pharmacies LLC
15 EMED Human Resources India Private Limited 54 Aster DM Healthcare WLL (earlier Aster DM Healthcare SPC)
16 Aster Clinical Lab LLP 55 Aster DM Healthcare INC **
17 Hindustan Pharma Distributors Private Limited 56 Al Raffah Pharmacies Group LLC
(from 16 Sepetemeber 2021)
18 Warseps Healthcare LLP 57 Aster DCC Pharmacy LLC
19 Aster DM Healthcare FZC 58 Zahrat Al Shefa Medical Center LLC
20 Aster Day Surgery Centre LLC 59 Samary Pharmacy LLC
21 Dar Al Shifa Medical Centre LLC 60 Alfa Investments Limited #
22 DM Healthcare LLC 61 Active Holdings Limited.
23 DM Pharmacies LLC ** 62 E-Care International Medical Billing Services Co. LLC
24 Dr. Moopens Healthcare Management Services LLC 63 Aster Primary Care LLC
25 Eurohealth Systems FZ LLC 64 Metro Medical Center LLC
26 Med Shop Drugs Store LLC 65 Metro Meds Pharmacy LLC
27 Medcare Hospital LLC 66 Aster Hospital Sonapur LLC
28 Modern Dar Al Shifa Pharmacy LLC 67 Oman Al Khair Hospital LLC
29 Rafa Pharmacy LLC 68 Radiant Healthcare LLC
30 Aster Pharmacies Group LLC 69 Grand Optics LLC
31 Alfa Drug Store LLC 70 Premium Healthcare Limited
32 Aster Al Shafar Pharmacies Group LLC 71 Wahat Al Aman Home Health Care LLC
33 New Aster Pharmacy DMCC 72 Alfaone FZ-LLC
34 Symphony Healthcare Management Services LLC 73 Aster Pharmacy LLC, AUH
35 Al Shafar Pharmacy LLC, AUH ** 74 Aster Carribbean Holdings Limited
36 Aster Grace Nursing and Physiotherapy LLC 75 Aster Cayman Hospital Limited
37 Aster Medical Centre LLC** 76 Al Rafa Medical Centre LLC
38 Aster Opticals LLC 77 Zest Wellness Pharmacy LLC (from 28 December 2022)
39 Alfa One Drug store LLC

During the year ended 31 March 2022, Noor Al Shefa Clinic LLC, Zahrath Al Shefa Pharmacy LLC and Medshop Garden Pharmacy
LLC have been converted as branches.
** Represents companies that are in the process of being wound up

# Although the percentage of voting rights as a result of legal holding by the Group is Nil, the Group has the power to appoint / replace all members of the
Board of Directors. Consequently Group has control over the entity.

258
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 A. Related Parties (as per Ind AS) (Contd..)

(c) Associates MIMS Infrastructure and Properties Private Limited, India

Aries Holdings FZC, UAE
Aries Investments LLC
Al Mutamaizah Medcare Healthcare Investment Co.LLC
AAQ Healthcare Investments LLC
Alfaone Medicals Private Limited
Alfaone Retail Pharmacies Private Limited
Mindriot Research and Innovation Foundation
Skin lll Ltd (from 22 September 2022)
(d) Joint Venture Aster Arabia trading Company (from 09 March 2023)

II) 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
Company has significant influence (Others)
Aster DM Foundation
Aster MIMS Academy Trust
Wayanad Infrastructure Private Limited

(b) Key managerial personnel and their relatives (KMP) Dr. Azad Moopen (Chairman and Managing Director)
Alisha Moopen (Deputy Managing Director)
Sreenath Reddy (Chief Financial Officer) ( Upto 05 January 2023)
Hemish Purushottam(Company Secretary & Compliance Officer)
Biju Varkey (Independent Director) (Upto 11 November 2022)
Dr. Layla Mohamed Hassan Ali Almarzooqi (Independent Director)
(Upto 27 March 2023)
Dr. James Mathew (Independent Director)
Chenayappillil John George (Independent Director)
Sridar Arvamudhan Iyengar (Independent Director)
Wayne Earl Keathley (Independent Director )
T J Wilson (Director)
Anoop Moopen (Director)
Emmanuel David Gootam (Independent Director)
(from 10 November 2022)
Purana Housdurgamvijaya Deepti
(Independent Director) (from 27 March 2023)
Mintz Daniel Robert (Non Executive Director)
Shamsudheen Bin Mohideen Mammu Haji (Director)
Amitabh Johri (Joint Chief Financial Officer) (from 25 May 2023)
Sunil Kumar M R (Joint Chief Financial Officer) (from 25 May 2023)

a) Related party transactions

Related party transactions

Nature of transactions For the year ended For the year ended
31 March 2023 31 March 2022
Loans given during the year
Ambady Infrastructure Private Limited - 0.49
DM Med City Hospitals (India) Private Limited 23.89 -
Alfaone Medicals Private Limited 73.00 26.37
Hindustan Pharma Distributors Private Limited 6.88 10.62
Aster Clinical Lab LLP 22.38 27.74
Aster DM Healthcare (Trivandrum) Private Limited 2.64 0.17
Total 128.79 65.39

259
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 A. Related Parties (as per Ind AS) (Contd..)

Related party transactions
Nature of transactions For the year ended For the year ended
31 March 2023 31 March 2022
Expenses incurred on behalf of subsidiaries
DM Med City Hospitals (India) Private Limited 5.00 2.36
Ambady Infrastructure Private Limited 0.23 0.08
Aster DM Healthcare FZC 4.80 0.26
Aster Clinical Lab LLP 0.99 0.88
Aster DM Healthcare (Trivandrum) Private Limited 1.00 1.00
EMED Human Resources India Private Limited 0.24 0.20
Dr. Moopens Healthcare Management Services LLC 2.18 9.08
Dr. Ramesh Cardiac and Multispeciality Hospital Private Limited 1.66 0.17
Sri Sainatha Multispeciality Hospitals Private Limited 1.20 0.66
Prerana Hospital Limited 1.36 1.37
Sanghamitra Hospitals Private Limited 0.29 -
Malabar Institute of Medical Sciences Limited 10.00 7.47
Total 28.95 23.53
Expenses incurred by subsidiaries / associates on behalf of Company
Dr. Moopens Healthcare Management Services LLC 0.88 1.97
Aster DM Healthcare FZC 3.00 0.04
Total 3.88 2.01
Investments / capital contribution
Hindustan Pharma Distributors Private Limited - 15.38
Dr.Ramesh Cardiac and Multispeciality Hospitals Private Limited 21.70 -
Malabar Institute of Medical Sciences Limited 18.15 -
Sri Sainatha Multispeciality Hospitals Private Limited 25.00 -
Total 64.85 15.38
Sale of medical consumables
Malabar Institute of Medical Sciences Limited - 4.74
Prerana Hospital Limited - 0.50
Sri Sainatha Multispeciality Hospitals Private Limited 0.15 0.76
Aster Clinical Lab LLP 0.89 4.40
Total 1.04 10.40
Sale of property, plant and equipment
DM Med City Hospitals (India) Private Limited 0.01 -
Total 0.01 -
Other Income
Alfaone Retail Pharmacies Private Limited 1.47 0.31
Sanad Al Rahma for Medical Care Center LLC - 0.03
Hindustan Pharma Distributors Private Limited 0.01 -
Aster DM Healthcare (Trivandrum) Private Limited - 0.03
Total 1.48 0.37
Income from consultancy services
DM Education and Research Foundation 2.22 2.55
Total 2.22 2.55
Dividend received
Malabar Institute of Medical Sciences Limited 7.41 7.41
Affinity Holdings Private Limited - 47.43
Total 7.41 54.84
Managerial remuneration
Short term employee benefits 3.67 1.70
Total 3.67 1.70
Donation given
Aster DM Foundation 0.25 5.60

260
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 A. Related Parties (as per Ind AS) (Contd..)

Related party transactions

Nature of transactions For the year ended For the year ended
31 March 2023 31 March 2022
Total 0.25 5.60
Lease rental for land and equipments
DM Med City Hospitals (India) Private Limited 1.06 1.06
DM Education and Research Foundation 0.74 0.74
Lease rental for medical equipment
Aster DM Healthcare (Trivandrum) Private Limited 0.06 0.06
Total 1.86 1.86
Guarantee commission expense
Ambady Infrastructure Private Limited 0.23 0.16
DM Med City Hospitals (India) Private Limited 0.41 0.34
Total 0.64 0.50
Guarantee commission received
Prerana Hospital Limited 0.27 0.23
Sri Sainatha Multispeciality Hospitals Private Limited 0.00 -
Hindustan Pharma Distributors Private Limited 0.07 0.02
Aster Clinical Lab LLP 0.13 0.08
Malabar Institute of Medical Sciences Limited 0.62 0.63
Total 1.09 0.96
Interest on loan from related parties
EMED Human Resources India Private Limited 0.00 0.00
DM Med City Hospitals (India) Private Limited 2.64 -
Ambady Infrastructure Private Limited 0.68 0.03
Hindustan Pharma Distributors Private Limited 0.80 0.18
Alfaone Medicals Private Limited 9.69 1.44
Aster DM Healthcare (Trivandrum) Private Limited 9.61 -
Aster Clinical Lab LLP 6.02 4.64
Total 29.44 6.29
Purchase of medical consumables
Malabar Institute of Medical Sciences Limited - 0.05
Hindustan Pharma Distributors Private Limited 10.37 4.00
Sri Sainatha Multispeciality Hospitals Private Limited 0.01 1.18
Total 10.38 5.23
Laboratory outsourcing charges
Aster Clinical Lab LLP 39.64 39.70
Total 39.64 39.70
Other shared service expenses
Malabar Institute of Medical Sciences Limited 0.29 0.81
EMED Human Resources India Private Limited 0.01 0.00
Ambady Infrastructure Private Limited - 0.12
DM Education and Research Foundation 9.98 9.11
Total 10.28 10.04
Revenue from operations
Malabar Institute of Medical Sciences Limited 13.59 5.92
Sri Sainatha Multispeciality Hospitals Private Limited 1.14 0.96
Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited 0.33 -
Sanghamitra Hospitals Private Limited 0.02 -
Sanad Hospital 0.00 -
Prerana Hospital Limited 1.69 0.59
Total 16.77 7.47
Interest income under the effective interest method on lease deposit
DM Education and Research Foundation 0.81 0.75
DM Med City Hospitals (India) Private Limited 1.06 0.97
Total 1.87 1.72
Employee stock option expense recharged
Aster DM Healthcare FZC 0.67 0.82
Total 0.67 0.82

261
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 A. Related Parties (as per Ind AS) (Contd..)

b) Balance receivable / (payable) as at the year end

Related party transactions

Nature of transactions
As at 31 March 2023 As at 31 March 2022
Financial assets - Other financial assets (current) - Dues from related parties
Prerana Hospital Limited 1.21 0.23
Aster DM Healthcare FZC 28.05 25.58
Aster Pharmacies Group LLC 0.39 0.39
Alfaone Retail Pharmacies Private Limited 1.72 0.28
Sri Sainatha Multispeciality Hospitals Private Limited 1.09 0.25
Dr. Ramesh Cardiac and Multispeciality Hospital Private Limited 0.67 0.27
Hindustan Pharma Distributors Private Limited - 0.13
Aster DM Healthcare (Trivandrum) Private Limited 2.13 1.32
Ambady Infrastructure Private Limited 0.77 0.76
Aster Clinical Lab LLP 10.86 2.49
Sanad Al Rahma for Medical Care Center LLC 0.00 0.02
DM Med City Hospitals (India) Private Limited 4.20 3.05
EMED Human Resources India Private Limited 0.21 0.25
DM Education and Research Foundation 15.76 14.46
Dr. Moopens Healthcare Management Services LLC 21.20 13.92
Sanghamitra Hospitals Private Limited 0.28 -
Malabar Institute of Medical Sciences Limited 6.76 4.23
Total 95.30 67.62
Financial assets - loans (Non current) - Dues from related parties
Aster DM Healthcare (Trivandrum) Private Limited** 101.94 89.71
Ambady Infrastructure Private Limited 6.44 5.77
Aster Clinical Lab LLP 89.33 75.27
Hindustan Pharma Distributors Private Limited 13.45 5.78
EMED Human Resources India Private Limited 0.02 0.02
DM Med City Hospitals (India) Private Limited 44.70 18.26
Alfaone Medicals Private Limited 110.64 28.07
Total 366.53 222.87
Other financial liabilities (Current) - Dues to related party
Union Investments Private Limited (1.04) (1.04)
Total (1.04) (1.04)
Other financial liabilities (Current) - Dues to subsidiaries
Al Raffah Hospital LLC (1.17) (1.17)
Hindustan Pharma Distributors Private Limited (0.32) -
Total (1.49) (1.17)
Other financial liabilities (Current) - Dues to creditors for expenses
Wayanad Infrastructure Private Limited (0.09) (0.09)
Total (0.09) (0.09)
Trade receivables
EMED Human Resources India Private Limited - 0.00
Dr. Moopen's Healthcare Management Services W.L.L, Qatar - 0.04
Total - 0.04
Other non current assets - Deferred lease expenses
DM Education and Research Foundation 1.42 2.16
DM Med City Hospitals (India) Private Limited 3.82 4.78
Total 5.24 6.94
DM Education and Research Foundation 0.74 0.74
DM Med City Hospitals (India) Private Limited 0.95 0.95
Total 1.69 1.69

262
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 A. Related Parties (as per Ind AS) (Contd..)

Related party transactions

Nature of transactions
As at 31 March 2023 As at 31 March 2022
Financial assets loans - (Non current) Rent and other deposits
DM Education and Research Foundation 12.31 11.50
DM Med City Hospitals (India) Private Limited 13.14 12.09
Total 25.45 23.59
Managerial remuneration payable
Short term employee benefits (0.17) (0.04)
Total (0.17) (0.04)
Guarantee given [refer note 35B(c)]
Prerana Hospital Limited 72.50 72.50
Hindustan Pharma Distributors Private Limited 40.00 20.00
Sri Sainatha Multispeciality Hospitals Private Limited - 2.00
Malabar Institute of Medical Sciences Limited 174.00 174.00
Aster Clinical Lab LLP 55.00 51.00
Total 341.50 319.50
Guarantee received
Ambady Infrastructure Private Limited 355.00 125.00
DM Med City Hospitals (India) Private Limited 390.00 125.00
Total 745.00 250.00

35 B. Investments, Loans, Guarantees and Security

(a) The Company has made investment in the following companies:

Allotment/ Sold Impairment/

As at As at
IND AS Purchases during Write off
Particulars 1 April 31 March
Adjustment during the the during the
2022 2023
year year year
Investment in equity instruments
Sri Sainatha Multispeciality Hospitals Private Limited 58.24 (3.65) 25.00 - - 79.59
Prerana Hospital Limited 42.94 - - - - 42.94
Aster DM Healthcare (Trivandrum) Private Limited 33.97 - - - - 33.97
DM Med City Hospitals (India) Private Limited 5.29 - - - - 5.29
Ambady Infrastructure Private Limited 20.84 - - - - 20.84
Affinity Holdings Private Limited * - - - - *
Malabar Institute of Medical Sciences Limited 259.64 - 18.15 - - 277.79
Dr. Ramesh Cardiac and Multispeciality Hospitals 272.68 (86.13) 21.70 - - 208.25
Private Limited
Hindustan Pharma Distributors Private Limited 15.38 - - - - 15.38
Mindriot Research and Innovation Foundation * - - - - *
Aster Clinical Labs LLP 1.00 - - - - 1.00
Alfaone Medicals Private Limited 0.23 - - - - 0.23
Total 710.21 (89.78) 64.85 - - 685.28
Investment in preference shares
Affinity Holdings Private Limited, Mauritius 1,455.82 - - - - 1,455.82
Total 1,455.82 - - - - 1,455.82
Total Investments 2,166.03 (89.78) 64.85 - - 2,141.10

263
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 B. Related Parties (as per Ind AS) (Contd..)

Allotment/ Sold Impairment/

As at As at
IND AS Purchases during Write off
Particulars 1 April 31 March
Adjustment during the the during the
2021 2022
year year year
Investment in equity instruments
Sri Sainatha Multispeciality Hospitals Private Limited 58.24 - - - - 58.24
Prerana Hospital Limited 42.94 - - - - 42.94
Aster DM Healthcare (Trivandrum) Private Limited 33.97 - - - - 33.97
DM Med City Hospitals (India) Private Limited 5.29 - - - - 5.29
Ambady Infrastructure Private Limited 20.84 - - - - 20.84
Affinity Holdings Private Limited * - - - - *
Malabar Institute of Medical Sciences Limited 259.64 - - - - 259.64
Dr. Ramesh Cardiac and Multispeciality Hospitals 272.68 - - - - 272.68
Private Limited
Hindustan Pharma Distributors Private Limited - - 15.38 - - 15.38
Mindriot Research and Innovation Foundation * - - - - *
Aster Clinical Labs LLP 1.00 - - - - 1.00
Alfaone Medicals Private Limited 0.23 - - - - 0.23
Total 694.83 - 15.38 - - 710.21
Investment in preference shares
Affinity Holdings Private Limited, Mauritius 1,455.82 - - - - 1,455.82
Total 1,455.82 - - - - 1,455.82
Total Investments 2,150.65 - 15.38 - - 2,166.03

(b) The company has given unsecured loans to the following entities:

As at As at
Entity Movement Purpose of loans
1 April 2022 31 March 2023
Subsidiaries
Aster DM Healthcare (Trivandrum) Private Limited 89.71 12.23 101.94 Financial assistance
DM Med City Hospitals (India) Private Limited 18.26 26.44 44.70 Financial assistance
Ambady Infrastructure Private Limited 5.77 0.67 6.44 Financial assistance
EMED HR (India) Private Limited 0.02 0.00 0.02 Financial assistance
Aster Clinical Labs LLP 75.27 14.06 89.33 Financial assistance
Hindustan Pharma Distributors Private Limited 5.78 7.67 13.45 Financial assistance
Alfaone Medicals Private Limited 28.07 82.57 110.64 Financial assistance
Total 222.88 143.64 366.53

As at As at
Entity Movement Purpose of loans
1 April 2021 31 March 2022
Subsidiaries
Aster DM Healthcare (Trivandrum) Private Limited 81.08 8.63 89.71 Financial assistance
DM Med City Hospitals (India) Private Limited 16.50 1.76 18.26 Financial assistance
Ambady Infrastructure Private Limited 5.21 0.56 5.77 Financial assistance
EMED HR (India) Private Limited 0.02 0.00 0.02 Financial assistance
Aster Clinical Labs LLP 44.92 30.35 75.27 Financial assistance
Hindustan Pharma Distributors Private Limited - 5.78 5.78 Financial assistance
Alfaone Medicals Private Limited 0.41 27.66 28.07 Financial assistance
Total 148.14 74.74 222.88

264
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 B. Investments, Loans, Guarantees and Security (Contd..)

(c) The Company has given guarantees to the following entities:

As at As at
Entity Movement Purpose of guarantees
1 April 2022 31 March 2023
Sri Sainatha Multispeciality 2.00 (2.00) - Corporate guarantee given to Federal
Hospitals Private Limited Bank to give Cash Credit Facility to
Sri Sainatha Multispeciality Hospitals
Private Limited
Prerana Hospital Limited 6.07 - 6.07 Corporate guarantee given to HDFC
Bank to give working capital loan to
Prerana Hospital Limited
Prerana Hospital Limited 66.43 - 66.43 Corporate guarantee given to HDFC
Bank to give term loan to Prerana
Hospital Limited
Malabar Institute of Medical 145.00 - 145.00 Corporate guarantee given to HDFC
Sciences Limited Bank to give term loan to Malabar
Institute of Medical Sciences Limited
Malabar Institute of Medical 29.00 - 29.00 Corporate guarantee given to Axis
Sciences Limited Bank to give working capital to Malabar
Institute of Medical Sciences Limited
Aster Clinical Labs LLP 1.00 (1.00) - Corporate guarantee given to Federal
Bank to give Cash Credit Facility to Aster
Clinical Labs LLP
Aster Clinical Labs LLP 50.00 5.00 55.00 Corporate guarantee given to Axis Bank
to give term loan and working capital
facility to Aster Clinical Labs LLP
Hindustan Pharma 20.00 20.00 40.00 Corporate guarantee given to RBL
Distributors Private Limited Bank to give working capital loan to
Hindustan Pharma Distributors Private
Limited
319.50 22.00 341.50

As at As at
Entity Movement Purpose of guarantees
1 April 2021 31 March 2022
Sri Sainatha Multispeciality 2.00 - 2.00 Corporate guarantee given to Federal
Hospitals Private Limited Bank to give Cash Credit Facility to
Sri Sainatha Multispeciality Hospitals
Private Limited
Prerana Hospital Limited 6.07 - 6.07 Corporate guarantee given to HDFC
Bank to give working capital loan to
Prerana Hospital Limited
Prerana Hospital Limited 66.43 - 66.43 Corporate guarantee given to HDFC
Bank to give term loan to Prerana
Hospital Limited
Malabar Institute of Medical 145.00 - 145.00 Corporate guarantee given to HDFC
Sciences Limited Bank to give term loan to Malabar
Institute of Medical Sciences Limited
Malabar Institute of Medical 29.00 - 29.00 Corporate guarantee given to Axis
Sciences Limited Bank to give working capital to Malabar
Institute of Medical Sciences Limited
Aster Clinical Labs LLP 1.00 - 1.00 Corporate guarantee given to Federal
Bank to give Cash Credit Facility to Aster
Clinical Labs LLP

265
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 B. Investments, Loans, Guarantees and Security (Contd..)

As at As at
Entity Movement Purpose of guarantees
1 April 2021 31 March 2022
Aster Clinical Labs LLP 15.00 35.00 50.00 Corporate guarantee given to Federal
Bank to give term loan to Aster Clinical
Labs LLP
Hindustan Pharma Distributors - 20.00 20.00 Corporate guarantee given to Federal
Private Limited Bank to give term loan to Hindustan
Pharma Distributors Private Limited
Total 264.50 55.00 319.50

36 Segment Reporting

In accordance with Ind AS 108, Operating Segments, segment information has been provided in the consolidated financial statements of
the Company and therefore no separate disclosure on segment information is given in the standalone financial statements.

37 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.

As at 31 March 2022

Carrying amount Fair value

Other
Financial financial
Particulars Note Total
assets at Mandatorily liabilities
Carrying Level 1 Level 2 Level 3 Total
amortised at FVTPL at
value
cost amortised
cost
Assets
Financial assets not
measured at fair value
Investments 6 2,166.03 - - 2,166.03 - - - -
Loans 11 209.39 - - 209.39 - - - -
Other financial assets 12 136.84 - - 136.84 - - - -
Trade receivables 8 61.55 - - 61.55 - - - -
Cash and cash 9 18.27 - - 18.27 - - - -
equivalents
Other bank balances 10 6.75 - - 6.75 - - - -
Total 2,598.83 - - 2,598.83 - - - -
Liabilities -
Financial liabilities not
measured at fair value
Borrowings 16 - - 197.81 197.81 - - - -
Lease liabilities 39 - - 322.71 322.71 - - - -
Trade payables 17 - - 129.82 129.82 - - - -
Other financial liabilities 18 - 91.20 8.42 99.62 - - 91.20 91.20
Total - 91.20 658.76 749.96 - - 91.20 91.20

266
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 Financial Instruments - Fair Values and Risk Management (Contd..)

As at 31 March 2023

Carrying amount Fair value

Other
Financial financial
Particulars Note Total
assets at Mandatorily liabilities
Carrying Level 1 Level 2 Level 3 Total
amortised at FVTPL at
value
cost amortised
cost
Assets
Financial assets not
measured at fair value
Investments 6 2,141.10 - - 2,141.10 - - - -
Loans 11 353.05 - - 353.05 - - - -
Other financial assets 12 180.31 - - 180.31 - - - -
Trade receivables 8 111.33 - - 111.33 - - - -
Cash and cash 9 24.38 - - 24.38 - - - -
equivalents
Other bank balances 10 6.91 - - 6.91 - - - -
Total 2,817.08 - - 2,817.08 - - - -
Liabilities
Financial liabilities not
measured at fair value
Borrowings 16 - - 339.98 339.98 - - - -
Lease liabilities 39 - - 357.29 357.29
Trade payables 17 - - 203.42 203.42 - - - -
Other financial liabilities 18 - - 27.09 27.09 - - - -
Total - - 927.78 927.78 - - - -

B Measurement of fair values

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

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.

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 2022 and 31 March 2023 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 of derivative put option.

Particulars Amount
Balance as at 1 April 2021 91.20
Net change in fair value (unrealised) -
Addition during the year -
Balance as at 31 March 2022 91.20
Net change in fair value (unrealised) -
Addition during the year -
Deletion during the year 91.20
Balance as at 31 March 2023 -

267
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 Financial Instruments - Fair Values and Risk Management (Contd..)

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 on the profit or loss.

For the year ended 31 March 2023 For the year ended 31 March 2022
Particulars
Increase Decrease Increase Decrease
Volatility (1% movement) - - (0.57) to 0.20 (0.19) to 0.56
EBITDA growth rates (1% movement) - - (0.06) to 3.59 (3.44) to 0.06
Risk free rate (1% movement) - - 0.09 to 63.90 (0.09) to (62.83)

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.

The Company always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit
losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtors and an
analysis of the debtors’ current financial position, adjusted for factors that are specific to the debtors, general economic conditions
of the industry in which the debtors operate, and an assessment of both the current as well as the forecast direction of conditions at
the reporting date.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to INR 111.33 crores (31
March 2022: INR 61.55 crores) and unbilled receivables (net of advances from patient) as given in note 12 amounting to INR 13.51
crores (31 March 2022: INR 6.24 crores).

The movement in lifetime ECL in respect of trade and other receivables during the year was as follows:

As at As at
Particulars
31 March 2023 31 March 2022
Balance at the beginning 9.30 8.68
Impairment loss recognised 1.60 0.62
Balance at the end 10.90 9.30

No single customer accounted for more than 10% of the revenue as of 31 March 2023 and 31 March 2022. 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.

268
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 Financial Instruments - Fair Values and Risk Management (Contd..)

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. Ultimate responsibility for liquidity risk management rests with the
board of directors, which has established an appropriate liquidity risk management framework for management of the Company’s
short, medium and long-term funding and liquidity management requirements. 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 table below provides details regarding the contractual maturities of significant financial liabilities as of 31 March 2023:

Particulars Less than 1 year More than 1 year Total

Trade payables 203.42 - 203.42
Current borrowings 109.83 - 109.83
Non current borrowings (including current maturities) 36.69 193.46 230.15
Lease liabilities 10.18 347.11 357.29
Other financial liabilities 27.09 - 27.09
Total 387.21 540.57 927.78

The Company is using the cash inflows from the financial assets and the available bank facilities to manage the liquidity. The table
below provides the cash inflows from significant financial assets as of 31 March 2023:

Particulars Less than 1 year More than 1 year Total

Cash and cash equivalents 24.38 - 24.38
Other bank balances 6.91 - 6.91
Investments - 2,141.10 2,141.10
Trade receivables 111.33 - 111.33
Loans - 353.05 353.05
Other financial assets 109.87 70.44 180.31
Total 252.49 2,564.59 2,817.08

The table below provides details regarding the contractual maturities of significant financial liabilities as of 31 March 2022:

Particulars Less than 1 year More than 1 year Total

Trade payables 129.82 - 129.82
Current borrowings 68.89 - 68.89
Non current borrowings (including current maturities) 23.87 105.05 128.92
Lease liabilities 6.87 315.84 322.71
Other financial liabilities 99.62 - 99.62
Total 329.07 420.89 749.96

The Company is using the cash inflows from the financial assets and the available bank facilities to manage the liquidity. The table
below provides the cash inflows from significant financial assets as of 31 March 2022:

Particulars Less than 1 year More than 1 year Total

Cash and Cash equivalents 18.27 - 18.27
Other bank balances 6.75 - 6.75
Investments - 2,166.03 2,166.03
Trade receivables 61.55 - 61.55
Loans - 209.39 209.39
Other financial assets 76.15 60.69 136.84
Total 162.72 2,436.11 2,598.83

269
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 Financial Instruments - Fair Values and Risk Management (Contd..)

Financial assets of INR 2,817.08 crores (including restricted deposits of INR 4.15 crores) as at 31 March 2023 carried at amortised
cost is in the form of cash and cash equivalents, deposits, etc. where the Company has assessed the counterparty credit risk. Trade
receivables of INR 111.33 crores as at 31 March 2023 carried at amortised cost and is valued considering provision for allowance using
expected credit loss method (if any). In addition to the historical pattern of credit loss, we have considered the likelihood of increased
credit risk. This assessment is not based on any mathematical model but an assessment considering the impact immediately seen
in the demand outlook and the financial strength of the customers in respect of whom amounts are receivable. The Company has
specifically evaluated the potential impact with respect to Healthcare service sector. The Company closely monitors its customers
who are being impacted. Also a substantial portion of the financial asset is related to investments in subsidiary companies (INR
2,141.10 crores) and loans and advances to subsidiary companies (INR 353.05 crores, net of provision of INR 13.48 crores) wherein
Management has considered on the projections while doing its assessment for impairment testing.

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.

Foreign currency risk

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations
arise. The Company is mainly exposed to AED, OMR and US dollar.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the reporting date
are as follows:

As at 31 March 2023 AED OMR USD

Other current financial liabilities - 1.17 -
Cash and cash equivalents 0.02 - 0.11
Net assets/(liabilities) 0.02 (1.17) 0.11

As at 31 March 2022 AED OMR USD

Other current financial liabilities - 1.17 -
Cash and cash equivalents 0.07 - 0.12
Net assets/(liabilities) 0.07 (1.17) 0.12

Sensitivity analysis

The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated financial instruments.
One per cent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only
outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a one per cent change
in foreign currency rates. A positive number below indicates an increase in profit and other equity where currency units strengthens
one per cent against the relevant currency. For a one per cent weakening of currency units against the relevant currency, there would
be a comparable impact on the profit and other equity, and the balances below would be negative.

Impact on profit or (loss) Impact on equity, net of tax

Particulars As at As at As at As at
31 March 2023 31 March 2022 31 March 2023 31 March 2022
AED Sensitivity
INR/ AED - Increase by 1% * * * *
INR/ AED - Decrease by 1% * * * *
OMR Sensitivity
INR/ OMR - Increase by 1% (0.01) (0.01) (0.01) (0.01)
INR/ OMR - Decrease by 1% 0.01 0.01 0.01 0.01

270
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 Financial Instruments - Fair Values and Risk Management (Contd..)

Impact on profit or (loss) Impact on equity, net of tax

Particulars As at As at As at As at
31 March 2023 31 March 2022 31 March 2023 31 March 2022
USD Sensitivity
INR/ USD - Increase by 1% 0.00 0.00 0.00 0.00
INR/ USD - Decrease by 1% (0.00) (0.00) (0.00) (0.00)
* Amount is below the rounding off norms adopted by the Company.

Interest rate risk

The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest rates. The
Company’s significant interest rate risk arises from long-term borrowings with variable interest 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. The risk is managed by the Company by maintaining an appropriate
mix between fixed and floating rate borrowings.

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

As at As at
Financial liabilities (bank borrowings)
31 March 2023 31 March 2022
Variable rate long term borrowings including current maturities 230.15 128.92

Sensitivity analysis

Impact on profit or (loss) Impact on equity, net of tax

Particulars As at As at As at As at
31 March 2023 31 March 2022 31 March 2023 31 March 2022
Sensitivity
1% increase in MCLR rate (2.30) (1.29) (2.30) (1.29)
1% decrease in MCLR rate 2.30 1.29 2.30 1.29

The analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year. A
one per cent increase or decrease is used when reporting interest rate risk internally to key management personnel and represents
management’s assessment of the reasonably possible change in interest rates. The Company’s sensitivity to interest rates has
increased in the current year due to the additional variable rate long term borrowings taken during the year.

38 Employee Benefits

A 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 gratuity benefit provides for a lump sum payment to vested
employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 / 30 days’ salary
payable for each completed year of service.

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:

As at As at
Particulars
31 March 2023 31 March 2022
Defined benefit obligation liability 9.65 8.61
Plan assets - -
Net defined benefit liability 9.65 8.61

271
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

38 Employee Benefits (Contd..)

B Reconciliation of present value of defined benefit obligation

As at As at
Particulars
31 March 2023 31 March 2022
Balance at beginning of the year 8.61 7.69
Benefit paid (1.38) (1.33)
Current service cost 2.27 2.05
Past service cost 0.19 -
Interest cost 0.57 0.49
Actuarial gain/(loss) recognised in other comprehensive income
- changes in demographic assumptions - -
- changes in financial assumptions (0.49) (0.37)
- experience adjustments (0.11) (0.31)
Transfers in/(out) (0.01) 0.39
Balance at the end of the year 9.65 8.61
Net defined benefit obligation (liability) 9.65 8.61

C (i) Expenses recognised in the statement of profit & loss account

As at As at
Particulars
31 March 2023 31 March 2022
Current service cost 2.27 2.05
Past service cost 0.19 -
Interest cost 0.57 0.49
Gratuity cost 3.03 2.54

(ii) Remeasurements recognised in other comprehensive income

As at As at
Particulars
31 March 2023 31 March 2022
Actuarial gain/(loss) on defined benefit obligation (0.60) (0.68)
Remeasurements recognised in other comprehensive income (0.60) (0.68)

D Actuarial valuation

The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the
projected unit credit method. The defined benefit plan typically exposes the Company to actuarial risks such as: interest rate risk, longevity
risk and salary risk.

