Here is a Wikipedia article about the circumference of an ellipse: http://en.wikipedia.org/wiki/Ellipse#Circumference
I don't know how Ramanujan developed the following approximation for the circumference of an ellipse:
$ \pi\left(3(a+b)-\sqrt{(3a+b)(a+3b)}\right) $
I don't know how to derive this approximation either: $\left(\text{where }h=\frac{(a-b)^2}{(a+b)^2}\right)$
$C\approx\pi\left(a+b\right)\left(1+\frac{3h}{10+\sqrt{4-3h}}\right)$
Can somebody explain how to derive the approximations for an ellipse's circumference? Also, can somebody prove that there is no closed/simple formula for the circumference of an ellipse?
Most approximations work best when the eccentricity $e:=\sqrt{a^2-b^2}/a$ (or your $h$) is $\ll1$. In this case the elliptic integral $E(e)$ can be developed into a series in terms of powers of $e$.
Nobody can memorize the coefficients of this series. Therefore it pays out to construct (by "reverse engineering") a simple function of $e$ (containing only fractions, square roots and the like) whose Taylor expansion coincides with the expansion of $E(e)$ for as many terms as possible. This is a problem to play with and has no unique best solution; see the formulas in the quoted Wikipedia article.
It is much more difficult to give approximation formulas that are good for large eccentricities, or even in the limit $e\to1-$, when the ellipse becomes terribly flat. The circumference is then not an analytic function of $\delta:=1-e$.