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or service arrangements in place with projects located in the Republic of Mauritius, Bangladesh and Kuwait. We

have recently signed a preliminary joint venture agreement dated May 27, 2011 with the Board of Trustees of the

National Social Security Fund, Tanzania and the Tanzanian Ministry of Health & Social Welfare, in connection with

the establishment of an advanced healthcare facility in the city of Dar es Salaam.

Key Hospital Expansion Plans

The table below sets forth the locations of planned projects that we are currently implementing, which includes

establishing new hospitals or expanding the capacity of existing facilities. These projects are at various stages of

implementation and are expected to be completed over the next three years.

Location Estimated Completion Date

(Fiscal year)

Type of Hospital Estimated Number of New Beds

Mumbai Cluster

Navi, Mumbai 2014 Super-specialty 350

Byculla, Mumbai 2014 Super-specialty 300

Thane 2013 Super-specialty 250

Sub-Total 900

Apollo REACH initiative

Nashik 2013 Apollo REACH 125

Aynambakkam 2013 Apollo REACH 200

Nellore 2013 Apollo REACH 200

Trichy 2014 Apollo REACH 200

Sub-Total 725

Others

Hyderabad (Expansion) 2012 Super-specialty 100

Hyderguda 2012 Super-specialty 175

New Delhi (Expansion) 2012 Super-specialty 136

Chennai (Expansion) 2013 Super-specialty 30

Vizag 2014 Super-specialty 300

Bangalore (Expansion) 2012 Super-specialty 52

Sub-Total 793

Total 2,418

Our expansion plans are based on management estimates. The actual date of completion and the actual number of

new beds to be rolled out on completion of each planned project may differ from the estimated dates or numbers set

out above due to various factors, including possible construction/development delays, defects or costs overrun,

delays in obtaining or receipt of governmental approvals, changes in the legislative and regulatory environment, our

ability to fund the planned projects, our results of operations, cash flows and financial condition, the availability of

financing on terms acceptable to us to fund such projects and other factors that are beyond our control. See the

section titled ―Risk Factors‖.

Risk Management and Internal Controls

We have a comprehensive risk management system covering various aspects of the business, including operational,

legal, treasury, regulatory and financial reporting.

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The Board of Directors has constituted a Risk Management Committee, headed by the Managing Director, which

reviews the probability of risk events that may adversely affect the operations and profitability of the Company and

suggest suitable measures to mitigate such risks. The executive management team reports to the Board of Directors

periodically on the assessment and minimization of such risks.

Risk Management Model

Risk Identification: Monitoring and identification of risks is carried out at regular intervals with the aim towards

improving the processes and procedures. This assessment is based on risk perception survey, business environment

scanning and inputs from shareholders.

Risk measurement and treatment: After risks have been identified, risk mitigation and solutions are defined, so as to

bring the risk exposure levels in-line to the risk appetite.

Risk reporting: We have an established Risk Council to deal with any reported risks. In addition, a quarterly risk

report is presented to our Risk Management Committee, which reviews the Enterprise Risk Management program to

assess the status and trends available on the material risks highlighted.

Internal control systems and their adequacy

We have an established internal control system to optimize the use and protection of assets, facilitate accurate and

timely compilation of financial statements and management reports, and ensure compliance with statutory laws,

regulations and company policies. We have also put in place an extensive budgetary and other control review

mechanisms pursuant to which the management regularly reviews actual performance with reference to the budgets

and forecasts.

Properties

The following table lists the key hospitals owned by us as of March 31, 2011:

Name & Location Year of

Incorpor

ation /

Commen

cement

Land –

Owned /

Leased

Building –

Owned /

Leased

Specialties Number of

Beds

Hospitals directly owned by the Company

1 Apollo Hospital,

Chennai

1983 Owned Owned Super-specialty 583

2 Apollo Specialty

Hospital,

Nandanam

1994 Partly owned Partly owned Super-specialty 279

3 Apollo Hospitals,

Hyderabad

1988 Owned Owned Super- specialty 514

4 Apollo Specialty,

Madurai

1997 Leased Leased Super- specialty 205

5 Apollo Hospital,

Bilaspur

2001 Leased Leased Super- specialty 300

6 Apollo BGS

Hospital, Mysore

2001 Leased Leased Super- specialty 200

7 Apollo Hospital,

Kakinada

2005 Owned Owned Multi-specialty 120

8 Apollo Hospitals,

Bhubaneswar

2009 Leased Owned Super- specialty 290

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Name & Location Year of

Incorpor

ation /

Commen

cement

Land –

Owned /

Leased

Building –

Owned /

Leased

Specialties Number of

Beds

9 Apollo Loga

Hospital, Karur

2009 Leased Leased Multi-specialty 62

10 Apollo Heart &

Kidney Hospital,

Vizag

1999 Leased Leased Super- specialty 120

11 Apollo Hospital,

Karimnagar

2008 Owned Owned Multi-specialty 125

Name & Location Year of

Incorpor

ation /

Commen

cement

Land –

Owned /

Leased

Building

– Owned

/ Leased

Name of Entity

(Company’s

Shareholding

Interest in such

Entity)

Specialties Number

of Beds

Hospitals indirectly owned through subsidiaries, joint ventures or associates

1 Apollo Hospital,

Bangalore

2007 Owned Owned Imperial

Hospital &

Research

Centre Limited

(51%)

Super-

specialty

297

2 Apollo Hospital,

New Delhi

1996 Leased Owned Indraprastha

Medical

Corporation

Limited

(21.06%)

Super-

specialty

648

3 Apollo Hospitals,

Ahmedabad

2003 Leased Owned Apollo

Hospitals

International

Limited (50%)

Super-

specialty

300

4 Apollo Gleneagles

Hospitals, Kolkata

2002 Leased Owned Apollo

Gleneagles

Hospital

Limited (50%)

Super-

specialty

460

In addition to the above, as of March 31, 2011, there are 17 hospitals with 2,875 beds under our management

through operations and management contracts.

Competition

We are one of the few nationwide providers of healthcare services in the private sector in India. The majority of our

competition is regional and includes players such as Fortis Healthcare Limited, Manipal Hospitals, Max Healthcare,

Care Hospitals and Sterling Hospitals. In addition, some of the hospitals that compete with us are owned by

Government agencies or non-profit entities supported by endowments and charitable contributions.

The number and quality of doctors associated with a hospital are important factors in a hospital‘s competitive

advantage and help to attract patients. We believe that doctors outside a hospital‘s network refer patients to a

hospital primarily on the basis of the quality of care and services the hospital provides to its patients, the location of

the hospital and the quality and availability of the hospital‘s facilities, equipment and employees. Other factors in a