Interest rate risk A decrease in the bond interest rate will increase the plan liability.
Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan’s liability.
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

(i) Assumptions used to determine benefit obligations:

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

As at As at
Particulars
31 March 2023 31 March 2022
Discount rate 7.20% 6.60%
Future salary growth 6.00% 6.00%
Attrition rate Below 35 years : 35% p.a Below 35 years : 35% p.a
35 yrs. & above : 6% p.a. 35 yrs. & above : 6% p.a.
Mortality rate IALM 2012-14 (Ult.) IALM 2012-14 (Ult.)

272
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

38 Employee Benefits (Contd..)

The weighted-average assumptions used to determine net periodic benefit cost for the year ended 31 March 2023 and year ended
31 March 2022 as set out below:

As at As at
Particulars
31 March 2023 31 March 2022
Weighted average duration of defined benefit obligation (in years) 7.0 6.5

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

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase
and withdrawal rate. Reasonably possible changes at the reporting date to one of the actuarial assumptions, holding all other
assumptions constant, would have affected the defined benefit obligation by the amounts shown below:

As at 31 March 2023 As at 31 March 2022

Particulars
Increase Decrease Increase Decrease
Discount rate (1% movement) (0.72) 0.84 (0.65) 0.75
Future salary growth (1% movement) 0.84 (0.74) 0.75 (0.66)
Withdrawal rate (1% movement) (0.01) 0.00 (0.04) 0.03

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated. In
presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected
unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation
liability recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the sensitivity
analysis from prior years.

E Defined contribution plan

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Contribution to Provident Fund 8.66 7.54
Employee State Insurance 0.68 0.52
National Pension System - 0.05
Labour Welfare Fund 0.11 0.04
Components recognised in the statement of profit and loss 9.45 8.15

39 Leases

The Company has taken hospital premises on lease from various parties from where healthcare and management services are rendered.
The leases typically run for a period of 1 year - 24 years. Lease payments are renegotiated nearing the expiry to reflect market rentals.

273
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

39 Leases (Contd..)

(i) Lease liabilities

Following are the changes in the lease liabilities for the year ended 31 March 2023 and 31 March 2022:

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Opening balance 322.71 249.25
Additions 32.73 77.03
Finance cost accrued during the period (refer Note 28) 31.75 27.38
Payment of lease liabilities (29.90) (30.95)
Closing balance 357.29 322.71
Non-current lease liabilities 347.11 315.84
Current lease liabilities 10.18 6.87

(ii) Maturity analysis – contractual undiscounted cash flows

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Less than one year 36.22 26.85
One to five years 166.35 135.34
More than five years 630.90 647.20
Total undiscounted lease liabilities 833.47 809.39

(iii) Right-of-use assets

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Gross carrying value
Opening balance 298.87 221.84
Addition to right-of-use assets 33.91 77.03
Total gross carrying value 332.78 298.87
Accumulated Depreciation
Opening balance 47.36 29.77
Depreciation for the year (Refer Note 29) 21.24 17.59
Total accumulated Depreciation 68.50 47.36
Net Balance 264.28 251.51

(iv) Amounts recognised in statement of profit or loss

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Lease rental expenses for lease where Ind AS 116 is not applicable 40.49 29.40
Interest on lease liabilities 31.75 27.38
Depreciation on right-of-use assets 21.14 17.59

(v) Amounts recognised in statement of cash flows

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Total cash out flow for leases 29.90 30.95

274
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

40 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 2023 and 31 March 2022 was as follows:

As at As at
Particulars
31 March 2023 31 March 2022
Total equity attributable to the equity shareholders of the Company 3,130.56 2,955.21
As a percentage of total capital 90% 94%
Long-term borrowings including current maturities 230.15 128.92
Short-term borrowings 109.83 68.89
Total borrowings 339.98 197.81
As a percentage of total capital 10% 6%
Total capital (Equity and Borrowings) 3,470.54 3,153.02

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 exercise price approved by the Nomination and Remuneration Committee (agreed at 25% discount at previous day
closing traded share price). The Nomination and Remuneration Committee granted the options on the basis of performance, criticality and
potential of the employees as identified by the management. Each employee share option converts into one equity share of the Company
on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor
voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. If the options remain unexercised
at the end of the contractual life of the option, the options expire. Options are forfeited if the employee leaves the Company before the
options vest.

The Company has granted different categories of options on 2 March 2013, 1 April 2014, 1 April 2015, 22 November 2016, 7 June 2017,
1 March 2018, 30 April 2018, 12 February 2019, 28 May 2019, 29 August 2019, 11 November 2019, 10 February 2020, 22 June 2020,
8 February 2021, 21 June 2021, 10 November 2021, 07 February 2022 ,13 February 2023 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.

275
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

41 Share Based Payments (Contd..)

Number of Exercise Contractual life of

Option Type Grant date Vesting conditions
instruments price 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
Incentive option 22 November 410,385 50 50% at the end of first year and 25%
2016 each at the end of second & third
year based on performance.
Incentive option 7 June 2017 148,000 175 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 138,000 50 50% at the end of first year and 25%
2016 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
Performance option 1 March 2018 482,200 142 over a period of 4 years based on
Performance option 1 March 2018 183,829 50 performance.
Performance option 12 February 2019 126,400 116 5 years from the
Performance option 12 February 2019 172,200 116 50% at the end of each financial year date of vesting
over a period of 2 years based on
performance.
Performance option 28 May 2019 117,600 102 25% at the end of each financial year
Performance option 29 August 2019 515,400 89 over a period of 4 years based on
performance.
Performance option 29 August 2019 262,500 89 3 annual traches of 33%, 33% and
34% respectively each based on the
performance.
Performance option 11 November 10,800 107 25% at the end of each financial year
2019 over a period of 4 years based on
Performance option 10 February 2020 10,800 123 performance.
Performance option 22 June 2020 30,000 91.85
Performance option 8 February 2021 15,000 115
Performance option 21 June 2021 57,000 118
Performance option 10 November 39,000 145.31
2021
Performance option 07 February 2022 39,600 139
Performance option 13 February 2023 15,000 155.71

276
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

41 Share Based Payments (Contd..)

Number of Exercise Contractual life of

Option Type Grant date Vesting conditions
instruments price options
Loyalty option 2 March 2013 420,000 10 100% vesting at the end of 1 year
Loyalty option 1 April 2014 9,000 10 from date of grant.
Loyalty option 1 April 2015 15,000 10
Loyalty option 22 November 176,000 10 80% vesting on completion of 6
2016 years’ service and 20% vesting
Loyalty option 7 June 2017 285,000 10 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.
Loyalty option 30 April 2018 71,000 10 At the end of 1 year from the date
of grant.
Loyalty option 12 February 2019 31,600 10 75% vesting on completion of 6
years’ service and 25% vesting 5 years from the
on completion of 9 years’ service date of vesting
subject to minimum vesting period
of 1 year from date of grant.
Loyalty option 12 February 2019 37,700 10 At the end of 1 year from the date
of grant.
Loyalty option 28 May 2019 29,400 10 2 tranches upon completion of 6
years and 9 years of service
Loyalty option 29 August 2019 518,600 10 37.5% vesting on completion of 3
Loyalty option 11 November 7,200 10 years and 6 years each respectively
2019 and 25% on completion of 9 years.
Loyalty option 10 February 2020 7,200 10
Loyalty option 22 June 2020 30,000 10
Loyalty option 21 June 2021 38,000 10
Loyalty option 10 November 26,000 10
2021
Loyalty option 07 February 2022 26,400 10
Loyalty option 13 February 2023 10,000 10

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 Performance Performance Loyalty option Loyalty option

Date of grant 07 February 2022 13 February 2023 07 February 2022 13 February 2023
Fair value at grant date INR 100.43 INR 106.20 INR 178.23 INR 201.80
Share price at grant date INR 184.20 INR 209.60 INR 184.20 INR 209.60
Exercise price INR 139.00 INR 155.70 INR 10.00 INR 10.00
Expected volatility 40.75% 42.50% 40.53% 42.40%
Expected life 5 years 3.5 years 9.53 years 3.5 years
Expected dividends Nil Nil Nil Nil
Risk- free interest rate 6.29% 7.30% 6.66% 7.26%

277
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

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 Reconciliation of outstanding share options

The number and weighted-average exercise prices of share options under the share option plans are as follows:

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Outstanding as on 1 April 0.11 0.14
Granted during the year 0.00 0.02
Lapsed / forfeited during the year (0.01) (0.03)
Exercised during the year (0.02) (0.02)
Expired during the year (0.00) (0.00)
Options outstanding at the end of the year 0.08 0.11
Options exercisable at the end of the year 0.05 0.03
Weighted average share price at the date of exercise for share options exercised during 213.30 182.95
the period (in INR)

The options outstanding at 31 March 2023 have an exercise price in the range of INR 10 to INR 155.71 (31 March 2022: INR 10 to INR
145.31) and a weighted average remaining contractual life of 4.28 years (31 March 2022: 4.98 years).

D Expense recognised in statement of profit and loss

For details on the employee benefits expense, see Note 27.

42 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 in 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.

43 As a part of the Restructuring process, the Board of Directors approved the appointment of the Investment bankers by the Company on
10th June 2022 to explore options which present an opportunity to unlock value for the Company and its stakeholders. The Investment
Bankers have received interest and indicative terms from potential buyers for the Gulf Co-operation Council region (‘GCC’) business.
The investment bankers are working actively with the potential buyers and their advisors. The shortlisted bidders have expressed a strong
commitment to complete a transaction soon. The preparatory work including due diligence etc. is largely complete. The investment bankers
have communicated that the binding bids are likely to be received by end of Q1 of Financial Year 2023-24. Upon submission of the final
evaluation by the investment bankers, the Board shall review the proposals of sale of the Company’s business in the GCC. Appropriate
intimations and impact/ disclosures will be made as and when any conclusions are arrived at and approved by the Board.

278
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

44 Financial Ratios

For the year For the year

ended ended Percenatge Explanation if variance
Ratio Methodology
31 March 31 March change exceeds 25%
2023 2022
a) Current ratio Current assets/ Current 0.78 0.58 33% Due to increase in businees
liabilities thereis increase in receivable
balance compared to previous
year.
b) Debt-equity ratio Total debt/ Shareholder’s 0.21 0.17 27% Due to increase in outstanding
equity borrowings at year end.
c) Debt service Earnings available for debt 2.73 2.00 36% Due to increase in scale of
coverage ratio service/ Debt service operations during current year,
the profit available for debt
service has increased
d) Return on equity Net profit after taxes/ Average 5.69% 3.10% 84% Due to improved profit margins.
shareholder’s equity
e) Inventory Cost of goods sold/ Average 11.26 12.68 11% NA
turnover ratio inventory
f) Trade receivables Revenue from operations/ 17.74 21.37 17% NA
turnover ratio Average accounts receivables
g) Trade payables Total purchases/ Average 2.02 2.08 3% NA
turnover ratio trade payables
h) Net capital Net sales/ Working capital (16.90) (7.80) 116% Due to increase in revenue.
turnover ratio
i) Net profit ratio Net profit/ Net sales 11.30% 8.08% 40% Due to increase in profits.
j) Return on capital Earnings before interest and 4.86% 1.50% 223% Due to profits in current year on
employed taxes/ Capital employed account of increase in operations
of the Company.
k) Return on Dividend income, net gain on 0.34% 3% 86% Due to higher dividend recieved
investment sale of investments and net in the previous year.
fair value gain over average
investments

Notes:

Total debt = Borrowings + Lease liabilities - Cash & cash equivalents - Other bank balances - Current investments

Earnings available for debt service = Net profit before taxes + Non-cash operating expenses like depreciation and amortisations - Other
income + Interest + Other adjustments (such as loss on sale of property, plant and equipment, fair valuation of put options)

Debt service = Interest + Principal repayments + Lease payments

Net profit = Net profit after tax

Capital employed = Tangible net worth + Total debt

Earnings before interest and taxes = Net profit before taxes - Other income + Interest + Other adjustments (such as loss on sale of
property, plant and equipment, fair valuation of put options)

45 Additional Disclosures

a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property during and as at 31 March 2023 and 31 March 2022 (‘the reporting periods’).

b) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the reporting periods.

c) There are no transactions and balances with companies which have been removed from the Register of Companies [struck off companies]
during and as at the reporting periods.

279
Aster DM Healthcare Limited

Notes to the Standalone Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

d) The Company has not traded / invested in Crypto currency during the reporting periods.

e) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory
period as at the reporting periods.

f) The Company has not advanced or loaned or invested funds during the reporting periods to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.”

g) The Company has not received any fund during the reporting periods from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.”

h) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
during the reporting periods in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

i) The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs (as defined under Companies Act,
2013), either severally or jointly with any other person that are:

(i) repayable on demand; or

(ii) without specifying any terms or period of repayment.

j) The Company has granted loans to below mentioned related party which is repayable on demand

(i) Aster Clinical Lab LLP

(ii) Hindustan Pharma Distributors Private Limited

(iii) Alfaone Medicals Private Limited

k) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or
consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

l) The Company has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of Section 2
of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

for and on behalf of the Board of Directors of

Aster DM Healthcare Limited
CIN : L85110KA2008PLC147259

Dr. Azad Moopen T J Wilson Hemish Purushottam

Chairman and Managing Director Director Company Secretary
DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

280
Consolidated
Financial
Statements
Aster DM Healthcare Limited

Independent Auditor’s Report

To
The Members of
Aster DM Healthcare Limited

Report on the Audit of the Consolidated Financial Statements Basis for Opinion

Opinion We conducted our audit of the consolidated financial statements

in accordance with the Standards on Auditing (SAs) specified
We have audited the accompanying consolidated financial statements under section 143 (10) of the Act. Our responsibilities under those
of Aster DM Healthcare Limited (”the Parent” or ”the Company”) and Standards are further described in the Auditor’s Responsibility for the
its subsidiaries, (the Parent and its subsidiaries together referred Audit of the Consolidated Financial Statements section of our report.
to as “the Group”) which includes the Group’s share of profit in We are independent of the Group, its associates and joint venture in
its associates and joint venture and financial statements of DM accordance with the Code of Ethics issued by the Institute of Chartered
Healthcare Employees Welfare Trust (“the ESOP trust”) which Accountants of India (ICAI) together with the ethical requirements
comprise the Consolidated Balance Sheet as at 31 March 2023, that are relevant to our audit of the consolidated financial statements
and the Consolidated Statement of Profit and Loss (including Other under the provisions of the Act and the Rules made thereunder, and
Comprehensive Income), the Consolidated Statement of Cash Flows we have fulfilled our other ethical responsibilities in accordance with
and the Consolidated Statement of Changes in Equity for the year these requirements and the ICAI’s Code of Ethics. We believe that the
then ended, and a summary of significant accounting policies and audit evidence obtained by us and the audit evidence obtained by the
other explanatory information. ESOP trust auditor and by the other auditors in terms of their reports
referred to in the sub-paragraph (a) of the Other Matters section
In our opinion and to the best of our information and according to the
below, is sufficient and appropriate to provide a basis for our audit
explanations given to us, and based on the consideration of reports
opinion on the consolidated financial statements.
of the ESOP trust auditor and the other auditors on separate financial
statements of subsidiaries, associates and joint venture referred to in
the Other Matters section below, the aforesaid consolidated financial Key Audit Matters
statements give the information required by the Companies Act, 2013
(“the Act”) in the manner so required and give a true and fair view in Key audit matters are those matters that, in our professional judgment,
conformity with the Indian Accounting Standards prescribed under were of most significance in our audit of the consolidated financial
section 133 of the Act read with the Companies (Indian Accounting statements of the current period. These matters were addressed in
Standards) Rules, 2015, as amended (‘Ind AS’), and other accounting the context of our audit of the consolidated financial statements as
principles generally accepted in India, of the consolidated state of affairs a whole, and in forming our opinion thereon, and we do not provide a
of the Group as at 31 March 2023, and their consolidated profit, their separate opinion on these matters. We have determined the matters
consolidated total comprehensive income, their consolidated cash flows described below to be the key audit matters to be communicated in
and their consolidated changes in equity for the year ended on that date. our report.

Sr.
Key Audit Matter Auditor’s Response
No.
1 Evaluation of Impairment Assessment of Goodwill Principal audit procedures performed
As at 31 March 2023, the Group had INR 1,159.67 We tested the design, implementation and operating effectiveness of
crores of goodwill allocated across the Group’s internal controls over the Group’s impairment evaluation by testing on a
various cash generating units. The management sample basis (only for India):
tests such goodwill for impairment annually or
• The forecasting process including controls related to the development
more frequently, if there is a trigger for assessing
of the revenue growth rates and EBITDA margins.
impairment.
• The goodwill impairment review specifically the assumptions used to
The Group’s evaluation of impairment of its goodwill
develop the terminal growth rate, EBITDA margins, discount rates and
arising from its business combinations involves
the mathematical accuracy of the workings and basis for final conclusion.
a comparison of its expected recoverable values
against its carrying values. The expected recoverable We received the managements evaluation of the impairment assessment
amount of the Cash Generating Unit (CGU) to which for material CGU’s and evaluated reasonableness of management’s
the goodwill is allocable is based on Value in Use (VIU) assumptions related to revenue growth rates, EBITDA margins and discount
calculations determined based on a discounted cash rates by considering (i) the current and past performance of each of the cash
flow model. Determination of VIU involves significant generating units, (ii) the consistency of internal assumptions with external
estimates and judgements related to future revenue market information and (iii) whether these assumptions were consistent
forecasts and margins, terminal growth rates and with evidence obtained in other areas of the audit and also subjected the
discount rates to be considered. various assumptions to certain sensitivity to key inputs and (iv) testing the
integrity and mathematical accuracy of the impairment models.

282
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Sr.
Key Audit Matter Auditor’s Response
No.
Given the above complexities, the determination We involved our internal fair value specialists to assist in the evaluation of
of recoverable amount is subjective as it involves the appropriateness of the Group’s model for calculating value in use for
specific assumptions applicable to each CGU which each of the cash generating units and reasonableness of certain significant
includes revenue growth rates, Earning Before assumptions, such as the terminal growth rate and discount rates.
Interest, Tax, Depreciation and Amortisation (EBITDA) We reviewed the impairment disclosures to ensure consistency against the
margins, terminal growth rates and discount rates requirements of Ind AS 36 – Impairment of Assets.
applied to estimated future cash flows.
Refer note 3.6 for policy on “Impairment of non-
financial assets”- Goodwill, note 2.4 on “Use of
estimates and judgements” related to impairment
reviews and note 5 on “Goodwill and other intangible
assets” for disclosures related to Impairment review
of goodwill in the consolidated financial statements.
2 Estimates of Variable considerations under Ind Principal audit procedures performed
AS 115 Our procedures, including those carried out by other auditors, included the
The Group’s significant revenues arise from patients following:
covered under insurance.
The Group determines the transaction price after • Evaluation of the design and implementation of controls over the
adjusting the estimates for variable considerations, compilation of the information with regard to the trend of rejections,
in accordance with Ind AS 115-Revenue from settlement discounts, and future expected trends considered in
contracts with customers. determining the estimates of variable considerations.

In calculating the variable considerations, the • We received the calculations considered by the Group’s management
Group considers the nature and coverage through with regard to the estimates of variable considerations and performed
insurance and other parties, the history of substantive procedures for samples as below:
adjustments and rejections, and the probability of
rejections, discounts, rebates, price concessions, or • The accuracy of the source data such as revenue, rejection amount,
other similar items. reasons for rejections with the insurance / third party administrator
Management exercises judgement in determination (TPA) settlement reports and settlement amount used in determining
of estimates of variable considerations which the estimate of variable considerations.
impacts the transaction price at which the revenue
• Recomputed and compared the amount of variable consideration
is to be recognised.
adjusted to the transaction price, based on total claims submitted vs.
Refer Note 3.9 to the consolidated financial rejections received to date, and reconciled any material differences.
statements.
3 Implementation of new IT system used for Principal audit procedures performed:
accounting/financial reporting
• We understood the Management’s implementation plan of the new IT
The Company implemented a new IT system which is system and the changes from legacy versus the new IT system in so far
an enterprise resource planning application used for as accounting/ financial reporting is concerned.
accounting/financial reporting during the year (“Go-
• We reviewed the post-implementation report obtained by the
Live date”). Matters which required significant audit
Management from an independent third-party IT specialist.
attention in relation to the above implementation
included: • Tested the completeness and accuracy of migration of relevant financial
and accounting data/information/balances from legacy IT system to the
1. Complete and accurate migration of relevant
new IT system.
financial and accounting data/ information/
balances from legacy IT system to the new IT • We tested the IT general controls of the new IT system relevant to
system. financial reporting, including relevant interfaces.
2. Assessment and evaluation of relevant • We tested the design and implementation, and operating effectiveness
application systems, programs, processes, of the relevant business cycle automated controls of the new IT system.
interfaces, reports, and controls and segregation
of duties (SOD) conflicts insofar as they relate to • We tested the completeness and accuracy of information used for
accounting and financial reporting. controls and also the information produced by the new IT system.

3. IT general controls and IT Application controls • We tested the SOD conflicts implemented by the management.
relevant for financial reporting. The above procedures were in addition to the relevant planned procedures
for the legacy IT system used by the Company upto the Go-Live date.

283
Aster DM Healthcare Limited

Information Other than the Financial Statements and In preparing the consolidated financial statements, the respective
Auditor’s Report Thereon Board of Director of the companies included in the Group and of its
associates and joint venture are responsible for assessing the ability
• The Parent’s Board of Directors is responsible for the other of the respective entities to continue as a going concern, disclosing,
information. The other information comprises the information as applicable, matters related to going concern and using the going
included in the Company’s Annual Report, but does not include concern basis of accounting unless the respective Board of Directors
the consolidated financial statements, standalone financial either intends to liquidate their respective entities or to cease
statements and our auditor’s report thereon. The report is operations, or has no realistic alternative but to do so.
expected to be made available to us after the date of this
auditor’s report. The respective Board of Directors of the companies included in
the Group and of its associates and joint are also responsible for
• Our opinion on the consolidated financial statements does not
overseeing the financial reporting process of the Group and of its
cover the other information and we do not and will not express
associates and joint venture.
any form of assurance conclusion thereon.

• In connection with our audit of the consolidated financial

Auditor’s Responsibility for the Audit of the Consolidated
statements, our responsibility is to read the other information
Financial Statements
identified above when it becomes available, compare with the
financial statements of the subsidiaries , associates, joint venture Our objectives are to obtain reasonable assurance about whether the
and ESOP trust audited by the other auditors, to the extent it consolidated financial statements as a whole are free from material
relates to these entities and, in doing so, place reliance on the work misstatement, whether due to fraud or error, and to issue an auditor’s
of the other auditors and consider whether the other information is report that includes our opinion. Reasonable assurance is a high
materially inconsistent with the consolidated financial statements level of assurance, but is not a guarantee that an audit conducted
or our knowledge obtained during the course of our audit or in accordance with SAs will always detect a material misstatement
otherwise appears to be materially misstated. Other information when it exists. Misstatements can arise from fraud or error and are
so far as it relates to subsidiaries, associates, joint venture and considered material if, individually or in the aggregate, they could
ESOP trust is traced from their financial statements audited by reasonably be expected to influence the economic decisions of users
the other auditors and ESOP trust auditor. taken on the basis of these consolidated financial statements.
When we read the Annual Report, if we conclude that there is As part of an audit in accordance with SAs, we exercise professional
material misstatement therein, we are required to communicate judgment and maintain professional skepticism throughout the audit.
the matter to those charged with governance as required under We also:
SA 720 ‘The Auditor’s responsibilities relating to other information’.
• Identify and assess the risks of material misstatement of the
consolidated financial statements, whether due to fraud or
Responsibilities of Management and Those Charged with
error, design and perform audit procedures responsive to those
Governance for the Consolidated Financial Statements
risks, and obtain audit evidence that is sufficient and appropriate
The Parent’s Board of Directors is responsible for the matters stated to provide a basis for our opinion. The risk of not detecting a
in section 134(5) of the Act with respect to the preparation of material misstatement resulting from fraud is higher than for
these consolidated financial statements that give a true and fair one resulting from error, as fraud may involve collusion, forgery,
view of the consolidated financial position, consolidated financial intentional omissions, misrepresentations, or the override of
performance including other comprehensive income, consolidated internal control.
cash flows and consolidated changes in equity of the Group including
• Obtain an understanding of internal financial control relevant to
its Associates and Joint venture in accordance with the Ind AS and
the audit in order to design audit procedures that are appropriate
other accounting principles generally accepted in India. The respective
in the circumstances. Under section 143(3)(i) of the Act, we
Board of Directors of the companies included in the Group and of
are also responsible for expressing our opinion on whether
its associates and joint venture are responsible for maintenance of
the Parent/ Holding Company has adequate internal financial
adequate accounting records in accordance with the provisions of the
controls with reference to consolidated financial statements in
Act for safeguarding the assets of the Group, its associates and joint
place and the operating effectiveness of such controls.
venture for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies; making • Evaluate the appropriateness of accounting policies used and the
judgments and estimates that are reasonable and prudent; and reasonableness of accounting estimates and related disclosures
design, implementation and maintenance of adequate internal made by the management.
financial controls, that were operating effectively for ensuring the • Conclude on the appropriateness of management’s use of
accuracy and completeness of the accounting records, relevant to the the going concern basis of accounting and, based on the audit
preparation and presentation of the financial statements that give a evidence obtained, whether a material uncertainty exists related
true and fair view and are free from material misstatement, whether to events or conditions that may cast significant doubt on the
due to fraud or error, which have been used for the purpose of ability of the Group and its associates and joint venture to continue
preparation of the consolidated financial statements by the Directors as a going concern. If we conclude that a material uncertainty
of the Parent Company, as aforesaid. exists, we are required to draw attention in our auditor’s report to

284
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

the related disclosures in the consolidated financial statements Other Matters

or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the (a) We did not audit the financial statements of 64 subsidiaries and
date of our auditor’s report. However, future events or conditions ESOP Trust included in the consolidated financial statements,
whose financial statements (before elimination) reflect total assets
may cause the Group and its associates and joint venture to cease
of INR 12,167.25 crores as at 31 March 2023 and total revenues
to continue as a going concern.
of INR 9,290.33 crores and net cash flows of INR 18.80 crores for
• Evaluate the overall presentation, structure and content of the the year ended 31 March 2023, as considered in the consolidated
consolidated financial statements, including the disclosures, and financial statements. The consolidated financial statements also
whether the consolidated financial statements represent the includes the Group’s share of loss after tax of INR 11.22 crores for
underlying transactions and events in a manner that achieves the year ended 31 March 2023, as considered in the consolidated
financial statements, in respect of 4 associates, whose financial
fair presentation.
statements have not been audited by us. These financial
• Obtain sufficient appropriate audit evidence regarding the statements have been audited, as applicable, by the ESOP trust
auditor and other auditors whose reports have been furnished
financial information of the entities or business activities
to us by the Management and our opinion and conclusion on the
within the Group and its associates, joint venture and ESOP
consolidated financial statements, in so far as it relates to the
trust to express an opinion on the consolidated financial
amounts and disclosures included in respect of these subsidiaries
statements. We are responsible for the direction, supervision and associates, is based solely on the reports of the ESOP trust
and performance of the audit of the financial statements of auditor and other auditors and the procedures performed by us as
entities or business activities included in the consolidated stated under Auditor’s Responsibilities section above. Our report
financial statements of which we are the independent auditors. on the consolidated financial statements is not modified in respect
For the ESOP trust, entities or business activities included in the of the above matter with respect to our reliance on the work done
consolidated financial statements, which have been audited by and the reports of the ESOP trust auditor other auditors.
the trust auditor or other auditors, such trust auditor and other
auditors remain responsible for the direction, supervision and (b) The consolidated financial statements includes the unaudited
performance of the audits carried out by them. We remain solely financial information of 4 subsidiaries, whose financial
responsible for our audit opinion. information reflect (before elimination) total assets of INR
2,418.34 crores as at 31 March 2023 and total revenues of
Materiality is the magnitude of misstatements in the consolidated INR 24.84 crores and net cash flows of INR 16.89 crores for the
financial statements that, individually or in aggregate, makes it year ended 31 March 2023, as considered in the consolidated
financial statements. The consolidated financial statements
probable that the economic decisions of a reasonably knowledgeable
also includes the Group’s share of profit after tax of INR 12.44
user of the consolidated financial statements may be influenced. We
crores for the year ended 31 March 2023, as considered in the
consider quantitative materiality and qualitative factors in (i) planning
consolidated financial statements, in respect of 5 associates
the scope of our audit work and in evaluating the results of our work; and 1 joint venture whose financial information have not been
and (ii) to evaluate the effect of any identified misstatements in the audited by us. These financial information are unaudited and
consolidated financial statements. have been furnished to us by the Management and our opinion
and conclusion on the consolidated financial statements, in
We communicate with those charged with governance of the Parent/
so far as it relates to the amounts and disclosures included in
Holding Company and such other entities included in the consolidated
respect of these subsidiaries, joint venture and associates, is
financial statements of which we are the independent auditors
based solely on such unaudited financial information. In our
regarding, among other matters, the planned scope and timing of
opinion and according to the information and explanations given
the audit and significant audit findings, including any significant
to us by the Management, these financial information are not
deficiencies in internal control that we identify during our audit.
material to the Group. Our report on the consolidated financial
We also provide those charged with governance with a statement statements is not modified in respect of the above matter with
that we have complied with relevant ethical requirements regarding respect to our reliance on the financial information certified by
independence, and to communicate with them all relationships the Management.
and other matters that may reasonably be thought to bear on our
Our opinion on the consolidated financial statements above and our
independence, and where applicable, related safeguards.
report on Other Legal and Regulatory Requirements below, is not
modified in respect of the above matters with respect to our reliance
From the matters communicated with those charged with governance,
on the work done and the reports of the other auditors and the
we determine those matters that were of most significance in the
financial information certified by the Management.
audit of the consolidated financial statements of the current period
and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public Report on Other Legal and Regulatory Requirements
disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our 1. As required by Section 143(3) of the Act, based on our audit and
report because the adverse consequences of doing so would on the consideration of the reports of the trust auditor and other
reasonably be expected to outweigh the public interest benefits of auditors on the separate financial information of the ESOP trust,
such communication. subsidiaries, associates and joint venture referred to in the Other
Matters section above, we report to the extent applicable that:

285
Aster DM Healthcare Limited

a) We have sought and obtained all the information and i) The consolidated financial statements disclose the
explanations which to the best of our knowledge and impact of pending litigations on the consolidated
belief were necessary for the purposes of our audit of the financial position of the Group, its associates, joint
aforesaid consolidated financial statements. venture and ESOP trust. Refer Note 33 to the
consolidated financial statements;
b) In our opinion, proper books of account as required by
law relating to preparation of the aforesaid consolidated ii) The Group, its associates entities, joint venture and
financial statements have been kept so far as it appears ESOP trust did not have any material foreseeable
from our examination of those books, and the reports of the losses on long-term contracts including derivative
other auditors. contracts.

c) The Consolidated Balance Sheet, the Consolidated iii) There has been no delay in transferring amounts,
Statement of Profit and Loss including Other Comprehensive required to be transferred, to the Investor Education
Income, the Consolidated Statement of Cash Flows and the and Protection Fund by the Parent and its subsidiary
Consolidated Statement of Changes in Equity dealt with companies and associate companies incorporated in
by this Report are in agreement with the relevant books of India.
account maintained for the purpose of preparation of the
consolidated financial statements. iv) (a) The respective Managements of the Parent and
its subsidiaries, associates which are companies
d) In our opinion, the aforesaid consolidated financial incorporated in India whose financial statements
statements comply with the Ind AS specified under Section have been audited under the Act have represented
133 of the Act. to us and to the other auditors of such subsidiaries
and associates respectively that, to the best of
e) On the basis of the written representations received from their knowledge and belief, as disclosed in the
the directors of the Parent as on 31 March 2023 taken on consolidated financial statements, no funds (which
record by the Board of Directors of the Company and the are material either individually or in aggregate)
reports of the statutory auditors of its subsidiary companies have been advanced or loaned or invested (either
and associate companies incorporated in India, none of from borrowed funds or share premium or any
the directors of the Group companies and its associates other sources or kind of funds) by the Parent
incorporated in India is disqualified as on 31 March 2023 or any of such subsidiaries and associates to
from being appointed as a director in terms of Section 164 or in any other person(s) or entity(ies), including
(2) of the Act. foreign entities (“Intermediaries”), with the
understanding, whether recorded in writing or
f) With respect to the adequacy of the internal financial
otherwise, that the Intermediary shall, directly
controls with reference to consolidated financial statements
or indirectly lend or invest in other persons or
and the operating effectiveness of such controls, refer
entities identified in any manner whatsoever by or
to our separate Report in “Annexure A” which is based on
on behalf of the Parent or any of such subsidiaries
the auditors’ reports of the Parent, subsidiary companies
and associates (“Ultimate Beneficiaries”) or
and associate companies incorporated in India. Our report
provide any guarantee, security or the like on
expresses an unmodified opinion on the adequacy and
behalf of the Ultimate Beneficiaries
operating effectiveness of internal financial controls over
financial reporting of those companies. (b) The respective Managements of the Parent and
its subsidiaries, associates which are companies
g) With respect to the other matters to be included in the
incorporated in India, whose financial statements
Auditor’s Report in accordance with the requirements of
have been audited under the Act, have
section 197(16) of the Act, as amended, in our opinion and to
represented to us and to the other auditors of
the best of our information and according to the explanations
such subsidiaries, associates respectively that, to
given to us and based on the auditor’s reports of subsidiary
the best of their knowledge and belief, as disclosed
companies and associate companies incorporated in India,
in the consolidated financial statements, no funds
the remuneration paid by the Parent and such subsidiary
(which are material either individually or in the
companies, associate companies and joint venture company
aggregate) have been received by the Parent or
to their respective directors during the year is in accordance
any of such subsidiaries, associates from any
with the provisions of section 197 of the Act.
person(s) or entity(ies), including foreign entities
h) With respect to the other matters to be included in (“Funding Parties”), with the understanding,
the Auditor’s Report in accordance with Rule 11 of the whether recorded in writing or otherwise, that
Companies (Audit and Auditors) Rules, 2014, as amended in the Parent or any of such subsidiaries, associates
our opinion and to the best of our information and according shall, directly or indirectly, lend or invest in other
to the explanations given to us: persons or entities identified in any manner
whatsoever by or on behalf of the Funding

286
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Party (“Ultimate Beneficiaries”) or provide any accordance with section 123 of the Act, as applicable.
guarantee, security or the like on behalf of the
As stated in the consolidated financial statements, the
Ultimate Beneficiaries. Board of Directors of the Parent and its subsidiaries
(c) Based on the audit procedures performed that and associates which are companies incorporated in
have been considered reasonable and appropriate India, whose financial statements have been audited
in the circumstances performed by us and that under the Act, where applicable, have proposed final
performed by the auditors of the subsidiaries and dividend for the year which is subject to the approval of
associates which are companies incorporated the members of the Parent and such subsidiaries and
in India whose financial statements have been associates at the ensuing respective Annual General
audited under the Act, nothing has come to our or Meetings. Such dividend proposed is in accordance
other auditor’s notice that has caused us or the with section 123 of the Act, as applicable.
other auditors to believe that the representations
vi) Proviso to Rule 3(1) of the Companies (Accounts)
under sub-clause (i) and (ii) of Rule 11(e), as
Rules, 2014 for maintaining books of account using
provided under (a) and (b) above, contain any
accounting software which has a feature of recording
material misstatement.
audit trail (edit log) facility is applicable w.e.f. 01 April
v) The final dividend proposed in the previous year, 2023 to the Parent and its subsidiaries and associates
declared and paid by the Parent and its subsidiaries which are companies incorporated in India, and
and associates which are companies incorporated in accordingly, reporting under Rule 11(g) of Companies
India, whose financial statements have been audited (Audit and Auditors) Rules, 2014 is not applicable for
under the Act, where applicable, during the year is in the financial year ended 31 March 2023.

2. With respect to the matters specified in clause (xxi) of paragraph 3 and paragraph 4 of the Companies (Auditor’s Report) Order, 2020 (“CARO”/
“the Order”) issued by the Central Government in terms of Section 143(11) of the Act, according to the information and explanations given to
us, and based on the CARO reports issued by us and the auditors of respective companies included in the consolidated financial statements
to which reporting under CARO is applicable, as provided to us by the Management of the Parent, we report that there are no qualifications
or adverse remarks by the respective auditors in the CARO reports of the said companies included in the consolidated financial statements
except for the following:

Clause Number of CARO

Nature of
Name of the company CIN report with qualification
relationship
or adverse remark
Malabar Institute of Medical Sciences Ltd U85110KL1995PLC008677 Subsidiary Clause vii (b)
Clause xiv (b)
Dr. Ramesh Cardiac and Multispeciality Hospitals Private U73100AP1995PTC020491 Subsidiary Clause iii (a)
Limited Clause iii (f)
Clause vii (b)
Clause xiv (b)
Prerana Hospital Limited U85110PN1996PLC104292 Subsidiary Clause xiv (b)
Sri Sainatha Multispeciality Hospitals Private Limited. U85110TG2007PTC054118 Subsidiary Clause iii (a)
Clause xiv (b)
Ambady Infrastructure Private Limited U45201KL2008PTC021727 Subsidiary Clause iii (b)
Clause xvii
DM Med City Hospitals India Private Limited U85110KL2009PTC024999 Subsidiary Clause iii (a)
Clause iii (f)
Clause vii (b)
Hindustan Pharma Distributors Private Limited U51909KA2021PTC150604 Subsidiary Clause xvii
Aster DM Healthcare (Trivandrum) Private Limited U85110KL2010PTC025573 Subsidiary Clause xvii
Clause xiv (b)
Adiran IB Healthcare Private Limited U33100AP2016PTC104523 Step down Clause vii (b)
subsidiary

For Deloitte Haskins & Sells

Chartered Accountants
(Firm’s Registration No. 008072S)

Vikas Bagaria
(Partner)
Place: Bengaluru (Membership No. 60408)
Date: 25 May 2023 (UDIN: 23060408BGYGPC1639)

287
Aster DM Healthcare Limited

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

Report on the Internal Financial Controls with reference about whether adequate internal financial controls with reference to
to consolidated financial statements under Clause (i) of consolidated financial statements was established and maintained
Sub-section 3 of Section 143 of the Companies Act, 2013 and if such controls operated effectively in all material respects.
(“the Act”)
Our audit involves performing procedures to obtain audit evidence
In conjunction with our audit of the consolidated financial statements about the adequacy of the internal financial controls system over
of the Company as of and for the year ended 31 March 2023, we have financial reporting and their operating effectiveness. Our audit of
audited the internal financial controls with reference to consolidated internal financial controls with reference to consolidated financial
financial statements of Aster DM Healthcare Limited (hereinafter statements included obtaining an understanding of internal financial
referred to as “Parent”) and its subsidiary companies, associate controls with reference to consolidated financial statements,
companies which are companies incorporated in India, as of that date. assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend on the
Management’s Responsibility for Internal Financial
auditor’s judgement, including the assessment of the risks of material
Controls
misstatement of the financial statements, whether due to fraud or
The respective Board of Directors of the Parent and its subsidiary error.
companies, associate companies which are companies incorporated
We believe that the audit evidence we have obtained and the
in India, are responsible for establishing and maintaining internal
audit evidence obtained by the other auditors of the subsidiary
financial controls with reference to consolidated financial statements
companies, associate companies which are companies incorporated
based on the internal control with reference to consolidated financial
in India, in terms of their reports referred to in the Other Matters
statements criteria established by the respective Companies
paragraph below, is sufficient and appropriate to provide a basis for
considering the essential components of internal control stated in the
our audit opinion on the internal financial controls with reference
Guidance Note on Audit of Internal Financial Controls Over Financial
to consolidated financial statements of the Parent, its subsidiary
Reporting issued by the Institute of Chartered Accountants of India
companies, associate companies company which are companies
(ICAI). These responsibilities include the design, implementation
incorporated in India.
and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct
of its business, including adherence to the respective company’s Meaning of Internal Financial Controls with reference to
policies, the safeguarding of its assets, the prevention and detection consolidated financial statements
of frauds and errors, the accuracy and completeness of the accounting
A Company’s internal financial control with reference to consolidated
records, and the timely preparation of reliable financial information,
financial statements is a process designed to provide reasonable
as required under the Companies Act, 2013.
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes
Auditor’s Responsibility in accordance with generally accepted accounting principles. A
Company’s internal financial control with reference to consolidated
Our responsibility is to express an opinion on the internal financial
financial statements includes those policies and procedures that
controls with reference to consolidated financial statements of the
(1) pertain to the maintenance of records that, in reasonable detail,
Parent, its subsidiary companies, which are companies incorporated
accurately and fairly reflect the transactions and dispositions of
in India, based on our audit. We conducted our audit in accordance
the assets of the company; (2) provide reasonable assurance that
with the Guidance Note on Audit of Internal Financial Controls Over
transactions are recorded as necessary to permit preparation of
Financial Reporting (the “Guidance Note”) issued by the Institute
financial statements in accordance with generally accepted accounting
of Chartered Accountants of India and the Standards on Auditing,
principles, and that receipts and expenditures of the company are
prescribed under Section 143(10) of the Companies Act, 2013, to
being made only in accordance with authorisations of management
the extent applicable to an audit of internal financial controls with
and directors of the company; and (3) provide reasonable assurance
reference to consolidated financial statements. Those Standards and
regarding prevention or timely detection of unauthorised acquisition,
the Guidance Note require that we comply with ethical requirements
use, or disposition of the company’s assets that could have a material
and plan and perform the audit to obtain reasonable assurance
effect on the financial statements.

288
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Inherent Limitations of Internal Financial Controls with components of internal control stated in the Guidance Note on Audit
reference to consolidated financial statements of Internal Financial Controls Over Financial Reporting issued by the
Institute of Chartered Accountants of India.
Because of the inherent limitations of internal financial controls
with reference to consolidated financial statements, including the
possibility of collusion or improper management override of controls,
Other Matters
material misstatements due to error or fraud may occur and not be Our aforesaid report under Section 143(3)(i) of the Act on the adequacy
detected. Also, projections of any evaluation of the internal financial and operating effectiveness of the internal financial controls with
controls with reference to consolidated financial statements to future reference to consolidated financial statements insofar as it relates
periods are subject to the risk that the internal financial control to, 11 subsidiary companies, 3 associate companies, which are
with reference to consolidated financial statements may become companies incorporated in India, is based solely on the corresponding
inadequate because of changes in conditions, or that the degree of reports of the auditors of such companies incorporated in India.
compliance with the policies or procedures may deteriorate.
Our opinion is not modified in respect of the above matters.
Opinion

In our opinion to the best of our information and according to the

explanations given to us and based on the consideration of the reports
of the other auditors referred to in the Other Matters paragraph
For Deloitte Haskins & Sells
below, the Parent and its subsidiary companies, associate companies,
Chartered Accountants
which are companies incorporated in India, have, in all material
(Firm’s Registration No. 008072S)
respects, an adequate internal financial controls with reference to
consolidated financial statements and such internal financial controls
with reference to consolidated financial statements were operating Vikas Bagaria
effectively as at 31 March 2023, based on the criteria for internal (Partner)
financial control with reference to consolidated financial statements Place: Bengaluru (Membership No. 60408)
established by the respective companies considering the essential Date: 25 May 2023 (UDIN: 23060408BGYGPC1639)

289
Aster DM Healthcare Limited

Consolidated Balance Sheet as at 31 March 2023

All amounts in INR crores, unless otherwise stated
As at As at
Particulars Note
31 March 2023 31 March 2022
Assets
Non-current assets
Property, plant and equipment 4.1 4,628.55 3,357.88
Capital work-in-progress 4.2 255.09 977.67
Right-of-use assets 40 2,919.98 2,304.82
Goodwill 5 1,159.67 1,087.91
Other intangible assets 5 344.21 258.02
Intangible assets under development 4.2 23.87 20.07
Financial assets
Investments 6 68.30 38.19
Loans 7 111.90 28.07
Other financial assets 8 210.13 180.02
Deferred tax assets (net) 28 45.57 25.00
Income tax assets (net) 29 79.24 97.51
Other non-current assets 9 113.13 74.62
Total non-current assets 9,959.64 8,449.78
Current assets
Inventories 10 1,305.62 1,025.68
Financial assets
Investments 6 11.25 6.64
Trade receivables 11 2,336.31 2,020.52
Cash and cash equivalents 12 378.53 343.37
Other bank balances 13 50.03 36.24
Other financial assets 8 188.83 168.15
Other current assets 9 650.99 495.86
Total current assets 4,921.56 4,096.46
Total assets 14,881.20 12,546.24
Equity and liabilities
Equity
Equity share capital 14 499.52 499.52
Other equity 3,948.55 3,453.89
Equity attributable to owners of the Company 4,448.07 3,953.41
Non-controlling interests 36B 412.39 529.21
Total equity 4,860.46 4,482.62
Liabilities
Non-current liabilities
Financial liabilities
Borrowings 15 1,312.30 1,466.40
Lease liabilities 40 3,154.41 2,472.92
Other financial liabilities 16 216.49 11.66
Provisions 17 407.12 358.94
Deferred tax liabilities (net) 28 238.06 168.93
Other non-current liabilities 18 37.08 26.19
Total non-current liabilities 5,365.46 4,505.04
Current liabilities
Financial liabilities
Borrowings 15 975.18 725.76
Lease liabilities 40 258.41 242.05
Trade payables 19
- Total outstanding dues of micro and small enterprises 15.58 14.43
- Total outstanding dues of creditors other than micro and small enterprises 2,972.19 2,103.66
Other financial liabilities 16 109.61 221.78
Provisions 17 109.28 93.30
Current tax liabilities (net) 29 19.32 10.63
Other current liabilities 18 195.71 146.97
Total current liabilities 4,655.28 3,558.58
Total equity and liabilities 14,881.20 12,546.24

The accompanying notes form an integral part of the consolidated financial statements.
As per our report of even date attached
for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

290
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Consolidated Statement of Profit and Loss for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated
For the year ended For the year ended
Particulars Note
31 March 2023 31 March 2022
Income
Revenue from operations 20 11,932.88 10,253.28
Other income 21 78.25 50.66
Total income 12,011.13 10,303.94
Expenses
Purchases of medicines and consumables 22 3,811.75 3,068.46
Changes in inventories 23 (279.93) (176.69)
Professional fees to consultant doctors 1,038.34 814.77
Laboratory outsourcing charges 70.64 254.73
Employee benefits expense 24 3,965.22 3,264.46
Finance costs 25 329.22 257.02
Depreciation and amortisation expenses 26 780.44 640.58
Other expenses 27 1,761.59 1,544.30
Total expenses 11,477.27 9,667.63
Profit before share of profit of equity accounted investees and tax 533.86 636.31
Share of profit of equity accounted investees and tax 39 1.22 0.54
Profit before tax 535.08 636.85
Tax expense
Current tax 29 73.95 45.54
Current tax for earlier years 11.88 (1.73)
Deferred tax 28 (26.24) (8.01)
Total Tax expense 59.59 35.80
Profit for the year 475.49 601.05
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Remeasurement of net defined benefit liability 37.53 43.88
Income tax on items that will not be reclassified subsequently to profit or loss 0.03 (0.90)
Items that will be reclassified subsequently to profit or loss
Exchange difference in translating financial statements of foreign operations 234.64 73.27
Income tax on items that will be reclassified subsequently to profit or loss (73.25) (22.80)
Other comprehensive income, net of taxes 198.95 93.45
Total comprehensive income for the year 674.44 694.50
Profit attributable to
Owners of the Company 424.91 525.99
Non-controlling interests 50.58 75.06
Profit for the year 475.49 601.05
Other comprehensive income attributable to
Owners of the Company 173.91 82.66
Non-controlling interests 25.04 10.79
Other comprehensive income for the year 198.95 93.45
Total comprehensive income attributable to
Owners of the Company 598.82 608.65
Non-controlling interests 75.62 85.85
Total comprehensive income for the year 674.44 694.50
Earnings per share (equity share of face value of INR 10 each) 32
Basic (in INR) 8.54 10.58
Diluted (in INR) 8.53 10.57

The accompanying notes form an integral part of the consolidated financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

291
Aster DM Healthcare Limited

Consolidated Statement of Cash Flows for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Cash flows from operating activities
Profit before tax 535.08 636.85
Adjustments for
Depreciation and amortisation expenses 780.44 640.58
(Profit)/loss on sale of property, plant and equipment (5.78) 2.81
Allowance for credit losses on financial assets 169.64 240.08
Dividend income (0.31) (0.97)
Equity settled share based payments 0.67 (0.13)
Share of (profit)/ loss of equity accounted investees (1.22) (0.54)
Finance costs 329.22 257.02
Interest income (2.70) (2.72)
Operating cash flows before movements in working capital 1,805.04 1,772.98
Working Capital Changes
Changes in inventories (192.98) (144.60)
Changes in trade receivable (318.47) (182.36)
Changes in other financial assets, loans and other assets (177.92) (194.99)
Changes in liabilities and provisions 777.26 120.13
Cash generated from operation 1,892.93 1,371.16
Income tax paid, net (58.95) (57.12)
Net cash generated from operating activities (A) 1,833.98 1,314.04
Cash flows from investing activities
Acquisition of property, plant and equipment and capital work-in-progress (716.85) (483.04)
Acquisition of other intangible assets (131.03) (64.93)
Proceeds from disposal of property, plant and equipment 8.88 4.06
Interest received 1.91 2.23
Investments in liquid mutual fund units/ disposal of investments (4.61) 17.49
Investment/ repayment of advance in shares of associates and others (113.65) (31.89)
Dividend received 0.31 0.97
Acquisition of subsidiary, net of cash and cash equivalents acquired (16.84) (15.37)
Net cash (used) in investing activities (B) (971.88) (570.48)
Cash flows from financing activities
Non-current borrowings availed 357.50 67.38
Non-current borrowings repaid (601.80) (366.62)
Current borrowing movement (net) 189.28 119.64
Acquisition of non-controlling interest (140.79) (27.05)
Lease payments (445.34) (336.72)
Dividend paid to non-controlling interest by subsidiaries, including tax (27.28) (20.14)
Finance cost (148.96) (122.49)
Net cash (used in) financing activities (C) (817.39) (686.00)
Net increase in cash and cash equivalents (A+B+C) 44.71 57.56
Cash and cash equivalents at the beginning of the year* 299.33 234.55
Effect of exchange rate changes on cash and cash equivalents 21.03 7.22
Cash and cash equivalents at the end of the year* 365.07 299.33

(refer note 12- Cash and cash equivalents)

* Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of Group's cash management.

292
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Consolidated Statement of Cash Flows for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated
Components of cash and cash equivalents

As at As at
Particulars 31 March 2023 31 March 2022
(Audited) (Audited)
Cash and cash equivalents comprises of :
a) Cash on hand 19.39 17.84
b) Balance with banks 358.68 325.53
c) Cash-in-transit/cheque in hand 0.46 -
378.53 343.37
Less : Book overdraft (13.46) (44.04)
365.07 299.33

Changes in financial liabilities arising from financing activities for the year ended 31 March 2023
Non-cash changes
As at Cash Cash Foreign Fair value/ As at
Particulars
31 March 2022 inflows outflows Addition exchange other 31 March 2023
Movement changes
Non-current borrowings 1,901.55 357.50 (601.80) - 127.81 - 1,787.16
(including current maturities)
Current borrowings (net) 290.61 189.28 - - 20.43 - 500.32
Lease liabilities 2,714.97 - (445.34) 756.43 207.30 179.46 3,412.82
Total 4,907.13 546.78 (1,047.14) 756.43 355.54 179.46 5,700.30

Changes in financial liabilities arising from financing activities for the year ended 31 March 2022
Non-cash changes
As at Cash Cash Foreign Fair value/ As at
Particulars
31 March 2021 inflows outflows Addition exchange other 31 March 2022
Movement changes
Non-current borrowings 2,149.67 67.38 (366.62) - 51.12 - 1,901.55
(including current maturities)
Current borrowings (net) 159.40 119.64 - - 11.57 - 290.61
Lease liabilities 2,494.58 - (366.72) 354.12 67.64 135.35 2,714.97
Total 4,803.65 187.02 (703.34) 354.12 130.33 135.35 4,907.13

The accompanying notes form an integral part of the consolidated financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

293
294
Consolidated Statement of Changes in Equity for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

A. Equity share capital

No. of equity shares
Particulars Note Amount
(In crores)
Balance as at 1 April 2021 49.95 499.52
Aster DM Healthcare Limited

Changes in equity share capital during 2021-22 14 - -

Balance as at 31 March 2022 49.95 499.52
Changes in equity share capital during 2022-23 14 - -
Balance as at 31 March 2023 49.95 499.52

B Other equity
Items of other
Reserves and surplus
comprehensive income
Equity Attributable
Exchange Total
component of to
difference in attributable
compulsorily non-
Particulars Capital translating Remeasurement to owners Total
convertible Securities Capital General Treasury Other Retained controlling
Redemption financial of net defined of the
preference premium reserve reserve shares reserves earnings interest
Reserve statements benefit plan Company
shares (NCI)
of foreign
operations
Balance as at 1 April 2021 374.38 2,215.93 104.79 7.04 5.71 (15.71) 83.99 (99.06) 195.88 - 2,872.95 461.66 3,334.61
Total comprehensive income for the
year ended 31 March 2022
Profit for the year - - - - - - - 525.99 - - 525.99 75.06 601.05
Other comprehensive (loss) for the - - 1.44 - - - - - 41.84 39.38 82.66 10.79 93.45
year, net of tax
Total comprehensive income / (loss) 374.38 2,215.93 106.23 7.04 5.71 (15.71) 83.99 426.93 237.72 39.38 3,481.60 547.51 4,029.11
Transferred to retained earnings - - - - - - - 39.38 - (39.38) - - -
Transactions with owners, recorded
directly in equity
Allotment of equity shares by ESOP - 1.60 - - - - (2.21) - - - (0.61) - (0.61)
trust
Change in reserve of ESOP Trust - - - - - 1.18 - - - - 1.18 - 1.18
Equity settled share based payment - - - - - - (0.12) - - - (0.12) - (0.12)
expense
Transfer to statutory reserve - - - - - - 23.17 (23.17) - - - - -
Loss on sale of land to the extent of - - - - - - - (1.40) - - (1.40) - (1.40)
revaluation
 Consolidated Statement of Changes in Equity for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated
B Other equity (Contd..)
Items of other
Reserves and surplus
comprehensive income
Equity Attributable
Exchange Total
component of to
difference in attributable
compulsorily non-
Particulars Capital translating Remeasurement to owners Total
convertible Securities Capital General Treasury Other Retained controlling
Redemption financial of net defined of the
preference premium reserve reserve shares reserves earnings interest
Reserve statements benefit plan Company
shares (NCI)
Integrated Annual Report FY 2022-2023

of foreign
operations
Changes in ownership interests
without loss of control
Transactions with non-controlling - - - - - - - (26.76) - - (26.76) 1.84 (24.92)
interests
Dividend paid to non-controlling - - - - - - - - - - - (20.14) (20.14)
interest
Total contributions by and - 1.60 - - - 1.18 20.84 (11.95) - (39.38) (27.71) (18.30) (46.01)
distributions to owners
Balance as at 31 March 2022 374.38 2,217.53 106.23 7.04 5.71 (14.53) 104.83 414.98 237.72 - 3,453.89 529.21 3,983.10

Items of other
Reserves and surplus
comprehensive income
Equity
Exchange Attributable
component of Total
difference in to non-
compulsorily attributable
Particulars Capital translating Remeasurement controlling Total
convertible Securities Capital General Treasury Other Retained to owners of
Redemption financial of net defined interest
preference premium reserve reserve shares reserves earnings the Company
Reserve statements benefit plan (NCI)
shares
of foreign
operations
Balance as at 1 April 2022 374.38 2,217.53 106.23 7.04 5.71 (14.53) 104.83 414.98 237.72 - 3,453.89 529.21 3,983.10
Total comprehensive income
for the year ended 31 March
2023
FINANCIAL STATEMENTS

Profit for the year - - - - - - - 424.91 - - 424.91 50.58 475.49

Other comprehensive income - - 3.57 - - - - - 136.28 34.06 173.91 25.04 198.95
for the year, net of tax
Total comprehensive income 374.38 2,217.53 109.80 7.04 5.71 (14.53) 104.83 839.89 374.00 34.06 4,052.71 604.83 4,657.54

295
296
Consolidated Statement of Changes in Equity for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated
B Other equity (Contd..)
Items of other
Reserves and surplus
comprehensive income
Equity
Exchange Attributable
component of Total
difference in to non-
Aster DM Healthcare Limited

compulsorily attributable
Particulars Capital translating Remeasurement controlling Total
convertible Securities Capital General Treasury Other Retained to owners of
Redemption financial of net defined interest
preference premium reserve reserve shares reserves earnings the Company
Reserve statements benefit plan (NCI)
shares
of foreign
operations
Transferred to retained - - - - - - 34.06 - (34.06) - - -
earnings
Transactions with owners,
recorded directly in equity
Allotment of equity shares by - 1.64 - - - - (1.64) - - - - - -
ESOP trust
Change in reserve of ESOP - - - - - 1.04 - - - - 1.04 - 1.04
Trust
Equity settled share based - - - - - - 0.61 - - - 0.61 - 0.61
payment expense
Transfer to statutory reserve - - - - - - 1.79 (1.79) - - - - -
Loss on sale of land to the - - - - - - - (5.49) - - (5.49) - (5.49)
extent of revaluation
Changes in ownership
interests without loss of
control
Gross Obligation under - - - - - - - (38.33) - - (38.33) (91.18) (129.51)
written put option on Non
-controlling interest
Transactions with non- - - 2.33 - - - - (64.32) - - (61.99) (73.98) (135.97)
controlling interests
Dividend paid to non- - - - - - - - - - - - (27.28) (27.28)
controlling interest
Total contributions by and - 1.64 2.33 - - 1.04 0.76 (75.87) - (34.06) (104.16) (192.44) (296.60)
distributions to owners
Balance as at 31 March 2023 374.38 2,219.17 112.13 7.04 5.71 (13.49) 105.59 764.02 374.00 - 3,948.55 412.39 4,360.94
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Consolidated Statement of Changes in Equity for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

B Other equity (Contd..)

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

Equity component of compulsorily convertible preference shares

Other components of equity represent the equity component of compulsorily convertible preference shares.

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.

Capital Redemption Reserve

Capital Redemption Reserve is created out of the Securities Premium/General Reserve, a sum equal to nominal value of the share capital
extinguished on buy back of fully paid up own equity shares of the Company . The amount credited to such account may be applied in paying
up unissued shares of the Company to be issued to members of the Company as fully paid bonus shares.

Capital reserve
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.

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.

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

The exchange differences arising from the translation of financial statements of foreign operations from their functional currencies to
Indian Rupee are recognised in other comprehensive income and is presented within equity as Exchange difference in translating financial
statements of foreign operations.

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.

The accompanying notes form an integral part of the consolidated financial statements.

As per our report of even date attached

for Deloitte Haskins & Sells for and on behalf of the Board of Directors of
Chartered Accountants Aster DM Healthcare Limited
Firm registration number: 008072S CIN : L85110KA2008PLC147259

Vikas Bagaria Dr. Azad Moopen T J Wilson Hemish Purushottam

Partner Chairman and Managing Director Director Company Secretary
Membership No.: 60408 DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

297
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

1. Group overview Items Measurement basis

Aster DM Healthcare Limited (“the Company”) primarily carries Net defined benefit liability Fair value of plan asset less
present value of defined
on the business of rendering healthcare and allied services in
benefit obligations
India. The Group is a public limited Group and is listed on the
Bombay Stock Exchange Limited and National Stock Exchange 2.4 Use of estimates and judgements
Limited. The registered office of the Group is in Bengaluru,
In preparing these consolidated financial statements, the
Karnataka, India.
Management has made judgements, estimates and assumptions
These consolidated financial statements of the Group as at that affect the application of accounting policies and the reported
and for the year ended 31 March 2023 comprise the financial amounts of assets, liabilities, income, and expenses. Actual
statements of the Group and its subsidiaries (collectively results may differ from these estimates.
referred to as “Group”) and the Group’s interest in Associates.
Estimates and underlying assumptions are reviewed by the
The Group is primarily involved in the operations of healthcare
Management on an ongoing basis. Revisions to accounting
facilities, retail pharmacies, and providing consultancy in areas
estimates are recognised prospectively.
relating to healthcare. The Group has operations in United Arab
Emirates (‘UAE’), Kingdom of Saudi Arabia (KSA), Oman, Qatar, Information about judgements, assumptions and estimation
Jordan, Bahrain and India. uncertainties that have a significant risk of resulting in a material
adjustment during the year ended 31 March 2023 is included in
2. Basis of preparation the following notes:

2.1 Statement of compliance - Note 4 and 5 - Measurement of useful life and residual value
of property, plant and equipment and intangible assets;
These consolidated financial statements (the 'financial
statements') have been prepared in accordance with the Indian - Note 5 - Impairment of non-financial assets; including
Accounting Standards (“Ind AS”) as per the Companies (Indian goodwill;
Accounting Standards) Rules, 2015, as amended, and the
relevant amended rules prescribed under Section 133 of the - Note 6 - Valuation of investments
Companies Act, 2013 ('the Act'), read with relevant rules issued
- Note 31 - Measurement of defined benefit obligations: key
thereunder.
actuarial assumptions;
The consolidated financial statements were authorised for issue
- Note 28 - Recognition of deferred tax asset: availability
by the Group’s Board of Directors on 25 May 2023.
of future taxable profit against which tax losses carried
Details of the Group’s accounting policies are included in note 3. forward can be used;

2.2 Functional and presentation currency - Note 33 - Recognition and measurement of provisions and
contingencies: key assumptions about the likelihood and
These consolidated financial statements are presented in Indian magnitude of an outflow of resources;
Rupees (INR), which is also the Group’s functional currency,
and have been rounded off to nearest crores, unless otherwise - Note 35 - Impairment of financial assets;
indicated.
- Note 38 - Acquisition of subsidiary: fair value of consideration
2.3 Basis of measurement transferred (including contingent consideration)

The consolidated financial statements have been prepared on - Note 39 - Equity accounted investees: whether the Group
the historical cost basis except for the following items: has significant influence over an investee and

Items Measurement basis - Note 40 - Leases;

Certain financial assets and Fair value
- Note 41 - Employee share-based payment expenses.
liabilities (including derivatives
instruments) 2.5 Measurement of fair values
Contingent consideration in Fair value
business combination A number of the Group’s accounting policies and disclosures
Liabilities for equity-settled Fair value require the measurement of fair values, for both financial and
share-based payment non-financial assets and liabilities. The Group has an established
arrangements control framework with respect to the measurement of fair

298
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

values. Significant valuation issues are reported to the Group’s As part of transition to Ind AS, the Group has elected
audit committee. to apply the relevant Ind AS, viz. Ind AS 103, Business
Combinations, to only those business combinations that
Fair values are categorised into different levels in a fair value occurred after 1 April 2015. In accordance with Ind AS 103,
hierarchy based on the inputs used in the valuation techniques the Group accounts for these business combinations using
as follows: the acquisition method when control is transferred to the
Group (see Note 3.1 (ii)). The consideration transferred for
- Level 1: quoted prices (unadjusted) in active markets for
the business combination is generally measured at fair
identical assets or liabilities;
value as at the date the control is acquired (acquisition date),
- Level 2: inputs other than quoted prices included in Level 1 as are the net identifiable assets acquired. Any goodwill
that are observable for the asset or liability, either directly that arises is tested annually for impairment. Any gain on
(i.e., as prices) or indirectly (i.e., derived from prices); and bargain purchase is recognised in OCI and accumulated in
equity as capital reserve if there exist clear evidence of the
- Level 3: inputs for the asset or liability that are not based on underlying reason for classifying the business combination
observable market data (unobservable inputs). as resulting in bargain purchase; otherwise the gain is
recognised directly in equity as capital reserve. Transaction
When measuring the fair value of an asset or a liability, the
cost are expensed as incurred, except to the extent related
Group uses observable market data as far as possible. If the
to debt or equity securities.
inputs used to measure the fair value of an asset or a liability
fall into different levels of the fair value hierarchy, then the fair The consideration transferred does not include amounts
value measurement is categorised in its entirety in the same related to the settlement of pre-existing relationships with
level of the fair value hierarchy as the lowest level input that is the acquiree. Such amounts are generally recognised in the
significant to the entire measurement. statement of profit and loss

The Group recognises transfers between levels of the fair value Any contingent consideration is measured at fair value at
hierarchy at the end of the reporting period during which the the date of acquisition. If an obligation to pay contingent
change has occurred. consideration that meets the definition of a financial
instrument is classified as equity, then it is not remeasured
Further information about the assumptions made in measuring
subsequently and settlement is accounted for within equity.
fair values is included in the following notes:
Other contingent consideration is remeasured at fair value
- Share-based payment arrangements; at each reporting date and changes in the fair value of the
contingent consideration are recognised in the statement of
- Financial instruments; and profit and loss.

- Fair value of property, plant and equipment and intangible If business combination is achieved in stages, any previous
assets. held equity interest in the acquire is re-measured to its
acquisition date fair value and any resulting gain or loss
2.6 Recent accounting pronouncements is recognised in the statement of profit or loss or OCI, as
Ministry of Corporate Affairs (“MCA”) notifies new standards or appropriate.
amendments to the existing standards under Companies (Indian
Business combination prior to 1 April 2015
Accounting Standards) Rules as issued from time to time. On 31
March 2023, MCA amended the Companies (Indian Accounting In respect of such business combinations, goodwill
Standards) Amendment Rules, 2023. The effective date for represents the amount recognised under the Group’s
adoption of the amendments is annual periods beginning on or previous accounting framework under Indian GAAP.
after 1 April 2023. The Group is evaluating the amendments
on its financial statements and does not expect to have any ii. Subsidiaries:
significant impact.
Subsidiaries are entities controlled by the Group. The Group
controls an entity when it is exposed to, or has right to,
3. Significant accounting policies variable returns from its involvement with the entity and
has the ability to affect those returns through its power
3.1 Basis of consolidation over the entity. The financial statements of subsidiaries are
i. Business Combination: included in the consolidated financial statements from the
date on which control commences until the date on which
Business combinations (other than common control business control ceases.
combinations) on or after 1 April 2015

299
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

iii. Non-controlling interests (NCI) exchange rate at the reporting date. Non-monetary assets
and liabilities that are measured at fair value in a foreign
NCI are measured at their proportionate share of the
currency are translated into the functional currency at the
acquiree’s net identifiable assets at the date of acquisition.
exchange rate when the fair value was determined. Non-
Changes in the Group’s equity interest in a subsidiary that monetary assets and liabilities that are measured based
do not result in a loss of control are accounted for as equity on historical cost in a foreign currency are translated at
transactions. the exchange rate at the date of the transaction. Exchange
differences are recognised in statement of profit and loss.
iv. Loss of control:
ii. Foreign operations:
When the Group loses control over a subsidiary, it
derecognises the assets and liabilities of the subsidiary, and The assets and liabilities of foreign operations (subsidiaries
any related NCI and other component of equity. Any interest and associates), including goodwill and fair value
retained in the former subsidiary is measured at fair value adjustments arising on acquisition, are translated into at
at the date the control is lost. Any resulting gain or loss is the exchange rates at the reporting date. The income and
recognised in the statement of profit and loss. expenses of foreign operations are translated into at the
exchange rates at the dates of the transactions.
v. Equity accounted investees:
In accordance with Ind AS 101, the Group has elected to
The Group’s interest in equity accounted investees comprise
deem foreign currency translation differences that arose
interest in associates.
prior to the date of transition to Ind AS, i.e. 1 April 2015,
An associate is an entity in which the Group has significant in respect of all foreign operations to be nil at the date of
influence, but not control or joint control, over the financial transition. From 1 April 2015 onwards, such exchange
and operating policies. differences are recognised in OCI and accumulated in
equity (as exchange difference on translating the financial
Interest in associates are accounted for using the equity statements of foreign operations), except to the extent that
method. They are initially recognised at cost which includes the exchange differences are allocated to NCI.
transaction costs. Subsequent to initial recognition, the
consolidated financial statements include the Group’s share When a foreign operation is disposed off in its entirety or
of profit or loss and OCI of equity accounted investment. partially such that control or significant influence is lost, the
cumulative amount in the translation reserve related to that
vi. Transactions eliminated on consolidation foreign operation is reclassified to the statement of profit
and loss as part of the gain or loss on disposal. If the Group
Intra group balances and transactions, and any unrealised disposes off part of its interest in a subsidiary but retains
income and expenses arising from intra group transactions control, then the relevant proportion of the cumulative
are eliminated. Unrealised gain arising from transaction amount is reattributed to NCI. When the Group disposes
with equity accounted investees are eliminated against off only part of an associate while retaining significant
the investment to the extent the Group’s interest in the influence, the relevant proportion of the cumulative amount
investee. Unrealised losses are eliminated in the same way is reclassified to the statement of profit and loss.
as unrealised gains, but only to the extent that there is no
evidence of impairment. 3.3 Property, plant and equipment

The subsidiaries and associates consolidated under the i. Recognition and measurement
Group comprise the entities listed in Note 37.
Items of property, plant and equipment are measured
3.2 Foreign currency at cost, which includes capitalised borrowing costs, less
accumulated depreciation and accumulated impairment
i. Foreign currency transactions: losses, if any.

Transactions in foreign currencies are translated into the Cost of an item of property, plant and equipment comprises
functional currency of the Group companies at the exchange its purchase price, including import duties and non-
rates at the dates of the transactions or an average rate if refundable purchase taxes, after deducting trade discounts
the average rate approximates the actual rate at the date of and rebates, any directly attributable cost of bringing
the transaction. the item to its working condition for its intended use and
estimated costs of dismantling and removing the item and
Monetary assets and liabilities denominated in foreign
restoring the site on which it is located.
currencies are translated into the functional currency at the

300
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

The cost of a self-constructed item of property, plant and Depreciation method, useful lives and residual values
equipment comprises the cost of materials and direct labour, are reviewed at each financial year-end and adjusted if
any other costs directly attributable to bringing the item to appropriate.
working condition for its intended use, and estimated costs
of dismantling and removing the item and restoring the site 3.4 Intangible assets
on which it is located. Goodwill:
If significant parts of an item of property, plant and For measurement of goodwill that arise on business combination
equipment have different useful lives, then they are [see note 3.1(i)] subsequent measurement is at cost less any
accounted for as separate items (major components) of accumulated impairment loss.
property, plant and equipment.
Intangible assets other than goodwill acquired separately:
Any gain or loss on disposal of an item of property, plant and
equipment is recognised in the statement of profit and loss. Intangible assets with finite useful lives that are acquired
separately are carried at cost less accumulated amortisation
Advances paid towards the acquisition of property, plant and and accumulated impairment losses. Intangible assets are
equipment, outstanding at each balance sheet date are shown amortised over their respective individual estimated useful lives
under other non-current assets. The cost of property, plant on a straight-line basis, commencing from the date the asset is
and equipment not ready for its intended use at each balance available to the Group for its use and is included in depreciation
sheet date are disclosed as capital work-in-progress. and amortisation expenses in the statement of profit and loss.
The estimated useful life and amortisation method are reviewed
ii. Subsequent expenditure and derecognition at the end of each reporting period, with the effect of any
changes in estimate being accounted for on a prospective basis.
Subsequent expenditure is capitalised only if it is probable
that the future economic benefits associated with the The estimated useful lives for the current and comparative years
expenditure will flow to the Group. are as follows:

An item of property, plant and equipment is derecognised Class of assets Useful life (in years)
upon disposal or when no future economic benefits are
Software 3 to 6
expected to arise from the continued use of the asset. The
Trademarks and trade name 5 to 10
gain or loss arising on the disposal or retirement of an asset
Payor/customer relationship 10
is determined as the difference between the net disposal
proceeds and the carrying amount of the asset and is The estimated useful life of an identifiable intangible asset
recognised in the statement of profit and loss. is based on a number of factors including the effects of
iii. Depreciation obsolescence, demand, competition and other economic factors
(such as the stability of the industry and known technological
Depreciation on property, plant and equipment are provided advances) and the level of maintenance expenditures required to
on the straight-line method over the useful lives of the assets obtain the expected future cash flows from the asset.
estimated by the Management. Depreciation for assets
purchased / sold during a period is proportionately charged. An intangible asset is derecognised on disposal, or when no
Leasehold improvements are amortized over the lease term future economic benefits are expected from use or disposal.
or useful lives of assets, whichever is lower. The estimated Gains or losses arising from derecognition of an intangible asset,
useful lives of items of property, plant and equipment for the measured as the difference between the net disposal proceeds
current and comparative years are as follows: and the carrying amount of the asset, are recognised in the
Consolidated statement of profit and loss when the asset is
Class of assets Useful life (in years) derecognised.
Buildings 3 to 60
Internally-generated intangible assets – research and
Plant and machinery* 5 to 15 development expenditure
Medical equipment* 8 to 13
Motor vehicles * 5 to 8 Expenditure on research activities is recognised as an expense in
Computer equipment 3 to 6 the period in which it is incurred.
Furniture and fixtures * 5 to 10
An internally-generated intangible asset arising from
* For the above-mentioned classes of assets, the Group believes that the development (or from the development phase of an internal
useful lives as given above best represent the useful lives of these assets
based on internal assessment and supported by technical advice, where project) is recognised if, and only if, all of the following conditions
necessary, which is different from the useful lives as prescribed under have been demonstrated:
Part C of Schedule II of the Companies Act, 2013.

301
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

- the technical feasibility of completing the intangible asset 3.6 Impairment

so that it will be available for use or sale;
i. Impairment of financial assets
- the intention to complete the intangible asset and use or The Group recognises loss allowances for expected credit
sell it; losses (‘ECL’) on financial assets measured at amortised
cost.
- the ability to use or sell the intangible asset;
At each reporting date, the Group assesses whether financial
- how the intangible asset will generate probable future
assets carried at amortised cost are credit impaired. A
economic benefits;
financial asset is ‘credit impaired’ when one or more events
- the availability of adequate technical, financial and other that have a detrimental impact on the estimated future
resources to complete the development and to use or sell cash flows of the financial asset have occurred.
the intangible asset; and
The Group always measures the loss allowance for trade
- the ability to measure reliably the expenditure attributable receivables at an amount equal to lifetime ECL. The expected
to the intangible asset during its development. credit losses on trade receivables are estimated using a
provision matrix by reference to past default experience
The amount initially recognised for internally-generated of the debtors and an analysis of the debtors’ current
intangible assets is the sum of the expenditure incurred from financial position, adjusted for factors that are specific to
the date when the intangible asset first meets the recognition the debtors, general economic conditions of the industry in
criteria listed above. Where no internally-generated intangible which the debtors operate, and an assessment of both the
asset can be recognised, development expenditure is recognised current as well as the forecast direction of conditions at the
in the consolidated statement of profit and loss in the period in reporting date.
which it is incurred.
In all cases, the maximum period considered when estimating
Subsequent to initial recognition, internally-generated intangible expected credit losses is the maximum contractual period
assets are reported at cost less accumulated amortisation and over which the Group is exposed to credit risk.
accumulated impairment losses, on the same basis as intangible
assets that are acquired separately. When determining whether the credit risk of a financial
asset has increased significantly since initial recognition
Subsequent expenditure is capitalised only when it increases the and when estimating expected credit losses, the Group
future economic benefits embodied in the specific asset to which considers reasonable and supportable information that is
it relates. All other expenditure is recognised in the consolidated relevant and available without undue cost or effort. This
statement of profit and loss as incurred. includes both quantitative and qualitative information and
analysis, based on the Group’s historical experience and
An intangible asset is derecognised on disposal, or when no
informed credit assessment and including forward looking
future economic benefits are expected from use or disposal.
information.
Gains or losses arising from derecognition of an intangible asset,
measured as the difference between the net disposal proceeds Measurement of expected credit losses
and the carrying amount of the asset, are recognised in the
Expected credit losses are a probability weighted estimate
consolidated statement of profit and loss when the asset is
of credit losses. Credit losses are measured as the present
derecognised.
value of all cash shortfalls (i.e., the difference between the
cash flows due to the Group in accordance with the contract
3.5 Inventories
and the cash flows that the Group expects to receive).
Inventories are measured at the lower of cost and net realisable
Presentation of allowance for expected credit losses in the
value. The cost of inventories comprises purchase price, and
standalone balance sheet:
other cost incurred in bringing the inventories to their present
location and condition. The Group uses the weighted average Loss allowances for financial assets measured at amortised
method to determine the cost of inventory consisting of cost are deducted from the gross carrying amount of the
medicines and medical consumables. assets.

Net realisable value is the estimated selling price in the ordinary Write-off
course of business less the estimated costs of completion and the The gross carrying amount of a financial asset is written
estimated costs necessary to make the sale. The comparison of off (either partially or in full) to the extent that there is no
cost and net realisable values is made on an item-by-item basis. realistic prospect of recovery. This is generally the case

302
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

when the Group determines that the debtor does not have 3.7 Employee benefits
assets or sources of income that could generate sufficient
Short-term employee benefits
cash flows to repay the amounts subject to the write off.
Employee benefits payable wholly within twelve months
ii. Impairment of non- financial assets
of receiving employee services are classified as short-term
The Group’s non-financial assets, other than inventories employee benefits. These benefits include salaries and wages,
and deferred tax assets, are reviewed at each reporting date bonus and ex-gratia. Short-term employee benefit obligations
to determine whether there is any indication of impairment. are measured on an undiscounted basis and are expensed as
If any such indication exists, then the asset’s recoverable the related service is provided. A liability is recognised for the
amount is estimated to determine the extent of impairment amount expected to be paid e.g., under short-term cash bonus,
loss, if any. if the Group has a present legal or constructive obligation to pay
this amount as a result of past service provided by the employee
For impairment testing, assets that do not generate and the amount of obligation can be estimated reliably.
independent cash inflows are grouped together into cash-
generating units (CGUs). Each CGU represents the smallest Post-employment benefits
group of assets that generates cash inflows that are largely
Defined contribution plans
independent of the cash inflows of other assets or CGUs.
A defined contribution plan is a post-employment benefit plan
Goodwill arising from a business combination is allocated to
under which an entity pays fixed contributions and will have
CGUs or groups of CGUs that are expected to benefit from
no legal or constructive obligation to pay further amounts.
the synergies of the combination.
The Group makes specified monthly contributions towards
The recoverable amount of a CGU (or an individual asset) is Government administered provident fund scheme. Obligations
the higher of its value in use and its fair value less costs for contributions to defined contribution plans are recognised as
to sell. Value in use is based on the estimated future cash an employee benefit expense in the statement of profit and loss
flows, discounted to their present value using a pre-tax in the periods during which the related services are rendered by
discount rate that reflects current market assessments of employees.
the time value of money and the risks specific to the CGU (or
Defined Benefit plans
the asset).
Under a defined benefit plan, it is the Group’s obligation to
Intangible assets, intangible assets under development
provide agreed benefits to the employees.
and property, plant and equipment are evaluated for
recoverability whenever events or changes in circumstances The calculation of defined benefit obligation is performed
indicate that their carrying amounts may not be recoverable. annually by a qualified actuary using the projected unit credit
For the purpose of impairment testing, the recoverable method.
amount i.e., the higher of the fair value less cost to sell
and the value-in-use is determined on an individual asset Re-measurements of the net defined benefit liability, which
basis unless the asset does not generate cash flows that comprise actuarial gains and losses are recognised in other
are largely independent of those from other assets. In such comprehensive income (OCI) in the period in which they occur.
cases, the recoverable amount is determined for the CGU to Remeasurements of the net defined benefit liability (asset)
which the asset belongs. recognised in other comprehensive income shall not be reclassified
to consolidated statement of profit and loss in a subsequent
If such assets are considered to be impaired, the impairment to period. However, the Group transfers those amounts recognised in
be recognized in the statement of profit and loss is measured other comprehensive income within equity. The Group determines
by the amount by which the carrying value of the assets the net interest expense on the net defined benefit liability for the
exceeds the estimated recoverable amount of the asset. period by applying the discount rate used to measure the defined
benefit obligation at the beginning of the annual period to the
An impairment loss is reversed in the statement of profit
then-net defined benefit liability, taking into account any changes
and loss if there has been a change in the estimates
in the net defined benefit liability during the period as a result of
used to determine the recoverable amount. The carrying
contributions and benefit payments. Net interest expense and
amount of the asset is increased to its revised recoverable
other expenses related to defined benefit plans are recognised in
amount, provided that this amount does not exceed the
the consolidated statement of profit and loss.
carrying amount that would have been determined (net
of any accumulated amortization or depreciation) had no Other long term employee benefits
impairment loss been recognized for the asset in prior years.

303
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

The Group’s net obligation in respect of long-term employee a comprehensive framework for determining whether, how much
benefits other than post-employment benefits is the amount and when revenue is recognised. Under Ind AS 115, revenue
of future benefit that employees have earned in return for their is recognised when a customer obtains control of the goods
service in the current and prior periods; that benefit is discounted or services in an amount that reflects the consideration which
to determine its present value, and the fair value of any related the Group expects to receive in exchange for those products or
assets is deducted. The obligation is measured on the basis of an services. In calculating the variable considerations, the Group
annual independent actuarial valuation using the projected unit considers the nature and coverage through insurance and other
credit method. Remeasurement gains or losses are recognised in parties, the history of adjustments and rejections, and the
other comprehensive income in the period in which they arise. probability of rejections, discounts, rebates, price concessions, or
other similar items.
Share- based payment transactions
Disaggregation of revenue
The grant date fair value of equity settled share-based payment
awards granted to employees is recognised as an employee The Group disaggregates revenue from hospital services (medical
expense, with a corresponding increase in equity, over the and healthcare services), sale of medicines and other operating
period that the employees unconditionally become entitled to income. The Group believes that this disaggregation best
the awards. The amount recognised as expense is based on the depicts how the nature, amount, timing and certainty of Group’s
estimate of the number of awards for which the related service revenues and cash flows are affected by industry, market and
and non-market vesting conditions are expected to be met, such other economic factors.
that the amount ultimately recognised as an expense is based on
the number of awards that do meet the related service and non- Contract balances
market vesting conditions at the vesting date. For share-based
The Group classifies the right to consideration in exchange for
payment awards with non-vesting conditions, the grant date
sale of services where invoice is raised as trade receivables,
fair value of the share-based payment is measured to reflect
where invoice has not been raised as unbilled revenue and
such conditions and there is no true-up for differences between
advance consideration as advance from customers.
expected and actual outcomes.
Performance obligations and revenue recognition policies
3.8 Provisions (other than employee benefits)
Revenue is measured based on the consideration specified in a
A provision is recognised if, as a result of a past event, the
contract with a customer. The Group recognises revenue when
Group has a present legal or constructive obligation that can
it transfers control over a good or service to a customer. The
be estimated reliably, and it is probable that an outflow of
following details provide information about the nature and timing
economic benefits will be required to settle the obligation. The
of the satisfaction of performance obligations in contracts with
amount recognised as a provision is the best estimate of the
customers, including significant payment terms, and the related
consideration required to settle the present obligation at the
revenue recognition policies.
reporting date, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using
(a) Medical and healthcare services
the cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows (when The Group’s revenue from medical and healthcare services
the effect of the time value of money is material). comprises of income from hospital services.

A contract is considered to be onerous when the expected Revenue from hospital services to patients is recognised
economic benefits to be derived by the Group from the contract as revenue when the related services are rendered unless
are lower than the unavoidable cost of meeting its obligations significant future uncertainties exist. Revenue is also
under the contract. The provision for an onerous contract is recognised in relation to the services rendered to the
measured at the present value of the lower of the expected patients who are undergoing treatment/ observation on the
cost of terminating the contract and the expected net cost of balance sheet date to the extent of the services rendered.
continuing with the contract. Before such a provision is made, the Revenue is recognised net of discounts, concessions given
Group recognises any impairment loss on the assets associated to the patients and estimated disallowances for patients
with that contract. covered under insurance.

3.9 Revenue Unbilled receivable represents value to the extent of medical

and healthcare services are rendered to the patients who
The Group generates revenue from rendering of medical and are undergoing treatment/observation on the balance
healthcare services, sale of medicines and other related activities. sheet date and is not billed as at the balance sheet date.
Ind AS 115, Revenue from Contracts with Customers, establishes

304
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

(b) Sale of medicines the straight-line method from the commencement date
over the shorter of lease term or useful life of right-of-use
Revenue from sale of medical consumables and medicines
asset. The estimated useful lives of right-of-use assets are
within the hospital premises is recognised when the
determined on the same basis as those of property, plant and
control in the goods are transferred to the customer and
equipment. Right-of-use assets are tested for impairment
no significant uncertainty exists regarding the amount
whenever there is any indication that their carrying amounts
of the consideration that will be derived from the sale
may not be recoverable. Impairment loss, if any, is recognised
of the goods and regarding its collection. The amount of
in the consolidated statement of profit and loss.
revenue recognised is net of sales returns, taxes and duties,
wherever applicable. The Group measures the lease liability at the present value of
the lease payments that are not paid at the commencement
(c) Other operating income
date of the lease. The lease payments are discounted using
The Group’s revenue from other operating income comprises the interest rate implicit in the lease, if that rate can be readily
primarily of canteen sales (sales of food and beverages), determined. If that rate cannot be readily determined, the
revenue from courses conducted at the hospital, income Group uses incremental borrowing rate. The lease payments
from revenue sharing agreements. shall include fixed payments, variable lease payments that
depend on an index or rate, initially measured using the index
Revenue from services rendered is based on the or rate at the commencement date, residual value guarantees,
agreements/arrangements with the customers as the exercise price of a purchase option where the Group is
service is performed. Income from sale of food and reasonably certain to exercise that option and payments of
beverages is recognised at a point in time when control is penalties for terminating the lease, if the lease term reflects
transferred. the lessee exercising an option to terminate the lease. The
lease liability is subsequently remeasured by increasing
3.10 Leases
the carrying amount to reflect interest on the lease liability,
Determining whether an arrangement contains a lease reducing the carrying amount to reflect the lease payments
made and remeasuring the carrying amount to reflect any
At inception of an arrangement, it is determined whether
reassessment or lease modifications or to reflect revised
the arrangement is or contains a lease. At inception or on
in-substance fixed lease payments. The Group recognises
reassessment of the arrangement that contains a lease,
the amount of the re-measurement of lease liability due to
the payments and other consideration required by such an
modification as an adjustment to the right-of-use asset and
arrangement are separated into those for the lease and those
the statement of profit and loss depending upon the nature of
for other elements on the basis of their relative fair values.
modification. Where the carrying amount of the right-of-use
i. Company as a lessee asset is reduced to zero and there is a further reduction in the
measurement of the lease liability, the Group recognises any
The Group accounts for each lease component within the remaining amount of the re-measurement in the statement of
contract as a lease separately from non-lease components profit and loss.
of the contract and allocates the consideration in the
contract to each lease component on the basis of the The Group has elected not to apply the requirements of Ind
relative stand-alone price of the lease component and the AS 116, Leases, to short-term leases of all assets that have
aggregate stand-alone price of the non-lease components. a lease term of 12 months or less. The lease payments
associated with these leases are recognized as an expense on
The Group recognises right-of-use asset representing its a straight-line basis over the lease term.
right to use the underlying asset for the lease term at the
lease commencement date. The cost of the right-of-use Variable rents that do not depend on an index or rate are not
asset measured at inception shall comprise of the amount included in the measurement of the lease liability and the
of the initial measurement of the lease liability adjusted for right-of-use asset. The related payments are recognised as
any lease payments made at or before the commencement an expense in the period in which the event or condition that
date less any lease incentives received, plus any initial direct triggers those payments occurs and are included in the line
costs incurred and an estimate of costs to be incurred by the “Other expenses” in the consolidated statement of profit
lessee in dismantling and removing the underlying asset or and loss.
restoring the underlying asset or site on which it is located.
The right-of-use assets is subsequently measured at cost ii. Company as a lessor
less any accumulated depreciation, accumulated impairment At the inception of the lease the Group classifies each of
losses, if any and adjusted for any remeasurement of the its leases as either an operating lease or a finance lease.
lease liability. The right-of-use assets is depreciated using Whenever the terms of the lease transfer substantially

305
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

all the risks and rewards of ownership to the lessee, the items, if any) as adjusted for dividend, interest and other charges
contract is classified as a finance lease. All other leases are to expense or income (net of any attributable taxes) relating to
classified as operating leases. The Group recognises lease the dilutive potential equity shares, by the weighted average
payments received under operating leases as income on a number of equity shares considered for deriving basic earnings
straight- line basis over the lease term. In case of a finance per share and the weighted average number of equity shares
lease, finance income is recognised over the lease term which could have been issued on the conversion of all dilutive
based on a pattern reflecting a constant periodic rate of potential equity shares.
return on the lessor’s net investment in the lease.
Dilutive potential equity shares are deemed converted as of
Amounts due from lessees under finance leases are the beginning of the period unless issued at a later date. In
recognised as receivables at the amount of the Group’s computing dilutive earnings per share, only potential equity
net investment in the leases. When the Group is an shares that are dilutive, i.e., which reduces earnings per share
intermediate lessor, it accounts for its interests in the head or increases loss per share are included. The dilutive potential
lease and the sub-lease separately. It assesses the lease equity shares are adjusted for the proceeds receivable had the
classification of a sub-lease with reference to the right-of- shares been actually issued at fair value (i.e. average market
use asset arising from the head lease, not with reference to value of the outstanding shares). Dilutive potential equity shares
the underlying asset. If a head lease is a short-term lease are determined independently for each period presented. The
to which the Group applies the exemption described above, number of equity shares and potentially dilutive equity shares
then it classifies the sub-lease as an operating lease. are adjusted for share splits/reverse share splits and bonus
shares, as appropriate.
If an arrangement contains lease and non-lease
components, the Group applies Ind AS 115 Revenue from 3.13 Borrowing cost
contracts with customers to allocate the consideration in
Borrowing costs are interest and other costs (including exchange
the contract.
differences relating to foreign currency borrowings to the extent
3.11 Recognition of dividend income, interest income or interest that they are regarded as an adjustment to interest costs)
expense incurred in connection with the borrowing of funds. Borrowing
costs directly attributable to acquisition or construction of an
Dividend income is recognised in the consolidated statement of
asset which necessarily take a substantial period of time to get
profit and loss on the date on which the right to receive payment
ready for their intended use are capitalised as part of the cost of
is established.
that asset until such time as the asset is substantially ready for
Interest on deployment of surplus funds is recognized using the their intended use or sale. Other borrowing costs are recognised
time proportionate method, based on the transactional interest as an expense in the period in which they are incurred.
rates.
3.14 Income tax
Interest income or expense is recognised using the effective Income tax comprises current and deferred tax. It is recognised
interest method. in the statement of profit and loss except to the extent that
it relates to an item recognised directly in equity or in other
The ‘effective interest rate’ is the rate that exactly discounts
comprehensive income.
estimated future cash payments or receipts through the expected
life of the financial instrument to the gross carrying amount of
i. Current tax
the financial asset or the amortised cost of the financial liability.
Current tax comprises the expected tax payable or
In calculating interest income and expense, the effective interest receivable on the taxable income or loss for the year and
rate is applied to the gross carrying amount of the asset (when the any adjustment to the tax payable or receivable in respect of
asset is not credit-impaired) or to the amortised cost of the liability. previous years. The amount of current tax reflects the best
estimate of the tax amount expected to be paid or received
3.12 Earnings / (Loss) per share after considering the uncertainty, if any, related to income
The basic earnings / (loss) per share (‘EPS’) is computed by taxes. It is measured using tax rates (and tax laws) enacted
dividing the net profit / (loss) after tax for the year attributable to or substantively enacted by the reporting date.
equity shareholders by the weighted average number of equity
Current tax assets and current tax liabilities are offset only if
shares outstanding during the year.
there is a legally enforceable right to set off the recognised
Diluted earnings per share is computed by dividing the profit/ amounts, and it is intended to realise the asset and settle
(loss) after tax (including the post tax effect of extraordinary the liability on a net basis or simultaneously.

306
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

A provision is recognised for those matters for which the tax assets and financial liabilities are initially recognised when
determination is uncertain but it is considered probable that the Group becomes a party to the contractual provisions of
there will be a future outflow of funds to a tax authority. the instrument.
The provisions are measured at the best estimate of the
amount expected to become payable. The assessment A financial asset or financial liability is initially measured
is based on the judgement of tax professionals within at fair value, except for trade receivables that do not have
the Group supported by previous experience in respect a significant financing component which are measured
of such activities and in certain cases based on specialist at transaction price. Transaction costs that are directly
independent tax advice. attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
ii. Deferred tax financial liabilities at fair value through profit or loss -
FVTPL) are added to or deducted from the fair value of the
Deferred tax is recognised in respect of temporary differences
financial assets or financial liabilities, as appropriate, on
between the carrying amounts of assets and liabilities
initial recognition. Transaction costs directly attributable to
for financial reporting purposes and the corresponding
the acquisition of financial assets or financial liabilities at
tax bases used for taxation purposes. Deferred tax is also
fair value through profit or loss are recognised immediately
recognised in respect of carried forward tax losses and tax
in the consolidated statement of profit and loss.
credits. Deferred tax assets are recognised to the extent
that it is probable that future taxable profits will be available ii. Classification and subsequent measurement
against which they can be utilised. The existence of unused
tax losses is strong evidence that future taxable profit may Financial assets
not be available. Therefore, in case of a history of recent
On initial recognition, a financial asset is classified as
losses, the Group recognises a deferred tax asset only to the
either at amortised cost, FVTPL or fair value through other
extent that it has sufficient taxable temporary differences
comprehensive income (FVOCI).
or there is convincing other evidence that sufficient taxable
profit will be available against which such deferred tax Financial assets are not reclassified subsequent to their
asset can be realised. Deferred tax assets – unrecognised initial recognition, except if and in the period the Group
or recognised, are reviewed at each reporting date and are changes its business model for managing financial assets.
recognised/ reduced to the extent that it is probable/ no
longer probable respectively that the related tax benefit will A financial asset is measured at amortised cost if it meets
be realised. both of the following conditions:

Deferred tax is measured at the tax rates that are expected - the asset is held within a business model whose
to apply to the period when the asset is realised or the objective is to hold assets to collect contractual cash
liability is settled, based on the laws that have been flows; and
enacted or substantively enacted by the reporting date. The
- the contractual terms of the financial asset give rise on
measurement of deferred tax reflects the tax consequences
specified dates to cash flows that are solely payments
that would follow from the manner in which the Group
of principal and interest on the principal amount
expects, at the reporting date, to recover or settle the
outstanding.
carrying amount of its assets and liabilities.
On initial recognition of an equity investment that is not
Deferred tax assets and liabilities are offset if there is a
held for trading, the Group may irrevocably elect to present
legally enforceable right to offset current tax liabilities and
subsequent changes in the investment’s fair value in OCI
assets, and they relate to income taxes levied by the same
(designated as FVOCI – equity investment). This election is
tax authority on the same taxable entity, or on different tax
made on an investment-by-investment basis.
entities, but they intend to settle current tax liabilities and
assets on a net basis or their tax assets and liabilities will be All financial assets not classified as measured at amortised
realised simultaneously. cost or FVOCI as described above are measured at
FVTPL. This includes all derivative financial assets. On
3.15 Financial instruments
initial recognition, the Group may irrevocably designate a
i. Recognition and initial measurement financial asset that otherwise meets the requirements to
be measured at amortised cost or at FVOCI as at FVTPL if
Trade receivables and debt securities issued are initially
doing so eliminates or significantly reduces an accounting
recognised when they are originated. All other financial
mismatch that would otherwise arise.

307
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

Financial assets: Business model assessment - terms that may adjust the contractual coupon rate,
including variable interest rate features;
The Group makes an assessment of the objective of
the business model in which a financial asset is held - prepayment and extension features; and
at investment level because this best reflects the way
the business is managed and information is provided to - terms that limit the Group’s claim to cash flows from
management. The information considered includes: specified assets (e.g., non-recourse features).

- the stated policies and objectives for each of such Financial assets: Subsequent measurement and gains and
investments and the operation of those policies losses
in practice. These include whether Management’s
strategy focuses on earning contractual interest income, Financial assets These assets are subsequently
maintaining a particular interest rate profile, matching at FVTPL measured at fair value. Net gains
and losses, including any interest or
the duration of the financial assets to the duration
dividend income, are recognised in the
of any related liabilities or expected cash outflows or
consolidated statement of profit and
realising cash flows through the sale of the assets;
loss.
Financial assets These assets are subsequently
- the risks that affect the performance of the business
at amortised measured at amortised cost using
model (and the financial assets held within that
cost the effective interest method.
business model) and how those risks are managed;
The amortised cost is reduced by
impairment losses. Interest income,
- the frequency, volume and timing of sales of financial
foreign exchange gains and losses
assets in prior periods, the reasons for such sales and
and impairment are recognised in
expectations about future sales activity. consolidated statement profit and
loss. Any gain or loss on derecognition
Transfers of financial assets to third parties in transactions
is recognised in the consolidated
that do not qualify for derecognition are not considered sales
statement of profit and loss.
for this purpose, consistent with the Group’s continuing
Equity These assets are subsequently
recognition of the assets. investments at measured at fair value. Dividends
FVOCI are recognised as income in the
Financial assets that are held for trading or are managed
consolidated statement profit and loss
and whose performance is evaluated on a fair value basis unless the dividend clearly represents
are measured at FVTPL. a recovery of part of the cost of the
investment. Other net gains and
Financial assets: Assessment whether contractual cash flows
losses are recognised in OCI and are
are solely payments of principal and interest not reclassified to the consolidated
statement of profit and loss.
For the purposes of this assessment, ‘principal’ is defined
as the fair value of the financial asset on initial recognition. Financial liabilities: Classification, subsequent measurement
‘Interest’ is defined as consideration for the time value of and gains and losses
money and for the credit risk associated with the principal
amount outstanding during a particular period of time and Financial liabilities are classified as measured at amortised
for other basic lending risks and costs (e.g., liquidity risk and cost or FVTPL. A financial liability is classified as FVTPL if
administrative costs), as well as a profit margin. it is classified as held for trading, or it is a derivative or it is
designated as such on initial recognition. Financial liabilities
In assessing whether the contractual cash flows are solely at FVTPL are measured at fair value and net gains and
payments of principal and interest, the Group considers the losses, including any interest expense, are recognised in the
contractual terms of the instrument. This includes assessing consolidated statement of profit and loss.
whether the financial asset contains a contractual term that
could change the timing or amount of contractual cash flows Other financial liabilities are subsequently measured
such that it would not meet this condition. In making this at amortised cost using the effective interest method.
assessment, the Group considers: Interest expense and foreign exchange gains and losses
are recognised in statement of profit and loss. Any gain or
- contingent events that would change the amount or loss on derecognition is also recognised in the consolidated
timing of cash flows; statement of profit and loss.

308
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

iii. Derecognition 3.16 Government Grants

Financial assets Government grants are recognised where there is reasonable

assurance that the grant will be received and all attached
The Group derecognises a financial asset when the conditions will be complied with. Where the Group receives
contractual rights to the cash flows from the financial asset grants relating to assets, including non-monetary grants, the
expire, or it transfers the rights to receive the contractual asset and the related grants are accounted at fair value and
cash flows in a transaction in which substantially all of recognised in the statement of profit and loss over the expected
the risks and rewards of ownership of the financial asset useful life of the asset.
are transferred or in which the Group neither transfers
nor retains substantially all of the risks and rewards of 3.17 Cash-flow statement
ownership and does not retain control of the financial asset.
Cash flows are reported using the indirect method, whereby
If the Group enters into transactions whereby it transfers profit before tax is adjusted for the effects of transactions of a
assets recognised on its balance sheet, but retains either all non-cash nature and any deferrals or accruals of past or future
or substantially all of the risks and rewards of the transferred cash receipts or payments. The cash flows from regular revenue
assets, the transferred assets are not derecognised. generating, investing and financing activities of the Group are
segregated.
Financial liabilities
3.18 Cash and cash equivalents
The Group derecognises a financial liability when its
contractual obligations are discharged or cancelled, or Cash and cash equivalents comprise cash at bank and on hand
expire. The Group also derecognises a financial liability and short-term deposits with an original maturity of three
when its terms are modified and the cash flows under months or less which are subject to insignificant risk of changes
the modified terms are substantially different. In this in value.
case, a new financial liability based on the modified terms
3.19 Operating segments
is recognised at fair value. The difference between the
carrying amount of the financial liability extinguished and A. Basis for segmentation
the new financial liability with modified terms is recognised
An operating segment is a component of the Group that
in the consolidated statement of profit and loss.
engages in business activities from which it may earn
iv. Offsetting revenues and expenses that relate to transactions with any
of the Group’s other components and for which discrete
Financial assets and financial liabilities are offset and the financial information is available. All operating segments’
net amount presented in the balance sheet when, and only operating results are reviewed regularly by the Chief
when, the Group currently has a legally enforceable right Operating Decision Maker (CODM) to make decisions about
to set off the amounts and it intends either to settle them resources to be allocated to the segments and assess their
on a net basis or to realise the asset and settle the liability performance. The accounting principles consistently used
simultaneously. in the preparation of the financial statements are also
consistently applied to record income and expenditure in
v. Derivative financial instruments
individual segments.
The Group holds derivative financial instruments to hedge
its foreign currency and interest rate risk exposures. Refer Note 30 for performance details of the segments.
Derivatives are initially measured at fair value. Subsequent
3.20 Operating cycle
to initial recognition, derivatives are measured at fair value,
and changes therein are recognised in the statement of The operating cycle is the time between the acquisition of assets
profit and loss. for processing and their realisation in cash and cash equivalents.
The Group has identified twelve months as its operating cycle.

309
310
Notes to the consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated
4 Property, plant and equipment and capital work-in-progress

4.1 Property, plant and equipment

Plant and equipment Computer equipment

Freehold Leasehold Furniture Medical Motor
Particulars Buildings (including electrical (including servers Total
land improvements and fixtures equipment vehicles
Aster DM Healthcare Limited

equipments) and networks)

Gross carrying value
Balance as at 1 April 2021 841.63 706.43 1,147.74 436.29 313.39 155.09 1,841.45 57.77 5,499.79
Additions 0.14 26.41 171.87 23.35 35.31 28.66 104.36 3.21 393.31
Acquisition through business - - 0.01 0.03 0.01 0.02 - 0.02 0.09
combinations (refer note 38)
Disposals (4.59) (0.03) (23.55) (2.14) (2.01) (2.34) (10.29) (5.88) (50.83)
Adjustments* (12.93) (17.89) 16.72 - - - - - (14.10)
Exchange difference on translation 2.54 4.69 34.80 10.06 5.14 3.73 32.72 1.56 95.24
Balance as at 31 March 2022 826.79 719.61 1,347.59 467.59 351.84 185.16 1,968.24 56.68 5,923.50
Balance as at 1 April 2022 826.79 719.61 1,347.59 467.59 351.84 185.16 1,968.24 56.68 5,923.50
Additions 0.32 13.48 1,046.14 32.21 37.66 48.26 305.91 11.83 1,495.81
Acquisition through business 15.22 - 3.24 0.56 0.27 0.03 2.30 - 21.62
combinations (refer note 38)
Disposals (5.69) (4.75) (6.44) (17.96) (0.40) (12.91) (81.63) (1.64) (131.42)
Adjustments (49.11) 49.11 0.67 (0.14) 0.04 5.67 (6.28) 0.04 -
Exchange difference on translation 7.31 17.71 128.05 33.15 9.62 15.28 105.27 4.78 321.17
Balance as at 31 March 2023 794.84 795.16 2,519.25 515.41 399.03 241.49 2,293.81 71.69 7,630.68
Accumulated depreciation
Balance as at 1 April 2021 - 129.11 521.61 347.47 181.78 127.24 865.33 47.98 2,220.52
Depreciation for the year - 13.10 87.29 33.59 25.49 27.53 142.57 3.20 332.77
Eliminated on disposals - (0.03) (22.68) (1.94) (1.87) (2.34) (8.00) (5.72) (42.58)
Adjustments* - 13.17 (13.86) - - - - - (0.69)
Exchange difference on translation - 2.19 15.53 8.87 3.63 3.30 20.72 1.36 55.60
Balance as at 31 March 2022 - 157.54 587.89 387.99 209.03 155.73 1,020.62 46.82 2,565.62
Balance as at 1 April 2022 - 157.54 587.89 387.99 209.03 155.73 1,020.62 46.82 2,565.62
Depreciation for the year - 21.72 126.32 24.36 26.32 26.36 151.15 7.96 384.19
Eliminated on disposals - (4.75) (4.14) (17.91) (0.40) (12.87) (81.31) (1.45) (122.83)
Adjustments - - 8.42 (0.38) 0.05 (2.11) (6.02) 0.04 -
Exchange difference on translation - 10.74 46.60 30.33 7.19 12.41 63.62 4.26 175.15
Balance as at 31 March 2023 - 185.25 765.09 424.39 242.19 179.52 1,148.06 57.63 3,002.13
Net carrying value
As at 31 March 2023 794.84 609.91 1,754.16 91.02 156.84 61.96 1,145.75 14.06 4,628.55
As at 31 March 2022 826.79 562.07 759.70 79.60 142.81 29.43 947.62 9.86 3,357.88

For details of property, plant and equipment pledged, refer Note 15.
* During year ended 31 Mar 2022 the Group has reclassified freehold land to current assets since the the same was held for sale and from building to leasehold improvements.
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

4 Property, plant and equipment and capital work-in-progress (Contd..)

4.1.1 The Subsidiary has a hospital situated in Gunadala, Vijayawada which is located on land that has been taken on a sub-lease from Mrs. P
Maha Lakshmi, wife of the Managing Director who had taken it on lease from M/s. Loyola College Society ("Society") vide a lease agreement
dated 21 September 2004. The lease was initially taken for a period of 9 years and 11 months which was renewed for an additional period
of 15 years and 1 month. This additional lease period expired on 31 January 2019.

At the time of entering into the initial lease, a separate intent letter dated 1st May 1994 was also issued by the Society stating that the
Company will have an option to request for renewal of lease for a further period of 25 years from 31 January 2019 based on such terms and
conditions as may be mutually agreed. In accordance with this intent letter, the Management has made an application dated 03 July 2018
to the Society to extend the lease beyond 31 January 2019. However, the Society rejected this application and has issued a notice to the
Company to vacate the premises and to hand over the entire building and structure to the Society.

Aggrieved by this, the Management has filed a legal case against the Society and the matter is presently sub-judice. The Company had
received injunction orders in its favour from the Court of the II.Addl. District Judge vide its oders dated 28 June 2021. Based on legal advise,
the Management is of the view that it has a good case to seek renewal of the lease and does not expect any impact of this matter on the
future operations of the hospital.

4.2 Capital work-in-progress (CWIP)

4.2.1 Ageing schedule of CWIP

Amount outstanding for a period of

Particulars Less than More than
1-2 years 2-3 years Total
1 year 3 years
Balance as at 31 March 2023
Intangible assets under development 2.07 21.80 - - 23.87
Capital Work-in-progress
Projects in progress 138.97 19.41 1.53 95.18 255.09
Projects temporarily suspended - - - - -
Total 138.97 19.41 1.53 95.18 255.09
Balance as at 31 March 2022
Intangible assets under development 20.07 - - - 20.07
Capital Work-in-progress
Projects in progress 170.39 256.85 274.66 275.77 977.67
Projects temporarily suspended - - - - -
Total 170.39 256.85 274.66 275.77 977.67

4.2.2 As on the date of the balance sheet, there are no capital work-in-progress projects whose completion is overdue or has exceeded the cost
compared to its revised plan.

311
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

5 Goodwill and other intangible assets

Brand name, Payor/
Goodwill on Other
Particulars tradename Customer Software Total
consolidation intangibles
and trademark relationship
Gross carrying value
Balance at 1 April 2021 1,059.28 123.44 107.33 65.73 93.22 1,449.00
Additions - 0.01 - 31.24 15.98 47.23
Acquisition through business combinations 10.69 1.58 1.56 - - 13.83
(refer note 38)
Disposals - - - (1.74) - (1.74)
Exchange difference on translation 25.19 2.76 2.96 1.68 1.78 34.37
Balance at 31 March 2022 1,095.16 127.79 111.85 96.91 110.98 1,542.69
Balance at 1 April 2022 1,095.16 127.79 111.85 96.91 110.98 1,542.69
Additions - - - 64.18 63.69 127.87
Disposals - - - (3.21) - (3.21)
Exchange difference on translation 71.76 8.03 8.51 7.84 8.41 104.55
Balance at 31 March 2023 1,166.92 135.82 120.36 165.72 183.08 1,771.90
Accumulated amortisation and impairment
losses
Balance at 1 April 2021 7.04 38.97 27.11 39.09 34.57 146.78
Impairment / Amortisation for the year - 15.44 16.01 12.79 2.87 47.11
Eliminated on disposals - - - (1.72) - (1.72)
Exchange difference on translation 0.21 0.88 0.89 0.82 1.79 4.59
Balance at 31 March 2022 7.25 55.29 44.01 50.98 39.23 196.76
Balance at 1 April 2022 7.25 55.29 44.01 50.98 39.23 196.76
Impairment / Amortisation for the year - 16.67 17.27 18.80 9.84 62.58
Eliminated on disposals - - - (3.21) - (3.21)
Exchange difference on translation - 3.53 3.61 3.27 1.48 11.89
Balance at 31 March 2023 7.25 75.49 64.89 69.84 50.55 268.02
Carrying amount (net)
At 31 March 2023 1,159.67 60.33 55.47 95.88 132.53 1,503.88
At 31 March 2022 1,087.91 72.50 67.84 45.93 71.75 1,345.93

Note 1 : Goodwill

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 :

As at As at
Particulars
31 March 2023 31 March 2022
Medcare Hospital LLC, UAE 132.45 121.83
Sanad Al Rahma for Medical Care LLC, KSA 128.50 118.20
Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited, India 174.97 174.97
Al Raffah Hospital LLC, Oman 49.54 45.57
Harley Street Group , UAE 92.06 84.69
Malabar Institute of Medical Sciences Limited, India 40.06 40.06
Pharmacies - GCC states 184.43 169.65
Wahat Al Aman Home Healthcare LLC 91.49 84.16
Grand Optics LLC 95.31 87.67
Others 170.86 161.11
1,159.67 1,087.91

312
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

5 Goodwill and other intangible assets (Contd..)

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.

As at As at
Particulars
31 March 2023 31 March 2022
Discount rate 12% - 22% 10% - 20%
Terminal value growth rate 3% - 5% 3% - 5%
Weighted average cost of capital (WACC) before tax - equity 4% - 11% 11% - 20%
Weighted average cost of capital (WACC) before tax - debt 15% - 32% 4% - 10%

The Group 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.

6 Investments
As at As at
Particulars
31 March 2023 31 March 2022
Non-current investments
Equity shares, unquoted (at cost)
Janata Sahakari Bank Limited, Pune (1,000 equity shares of INR 10 each amounting to * *
INR 10,000)
Equity accounted investees (refer note 39) 68.30 38.19
68.30 38.19
Current investments
Investment in liquid mutual funds, quoted at FVTPL
Reliance Equity Hybrid Fund - Segregated Portfolio - 1 * *
Reliance Liquid Fund [8,057.41 (31 March 2022: 11,561) units] 6.82 6.02
Nippon India Money Market Fund [1,260.54 (31 March 2022: Nil) units] 0.02 -
Nippon India Ultra Short Term Duration Fund [10,136.04 (31 March 2022: Nil) units] 3.79 -
Nippon India Taiwan Equity Fund [99,995 (31 March 2022: 99,995) units] 0.10 0.10
Nippon India Liquid Fund [412 (31 March 2022: 412) units] 0.21 0.21
Nippon India Balanced Advantage Fund [4,279 (31 March 2022: 4,279) units] 0.05 0.05
Nippon India Growth Fund [611 (31 March 2022: 611) units] 0.10 0.10
Nippon India Flexi Cap Fund [159,161 (31 March 2022: 159,161) units] 0.16 0.16
11.25 6.64
Aggregate carrying amount of quoted investments 11.25 6.64
*Amount is below the rounding off norms adopted by the Company.

313
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

7 Loans
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Unsecured, considered good
Other loans 111.90 28.07
111.90 28.07

8 Other financial assets

As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Unsecured, considered good
Fixed deposits with banks and other deposits* 22.82 20.04
Rent and other deposits 86.68 68.48
Interest accrued on fixed deposits with banks 0.06 0.02
Advances given to equity accounted investees 88.22 86.88
Others 12.35 4.60
210.13 180.02
*The above deposits are maintained against guarantees issued by Banks and are restricted for periods exceeding 12 months as at the Balance Sheet date.

As at As at
Particulars
31 March 2023 31 March 2022
Current
Unsecured, considered good
Unbilled receivables 49.49 38.30
Rent and other deposits 95.49 75.85
Interest accrued on fixed deposits with banks 2.80 2.05
Others 41.05 51.95
188.83 168.15
398.96 348.17

9 Other assets
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Advances for capital goods 95.07 50.37
Prepaid rent 3.00 3.00
Prepaid expenses 15.06 21.25
113.13 74.62
Current
Prepaid expenses 142.89 113.93
Balances with statutory / government authorities 116.10 75.41
Advance for supply of goods and services 106.85 40.52
Other assets 285.15 266.00
650.99 495.86
764.12 570.48

314
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

10 Inventories
As at As at
Particulars
31 March 2023 31 March 2022
(Valued at lower of cost and net realisable value)
Medicines, medical consumables and others 1,305.62 1,025.68
1,305.62 1,025.68

For details of inventories pledged, refer note 15

11 Trade receivables
As at As at
Particulars
31 March 2023 31 March 2022
Current
Considered good - unsecured 3,143.63 2,654.27
Less: loss allowance (807.32) (633.75)
Net trade receivables 2,336.31 2,020.52

For details of trade receivables pledged, refer note 15.

The Group's exposure to credit and currency risks and loss allowances related to trade receivables are disclosed in note 35.

As at As at
Particulars (Ageing)
31 March 2023 31 March 2022
Undisputed trade receivables- considered good, unsecured
Outstanding for following periods from due date of payment
Less than 6 months 1704.68 1,255.52
6 months - 1 year 434.77 522.29
1-2 years 188.86 337.48
2-3 years 458.14 392.45
More than 3 years 357.18 146.53
Total 3,143.63 2,654.27

Loss allowance provision matrix- default rates applied at each reporting date

As at As at
Particulars
31 March 2023 31 March 2022
Due date to 1 year 0% - 39% 0% - 68%
1-2 years 14% - 100% 22% - 82%
More than 2 years 46% - 100% 49% - 100%

12 Cash and cash equivalents

As at As at
Particulars
31 March 2023 31 March 2022
Balance with banks (including deposits accounts due to maturing within 3 months of 358.68 325.53
the reporting date)
Cash on hand 19.39 17.84
Cash-in-transit / cheques in hand 0.46 -
378.53 343.37
Less : Book overdraft (refer note 16) (13.46) (44.04)
Cash and cash equivalents in the statement of cash flows 365.07 299.33

315
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

13 Other bank balances

As at As at
Particulars
31 March 2023 31 March 2022
Balance in banks for margin money 43.34 16.77
In deposit accounts (with original maturity of more than 3 months, but less than 12 6.69 19.47
months)
50.03 36.24

14 Share capital
As at 31 March 2023 As at 31 March 2022
Particulars Number of Number of
shares Amount shares Amount
(in crores) (in crores)
Authorised
Equity shares of INR 10 each 55.00 550.00 55.00 550.00
Compulsory convertible preference shares (CCPS) of INR 10 each 6.62 66.20 6.62 66.20
61.62 616.20 61.62 616.20
Issued, subscribed and fully paid-up
Equity shares of INR 10 each 49.95 499.52 49.95 499.52
49.95 499.52 49.95 499.52

The Company does not have any compulsory convertible preference shares (CCPS) as on 31 March 2023 and 31 March 2022.
14.1 Reconciliation of shares outstanding at the beginning and at the end of the reporting period

As at 31 March 2023 As at 31 March 2022

Particulars Number of Number of
shares Amount shares Amount
(in crores) (in crores)
Equity shares of INR 10 each fully paid-up
Balance as at the beginning of the year 49.95 499.52 49.95 499.52
Issue of equity shares - - - -
Balance as at the end of the year 49.95 499.52 49.95 499.52

14.2 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
shareholder. 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.

14.3 Employee stock options

Terms attached to stock options granted to employees are described in note 41 regarding employee share based payments.

316
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

14 Share capital (Contd..)

14.4 Details of shareholders holding more than 5% shares of the Company

As at 31 March 2023 As at 31 March 2022

Particulars Number of Number of
shares Amount shares Amount
(in crores) (in crores)
Equity shares of INR 10 each fully paid -up held by
Union Investments Private Limited, Mauritius 18.69 37.41% 18.69 37.41%
Olympus Capital Asia Investments Limited, Mauritius 9.47 18.96% 11.47 22.96%
Rimco (Mauritius) Limited, Mauritius 5.06 10.13% 5.06 10.13%

14.5 Details of shareholding of Promoters

Shares held as at 31 March 2023 Percentage change

Promoter name Number of % of during the year ended
shares (in crores) total shares 31 March 2023
Union Investments Private Limited, Mauritius 18.69 37.41% Nil
Union (Mauritius) Holdings Limited, Mauritius 2.00 4.00% 100%
Dr. Azad Moopen 0.17 0.35% Nil
Alisha Moopen 0.02 0.04% Nil
Ziham Moopen 0.02 0.03% Nil
Naseera Azad 0.01 0.03% Nil
Zeba Azad Moopen 0.01 0.02% Nil

14.6 Shares reserved for issue under options and contracts

As at 31 March 2023 As at 31 March 2022

Particulars Number of Number of
shares Amount shares Amount
(in crores) (in crores)
Under Employee Stock Option Scheme, 2013: Nil (31 March 2022: - - 0.00 0.25
49,229) equity shares of INR 10 each, at an exercise price of INR 50
per share (See note 41)
Under Employee Stock Option Scheme, 2013: 336,330 (31 March 0.03 0.34 0.04 0.41
2022: 413,380) equity shares of INR 10 each, at an exercise price of
INR 10 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 48,829 (31 March 0.00 0.57 0.01 0.83
2022: 71,145) equity shares of INR 10 each, at an exercise price of
INR 116 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 322,910 (31 March 0.03 2.87 0.04 3.90
2022: 438,539) equity shares of INR 10 each, at an exercise price of
INR 89 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 5,400 (31 March 0.00 0.06 0.00 0.12
2022: 10,800) equity shares of INR 10 each, at an exercise price of
INR 107 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 14,662 (31 March 0.00 0.17 0.00 0.17
2022: 15,000) equity shares of INR 10 each, at an exercise price of
INR 115 per share (See note 41)

317
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

14 Share capital (Contd..)

As at 31 March 2023 As at 31 March 2022
Particulars Number of Number of
shares Amount shares Amount
(in crores) (in crores)
Under Employee Stock Option Scheme, 2013: 32,444 (31 March 0.00 0.38 0.01 0.67
2022: 57,000) equity shares of INR 10 each, at an exercise price of
INR 118 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 24,000 (31 March 0.00 0.35 0.00 0.57
2022: 39,000) equity shares of INR 10 each, at an exercise price of
INR 145.31 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 39,600 (31 March 0.00 0.55 0.00 0.55
2022: 39,600) equity shares of INR 10 each, at an exercise price of
INR 139 per share (See note 41)
Under Employee Stock Option Scheme, 2013: 15,000 (31 March 0.00 0.23 - -
2022: Nil) equity shares of INR 10 each, at an exercise price of INR
155.71 per share (See note 41)

14.7 Details of bonus shares issued during the past 5 years immediately preceeding 31 March 2023:

The Company has not issued bonus shares during the period of five years immediately preceding 31 March 2023.

14.8 Details of shares issued for consideration other than for cash during the past 5 years immediately preceeding 31 March 2023:

The Company has not allotted any equity shares as fully paid-up without consideration being received in cash during the past 5 years
immediately preceeding 31 March 2023.

14.9 Details of buyback of shares during the past 5 years immediately preceeding 31 March 2023:

The Company bought back 5,714,285 equity shares for an aggregate amount of INR 120 crores at INR 210 per equity share. The equity
shares bought back were extinguished on 18 March 2020.

15 Borrowings
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Secured - at amortised cost
Term loans from banks 1,269.12 1,466.40
Term loans from financial institution 43.18 -
1,312.30 1,466.40
Current
Unsecured - at amortised cost
Cash credit and overdraft facilities from banks 13.00 -
Secured - at amortised cost
Cash credit and overdraft facilities from banks 178.06 164.05
Current maturities of non-current borrowings - banks 468.04 435.15
Current maturities of non-current borrowings - financial institution 6.82 -
Short term loans from banks 309.26 126.56
975.18 725.76
2,287.48 2,192.16

Information about the Group's exposure to interest rate and liquidity risks are included in note 35.

318
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

15 Borrowings (Contd..)
The bank facilities have the following securities:

a) Parent

- Equitable mortgage on certain immovable properties of the Company and of DM Med City Hospitals India Private Limited and
Ambady Infrastructure Private Limited, wholly owned subsidiaries of the Company.

- Hypothecation of all movable fixed assets relating to the various units/projects of the company (comprising plant and machinery,
furniture fixture, vehicles and other movable assets) present and future, of the various units/ projects of the Company.

- Charge on movable properties (comprising plant and machinery, furniture and fittings, vehicles and other movable assets), present
and future, of the Aster Medcity Hospital, Kochi

- 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
Hospital, Kochi.

- First charge on leasehold rights of the project building, current assets, operating cashflows, receivables, commissions, revenues
of whatsoever nature and wherever arising, present and future of the Aster DM Healthcare Limited

- There are no continuing default in the repayment of the principal loan and interest amounts.

b) Indian subsidiaries

- First, fixed and exclusive charge on the medical equipments, vehicles, fixed deposits 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.

- Second charge on current assets, operating Cash flows, receivables, commissions, revenues of whatsoever nature and wherever
arising, present and future, intangibles, goodwill, uncalled capital, present and future

- 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.

- First paripassu charge on current assets, operating cash flows, receivable, commissions, revenues of whatsoever nature and
wherever arising, present and future of various units/projects of the Company.

- 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, inventories, furniture and fixtures, computers and
motor vehicles in favour of the bank;

- Corporate guarantee of the subsidiaries;

- Vehicle mortgage;

- Pledge of shares and collection accounts;

- Assignment of point of sale collection/ credit card receivables;

-    Assignment of receivables from insurance companies;

-        Assignment and subordination of shareholders loans;

-        Pledge of equity interest held by Affinity Holdings Private Limited in a subsidiary;

319
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

15 Borrowings (Contd..)
A Terms and conditions of non-current borrowings (including current maturities) are as follows:

Borrowed
Interest Maturity As at As at
Particulars by Parent/ Currency
rate period 31 March 2023 31 March 2022
subsidiaries
Secured loan from banks Parent 8%- 9.4% 2023 - 2031 INR 236.97 128.92
Secured loan from banks Subsidiaries 7.09%-11% 2023 - 2031 INR 213.10 209.22
Secured loan from banks Subsidiaries 7.49%-8.49% 2023 - 2030 AED 308.64 168.25
Secured loan from banks Subsidiaries 7.86% 2023 - 2027 USD 1,028.45 1,235.13
Secured loan from banks Subsidiaries 6.00% 2023 OMR - 160.03

Total 1,787.16 1,901.55

Less : Current maturities of non- (474.86) (435.15)
current borrowings (Refer note 16)
1,312.30 1,466.40

B Terms and conditions of current borrowings are as follows:

Borrowed
Maturity As at As at
Particulars by Parent/ Interest rate Currency
period 31 March 2023 31 March 2022
subsidiaries
Secured loan from banks Parent 8.15% to 10.00% 2023 - 2024 INR 103.01 68.89
Secured loan from banks Subsidiaries 7.10% to 10.35% 2023 - 2024 INR 43.65 24.00
Secured loan from banks Subsidiaries 7.12%-8.49% 2023 - 2024 AED 333.97 157.96
Secured loan from banks Subsidiaries 6.00% 2023 OMR - 25.58
Secured loan from banks Subsidiaries 9.75% 2023 - 2024 JOD 19.69 14.18
500.32 290.61

16 Other financial liabilties

As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Payable to non-controlling interest on account of business combination 6.34 8.87
Liability for written put options 209.13 2.44
Others 1.02 0.35
216.49 11.66
Current
Book overdraft 13.46 44.04
Interest accrued but not due on borrowings* 2.02 1.22
Dues to related party (Refer note 42) 1.04 1.04
Liability for written put options 9.58 91.20
Contingent consideration payable to non controlling interest (refer note 35) - 22.63
Payable to partners in clinics 15.12 15.75
Dues to creditors for capital goods 61.52 38.04
Security deposits from employees and others 6.87 7.86
109.61 221.78
326.10 233.44

* The details of interest rates, repayment and other terms are disclosed in note 15.

The Group’s exposure to currency and liquidity risk related to the above financial liabilities is disclosed in note 35.

320
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

17 Provisions
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Provision for employee benefits
Compensated absences 10.34 9.43
Net defined benefit liability - post employment benefits* 396.78 349.51
407.12 358.94
Current
Provision for employee benefits
Compensated absences 22.33 17.08
Net defined benefit liability - post employment benefits* 81.50 71.34
Other provisions
Zakat payable** [ refer note (a) below ] 5.45 4.88
109.28 93.30
516.40 452.24
* Also refer note 31
** Zakat payable is the amount provided for in accordance with the Saudi Arabian Zakat and Income Tax regulations

(a) Movement of Zakat payable

As at As at
Particulars
31 March 2023 31 March 2022
Balance at the beginning 4.88 4.31
Zakat charges 5.19 5.97
Payment/ adjustments made during the year (4.62) (5.40)
Balance at the end 5.45 4.88

18 Other liabilities
As at As at
Particulars
31 March 2023 31 March 2022
Non-current
Deferred government grant* 36.46 26.19
Others 0.62 -
37.08 26.19
Current
Advances received from customers 110.61 71.87
Statutory dues payables 56.23 47.41
Unearned income 10.26 4.27
Deferred government grant* 4.75 3.24
Others 13.86 20.18
195.71 146.97
232.79 173.16
*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.

19 Trade payables
As at As at
Particulars
31 March 2023 31 March 2022
Total outstanding dues of micro and small enterprises 15.58 14.43
Total outstanding dues of creditors other than micro and small enterprises 2,972.19 2,103.66
2,987.77 2,118.09

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

321
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

19 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 Group are given below:

As at As at
Particulars
31 March 2023 31 March 2022
The principal amount remaining unpaid to any supplier as at the end of the year. 10.33 13.61
The interest due on the principal remaining outstanding as at the end of the year 0.08 0.18
The amount of interest paid under the Act, along with the amounts of the payment - 0.77
made beyond the appointed day during the year.
The amount of interest due and payable for the period of delay in making payment 0.20 0.17
(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. 0.96 0.82
The amount of further interest remaining due and payable even in the succeeding 2.16 1.24
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.

Ageing schedules

Outstanding for following periods from due date of payment

Particulars Less than 1 More than 3 Total
1-2 years 2-3 years
year years
Balance as at 31 March 2023
Micro, small and medium enterprises 15.42 0.09 0.04 0.03 15.58
Others 2,814.20 118.07 24.71 15.21 2,972.19
Total 2,829.62 118.16 24.75 15.24 2,987.77
Balance as at 31 March 2022
Micro, small and medium enterprises 14.15 0.13 0.15 - 14.43
Others 1,929.57 145.69 18.98 9.42 2,103.66
Total 1,943.72 145.82 19.13 9.42 2,118.09

20 Revenue from operations

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Revenue from hospital and medical services 8,784.80 7,942.75
Revenue from pharmacy 3,032.76 2,211.51
Revenue from consultancy services 31.17 24.96
Other operating revenue* 84.15 74.06
11,932.88 10,253.28
* Other operating income comprises primarily of canteen sales (sales of food and beverages), revenue from courses conducted at the hospital, income from revenue
sharing agreements.

Refer notes below

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
(i) Category of customers
Cash (Including Cards/UPI/wallets/bank transfer/Cheques) 4,673.90 4,349.64
Credit (Including CoPay) 7,143.66 5,804.62
Revenue from hospital and medical services and pharmacies 11,817.56 10,154.26
Others 115.32 99.02
Revenue from operations 11,932.88 10,253.28

(ii) Nature of treatment

In- patient 4,280.83 3,589.77
Out- patient 4,503.97 4,352.98
Revenue from hospital and medical services 8,784.80 7,942.75

322
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

21 Other income
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Interest income under the effective interest method on
Fixed deposits with banks 2.70 2.72
Lease deposits 2.19 2.08
Gain on disposal of property, plant and equipment (net) 5.78 -
Gain on sale of investments (net) 0.31 0.97
Other non-operating income 67.27 44.89
78.25 50.66

22 Purchases of medicines and consumables

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Medicines and consumables 3,811.75 3,068.46
3,811.75 3,068.46

23 Changes in inventories
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Opening stock 1,025.68 848.99
Closing stock (1305.61) (1,025.68)
(279.93) (176.69)

24 Employee benefits expense

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Salaries and allowances 3,825.81 3,148.56
Contribution to defined contribution plans (refer note 31) 27.22 21.29
Equity settled share based payment expense (refer note 41) 0.67 (0.13)
Staff welfare expenses 111.52 94.74
3,965.22 3,264.46

25 Finance costs
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Interest on bank borrowings 148.65 118.76
Less : Amounts included in the cost of qualifying assets (2.69) -
145.96 118.76
Interest expense on financial liabilities measured at amortised cost - 0.96
Interest expense on lease liabilities (refer note 40) 179.46 135.35
Other borrowing costs 3.80 1.95
329.22 257.02

323
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

26 Depreciation and amortisation expense

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Depreciation on property, plant and equipment (refer note 4) 384.19 332.77
Depreciation on right-of-use assets (refer note 40) 333.67 260.70
Amortisation on intangible assets (refer note 5) 62.58 47.11
780.44 640.58

27 Other expenses
For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Consumables 11.14 12.36
Power and fuel 148.95 120.28
Housekeeping, security and others 216.83 182.39
Rent (refer note 40) 146.60 120.53
Insurance 31.48 27.97
Repairs and maintenance:
- Buildings 9.87 5.66
- Plant and equipment 106.54 87.03
- Others 106.50 82.19
Rates and taxes 73.49 61.38
Advertising and promotional expenses 203.72 137.29
Legal, professional and other consultancy 75.30 58.49
Visa and immigration expenses 42.94 60.35
Printing and stationery 29.27 24.46
Communication 50.67 45.05
Food and beverage 46.30 37.03
Travelling and conveyance 62.99 39.60
Allowances for credit losses on financial assets 169.64 240.08
Net loss on account of foreign exchange fluctuations 1.35 1.26
Bank charges 60.45 49.83
Corporate social responsibility* 2.86 5.06
Miscellaneous expenses** 164.70 146.01
1,761.59 1,544.30

* Details of corporate social responsibility

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
- Amount required to be spent by the Group during the year 2.03 0.92
- Amount of expenditure incurred 2.86 5.06
- Shortfall at the end of the year NA NA
- Total of previous year shortfall NA NA
- Reason for shortfall NA NA

324
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

27 Other expenses (Contd..)

* Details of corporate social responsibility (Contd..)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
- Nature of CSR activities a) Promoting a) Promoting
education, education,
including special including special
education and education and
employment employment
enhancing enhancing
vocation skills vocation skills
especially among especially among
children, women, children, women,
elderly and the elderly and the
differently abled differently abled
and livelihood and livelihood
enhancement enhancement
projects. projects.
b) Disaster
b) Disaster
management,
management,
including relief,
including relief,
rehabilitation and
rehabilitation and
reconstruction
reconstruction
activities
activities
- Details of related party transactions INR 0.25 crores INR 3.64 crores
(Aster DM (Aster DM
Foundation) Foundation)
- Whether provision is made with respect to a liability incurred by entering into a No No
contractual obligation
- Amount spent during the year on:
Construction/acquisition of an asset 0.25 -
On purposes other than above 2.61 5.06
Excess of previous year utilised 0.25
3.11 5.06
** Amount contributed to political party 0.11 0.04

28 Deferred tax asset/ liabilities

As at As at
Particulars
31 March 2023 31 March 2022
Deferred tax asset 45.57 25.00
Deferred tax liabilities (238.06) (168.93)
(192.49) (143.93)

(i) Deferred tax charge/ (benefit) recognised during the year

As at As at
Particulars
31 March 2023 31 March 2022
Deferred tax charge / (benefit) (26.24) (8.01)
(26.24) (8.01)

(ii) Deferred tax assets and liabilities are attributable to the following:

As at As at
Particulars
31 March 2023 31 March 2022
Deferred tax asset
MAT credit entitlement 34.62 6.73
Provision for employee benefits and other liabilities (0.45) 5.48
Provision for doubtful debts and advances 27.39 15.98

325
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

28 Deferred tax asset/ liabilities

As at As at
Particulars
31 March 2023 31 March 2022
Lease liabilities 16.63 13.93
Unabsorbed business loss including from specified business 129.08 181.11
Total deferred tax asset 207.27 223.23
Deferred tax liability
On account of fair valuation of land * (105.16) (97.94)
Property, plant and equipment (including right-of-use assets) (197.80) (244.49)
Other financial assets (Deposit amortisation) (96.80) (24.73)
Total deferred tax liability (399.76) (367.16)
Deferred tax liability (net) (238.06) (168.93)
Deferred tax assets 45.57 25.00

* 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.

(iii) Movement in temporary differences

Credit/ (charge) Credit/ (charge) in other

Movement during the year ended As at As at
in the statement comprehensive income/
31 March 2023 31 March 2022 31 March 2023
of profit and loss retained earnings
MAT credit entitlement 6.73 27.89 - 34.62
Provision for employee benefits and other 5.48 (6.03) 0.10 (0.45)
liabilities
Provision for doubtful debts and advances 15.98 11.41 - 27.39
Unabsorbed business loss including from 181.11 (52.03) - 129.08
specified business
Lease liabilities 13.93 2.70 - 16.63
On account of fair valuation of land * (97.94) (7.22) - (105.16)
Property, plant and equipment (244.49) 46.69 - (197.80)
Other financial assets (24.73) 2.83 (74.89) (96.80)
(143.93) 26.24 (74.79) (192.49)

* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

Credit/ (charge) Credit/ (charge) in other

Movement during the year ended As at As at
in the statement comprehensive income/
31 March 2022 31 March 2021 31 March 2022
of profit and loss retained earnings
MAT credit entitlement 10.72 (3.99) - 6.73
Provision for employee benefits and other 9.58 (3.20) (0.90) 5.48
liabilities
Provision for doubtful debts and advances 15.45 0.53 - 15.98
Unabsorbed business loss including from 189.85 (8.74) - 181.11
specified business
Lease liabilities 3.70 10.23 - 13.93
On account of fair valuation of land * (99.89) 1.95 - (97.94)
Property, plant and equipment (255.37) 10.88 - (244.49)
Other financial assets (3.19) 0.35 (21.89) (24.73)
(129.15) 8.01 (22.79) (143.93)

* The deferred tax liability arising on the fair valuation recognised based on tax rates applicable to the long-term capital gains.

326
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

28 Deferred tax asset/ liabilities (Contd..)

(iv) 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:

As at 31 March 2023 As at 31 March 2022

Particulars Gross Unrecognised Gross Unrecognised
amount tax effect amount tax effect
Tax losses (business loss) 771.21 240.18 885.57 276.07
Tax losses (Long term capital loss) 37.91 7.81 37.75 7.78
Tax losses (unabsorbed depreciation) 63.64 19.62 79.85 21.70
Total 872.76 267.61 1,003.17 305.55

(v) Tax losses carried forward

As at As at
Particulars Expiry Expiry
31 March 2023 31 March 2022
Brought forward losses - allowed to carry forward for 215.86 Various dates 216.07 Various dates
specified period from FY 2023-24 from FY 2022-23
to 2029-30 to 2028-29
Brought forward losses from specified business - 728.72 Infinite period 882.93 Infinite period
allowed to carry forward
for infinite period
Brought forward losses - allowed to carry forward for 81.08 Infinite period 86.40 Infinite period
infinite period
1,025.66 1,185.40

Deferred tax assets have not been recognized in respect of the above items, because it is not probable that future taxable profit will be
available against which the Group 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.

29 Income tax asset/ liabilities

As at As at
Particulars
31 March 2023 31 March 2022
Income tax asset 79.24 97.51
Income tax liabilities (19.32) (10.63)
59.92 86.88

(i) Tax expense recognised in the Statement of Profit and Loss

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Current tax 53.68 33.05
Income tax for earlier years 11.88 (1.73)
Deferred tax (including MAT credit entitlement) (26.24) (8.01)
Foreign income taxes 20.27 12.49
Total (A) 59.59 35.80

327
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

29 Income tax asset/ liabilities

(ii) Reconciliation of effective tax rate

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Profit before tax 535.08 636.85
Statutory income tax rate 31.20% 31.20%
Tax expenses 166.94 198.70
Income chargeable at special rate 20.27 12.49
Tax on exempt income (88.67) (126.98)
Other temporary differences 0.64 (12.85)
Additional deduction on investment allowance (13.21) (4.80)
Current tax for earlier years 11.88 (1.73)
Un-recognised deferred tax assets (38.26) (29.03)
Income tax expense 59.59 35.80

30 Segment 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). Members of Board of the Group have been identified as the Chief Operating
Decision Maker ("CODM") as defined by Ind AS 108 "Operating Segments". All operating segments’ operating results are reviewed regularly
by the Group’s CODM to make decisions about resources to be allocated to the segments and assess their performance.

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 and optical outlets

iv) Others - comprises of healthcare consultancy services and others

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Segment revenue
Hospitals 6,795.29 5,759.03
Clinics 2,374.64 2,443.01
Retail Pharmacies 2,733.24 2,027.99
Others 29.71 23.25
Total 11,932.88 10,253.28

328
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

30 Segment reporting (Contd..)

For the year ended For the year ended
Particulars
31 March 2023 31 March 2022
Segment results before tax
Hospitals 654.16 654.59
Clinics 251.96 292.90
Retail Pharmacies 250.74 182.77
Others 1.76 2.29
Total 1,158.62 1,132.55
Less:
Finance cost (329.22) (257.02)
Other unallocable expenditure (net of unallocable income) (295.54) (239.22)
Profit before share of equity accounted investees and tax 533.86 636.31
Share of profit of equity accounted investees 1.22 0.54
Profit before tax 535.08 636.85
Tax expense (59.59) (35.80)
Profit for the year 475.49 601.05
Less : Non controlling interest (50.58) (75.06)
Profit attributable to the owners of the Company 424.91 525.99

As at As at
Particulars
31 March 2023 31 March 2022
Segment assets
Hospitals 9,463.78 8,036.51
Clinics 2,398.09 1,835.12
Retail Pharmacies (including opticals) 2,231.58 1,845.65
Others 13.77 17.20
Unallocated* 773.98 811.76
Total 14,881.20 12,546.24
Segment liabilities
Hospitals 5,688.05 3,949.41
Clinics 1,245.66 885.35
Retail Pharmacies 1,232.25 1,037.60
Unallocated* 1,854.78 2,191.26
Total 10,020.74 8,063.62
* These are assets and liabilities used interchangeably between segments.

B. Geographical 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) Republic of Mauritius

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Segment revenue
GCC States 8,949.58 7,869.72
India 2,983.30 2,383.56
Republic of Mauritius - -
Total 11,932.88 10,253.28

329
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

30 Segment reporting (Contd..)

As at As at
Particulars
31 March 2023 31 March 2022
Segment assets
GCC States 11,097.89 9,189.34
India 3,783.00 3,353.74
Republic of Mauritius 0.31 3.16
Total 14,881.20 12,546.24

C. Major customer

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

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. The gratuity benefit provides for a
lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount
equivalent to 15 / 30 days’ salary payable for each completed year of service.

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

As at As at
Particulars
31 March 2023 31 March 2022
Defined benefit liability - Gratuity plan (Plan A) 35.38 31.34
Plan assets 4.53 4.89
Net defined benefit liability 30.85 26.45
Net defined benefit liability - End of service benefits (Plan B) 447.43 394.40
Total employee benefit liability 478.28 420.85
Non-current 396.78 349.51
Current 81.50 71.34

For details about related employee benefit expenses, see note 24

b) Reconciliation of net defined benefit (assets)/ liability

i) Plan A

a) 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:

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Defined benefit obligation as at beginning of the year 31.34 28.41
Benefits paid (3.66) (2.83)
Current service cost 6.43 5.51
Interest cost 2.15 1.81
Past Service Cost 0.19 0.04
Actuarial (gains)/ losses recognised in other comprehensive income
-changes in demographic assumptions (0.18) -
-changes in financial assumptions (0.98) (0.18)
-experience adjustments 0.09 (1.42)
Defined benefit obligations as at end of the year 35.38 31.34

330
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

31 Employee benefits: (Contd..)

b) Reconciliation of the present values of plan assets

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Plan assets at beginning of the year 4.89 4.62
Contributions paid into the plan 3.20 0.18
Interest income 0.31 0.29
Benefits paid (3.64) (0.21)
Return on plan assets recognised in other comprehensive income (0.23) 0.01
Plan assets at the end of the year 4.53 4.89
Net defined benefit liability 30.85 26.45

ii) Plan B

a) 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 liability
and its components:

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Defined benefit obligation as at beginning of the year 394.40 397.83
Benefits paid (46.91) (55.65)
Current service cost 91.23 76.89
Past service cost - -
Interest cost 11.02 5.40
Actuarial (gains) losses recognised in other comprehensive income
-changes in demographic assumptions (0.76) -
-changes in financial assumptions (34.36) (26.09)
-experience adjustments (1.57) (16.18)
Effect of changes in foreign exchange rates 34.38 12.20
Defined benefit obligations as at end of the year 447.43 394.40

c) Expense recognised in consolidated statement of profit and loss

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
i) Expense recognised in consolidated statement of profit and loss
Current service cost 97.66 82.40
Interest cost 13.17 7.21
Interest income (0.31) (0.29)
Past service cost 0.19 0.04
110.71 89.36
ii) Remeasurements recognised in other comprehensive income (excluding tax)
Actuarial (gain)/ loss on defined benefit obligation (37.76) (43.87)
Return on plan assets excluding interest income 0.23 (0.01)
(37.53) (43.88)

d) Plan assets comprises the following

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Insurance policy 4.53 4.89

331
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

31 Employee benefits: (Contd..)

e) Actuarial valuation

The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using
the projected unit credit method. The defined benefit plan typically exposes the Company to actuarial risks such as: interest rate risk,
longevity risk and salary risk.

Investment risk The present value of the defined benefit plan liability denominated in Indian Rupee is calculated using a
discount rate determined by reference to market yields at the end of the reporting period on government
bonds. For other defined benefit plans, the discount rate is determined by reference to high quality corporate
bond yields when there is a deep market for such bonds; if the return on plan asset is below this rate, it
will create a plan deficit. Currently the plan in India is investments in government securities and other debt
instruments.
Interest rate risk A decrease in the bond interest rate will increase the plan liability
Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after their employment. An increase in the life expectancy of the
plan participants will increase the plan’s liability.
Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

i) Actuarial assumptions

The following are the principal actuarial assumptions at the reporting date (expressed as weighted average):

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
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 7.1% - 7.2% 5.40% - 7.40%
Future salary growth 4% - 8% 4% - 9%
Mortality rate IALM 2012-14 (Ult.) IALM 2012-14 (Ult.)
Plan B
Attrition rate 15% 15%
Discount rate 4.10% - 4.50% 2.60% - 2.90%
Future salary growth 2% - 3.50% 2% - 3.50%
Mortality rate IALM 2012-14 (Ult.) IALM 2012-14 (Ult.)
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 of
Indian entities and employees of foreign subsidiaries are eligible for terminal benefits as per local labour law.

(ii) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary
increase and withdrawal rate.

332
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

31 Employee benefits: (Contd..)

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.

31 March 2023 31 March 2022

Particulars
Increase Decrease Increase Decrease
Plan A
Discount rate (1% movement) (2.53) 1.85 (2.35) 2.73
Future salary growth (1% movement) 1.86 (2.59) 2.74 (2.40)
Attrition rate (1% movement) 0.03 (0.05) 0.09 (0.11)
Plan B
Discount rate (1% movement) (18.93) 20.73 (18.11) 20.02
Future salary growth (1% movement) 20.97 (19.49) 19.91 (18.36)
Attrition rate (1% movement) 1.85 (2.17) 0.23 (0.27)

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the changes in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the
projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit
obligation liability recognised in the balance sheet. There was no change in the methods and assumptions used in preparing the
sensitivity analysis from prior years.

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) Net profit attributable to equity share holders (basic)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Net profit for the year, attributable to the equity share holders 424.91 525.99

ii) Weighted average number of equity shares (basic)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Opening balance (Refer note 14) 49.72 49.70
Effect of share options exercised 0.01 0.01
Weighted average number of equity shares of INR 10 each for the year 49.73 49.71
Earnings per share, basic (INR) 8.54 10.58

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) Net profit attributable to equity share holders (diluted)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Net profit for the year, attributable to the equity share holders 424.91 525.99

333
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

32 Earnings per share (Contd..)

ii) Weighted average number of equity shares (diluted)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Weighted average number of equity shares of INR 10 each for the year (basic) 49.73 49.71
Effect of exercise of share options 0.06 0.07
Weighted average number of equity shares of INR 10 each for the year 49.79 49.78
(diluted)
Earnings per share, diluted (INR) 8.53 10.57

Note : Diluted earnings per share = Profit attributable to equity shareholders / weighted average number of diluted potential
shares outstanding during the year.

33 Contingent liabilities
As at As at
Particulars
31 March 2023 31 March 2022
Contingent liabilities:
a) Claims against the Group not acknowledged as debts [see note (a), (b), (c), (d) and 74.73 48.43
(k) below]
b) Value Added Tax (Refer note (e) below) 0.17 0.17
c) Disputed provident fund demand pending before appellate authorities [see note (f) 1.42 1.42
below]
d) Other matters including claims relating to employees/ ex-employees etc. [see note 1.61 1.61
(g) below]
e) Salary payable under minimum wages act [see note (h)] 17.14 17.14
f) Export commitments under EPCG scheme [see note (i) and (j) below] 28.18 19.51
g) Letter of Credit 44.83 2.06
Guarantees:
a) Bank guarantee 34.39 42.29

Commitments:
a) Estimated amount of contracts remaining to be executed on capital account (net of 162.99 265.11
advances) and not provided for

Notes:

Note a: The Company has received income tax assessment orders for AY 2014-15 & 2015-16 wherein the assessing officer has raised net
demand of INR 20.08 crores (net of taxes paid amounting to INR 4.28 crores) on account of disallowance of Foreign Tax Credit claimed as
per provisions of Section 90/90A of Income Tax Act 1961 and the disallowance under section 14A. The Company had provision in the books
pertaining to the AY 2014-15 & 2015-16, amounting to INR 2.48 . The Company has also received income tax demand order of INR 0.18 crore
for AY 2012-13 where in assessing officer denied legal and professional fee and business promotion expenses. The company also received
income tax demand order of INR 2.28 crore for AY 16-17 where assessing officer contended TDS dedcuted from doctors are subject to section
192 rather than section 194J of income tax act 1961 based on the terms of arrangements with the doctors . The company had also recieved
income tax demand order of INR 0.20 crore for AY 17-18 wherein assessing officer made disallowances on account of delayed payment of
provident fund deducted from employees. The Management believes that the position taken by it on the above matters is tenable and hence,
no adjustment has been made on the financial statements. The Company has filed an appeal against the demand received.

Note b: A subsidiary company in GCC - Saudi Arabia - has received an assessment for the year ended 31 December 2015 demanding additional
zakat of INR 10.38 crores, income tax of INR 1.83 crores and delay penalty of INR 11.97 crores thereon. The company has contested the
additional amounts and filed an appeal with ZATCA. Subsequent to the year end, the Company paid the income tax under amnesty scheme and
obtained waiver on the delayed penalty. Currently, the appeal is under technical study and consideration of the General Secretariat of Zakat, Tax
and Customs Committees “GSTC”. The management is confident that outcomes will be in the favour of the Company.

334
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

33 Contingent liabilities (Contd..)

Note c: In the prior years, the Subsidiary Company had received income tax demand for assessement year 2006-07 which is currently
pending with CIT (Appeals) and for A Y 2017-18 the Company has received an income tax demand for INR 0.10 crore, for which rectification
has been filed with assessing officer.

Note d: A subsidiary company is contesting various disallowances by the Indian Income Tax authorities for the AY 2018-19. The associated tax
impact for disallowances not accepted by Tax authorities is INR 0.06 crores. 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 e: A subsidiary company has received a demand order from the Commercial Taxes Department of Government of Andhra Pradesh in
respect of Value Added Tax (VAT) pertaining to the financial years 2013-14, 2014-15 and 2015-16 based on the scrutiny carried out by the
department. The Company is contesting the case and has paid INR 0.04 crores under protest in this regard.

Note f: A subsidiary company has received demand from the provident fund authorities wherein demand of INR 1.42 crores (out of which
0.48 has been paid). 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 demands received.

Note 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. The subsidiary company has relied on stay petition granted by the Honourable High
Court of Kerala and Honourable 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 this.

Note h: On 23 April 2018, The Government of Kerala issued an order revising the minimum wages of medical and nursing staff. The
order mentions that the changes would be effective retrospectively from 1 October 2017. Since the legislation was issued in April 2018,
management has started paying the revised salary with effect from 1 April 2018. The Group filed an appeal against the retrospective
application of this order with the High Court of Kerala which has issued an interim stay order on 26 July 2018. The Writ Petition WP (c)
No. 25109/2018 challenging the retrospective effect of minimum wage order passed by the Government of Kerala is pending before the
Hon’ble High Court of Kerala in hearing list. Based on the stay order and legal advise, management believes that their position will be upheld
and therefore has not provided for the incremental cost for the period October 2017 to March 2018.

Note i: 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 2023, the export obligations remaining to be fulfilled amounts to INR 16.00 crores (as at 31 March 2022:
INR 12.80 crores). In the event that export obligations are not fulfilled, the Company would be liable to pay the levies.

Note j: A Subsidiary 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 2023, export obligations remaining to be fulfilled amounts to INR 12.18 Crore (as at 31 March 2022:
INR 6.71 Crore). 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 11.8 Crore (as at March 2022: INR 11.8 Crore) to the customs authorities in this regard.

Note k: The Group has included claims of INR 39.57 crores under “Claims against the company not acknowledged as debt”. The cases are
compensation demanded by the patient/ their relatives and are pending with various Consumer Disputes Redressal Commission. The management
believes that the Company has good chance of success in these cases and has adequate insurance coverage against all these claims.

Note l: On 28th February 2019, the Hon’ble Supreme Court of India has delivered a judgment clarifying the principles that need to be applied
in determining the components of salaries and wages on which Provident Fund (PF) contributions need to be made by establishments. Basis
this judgment, the Group has re-computed its liability towards PF from the month of March 2019 and has paid PF as per Supreme Court
judgement. In respect of the earlier periods/years, the Group has been legally advised that there are numerous interpretative challenges on
the application of the judgment retrospectively. Based on such legal advice, the management believes that it is impracticable at this stage
to reliably measure the provision required, if any, and accordingly, no provision has been made towards the same. Necessary adjustments,
if any, will be made to the books as more clarity emerges on this subject.

Note m: 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.

Note n: 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.The Group does not expect any reimbursement in respect of the above contingent liabilities.

Note o: The Group has given Bank Guarantees in respect of certain contingent liabilities listed above.

Note p: The Group does not have any long-term commitments or material non-cancellable contractual commitments/contracts, including
derivative contracts for which there were any material foreseeable losses other than disclosed in the consolidated financials statements.

335
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

34 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 2023 and 31 March 2022 is as follows:

As at As at
Particulars
31 March 2023 31 March 2022
Total equity attributable to the equity shareholders of the Company 4,448.07 3,953.41
As a percentage of total capital 66% 64%

Long-term borrowings 1,312.30 1,466.40

Short-term borrowings 975.18 725.76
Total borrowings 2,287.48 2,192.16
As a percentage of total capital 34% 36%
Total capital (equity and borrowings) 6,735.55 6,145.57

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.

As at 31 March 2023

Carrying value Fair value

Other
Financial
Particulars Note financial Total
assets at
FVTPL liabilities carrying Level 1 Level 2 Level 3 Total
amortised
at amortised value
cost
cost
Assets
Financial assets not measured
at fair value*
Trade receivables 11 2,336.31 - - 2,336.31 - - - -
Cash and cash equivalents 12 378.53 - - 378.53 - - - -
Other bank balances 13 50.03 - - 50.03 - - - -
Loans 7 111.90 - - 111.90 - - - -
Other financial assets 8 398.96 - - 398.96 - - - -
Financial assets measured at
fair value
Investments 6 68.30 11.25 - 79.55 11.25 - - 11.25
Total 3,344.03 11.25 - 3,355.28 11.25 - - 11.25
Liabilities
Financial liabilities not
measured at fair value*
Borrowings (including current 15 - - 2,287.48 2,287.48 - - - -
maturities of borrowings)
Lease liabilities 40 - - 3,412.82 3,412.82
Trade payables 19 - - 2,987.77 2,987.77 - - - -
Other financial liabilities 16 - - 107.39 107.39 - - - -
Financial liabilities measured at
fair value
Liability for written put - 218.71 - 218.71 - - 218.71 218.71
options(note A.2 below)
Total - 218.71 8,795.46 9,014.17 - - 218.71 218.71

336
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 Financial Instruments- Fair values and risk managemen (Contd..)

As at 31 March 2022

Carrying value Fair value

Other
Financial
Particulars Note financial Total
assets at
FVTPL liabilities carrying Level 1 Level 2 Level 3 Total
amortised
at amortised value
cost
cost
Assets
Financial assets not measured
at fair value*
Trade receivables 11 2,020.52 - - 2,020.52 - - - -
Cash and cash equivalents 12 343.37 - - 343.37 - - - -
Other bank balances 13 36.24 - - 36.24 - - - -
Loans 7 28.07 - - 28.07 - - - -
Other financial assets 8 348.17 - - 348.17 - - - -
Financial assets measured at
fair value
Investments 6 38.19 6.64 - 44.83 6.64 - - 6.64
Total 2,814.56 6.64 - 2,821.20 6.64 - - 6.64
Liabilities -
Financial liabilities not
measured at fair value*
Borrowings (including current 15 - - 2,192.16 2,192.16 - - - -
maturities of borrowings)
Lease liabilities 40 - - 2,714.97 2,714.97 - - - -
Trade payables 19 - - 2,118.09 2,118.09 - - - -
Other financial liabilities 16 - - 117.17 117.17 - - - -
Financial liabilities measured at
fair value
Payable to minority shareholders 16 - 22.63 - 22.63 - - 22.63 22.63
towards acquisitions (Note A.1
below)
Liability for written put - 93.64 - 93.64 - - 93.64 93.64
options(note A.2 below)
Total - 116.27 7,142.39 7,258.66 - - 116.27 116.27
*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 reasonable 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. During the current year on the basis of detailed internal assessment carried out, the
Management concluded that there is no requirement to retain the provision for contingent consideration payable to the erstwhile
minority shareholders of one of the subsidiaries in GCC, in the books of accounts. Accordingly, during the year ended 31 March 2023,
the Group has recognized an income of INR 24.03 crores arising out of the reversal of the contingent consideration provision.

Note A.2 - The Company has entered into share subscription and share purchase agreement dated 30 April 2016, with Dr Ramesh Cardiac
and Multi Specialty 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 42.51% 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.
The Company has entered into share subscription and share purchase agreement dated 14 July 2014, with Sri Sainatha Multispeciality
Hospitals Private Limited and its promoter group (non-controlling interest). The non-controlling interest has a put option on 19.27%
of the non-controlling interests' equity ownership in Sri Sainatha Multispeciality Hospitals Private Limited. The option is exercisable
from April 2020 onwards. The put option contains an obligation for the Company to acquire 19.27% 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.

337
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 Financial Instruments- Fair values and risk managemen (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 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.

Level 3 fair values

The significant unobservable inputs used in the fair value measurement of the level 3 fair values as at 31 March 2023 and 31 March
2022 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.

Contingent
Particulars Gross obligation
consideration
Balance at 1 April 2022 (93.64) (22.63)
Gain on write back of included in "other income"
Gain recognised during the year (unrealised) (refer note 35 A) - 24.03
Gain included in OCI
Exchange difference in translating financial statements of foreign operations - (1.40)
Additions during the year (125.07) -
Balance as at 31 March 2023 (218.71) -

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.

Put option

As at 31 March 2023
As at 31 March 2023
Increase Decrease
Volatility (1% movement) (0.32) 0.32
EBITDA growth rates (1% movement) 29.20 (29.02)
Risk free rate (1% movement) 17.61 (17.27)

As at 31 March 2022
Particulars
Increase Decrease
Volatility (1% movement) (0.57) to 0.20 (0.19) to 0.56
EBITDA growth rates (1% movement) 0.09 to 63.90 (0.09) to (62.83)
Risk free rate (1% movement) (0.06) to 3.59 (3.44) to 0.06

338
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 Financial Instruments- Fair values and risk managemen (Contd..)

C Financial risk management

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

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 Company always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected credit losses
on trade receivables are estimated using a provision matrix by reference to past default experience of the debtors and an analysis of the
debtors' current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in
which the debtors operate, and an assessment of both the current as well as the forecast direction of conditions at the reporting date.
The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to INR 2,336.31 crore
(31 March 2022: INR 2,020.52 crore) and unbilled receivables amounting to INR 49.49 crore (31 March 2022: INR 38.30 crore). The
movement in lifetime ECL in respect of trade and other receivables during the year was as follows:

As at As at
Allowance for credit loss
31 March 2023 31 March 2022
Balance at the beginning 633.75 842.60
Impairment loss recognised 169.64 240.08
Impairment loss reversed/(utilised) (51.36) (470.85)
Exchange difference on allowance for credit loss 55.29 21.92
Balance at the end 807.32 633.75

No single customer accounted for more than 10% of the revenue as of 31 March 2023 and 31 March 2022. There is no significant
concentration of credit risk. 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.

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. Ultimate responsibility for liquidity risk management rests with the board
of directors, which has established an appropriate liquidity risk management framework for management of the Group’s short,
medium and long-term funding and liquidity management requirements. 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.

339
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 Financial Instruments- Fair values and risk managemen (Contd..)

The table below provides details regarding the undiscounted contractual maturities of significant financial liabilities as of
31 March 2023

Particulars Less than 1 year More than 1 year Total

Trade payables 2,987.77 - 2,987.77
Current borrowings 500.32 - 500.32
Non current borrowings (including current maturities) 474.86 1,312.30 1787.16
Lease liabilities 258.41 3,154.41 3,412.82
Other financial liabilities 109.61 216.49 326.10

The table below provides details regarding the undiscounted contractual maturities of significant financial liabilities as of
31 March 2022:

Particulars Less than 1 year More than 1 year Total

Trade payables 2,118.09 - 2,118.09
Current borrowings 290.61 - 290.61
Non current borrowings (including current maturities) 435.15 1,466.40 1,901.55
Lease liabilities 242.05 2,472.92 2,714.97
Other financial liabilities 221.78 11.66 233.44

Financial assets carried at amortised cost as at 31 March 2023 is INR 3,344.03 crores and carried at FVTPL is INR 11.25 crores.
(as at 31 March 2022: INR 2,814.56 crores and INR 6.64 crores respectively)

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 undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations
arise. The functional currency of company is INR. The Group is mainly exposed to AED, OMR, QAR, SAR and USD.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the reporting date
are as follows:

As at 31 March 2023 AED OMR QAR SAR USD Others

Financial Assets
Investments 75.33 - - - - -
Other financial assets (current and non-current) 212.88 4.04 - 15.18 - 0.69
Trade Receivables 1,506.42 222.13 117.02 236.44 - 16.32
Cash and Cash Equivalents and Bank balances 270.01 19.53 42.49 12.96 0.29 7.48
Financial Liabilities
Borrowings (current and non-current) 407.54 235.08 - - 1,028.45 19.69
Trade payables and other financial liabilities 2,173.88 215.82 81.75 107.52 2.90 33.67
(current and non-current)
Lease liabilities (current and non-current) 2,333.94 308.31 200.83 24.39 - 12.15

340
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 Financial Instruments- Fair values and risk managemen (Contd..)

As at 31 March 2022 AED OMR QAR SAR USD Others
Financial Assets
Investments 25.93 - - - - -
Other financial assets (current and non-current) 154.65 3.38 - 9.82 0.86 1.29
Trade Receivables 1,434.04 167.86 90.87 175.85 - 11.45
Cash and Cash Equivalents and Bank balances 178.16 7.65 41.00 32.42 2.26 12.26
Financial Liabilities -
Borrowings (current and non-current) 325.86 185.61 - - 1,235.46 14.21
Trade payables and other financial liabilities 1,672.80 72.25 62.94 72.13 0.73 35.27
(current and non-current)
Lease liabilities (current and non-current) 1,742.35 292.04 195.85 24.99 - 15.38

Sensitivity analysis

The sensitivity of profit or loss to changes in exchange rates arises mainly from foreign currency denominated financial
instruments. One per cent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel
and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a one
per cent change in foreign currency rates. A positive number below indicates an increase in profit and other equity where currency
units strengthens one per cent against the relevant currency. For a one per cent weakening of currency units against the relevant
currency, there would be a comparable impact on the profit and other equity, and the balances below would be negative.

Impact on profit or (loss) Impact on equity

Particulars As at As at As at As at
31 March 2023 31 March 2022 31 March 2023 31 March 2022
AED Sensitivity
INR/ AED - Increase by 1% 2.90 4.46 4.82 1.63
INR/ AED - Decrease by 1% (2.90) (4.46) (4.82) (1.63)
OMR Sensitivity
INR/ OMR - Increase by 1% (0.26) 0.13 0.72 0.90
INR/ OMR - Decrease by 1% 0.26 (0.13) (0.72) (0.90)
QAR Sensitivity
INR/ QAR - Increase by 1% 0.17 0.17 1.47 1.43
INR/ QAR - Decrease by 1% (0.17) (0.17) (1.47) (1.43)
SAR Sensitivity
INR/ SAR - Increase by 1% (0.02) (0.15) 4.21 3.87
INR/ SAR - Decrease by 1% 0.02 0.15 (4.21) (3.87)

Interest rate risk

The Group is exposed to interest rate risk because the Group borrows funds at both fixed and floating interest rates. The Group's
significant interest rate risk arises from long-term borrowings with variable interest 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. The risk is managed by the Group by maintaining an appropriate mix between
fixed and floating rate borrowings,

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

As at As at
Particulars
31 March 2023 31 March 2022
Financial liabilities (bank borrowings)
Variable rate long term borrowings including current maturities 1,892.98 1,885.19
Derivative financial instrument
Interest rate swap 394.39 468.57

341
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

35 Financial Instruments- Fair values and risk managemen (Contd..)

Sensitivity Analysis

A reasonably possible change of 1 percent change 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.

Impact on profit or (loss) Impact on equity

Particulars As at As at As at As at
31 March 2023 31 March 2022 31 March 2023 31 March 2022
Sensitivity
1% increase in MCLR rate (18.93) (18.85) (18.93) (18.85)
1% decrease in MCLR rate 18.93 18.85 18.93 18.85

The analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole
year. A one per cent increase or decrease is used when reporting interest rate risk internally to key management personnel and
represents management’s assessment of the reasonably possible change in interest rates. The Company's sensitivity to interest
rates has increased in the current year due to the additional variable rate long term borrowings taken during the year.

342
 Notes to the consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36A 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'.

As at / For the year ended 31 March 2023

Share in other Share in total

Net assets Share in profit or loss
comprehensive income comprehensive income
Name of the entity As a % of As a % of As a % of other As a % of total
consolidated Amount consolidated Amount comprehensive Amount comprehensive Amount
Integrated Annual Report FY 2022-2023

net assets profit or loss income income

Parent
Aster DM Healthcare Limited 64.41% 3,130.51 36.43% 173.24 0.21% 0.41 25.75% 173.65
Subsidiaries and step down subsidiaries
India
DM Med City Hospitals (India) Private Limited 1.40% 67.82 0.29% 1.38 0.04% 0.08 0.22% 1.46
Ambady Infrastructure Private Limited 1.40% 68.22 (0.14%) (0.65) 0.00% - (0.10%) (0.65)
Aster DM Healthcare (Trivandrum) Private Limited (0.70%) (33.87) (2.04%) (9.70) 0.00% - (1.44%) (9.70)
Malabar Institute of Medical Sciences Limited 11.54% 560.93 14.81% 70.42 0.12% 0.24 10.48% 70.66
Prerana Hospital Limited 1.10% 53.57 2.50% 11.90 0.16% 0.31 1.81% 12.21
Sri Sainatha Multispeciality Hospitals Private Limited 0.84% 40.68 (0.94%) (4.48) 0.03% 0.05 (0.66%) (4.43)
Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited 2.61% 126.64 0.89% 4.22 (0.27%) (0.54) 0.55% 3.68
Aster Clinical Lab LLP (1.84%) (89.19) (9.27%) (44.06) 0.00% - (6.53%) (44.06)
EMED Human Resources India Private Limited 0.02% 0.82 0.03% 0.14 0.00% - 0.02% 0.14
Ezhimala Infrastructure LLP 0.19% 9.34 0.00% 0.02 0.00% - 0.00% 0.02
Warseps Healthcare LLP 0.00% 0.10 0.00% - 0.00% - 0.00% -
Sanghamitra Hospitals Private Limited 0.73% 35.61 0.90% 4.27 (0.03%) (0.05) 0.63% 4.22
Aster Ramesh Duhita LLP 0.00% 0.05 (0.01%) (0.07) 0.00% - (0.01%) (0.07)
Komali Fertility Centre LLP 0.03% 1.39 0.25% 1.19 0.00% - 0.18% 1.19
(earlier Ramesh Fertility Centre LLP)
Hindustan Pharma Distributors Private Limited 0.13% 6.56 (1.54%) (7.34) 0.01% 0.02 (1.09%) (7.32)
(16 Sept 2021)
Mindriot Research and Innovation Foundation 0.00% - 0.00% - 0.00% - 0.00% -
Foreign
Affinity Holdings Private Limited 40.93% 1,989.58 4.44% 21.10 0.00% - 3.13% 21.10
Aster DM Healthcare FZC 63.06% 3,065.24 20.29% 96.46 15.30% 30.43 18.81% 126.89
Aster Hospital Sonapur L.L.C (1.03%) (50.08) (6.51%) (30.93) 0.00% - (4.59%) (30.93)
FINANCIAL STATEMENTS

Radiant Healthcare L.L.C 0.70% 34.04 0.40% 1.89 0.00% - 0.28% 1.89
Aster Day Surgery Centre LLC (0.31%) (14.88) 0.25% 1.18 0.00% - 0.17% 1.18
DM Healthcare (L L C) 10.75% 522.52 13.58% 64.56 0.00% - 9.57% 64.56
Wahat Al Aman Home Health Care L.L.C. 1.17% 57.10 5.43% 25.81 0.00% - 3.83% 25.81

343
344
Notes to the consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36A 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'. (Contd..)
Share in other Share in total
Net assets Share in profit or loss
comprehensive income comprehensive income
Aster DM Healthcare Limited

Name of the entity As a % of As a % of As a % of other As a % of total

consolidated Amount consolidated Amount comprehensive Amount comprehensive Amount
net assets profit or loss income income
Aster Grace Nursing and Physiotherapy LLC (0.03%) (1.35) (0.00%) (0.02) 0.00% - (0.00%) (0.02)
Aster Pharmacies Group LLC 18.06% 878.03 49.78% 236.71 0.00% - 35.10% 236.71
New Aster Pharmacy DMCC 0.30% 14.64 0.54% 2.56 0.00% - 0.38% 2.56
Aster DCC Pharmacy LLC (0.21%) (9.99) (0.18%) (0.84) 0.00% - (0.12%) (0.84)
Aster Al Shafar Pharmacies Group LLC 0.36% 17.59 1.04% 4.96 0.00% - 0.73% 4.96
Rafa Pharmacy LLC (0.04%) (1.76) (0.14%) (0.67) 0.00% - (0.10%) (0.67)
Aster Pharmacy LLC, AUH 0.06% 2.81 (0.06%) (0.28) 0.00% - (0.04%) (0.28)
Med Shop Drugs Store LLC 0.14% 6.71 (10.41%) (49.49) 0.00% - (7.34%) (49.49)
Alfa Drug Store LLC 4.26% 207.21 0.00% - 0.00% - 0.00% -
Alfaone Drug Store LLC 1.95% 94.80 11.42% 54.30 0.00% - 8.05% 54.30
Alfaone FZ-LLC 0.00% 0.22 0.00% - 0.00% - 0.00% -
DM Pharmacies LLC 0.06% 3.13 0.00% - 0.00% - 0.00% -
Aster Opticals LLC (0.42%) (20.37) (0.09%) (0.44) 0.00% - (0.06%) (0.44)
Medcare Hospital (L.L.C) 33.65% 1,635.43 44.26% 210.47 0.00% - 31.21% 210.47
Premium Healthcare Limited 0.05% 2.42 0.13% 0.64 0.00% - 0.09% 0.64
Dr. Moopens Healthcare Management Services LLC (12.21%) (593.38) (43.75%) (208.01) 0.00% - (30.84%) (208.01)
Eurohealth Systems FZ LLC 0.41% 20.15 (1.02%) (4.83) 0.00% - (0.72%) (4.83)
Al Rafa Investments Limited (0.04%) (1.92) (0.04%) (0.20) 0.00% - (0.03%) (0.20)
Al Rafa Holdings Limited (0.02%) (0.74) (0.01%) (0.07) 0.00% - (0.01%) (0.07)
Alfa Investments Limited (0.01%) (0.38) (0.03%) (0.14) 0.00% - (0.02%) (0.14)
Active Holdings Limited (0.00%) (0.05) (0.01%) (0.06) 0.00% - (0.01%) (0.06)
Al Rafa Medical Centre LLC (0.93%) (45.07) (0.29%) (1.39) 0.00% - (0.21%) (1.39)
Dar Al Shifa Medical Centre LLC (0.02%) (0.87) 0.08% 0.38 0.00% - 0.06% 0.38
Aster Primary Care LLC (0.02%) (1.02) (0.01%) (0.03) 0.00% - (0.00%) (0.03)
Modern Dar Al Shifa Pharmacy LLC 0.07% 3.57 0.02% 0.08 0.00% - 0.01% 0.08
Harley Street LLC 0.00% 0.21 0.00% - 0.00% - 0.00% -
Harley Street Pharmacy LLC 0.11% 5.38 0.66% 3.16 0.00% - 0.47% 3.16
Harley Street Medical Centre LLC 1.39% 67.66 0.50% 2.37 0.00% - 0.35% 2.37
Harley Street Dental LLC (0.04%) (2.18) 0.20% 0.94 0.00% - 0.14% 0.94
Grand Optics LLC (1.87%) (90.95) 1.55% 7.36 0.00% - 1.09% 7.36
Zahrat Al Shefa Medical Center L.L.C 0.07% 3.50 (0.32%) (1.52) 0.00% - (0.23%) (1.52)
Samary Pharmacy LLC 0.28% 13.82 0.24% 1.15 0.00% - 0.17% 1.15
 Notes to the consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36A 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'. (Contd..)
Share in other Share in total
Net assets Share in profit or loss
comprehensive income comprehensive income
Name of the entity As a % of As a % of As a % of other As a % of total
consolidated Amount consolidated Amount comprehensive Amount comprehensive Amount
net assets profit or loss income income
Integrated Annual Report FY 2022-2023

Metro Meds Pharmacy L.L.C 0.14% 6.79 0.53% 2.53 0.00% - 0.37% 2.53
Metro Medical Center L.L.C 0.15% 7.38 0.66% 3.14 0.00% - 0.47% 3.14
Symphony Healthcare Management Services LLC (1.01%) (49.30) (0.34%) (1.63) 0.00% - (0.24%) (1.63)
E-Care International Medical Billing Services Co. LLC 0.86% 41.57 2.56% 12.16 0.00% - 1.80% 12.16
Al Raffah Hospital LLC 1.24% 60.10 (4.39%) (20.89) 0.00% - (3.10%) (20.89)
Al Raffah Pharmacies Group LLC 0.12% 5.72 0.19% 0.90 0.00% - 0.13% 0.90
Oman Al Khair Hospital L.L.C 0.12% 6.05 (1.18%) (5.60) 0.00% - (0.83%) (5.60)
Dr. Moopen's Healthcare Management Services WLL 4.18% 203.32 0.49% 2.32 0.76% 1.51 0.57% 3.83
Welcare Polyclinic W.L.L 0.09% 4.31 0.34% 1.61 0.00% - 0.24% 1.61
Dr. Moopens Aster Hospital WLL (1.25%) (60.76) 3.34% 15.89 0.00% - 2.36% 15.89
Zest Wellness Pharmacy LLC 0.01% 0.64 (0.01%) (0.03) 0.00% - (0.00%) (0.03)
Sanad Al Rahma for Medical Care LLC 8.65% 420.56 (0.43%) (2.07) 0.80% 1.59 (0.07%) (0.48)
Aster DM Healthcare WLL (1.35%) (65.51) 0.28% 1.33 0.00% - 0.20% 1.33
(earlier Aster DM Healthcare SPC)
Orange Pharmacies LLC (0.61%) (29.84) 0.35% 1.66 0.00% - 0.25% 1.66
Al Shafar Pharmacy LLC, AUH (0.03%) (1.36) (0.01%) (0.06) 0.00% - (0.01%) (0.06)
Aster DM Healthcare INC 0.00% - (0.13%) (0.60) 0.00% - (0.09%) (0.60)
Aster Medical Centre LLC (0.62%) (29.95) 0.00% - 0.00% - 0.00% -
Aster Kuwait Pharmaceuticals and Medical Equipment Company 0.00% - (0.70%) (3.32) 0.00% - (0.49%) (3.32)
W.L.L
12,309.67 647.13 34.05 681.18
Associates (Investment as per equity method) (Refer note 39) 1.41% 68.30 0.26% 1.22 0.00% - 0.18% 1.22
Adjustment arising out of consolidation (163.15%) (7,929.90) (46.99%) (223.44) 70.30% 139.86 (12.39%) (83.58)
Non controlling interest in subsidiaries 8.48% 412.39 10.64% 50.58 12.59% 25.04 11.21% 75.62
Consolidated net assets/ Profit after tax 100.00% 4,860.46 100.00% 475.49 100.00% 198.95 100.00% 674.44
FINANCIAL STATEMENTS

345
346
Notes to the consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36A 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'.

As at / For the year ended 31 March 2022

Aster DM Healthcare Limited

Share in other Share in total

Net assets Share in profit or loss
comprehensive income comprehensive income
Name of the entity As a % of As a % of As a % of other As a % of total
consolidated Amount consolidated Amount comprehensive Amount comprehensive Amount
net assets profit or loss income income
Parent
Aster DM Healthcare Limited 65.93% 2,955.20 15.00% 90.14 0.51% 0.48 13.05% 90.62
Subsidiaries and step down subsidiaries
India
DM Med City Hospitals (India) Private Limited 1.48% 66.36 0.02% 0.10 0.03% 0.03 0.02% 0.13
Ambady Infrastructure Private Limited 1.54% 68.86 (0.12%) (0.70) 0.00% - (0.10%) (0.70)
Aster DM Healthcare (Trivandrum) Private Limited (0.54%) (24.17) (1.47%) (8.81) 0.00% - (1.27%) (8.81)
Malabar Institute of Medical Sciences Limited 11.28% 505.77 11.37% 68.32 (0.74%) (0.69) 9.74% 67.63
Prerana Hospital Limited 0.92% 41.36 1.22% 7.35 (0.05%) (0.05) 1.05% 7.30
Sri Sainatha Multispeciality Hospitals Private Limited 1.01% 45.12 1.28% 7.69 0.28% 0.26 1.14% 7.95
Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited 2.74% 122.96 2.47% 14.87 0.01% 0.01 2.14% 14.88
Aster Clinical Lab LLP (1.01%) (45.13) (4.54%) (27.27) 0.20% 0.19 (3.90%) (27.08)
EMED Human Resources India Private Limited 0.02% 0.68 0.02% 0.12 0.01% 0.01 0.02% 0.13
Ezhimala Infrastructure LLP 0.21% 9.27 (0.00%) (0.01) 0.00% - (0.00%) (0.01)
Warseps Healthcare LLP 0.00% 0.09 0.00% - 0.00% - 0.00% -
Sanghamitra Hospitals Private Limited 0.70% 31.39 2.71% 16.26 0.75% 0.70 2.44% 16.96
Aster Ramesh Duhita LLP 0.00% 0.12 0.00% 0.03 0.00% - 0.00% 0.03
Komali Fertility Centre LLP (earlier Ramesh Fertility Centre LLP) 0.03% 1.20 0.15% 0.89 0.00% - 0.13% 0.89
Hindustan Pharma Distributors Private Limited (16 September 2021) 0.31% 13.88 (0.25%) (1.52) 0.00% - (0.22%) (1.52)
Mindriot Research and Innovation Foundation 0.00% - 0.00% - 0.00% - 0.00% -

Foreign
Affinity Holdings Private Limited 40.38% 1,810.29 12.08% 72.60 0.00% - 10.45% 72.60
Aster Caribbean Holdings Limited (15 December 2020) 0.00% - 0.00% - 0.00% - 0.00% -
Aster Cayman Hospital Limited (15 December 2020) 0.00% - 0.00% - 0.00% - 0.00% -
Aster DM Healthcare FZC 60.87% 2,728.79 37.22% 223.71 38.84% 36.30 37.44% 260.01
Aster Hospital Sonapur L.L.C (0.38%) (16.94) (2.88%) (17.30) 0.00% - (2.49%) (17.30)
Radiant Healthcare L.L.C 0.66% 29.54 (0.21%) (1.27) 0.00% - (0.18%) (1.27)
Aster Day Surgery Centre LLC (0.33%) (14.80) 0.23% 1.36 0.00% - 0.20% 1.36
DM Healthcare (L L C) 9.47% 424.56 31.75% 190.82 0.00% - 27.48% 190.82
 Notes to the consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36A 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'. (Contd..)
Share in other Share in total
Net assets Share in profit or loss
comprehensive income comprehensive income
Name of the entity As a % of As a % of As a % of other As a % of total
consolidated Amount consolidated Amount comprehensive Amount comprehensive Amount
net assets profit or loss income income
Integrated Annual Report FY 2022-2023

Wahat Al Aman Home Health Care L.L.C. 0.91% 40.88 7.10% 42.66 0.00% - 6.14% 42.66
Aster Grace Nursing and Physiotherapy LLC (0.03%) (1.22) (0.30%) (1.81) 0.00% - (0.26%) (1.81)
Aster Pharmacies Group LLC 13.09% 586.68 27.98% 168.19 0.00% - 24.22% 168.19
New Aster Pharmacy DMCC 0.25% 11.05 0.33% 1.97 0.00% - 0.28% 1.97
Medshop Garden Pharmacy LLC 0.00% - 0.46% 2.77 0.00% - 0.40% 2.77
Aster DCC Pharmacy LLC (0.19%) (8.40) (0.15%) (0.92) 0.00% - (0.13%) (0.92)
Aster Al Shafar Pharmacies Group LLC 0.36% 16.03 0.76% 4.55 0.00% - 0.66% 4.55
Rafa Pharmacy LLC (0.02%) (0.99) (0.01%) (0.08) 0.00% - (0.01%) (0.08)
Aster Pharmacy LLC, AUH 0.06% 2.85 0.03% 0.20 0.00% - 0.03% 0.20
Med Shop Drugs Store LLC 1.18% 52.77 (3.95%) (23.74) 0.00% - (3.42%) (23.74)
Alfa Drug Store LLC 4.25% 190.61 1.00% 6.02 0.00% - 0.87% 6.02
Alfaone Drug Store LLC (1 June 2020) 0.80% 36.08 5.81% 34.93 0.00% - 5.03% 34.93
Alfaone FZ-LLC 0.00% 0.21 0.00% - 0.00% - 0.00% -
DM Pharmacies LLC 0.06% 2.88 0.00% - 0.00% - 0.00% -
Aster Opticals LLC (0.41%) (18.33) 0.39% 2.34 0.00% - 0.34% 2.34
Medcare Hospital (L.L.C) 30.69% 1,375.68 36.49% 219.35 0.00% - 31.58% 219.35
Premium Healthcare Limited 0.03% 1.31 (0.09%) (0.52) 0.00% - (0.07%) (0.52)
Dr. Moopens Healthcare Management Services LLC (7.81%) (349.96) (23.19%) (139.40) 0.00% - (20.07%) (139.40)
Eurohealth Systems FZ LLC 0.52% 23.09 0.75% 4.48 0.00% - 0.65% 4.48
Al Rafa Investments Limited (0.04%) (1.57) (0.02%) (0.13) 0.00% - (0.02%) (0.13)
Al Rafa Holdings Limited (0.01%) (0.62) (0.01%) (0.04) 0.00% - (0.01%) (0.04)
Alfa Investments Limited (0.00%) (0.22) (0.02%) (0.13) 0.00% - (0.02%) (0.13)
Active Holdings Limited 0.00% 0.01 (0.01%) (0.05) 0.00% - (0.01%) (0.05)
Al Rafa Medical Centre LLC (0.90%) (40.15) (0.55%) (3.32) 0.00% - (0.48%) (3.32)
Dar Al Shifa Medical Centre LLC (0.03%) (1.15) 0.48% 2.91 0.00% - 0.42% 2.91
Aster Primary Care LLC (0.02%) (0.90) 0.07% 0.41 0.00% - 0.06% 0.41
Modern Dar Al Shifa Pharmacy LLC 0.26% 11.44 0.29% 1.73 0.00% - 0.25% 1.73
Harley Street LLC 0.00% 0.20 0.00% - 0.00% - 0.00% -
FINANCIAL STATEMENTS

Harley Street Pharmacy LLC 0.04% 1.98 0.27% 1.62 0.00% - 0.23% 1.62
Harley Street Medical Centre LLC 1.34% 60.01 1.47% 8.82 0.00% - 1.27% 8.82
Harley Street Dental LLC (0.06%) (2.88) 0.02% 0.12 0.00% - 0.02% 0.12
Grand Optics LLC (2.02%) (90.59) 0.36% 2.17 0.00% - 0.31% 2.17

347
348
Notes to the consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36A 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'. (Contd..)

Share in other Share in total

Net assets Share in profit or loss
Aster DM Healthcare Limited

comprehensive income comprehensive income

Name of the entity As a % of As a % of As a % of other As a % of total
consolidated Amount consolidated Amount comprehensive Amount comprehensive Amount
net assets profit or loss income income
Noor Al Shefa Clinic LLC 0.00% - (0.12%) (0.72) 0.00% - (0.10%) (0.72)
Zahrat Al Shefa Medical Center L.L.C 0.10% 4.66 (0.23%) (1.36) 0.00% - (0.20%) (1.36)
Zahrat Al Shefa Pharmacy LLC 0.00% - 0.02% 0.10 0.00% - 0.01% 0.10
Samary Pharmacy LLC 0.26% 11.63 0.10% 0.59 0.00% - 0.08% 0.59
Metro Meds Pharmacy L.L.C 0.11% 5.11 0.29% 1.76 0.00% - 0.25% 1.76
Metro Medical Center L.L.C 0.11% 4.90 0.25% 1.52 0.00% - 0.22% 1.52
Symphony Healthcare Management Services LLC (0.98%) (43.81) (0.05%) (0.31) 0.00% - (0.04%) (0.31)
E-Care International Medical Billing Services Co. LLC 0.60% 26.79 1.65% 9.91 0.00% - 1.43% 9.91
Al Raffah Hospital LLC 1.67% 74.96 1.97% 11.85 0.00% - 1.71% 11.85
Al Raffah Pharmacies Group LLC 0.10% 4.41 0.11% 0.69 0.00% - 0.10% 0.69
Oman Al Khair Hospital L.L.C 0.24% 10.84 0.09% 0.55 0.00% - 0.08% 0.55
Dr. Moopen's Healthcare Management Services WLL 4.72% 211.59 1.17% 7.04 2.66% 2.49 1.37% 9.53
Welcare Polyclinic W.L.L 0.05% 2.44 0.61% 3.67 0.00% - 0.53% 3.67
Dr. Moopens Aster Hospital WLL (1.58%) (70.86) 1.24% 7.43 0.00% - 1.07% 7.43
Sanad Al Rahma for Medical Care LLC 8.64% 387.30 (2.41%) (14.50) 3.73% 3.49 (1.59%) (11.01)
Aster DM Healthcare WLL (earlier Aster DM Healthcare SPC) (1.37%) (61.51) 0.41% 2.45 0.00% - 0.35% 2.45
Orange Pharmacies LLC (0.65%) (29.01) (0.01%) (0.06) 0.00% - (0.01%) (0.06)
Al Shafar Pharmacy LLC, AUH (0.03%) (1.19) 0.00% - 0.00% - 0.00% -
Aster DM Healthcare INC 0.01% 0.56 0.00% - 0.00% - 0.00% -
Aster Medical Centre LLC (0.61%) (27.55) 0.00% - 0.00% - 0.00% -
Aster Kuwait Pharmaceuticals and Medical Equipment Company W.L.L 0.07% 3.13 0.00% - 0.00% - 0.00% -
11,165.57 1,003.09 43.22 1,046.31
Associates (Investment as per equity method) (Refer note 39) 0.85% 38.19 0.09% 0.54 0.00% - 0.08% 0.54
Adjustment arising out of consolidation (161.74%) (7,250.35) (79.47%) (477.64) 42.20% 39.44 (63.10%) (438.20)
Non controlling interest in subsidiaries 11.81% 529.21 12.49% 75.06 11.55% 10.79 12.36% 85.85
Consolidated net assets/ Profit after tax 100.00% 4,482.62 100.00% 601.05 100.00% 93.45 100.00% 694.50
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36B Non-controlling interest

The following table summarises the financial information relating to subsidiaries which have material non-controlling interest:

As at As at
Particulars
31 March 2023 31 March 2022
Malabar Institute of Medical Sciences Limited 134.82 130.79
Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited 54.37 60.25
Medcare Hospital (L.L.C) 212.61 206.35
Other entities 10.59 131.82
412.39 529.21

(i) Malabar Institute of Medical Sciences Limited

As at As at
Particulars
31 March 2023 31 March 2022
Non-current assets 840.51 758.56
Current assets 136.30 133.95
Non-current liabilities (220.43) (188.27)
Current liabilities (194.39) (198.49)
Net assets 561.99 505.75
NCI 23.99% 25.86%
Carrying amount of non-controlling interests 134.82 130.79

As at As at
Particulars
31 March 2023 31 March 2022
Revenue from operations 899.43 772.84
Profit for the year 69.97 68.29
Other comprehensive income for the year 0.24 (0.69)
Total comprehensive income for the year 70.21 67.60
Attributable to non-controlling interest
Profit for the year 16.79 17.66
Other comprehensive income for the year 0.06 (0.18)
Cash flows from/ (used in) :
Operating activities 133.60 112.68
Investing activities (107.11) (59.41)
Financing activities (27.26) (48.57)
Net increase in cash and cash equivalents (0.77) 4.70

(ii) Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited

As at As at
Particulars
31 March 2023 31 March 2022
Non-current assets 209.99 184.46
Current assets 39.54 26.14
Non-current liabilities (69.87) (56.36)
Current liabilities (51.75) (31.29)
Net assets 127.91 122.95
NCI 43% 49%
Carrying amount of non-controlling interests 54.37 60.25

349
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

36B Non-controlling interest (Contd..)

As at As at
Particulars
31 March 2023 31 March 2022
Revenue from operations 213.11 212.80
Profit/ (loss) for the year 5.49 14.87
Other comprehensive income for the year (0.54) 0.01
Total comprehensive income/ (loss) for the year 4.95 14.88
Attributable to non-controlling interest
Profit/ (loss) for the year 2.33 7.29
Other comprehensive income/ (loss) for the year (0.23) 0.00
Cash flows from/ (used in) :
Operating activities 23.95 21.92
Investing activities (36.87) (12.37)
Financing activities 13.26 (16.19)
Net increase in cash and cash equivalents 0.34 (6.64)

(iii) Medcare Healthcare LLC

As at As at
Particulars
31 March 2023 31 March 2022
Non-current assets 1,202.75 1,030.61
Current assets 2,021.82 1,780.47
Non-current liabilities (846.49) (761.04)
Current liabilities (742.65) (674.37)
Net assets 1,635.43 1,375.68
NCI 13% 15%
Carrying amount of non-controlling interests 212.61 206.35

As at As at
Particulars
31 March 2023 31 March 2022
Revenue from operations 2,264.16 1,952.83
Profit/ (loss) for the year 210.47 219.35
Total comprehensive income/ (loss) for the year 210.47 219.35
Attributable to non-controlling interest
Profit/ (loss) for the year 27.36 32.90
Cash flows from/ (used in) :
Operating activities 442.67 244.49
Investing activities (144.23) (92.15)
Financing activities (280.78) (179.85)
Net increase in cash and cash equivalents 17.66 (27.51)

350
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 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:

Ownership interest held by Group

Sl Country of
Entity 31 March 2023 31 March 2022
No incorporation
Beneficial Legal * Beneficial Legal *
Direct subsidiaries 100% 100%
1 DM Med City Hospitals (India) Private Limited India 100% 100% 100% 100%
2 Ambady Infrastructure Private Limited India 100% 100% 100% 100%
3 Aster DM Healthcare (Trivandrum) Private Limited India 100% 100% 74% 74%
4 Malabar Institute of Medical Sciences Limited India 76% 76% 87% 87%
5 Prerana Hospital Limited India 87% 87% 77% 77%
6 Sri Sainatha Multispeciality Hospitals Private Limited India 100% 100% 51% 51%
7 Dr. Ramesh Cardiac and Multispeciality Hospitals Private India 57% 57% 100% 100%
Limited
8 Aster Clinical Lab LLP India 100% 100% 86% 86%
9 Hindustan Pharma Distributors Private Limited India 86% 86% 100% 100%
10 Affinity Holdings Private Limited Mauritius 100% 100%
Step down subsidiaries
11 EMED Human Resources India Private Limited India 100% 100% 100% 100%
12 Ezhimala Infrastructure LLP India 76% 76% 74% 74%
13 Cantown Infra Developers LLP India 76% 76% - -
14 Warseps Healthcare LLP India 100% 100% 100% 100%
15 Sanghamitra Hospitals Private Limited India 53% 53% 37% 37%
16 Aster Ramesh Duhita LLP India 29% 29% 26% 26%
17 Komali Fertility Centre LLP (earlier Ramesh Fertility Centre LLP) India 29% 29% 26% 26%
18 Komali Fertility Centre LLP- Ongole India 29% 29% - -
19 Adiran IB Healthcare Private Limited India 57% 57% - -
20 Aster Caribbean Holdings Limited Cayman 100% 100% 100% 100%
Island
21 Aster Cayman Hospital Limited Cayman 100% 100% 100% 100%
Island
22 Aster DM Healthcare FZC UAE 100% 100% 100% 100%
23 Aster Hospital Sonapur L.L.C UAE 90% 39% 90% 39%
24 Radiant Healthcare L.L.C UAE 76% 25% 76% 25%
25 Aster Day Surgery Centre LLC UAE 82% 49% 82% 49%
26 DM Healthcare (L L C) UAE 100% 100% 100% 100%
27 Wahat Al Aman Home Health Care L.L.C. UAE 100% 49% 100% 49%
28 Aster Grace Nursing and Physiotherapy LLC UAE 60% 29% 60% 29%
29 Aster Pharmacies Group LLC UAE 100% 49% 100% 49%
30 New Aster Pharmacy DMCC UAE 100% 100% 100% 100%
31 Aster DCC Pharmacy LLC UAE 100% 49% 100% 49%
32 Aster Al Shafar Pharmacies Group LLC UAE 51% 49% 51% 49%
33 Rafa Pharmacy LLC UAE 100% 49% 100% 49%
34 Aster Pharmacy LLC, AUH UAE 100% 49% 100% 49%
35 Med Shop Drugs Store LLC UAE 100% 49% 100% 49%
36 Alfa Drug Store LLC UAE 100% 49% 100% 49%
37 Alfa One Drug Store LLC UAE 100% 49% 100% 49%
38 Alfaone FZ LLC UAE 100% 100% 100% 100%
39 DM Pharmacies LLC ** UAE 100% 49% 100% 49%
40 Aster Opticals LLC UAE 60% 49% 60% 49%
41 Medcare Hospital (L.L.C) UAE 87% 75% 85% 73%
42 Premium Healthcare Limited UAE 80% 80% 80% 80%

351
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 Group information (Contd..)

Ownership interest held by Group
Sl Country of
Entity 31 March 2023 31 March 2022
No incorporation
Beneficial Legal * Beneficial Legal *
43 Dr. Moopens Healthcare Management Services LLC UAE 100% 49% 100% 49%
44 Eurohealth Systems FZ LLC UAE 100% 95% 100% 95%
45 Al Rafa Investments Limited UAE 100% 0% 100% 0%
46 Al Rafa Holdings Limited UAE 100% 0% 100% 0%
47 Alfa Investments Limited # UAE 0% 0% 0% 0%
48 Active Holdings Limited UAE 100% 0% 100% 0%
49 Al Rafa Medical Centre LLC UAE 51% 40% 51% 40%
50 Dar Al Shifa Medical Centre LLC UAE 51% 40% 51% 40%
51 Aster Primary Care LLC UAE 71% 40% 71% 40%
52 Modern Dar Al Shifa Pharmacy LLC UAE 51% 40% 51% 40%
53 Harley Street LLC UAE 60% 9% 60% 9%
54 Harley Street Pharmacy LLC UAE 60% 9% 60% 9%
55 Harley Street Medical Centre LLC UAE 60% 9% 60% 9%
56 Harley Street Dental LLC UAE 38% 2% 38% 2%
57 Grand Optics LLC UAE 85% 34% 85% 34%
58 Zahrat Al Shefa Medical Center L.L.C UAE 70% 19% 70% 19%
59 Samary Pharmacy LLC UAE 70% 19% 70% 19%
60 Metro Meds Pharmacy L.L.C UAE 66% 15% 66% 15%
61 Metro Medical Center L.L.C UAE 66% 15% 66% 15%
62 Symphony Healthcare Management Services LLC UAE 100% 0% 100% 0%
63 E-Care International Medical Billing Services Co. LLC UAE 80% 0% 80% 0%
64 Zest Wellness Pharmacies LLC UAE 50% 50% NA NA
65 Al Raffah Hospital LLC Oman 100% 100% 100% 100%
66 Al Raffah Pharmacies Group LLC Oman 100% 70% 100% 70%
67 Oman Al Khair Hospital L.L.C Oman 60% 42% 60% 42%
68 Dr. Moopen's Healthcare Management Services WLL Qatar 99% 49% 99% 49%
69 Welcare Polyclinic W.L.L Qatar 100% 45% 100% 45%
70 Dr. Moopens Aster Hospital WLL Qatar 99% 49% 99% 49%
71 Sanad Al Rahma for Medical Care LLC Kingdom of 100% 100% 100% 100%
Saudi Arabia
72 Aster DM Healthcare WLL (earlier Aster DM Healthcare SPC) Bahrain 100% 100% 100% 100%
73 Orange Pharmacies LLC Jordan 51% 0% 51% 0%
74 Al Shafar Pharmacy LLC, AUH ** UAE 51% 49% 51% 49%
75 Aster Medical Centre LLC** UAE 90% 39% 90% 39%

* 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 substantially 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.
# Although the percentage of voting rights as a result of legal holding by the Group is Nil, the Group has the power to appoint/replace all members of the Board of
Directors. Consequently Group has control over the entity.

352
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

37 Group information (Contd..)

(b) Associates

The consolidated Ind AS financial statements of the Group includes associates listed in the table below:

Ownership interest held by Group

Sl Country of
Entity 31 March 2023 31 March 2022
No incorporation
Beneficial Legal * Beneficial Legal *
1 MIMS Infrastructure and Properties Private Limited India 37% 37% 36% 36%
2 Alfaone Medicals Private Limited India 16% 16% 16% 16%
3 Alfaone Retail Pharmacies Private Limited India 16% 16% 16% 16%
4 Mindriot Research and Innovation Foundation India 49% 49% 49% 49%
5 Aries Holdings FZC UAE 25% 25% 25% 25%
6 AAQ Healthcare Investments LLC UAE 33% 33% 33% 33%
7 Aries Investments LLC UAE 25% 25% 25% 25%
8 Al Mutamaizah Medcare Healthcare Investment Co. LLC UAE 49% 49% 49% 49%
9 Skin III UAE 60% 60% NA NA

(c) Joint Venture

The consolidated Ind AS financial statements of the Group includes Joint Venture listed in the table below:

Ownership interest held by Group

Sl Country of
Entity 31 March 2023 31 March 2022
No incorporation
Beneficial Legal * Beneficial Legal *
1 Aster Arabia Trading Company LLC Saudi 49% 49% 49% 49%

The principal place of business of all the entities listed above is the same as their respective countries of incorporation.

38 Acquisition of Subsidiaries and Non-Controlling Interests (NCI)

Acquisition of subsidiary

i) Acquisition of Cantown Infra Developers LLP

During the year ended 31 March 2023, the Group acquired 99.9% shares in Cantown Infra Developers LLP. Cantown Infra Developers
LLP is engaged in the infrastructure development and real estate. Upon transfer of control, the Group owns economic and beneficial
interest in 76% of the net worth and profit / (loss) of Cantown Infra Developers LLP. The Group expects to reduce costs through
economies of scale.

A Consideration transferred

The following table summarises the acquisition date fair value of consideration transferred:

Particulars INR (in Crore)

Total consideration 15.23

B Identifiable assets acquired and liabilities assumed

Particulars INR (in Crore)

Property, plant and equipment 15.20
Other assets 0.21
Cash and cash equivalent 0.50
Total assets 15.91
Other liabilities 0.68
Total liabilities 0.68
Net identifiable assets acquired 15.23

353
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

38 Acquisition of Subsidiaries and Non-Controlling Interests (NCI) (Contd..)

C Goodwill

Goodwill arising from acquisition has been determined as follows:

Particulars INR (in Crore)

Consideration transferred 15.23
Fair value of non controlling interest -
Fair value of net identifiable assets acquired 15.23
-

Measurement of fair values

Assets acquired Valuation technique

Property, plant and equipment The Fair value of Property, plant and equipment (land) is evaluated based on valuation
guidelines and using comparable approach.

ii) Acquisition of Adiran IB Healthcare Private Limited

During the Year ended 31 March 2023, the Group acquired 100% shares in Adiran IB Healthcare Private Limited. Upon transfer of
control, the Group owns economic and beneficial interest in 57.49% of the net worth and profit / (loss) of Adiran IB Healthcare Private
Limited. The acquisition is expected to provide the Group with an increased share of medical and healthcare sector through access to
the Entity’s Government schemes.

A Consideration transferred

The following table summarises the acquisition date fair value of consideration transferred:

Particulars INR (in Crore)

Total consideration 1.60

B Identifiable assets acquired and liabilities assumed

Particulars INR (in Crore)

Property, plant and equipment 6.40
Other assets 0.57
Cash and cash equivalent -
Total assets 6.97
Borrowings 2.10
Other liabilities 0.94
Total liabilities 3.04
Net identifiable assets acquired 3.93

C Bargain purchase recognised

Goodwill arising from acquisition has been determined as follows:

Particulars INR (in Crore)

Consideration transferred 1.60
Fair value of net identifiable assets acquired 3.93
Bargain purchase recognised 2.33

Measurement of fair values

Assets acquired Valuation technique

Property, plant and equipment The Book value of Property, plant and equipment is considered as fair value.

354
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

38 Acquisition of Subsidiaries and Non-Controlling Interests (NCI) (Contd..)

iii) Acquisition of Hindustan Pharma Distributors Private Limited

During the Year ended 31 March 2022, the Group acquired 86% shares in Hindustan Pharma Distributors Private Limited. Hindustan
Pharma Distributors Private Limited is engaged in the business of wholesale pharmaceutical distribution. Upon transfer of control,
the Group owns economic and beneficial interest in 86% of the net worth and profit / (loss) of Hindustan Pharma Distributors Private
Limited. The acquisition is expected to provide the Group with an improved supply of Pharmaceutical and other allied product. 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 INR (in Crore)

Total consideration 15.38

B Identifiable assets acquired and liabilities assumed

Particulars INR (in Crore)

Property, plant and equipment 0.09
Intangible assets including trade name and customer relationship 3.15
Other assets 3.95
Cash and cash equivalent -
Total assets 7.19
Other liabilities -
Total liabilities -
Net identifiable assets acquired 7.19

C Goodwill

Goodwill arising from acquisition has been determined as follows:

Particulars INR (in Crore)

Consideration transferred 15.38
Fair value of non controlling interest 2.50
Fair value of net identifiable assets acquired 7.19
Goodwill 10.69

Measurement of fair values

Assets acquired Valuation technique

Property, plant and equipment The Book value of Property, plant and equipment is considered as fair value.
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. The relief from royalty is a method of the income
approach is used for measuring the fair value of intangible assets that are often the subject
of licensing, such as trade names, patents and proprietary technologies.
Customer Relationship We have valued Customer Relationships using a variant of Income Approach – Multi-Period
Excess Earnings Method (“MPEEM”). The MPEEM is an income approach used when two or
more assets work together to generate a cash-flow stream. The MPEEM seeks to isolate
the cash-flow stream attributable to a specific intangible asset being valued from the asset
grouping’s overall cash-flow stream

iv) Acquisition of Non-controlling interest (NCI) – Sri Sainatha Multispeciality Hospitals Private Limited

During the current year the Group has entered into a Share Purchase Agreement with the promoter group of Sri Sainatha Multispeciality
Hospitals Private Limited to acquire the remaining 22.69% class B equity shares for a cash consideration of INR 25 Crores. The Company
has completed the acquisition of shares on 03 November 2022, through it's internal reserves. Pursuant to the said acquisition the
shareholding of the Company in Sri Sainatha Multispeciality Hospitals Private Limited has increased from 77.32% to 100%, thereby it
becomes a wholly-owned subsidiary of the Company. Accordingly, the Group had recognised a decrease in NCI of INR 9.67 crore and
corresponding decrease in retained earnings of INR 15.33 crore.

355
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

38 Acquisition of Subsidiaries and Non-Controlling Interests (NCI) (Contd..)

v) Acquisition of Non-controlling interest (NCI) – Malabar Institute of Medical Sciences Limited

During the current year the Group has acquired 1.87% stake in equity shares for a cash consideration of INR 18.14 Crores. Pursuant to
the said acquisition the shareholding of the Company in Malabar Institute of Medical Sciences Limited has increased from 74.14% to
76.01%. Accordingly, the Group had recognised a decrease in NCI of INR 10.34 crore and corresponding decrease in retained earnings
of INR 7.80 crore.

vi) Acquisition of Non-controlling interest (NCI) by exercise of put option – Dr. Ramesh Cardiac and Multispeciality Hospitals Private
Limited

During the current year the Group has exercised the put option and acquired 6.49% stake in equity shares. Pursuant to the said exercise
the shareholding of the Company in Dr. Ramesh Cardiac and Multispeciality Hospitals Private Limited has increased from 51% to 57.49%.
Accordingly, the Group had recognised a decrease in NCI of INR 102.04 crore and corresponding decrease in retained earnings of INR 37.76
crore.

vii) Acquisition of Non-controlling interest (NCI) – Sanghamitra Hospitals Private Limited

During the year ended 31 March 2023, the Group had acquired an additional stake of 16.70% in Sanghamitra Hospitals Private Limited
for a consideration of INR 25.14 crore, thereby increasing the Group's effective stake from 36.57% as at 31 March 2022 to 53.27% as
at 31 March 2023. Accordingly, the Group had recognised a decrease in NCI of INR 3.41 crore and corresponding decrease in retained
earnings of INR 21.73 crore.

viii) Acquisition of Non-controlling interest (NCI) – Medcare Hospital LLC

During the year ended 31 March 2023, the Group had acquired an additional stake of 2% in Medcare Hospital LLC for a consideration of
INR 50.81 crore, thereby increasing the Group's effective stake from 85% as at 31 March 2022 to 87% as at 31 March 2023. Accordingly,
the Group had recognised a decrease in NCI of INR 29.36 crore and corresponding decrease in retained earnings of INR 21.45 crore.

ix) Acquisition of Non-controlling interest (NCI) – Aster DCC Pharmacy L.L.C

In January 2022, the Group had acquired an additional 30% stake in Aster DCC Pharmacy L.L.C for a consideration of INR 1.67 crore,
thereby increasing the Group's stake from 70% as at 31 March 2021 to 100% as at 31 March 2022. Accordingly, the Group had
recognised a increase in NCI of INR 2.51 crore and corresponding increase in accumulated losses of INR 4.18 crore.

39 Investment in equity accounted investees

The Group has interest in the 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.

Share of profits/
Investment
Legal and (losses)
Name Country beneficial As at As at As at As at
holding 31 March 31 March 31 March 31 March
2023 2022 2023 2022
Unquoted investments in equity instruments
AAQ Healthcare Investments LLC UAE 33% 2.68 1.83 12.64 9.96
Aries Holdings FZC UAE 25% 4.38 4.41 23.49 21.31
Skin III Ltd UAE 51% 5.31 - 36.72 -
Al Mutamaizah Medcare Healthcare Investment Co. LLC UAE 49% - (2.23) - -
MIMS Infrastructure and Properties Private Limited India 36% 0.23 0.33 10.41 10.50
Alfaone Medicals Private Limited India 16% (0.04) 0.01 0.20 0.24
Alfaone Retail Pharmacies Private Limited India 16% (11.34) (3.82) (15.16) (3.82)
Total 1.22 0.53 68.30 38.19

356
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

39 Investment in equity accounted investees (Contd..)

Summarised financial information :

(i) MIMS Infrastructure and Properties Private Limited

The Group has a 36% 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.

As at As at
Particulars
31 March 2023 31 March 2022
Non-current assets 21.38 21.71
Current assets 3.42 3.00
Non-current liabilities (0.02) (0.04)
Current liabilities (0.27) (0.21)
Net assets 24.50 24.46
Ownership held by the group 36% 36%
Group's share of net assets 8.90 8.89

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Revenue 1.88 2.09
Profit before tax 0.86 1.27
Income tax (0.22) (0.35)
Profit after tax 0.64 0.92
Other comprehensive income - -
Total comprehensive income 0.64 0.92
Ownership held by the group 36% 36%
Group's share of total comprehensive income 0.23 0.33

(ii) Aries Holdings FZC

The Group has a 25% interest in Aries Holdings FZC,effective from 24 November 2014 an entity which is not listed on any public
exchange. The table below reconciles the summarised financial information to the carrying amount of the groups interest in Aries
Holdings FZC.

As at As at
Particulars
31 March 2023 31 March 2022
Non-current Assets 199.16 186.82
Current Assets 113.75 105.51
Non-current Liabilities (152.69) (153.31)
Current Liabilities (65.11) (59.74)
Net Assets 95.11 79.28
Ownership held by Group 25% 25%
Group's share of net assets 23.78 19.82

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Revenue 26.24 24.40
Profit before tax 17.53 17.65
Income tax - -
Profit after tax 17.53 17.65
Other Comprehensive Income - -
Total Comprehensive Income 17.53 17.65
Ownership held by the Group 25% 25%
Group's share of total comprehensive income 4.38 4.41

357
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

39 Investment in equity accounted investees (Contd..)

(iii) Skin III Ltd

The Group has a 51% interest in Skin III Ltd,effective from 21 September 2022 an entity which is not listed on any public exchange. The
table below reconciles the summarised financial information to the carrying amount of the groups interest in Skin III Ltd.

As at As at
Particulars
31 March 2023 31 March 2022
Non-current Assets 7.52 -
Current Assets 13.78 -
Non-current Liabilities (0.66) -
Current Liabilities (1.75) -
Net Assets 18.89 -
Ownership held by Group 51% 0%
Group's share of net assets 9.72 -

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Revenue 35.56 -
Profit before tax 10.31 -
Income tax - -
Profit after tax 10.31 -
Other Comprehensive Income - -
Total Comprehensive Income 10.31 -
Ownership held by the Group 51% 0%
Group's share of total comprehensive income 5.31 -

(iv) Investment in other associates

The Group also has interest in the other associates as listed in the table above that are not individually material. The table below
reconciles the summarised financial information of associates that are not individually material to the carrying amount of the Group's
interest in these associates.

As at As at
Particulars
31 March 2023 31 March 2022
Non-current assets 246.37 194.51
Current assets 205.16 82.42
Non-current liabilities (119.30) (110.37)
Current liabilities (438.86) (213.52)
Net assets (106.63) (46.96)
Group's share of net assets (26.22) (16.14)

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Revenue 117.88 55.40
Profit before tax (74.93) (22.67)
Income tax 0.06 (0.36)
Profit after tax (74.87) (23.07)
Other comprehensive income 0.42 0.02
Total comprehensive income (74.45) (23.05)
Group's share of total comprehensive income (8.70) (4.21)

358
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

40 Leases

The Group has taken hospital premises on lease from various parties from where healthcare, clinical and management services are rendered.
The leases typically run for a period of 2 years - 24 years. Lease payments are renegotiated nearing the expiry to reflect market rentals.

As a lessee, the Group previously classified leases as operating or finance leases based on its assessment of whether the lease transferred
substantially all the risks and rewards of ownership. Under Ind AS 116, the Group recognises right-of-use assets and lease liabilities – i.e.
these leases are recorded on the balance sheet.

(i) Lease liabilities

Following are the changes in the lease liabilities :

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Balance at 1 April 2022 2,714.97 2,494.58
Finance lease (under non current borrowings including current maturities) - -
transferred to lease liabilities
Additions 750.64 347.72
Finance cost accrued during the period 179.46 135.35
Amortisation of finance cost transferred to capital-work-in-progress 12.28 5.61
Deletions (6.48) (0.10)
Payment of lease liabilities (445.34) (336.72)
Exchange difference on lease liabilities 207.29 68.53
Balance as at 31 March 2023 3,412.82 2,714.97
Non-current lease liabilities 3,154.41 2,472.92
Current lease liabilities 258.41 242.05

(ii) Maturity analysis – contractual undiscounted cash flows

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Less than one year 409.47 285.85
One to five years 1,270.89 991.61
More than five years 4,189.10 3,270.23
Total undiscounted lease liabilities at 31 March 2023 5,869.46 4,547.69

(iii) Right-of-use assets (Land and buildings)

Right-of-use assets are presented on the balance sheet.

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Balance at 1 April 2022 2,304.82 2,167.44
Deferred leases expenses (under current and non current assets) transferred to - -
right of use assets
Finance lease asset (under property, plant and equipment) transferred to right of - -
use assets
Addition/ reclassification to right-of-use assets 783.47 359.40
Acquisition through business combinations - -
Disposals/ alteration/ reclassification (7.25) (0.95)
Depreciation for the year (333.67) (260.70)
Amortisation to Capital-work-in-progress (7.26) (19.87)
Exchange difference on translation 179.87 59.50
Balance at 31 March 2023 2,919.98 2,304.82

359
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

40 Leases (Contd..)
(iv) Amounts recognised in statement of profit or loss

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Lease rental expenses for lease where Ind AS 116 is not applicable 146.60 120.53
Interest on lease liabilities 179.46 135.35
Depreciation on right-of-use assets 333.67 260.70

(v) Amounts recognised in statement of cash flows

For the year ended For the year ended

Particulars
31 March 2023 31 March 2022
Total cash out flow for leases (445.34) (336.72)

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 exercise price approved by the Nomination and Remuneration Committee (agreed at 25% discount at previous
day closing traded share price). The Nomination and Remuneration Committee granted the options on the basis of performance,
criticality and potential of the employees as identified by the management. Each employee share option converts into one equity share
of the Company on exercise. No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights
to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. If the options
remain unexercised at the end of the contractual life of the option, the options expire. Options are forfeited if the employee leaves the
Company before the options vest.

The Company has granted different categories of options on 2 March 2013, 1 April 2014, 1 April 2015, 22 November 2016, 7 June
2017, 1 March 2018, 30 April 2018, 12 February 2019, 28 May 2019, 29 August 2019, 11 November 2019, 10 February 2020, 22 June
2020, 8 February 2021, 21 June 2021, 10 November 2021, 07 February 2022 and 13 February 2023 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.

Number of Exercise Contractual life of

Option Type Grant date Vesting conditions
instruments price options
Incentive option 2 March 2013 3,44,280 50 At the end of 1 year based on
Incentive option 1 April 2014 3,44,280 50 performance
Incentive option 1 April 2015 3,60,526 50
Incentive option 22 November 4,10,385 50 50% at the end of first year and 25%
2016 each at the end of second & third
year based on performance.
Incentive option 7 June 2017 1,48,000 175 25% at the end of each financial year
over a period of 4 years based on
performance.
Milestone option 2 March 2013 7,15,986 50 25% at the end of each financial year
Milestone option 1 April 2014 2,54,537 50 over a period of 4 years based on
Milestone option 1 April 2015 27,493 50 performance.
Milestone option 22 November 1,38,000 50 50% at the end of first year and 25%
2016 each at the end of second & third
year each based on performance.

360
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

41 Share based payments (Contd..)

Number of Exercise Contractual life of
Option Type Grant date Vesting conditions
instruments price options
Milestone option 7 June 2017 1,11,000 175 25% at the end of each financial year
Performance option 1 March 2018 4,82,200 142 over a period of 4 years based on
Performance option 1 March 2018 1,83,829 50 performance.
Performance option 12 February 2019 1,26,400 116
Performance option 12 February 2019 1,72,200 116 50% at the end of each financial year
over a period of 2 years based on
performance.
Performance option 28 May 2019 1,17,600 102 25% at the end of each financial year
Performance option 29 August 2019 5,15,400 89 over a period of 4 years based on
performance.
Performance option 29 August 2019 2,62,500 89 3 annual traches of 33%, 33% and
5 years from the
34% respectively each based on the
date of vesting
performance.
Performance option 11 November 10,800 107
2019
Performance option 10 February 2020 10,800 123
Performance option 22 June 2020 30,000 91.85 25% at the end of each financial year
Performance option 8 February 2021 15,000 115
over a period of 4 years based on
Performance option 21 June 2021 57,000 118
Performance option 10 November 39,000 145.31 performance.
2021
Performance option 07 February 2022 39,600 139
Performance option 13 February 2023 15,000 155.71
Loyalty option 2 March 2013 4,20,000 10
100% vesting at the end of 1 year
Loyalty option 1 April 2014 9,000 10
from date of grant.
Loyalty option 1 April 2015 15,000 10
Loyalty option 22 November 1,76,000 10 80% vesting on completion of 6
2016 years’ service and 20% vesting
Loyalty option 7 June 2017 2,85,000 10 on completion of 9 years’ service
subject to minimum vesting period
of 1 year from date of grant.
Loyalty option 1 March 2018 1,46,800 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.
Loyalty option 30 April 2018 71,000 10 At the end of 1 year from the date
of grant.
Loyalty option 12 February 2019 31,600 10 75% vesting on completion of 6
years’ service and 25% vesting 5 years from the
on completion of 9 years’ service date of vesting
subject to minimum vesting period
of 1 year from date of grant.
Loyalty option 12 February 2019 37,700 10 At the end of 1 year from the date
of grant.
Loyalty option 28 May 2019 29,400 10 2 tranches upon completion of 6
years and 9 years of service.
Loyalty option 29 August 2019 5,18,600 10 37.5% vesting on completion of 3
Loyalty option 11 November 7,200 10 years and 6 years each respectively
2019 and 25% on completion of 9 years.
Loyalty option 10 February 2020 7,200 10
Loyalty option 22 June 2020 30,000 10
Loyalty option 21 June 2021 38,000 10
Loyalty option 10 November 26,000 10
2021
Loyalty option 07 February 2022 26,400 10
Loyalty option 13 February 2023 10,000 10

361
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

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:
Performance Performance
Option type Loyalty option Loyalty option
options options
Date of grant 07 February 2022 13 February 2023 07 February 2022 13 February 2023
Fair value at grant date Rs 178.23 Rs 201.80 Rs 100.43 Rs 106.20
Share price at grant date Rs 184.20 Rs 209.60 Rs 184.20 Rs 209.60
Exercise Price Rs 10.00 Rs 10.00 Rs 139.00 Rs 155.70
Expected volatility 40.530% 42.400% 40.750% 42.50%
Expected life 9.53 years 3.5 years 5 years 3.5 years
Expected dividends Nil Nil Nil Nil
Risk- free interest rate 6.66% 7.26% 6.29% 7.30%

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 Reconciliation of outstanding share options

The number and weighted-average exercise prices of share options under the share option plans are as follows:

Year ended Year ended

Particulars
31 March 2023 31 March 2022
Outstanding as on 1 April 0.11 0.14
Granted during the year 0.00 0.02
Lapsed / forfeited during the year (0.01) (0.03)
Exercised during the year (0.02) (0.02)
Expired during the year (0.00) (0.00)
Options outstanding at the end of the year 0.08 0.11
Options exercisable at the end of the year 0.05 0.03
Weighted average share price at the date of exercise for share options exercised 213.30 182.95
during the period (in INR)

The options outstanding at 31 March 2023 have an exercise price in the range of INR 10 to INR 155.71 (31 March 2022: INR 10 to INR
145.31) and a weighted average remaining contractual life of 4.28 years (31 March 2022: 4.98 years).

D Expense recognised in statement of profit and loss

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

362
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

42 Related party disclosures

(i) Names of related parties and description of relationship with the company

A) Enterprises where control / significant influence exists

(a) Enterprises exercising significant influence Union Investments Private Limited, Mauritius
(b) Subsidiaries and step down subsidiaries Refer note 37
(c) Associates MIMS Infrastructure and Properties Private Limited, India
Aries Holdings FZC, UAE
Aries Investments LLC
Al Mutamaizah Medcare Healthcare Investment Co.LLC
AAQ Healthcare Investments LLC
Alfaone Medicals Private Limited
Alfaone Retail Pharmacies Private Limited
Mindriot Research and Innovation Foundation
Skin lll Ltd (from 22 September 2022)
(d) Joint Venture Aster Arabia trading Company (from 09 March 2023)
B) Other related parties with whom the group had transactions
during the year
a) Entities under common control/ Entities over which DM Education and Research Foundation
the Company has significant influence Aster DM Foundation
Aster MIMS Academy Trust
Wayanad Infrastructure Private Limited
b) Key managerial personnel and their relatives Dr. Azad Moopen (Chairman and Managing Director)
Alisha Moopen (Deputy Managing Director)
Sreenath Reddy (Chief Financial Officer) ( Upto 05 January 2023)
Hemish Purushottam(Company Secretary & Compliance Officer)
Biju Varkey (Independent Director) (Upto 11 November 2022)
Dr. Layla Mohamed Hassan Ali Almarzooqi (Independent Director)
(Upto 27 March 2023)
Dr. James Mathew (Independent Director)
Chenayappillil John George (Independent Director)
Sridar Arvamudhan Iyengar (Independent Director)
Wayne Earl Keathley (Independent Director )
T J Wilson (Director)
Anoop Moopen (Director)
Emmanuel David Gootam (Independent Director) (from 10
November 2022)
Purana Housdurgamvijaya Deepti ( Independent Director) (from 27
March 2023)
Mintz Daniel Robert (Non Executive Director)
Shamsudheen Bin Mohideen Mammu Haji (Director)
Amitabh Johri (Joint Chief Financial Officer)(from 25 May 2023)
Sunil Kumar M R (Joint Chief Financial Officer)(from 25 May 2023)

ii) Related party transactions

Year ended Year ended

Nature of transactions
31 March 2023 31 March 2022
DM Education and Research Foundation
Collection on behalf of company 4.98 5.27
Income from consultancy services 2.22 2.55
Interest income under the effective interest method on lease deposit 0.81 0.75
Operating lease- Hospital operation and management expense 0.74 0.74
Other expenses 0.87 9.11
Repayment made (net) 4.94 8.19
Aster DM Foundation India
Donation given 0.25 5.60

363
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

42 Related party disclosures (Contd..)

Year ended Year ended
Nature of transactions
31 March 2023 31 March 2022
MIMS Infrastructure and Properties Private Limited
Finance cost - 0.14
Repayment of advances - 2.10
Dividend received 0.32 0.29
Alfaone Medicals Private Limited
Interest on loan from related parties 9.69 1.44
Investments / capital contribution - -
Repayment 0.12 0.14
Short-term loans and advances given 73.00 26.37
Alfaone Retail Pharmacies Private Limited
Revenue from operation - 9.97
Other Income 1.47 0.31
Repayment 0.03 0.03
Aries Holdings FZC
(Advance given)/ repayment received during the year (net) 6.78 (7.77)
AAQ Healthcare Investment LLC
(Advance given)/ repayment received during the year (net) (5.83) (0.66)
Key managerial personnel & their relatives
Rental expense 0.66 0.60
Short-term employee benefits
- Salaries and allowances* 37.09 32.85
*The aforesaid amount does not include provision for gratuity and compensated absences as the same is determined for the Group as a whole based on an actuarial
valuation.

iii) Balance receivable / (payable)

Related party transactions

Nature of transactions
As at March 2023 As at March 2022
Wayanad Infrastructure Private Limited
Other financial liabilities (current) - Dues to creditors for expenses (0.09) (0.09)
Union Investments Private Limited
Other financial liabilities (current)- Dues to related party (1.04) (1.04)
DM Education and Research Foundation
Other non current assets - deferred lease expenses 1.42 2.16
Other current assets - deferred lease expenses 0.74 0.74
Other financial assets (current) 15.76 14.46
Other financial assets- (non current) Rent and other deposits 12.31 11.50
Aries Holdings FZC
Advance given to equity accounted investees 44.74 37.96
Security Deposit 22.37 20.58
AAQ Healthcare Investment LLC
Advance given to equity accounted investees 43.48 49.31
Al Mutamaizah Medcare Healthcare Investment Co. LLC
Advance given - 11.73
Alfaone Medicals Private Limited
Financial assets - loans (Non current) 110.64 28.07
Alfaone Retail Pharmacies Private Limited
Trade receivables - 10.83
Financial assets - Other financial assets (current) 1.72 0.28
Key managerial remuneration payable (3.15) (0.04)

364
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

43 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 in 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.

44 The Indian Parliament has approved the Code on Social Security, 2020 and Code on Wages, 2019 ['Codes'] relating to employee benefits
during employment and post-employment benefits in September 2020 and the same has received Presidential Assent. The Codes have
been published in the Gazette of lndia. However, the date on which the Codes will come into effect has not yet been notified. The Company
will give appropriate impact in its financial statements in the period in which the Code becomes effective and the related rules are published.

45 As a part of the Restructuring process, the Board of Directors approved the appointment of the Investment bankers by the Company on
10th June 2022 to explore options which present an opportunity to unlock value for the Company and its stakeholders.The Investment
Bankers have received interest and indicative terms from potential buyers for the Gulf Co-operation Council region (‘GCC’) business.
The investment bankers are working actively with the potential buyers and their advisors.. The shortlisted bidders have expressed a strong
commitment to complete a transaction soon. The preparatory work including due diligence etc. is largely complete. The investment bankers
have communicated that the binding bids are likely to be received by end of Q1 of Financial Year 2023-24. Upon submission of the final
evaluation by the investment bankers, the Board shall review the proposals of sale of the Company's business in the GCC. Appropriate
intimations and impact/ disclosures will be made as and when any conclusions are arrived at and approved by the Board.

46 Financial ratios
For the year For the year
ended ended Percenatge Explanation if variance exceeds
Ratio Methodology
31 March 31 March change 25%
2023 2022
a) Current ratio Current assets/ Current 1.06 1.15 8.16% NA
liabilities
b) Debt-equity ratio Total debt/ Shareholder's 1.08 1.01 7.31% NA
equity
c) Debt service Earnings available for debt 1.13 1.55 26.61% Due to decrease in profit
coverage ratio service/ Debt service margins in current year
d) Return on equity Net profit after taxes/ Average 10% 14% 27.30% Due to decrease in profit margins
shareholder's equity in current year
e) Inventory Cost of goods sold/ Average 3.03 3.09 1.94% NA
turnover ratio inventory
f) Trade receivables Revenue from operations/ 5.48 5.08 7.83% NA
turnover ratio Average accounts receivables
g) Trade payables Total purchases/ Average 1.49 1.48 0.88% NA
turnover ratio trade payables
h) Net capital Net sales/ Working capital 44.81 19.06 135.09% Due to increase in revenue.
turnover ratio
i) Net profit ratio Net profit/ Net sales 4% 6% 32.03% Due to decarese in profits in
current year.
j) Return on capital Earnings before interest and 7.71% 9.73% 20.77% NA
employed taxes/ Capital employed
k) Return on Interest income, dividend 3.47% 6.30% 44.99% Due to sale of investments in the
investment income, net gain on sale of current year.
investments and net fair value
gain over average investments

Notes:

Total debt = Borrowings + Lease liabilities - Cash & cash equivalents - Other bank balances - Current investments

Earnings available for debt service = Net profit before taxes + Non-cash operating expenses like depreciation and amortisations - Other
income + Interest + Other adjustments (such as loss on sale of property, plant and equipment, fair valuation of put options)

365
Aster DM Healthcare Limited

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

46 Financial ratios (Contd..)

Debt service = Interest + Principal repayments + lease payments

Net profit = Net profit after tax

Capital employed = Tangible net worth + Total debt

Earnings before interest and taxes = Net profit before taxes - Other income + Interest + Other adjustments (such as loss on sale of property,
plant and equipment, fair valuation of put options)

47 Additional disclosures

a) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any
Benami property during and as at 31 March 2023 and 31 March 2022 ('the reporting periods').

b) The Group has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the reporting
periods.

c) There are no transactions and balances with companies which have been removed from the Register of Companies [struck off
companies] during and as at the reporting periods.

d) The Group has not traded / invested in Crypto currency during the reporting periods.

e) The Group does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory
period as at the reporting periods.

f) The Group has not advanced or loaned or invested funds during the reporting periods to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company
(Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g) The Group has not received any fund during the reporting periods from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

366
 FINANCIAL STATEMENTS
Integrated Annual Report FY 2022-2023

Notes to the Consolidated Financial Statements for the year ended 31 March 2023
All amounts in INR crores, unless otherwise stated

47 Additional disclosures (Contd..)

h) The Group has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
during the reporting periods in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).

i) The Group has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as
defined under Companies Act, 2013), either severally or jointly with any other person that are:

(i) repayable on demand; or

(ii) without specifying any terms or period of repayment.

j) The Company has granted loans to below mentioned related party which is repayable on demand

(i) Alfaone Medicals Private Limited

k) The Group is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or
consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

l) The Group has complied with the number of layers for its holding in downstream companies prescribed under clause (87) of Section 2
of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

for and on behalf of the Board of Directors of

Aster DM Healthcare Limited
CIN : L85110KA2008PLC147259

Dr. Azad Moopen T J Wilson Hemish Purushottam

Chairman and Managing Director Director Company Secretary
DIN: 00159403 DIN: 02135108 Membership No.: A24331
Bengaluru Bengaluru Bengaluru
25 May 2023 25 May 2023 25 May 2023

Amitabh Johri Sunil Kumar MR

Joint Chief Financial Officer Joint Chief Financial Officer
Bengaluru Bengaluru
25 May 2023 25 May 2023

367
Notes
 a K&A creation | www.kalolwala.com

Registered Office
No.1785, Sarjapur Road, Sector -1,
HSR Layout, Ward No.174,
Agara Extension, Bengaluru-560102, Karnataka, India
Tel: +91 484 6699999
Email: [email protected]