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 Mumbai Cluster Navi, Mumbai Byculla, Mumbai Thane Sub-Total Apollo REACH initiative Nashik Aynambakkam Nellore Trichy Sub-Total Others Hyderabad (Expansion) Hyderguda New Delhi (Expansion) Chennai (Expansion) Vizag Bangalore (Expansion) Sub-Total Total 2012 2012 2012 2013 2014 2012 Super-specialty Super-specialty Super-specialty Super-specialty Super-specialty Super-specialty 100 175 136 30 300 52 793 2,418 2013 2013 2013 2014 Apollo REACH Apollo REACH Apollo REACH Apollo REACH 125 200 200 200 725 Estimated Completion Date (Fiscal year) 2014 2014 2013 Type of Hospital Estimated Number of New Beds

Super-specialty Super-specialty Super-specialty

350 300 250 900

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: Year of Land Incorpor Owned / ation / Leased Commen cement Hospitals directly owned by the Company Name & Location 1 2 Apollo Hospital, Chennai Apollo Specialty Hospital, Nandanam Apollo Hospitals, Hyderabad Apollo Specialty, Madurai Apollo Hospital, Bilaspur Apollo BGS Hospital, Mysore Apollo Hospital, Kakinada Apollo Hospitals, Bhubaneswar 1983 1994 Owned Partly owned Building Owned / Leased Specialties Number of Beds

Owned Partly owned

Super-specialty Super-specialty

583 279

3 4 5 6 7 8

1988 1997 2001 2001 2005 2009

Owned Leased Leased Leased Owned Leased

Owned Leased Leased Leased Owned Owned

Super- specialty Super- specialty Super- specialty Super- specialty Multi-specialty Super- specialty

514 205 300 200 120 290

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Name & Location

9 10

11

Apollo Loga Hospital, Karur Apollo Heart & Kidney Hospital, Vizag Apollo Hospital, Karimnagar

Year of Incorpor ation / Commen cement 2009 1999

Land Owned / Leased

Building Owned / Leased

Specialties

Number of Beds

Leased Leased

Leased Leased

Multi-specialty Super- specialty

62 120

2008

Owned

Owned

Multi-specialty

125

Name & Location

Year of Incorpor ation / Commen cement

Land Owned / Leased

Building Owned / Leased

Name of Entity (Companys 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%) Indraprastha Medical Corporation Limited (21.06%) Apollo Hospitals International Limited (50%) Apollo Gleneagles Hospital Limited (50%) Superspecialty 297

Apollo Hospital, New Delhi

1996

Leased

Owned

Superspecialty

648

Apollo Hospitals, Ahmedabad

2003

Leased

Owned

Superspecialty

300

Apollo Gleneagles Hospitals, Kolkata

2002

Leased

Owned

Superspecialty

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 hospitals competitive advantage and help to attract patients. We believe that doctors outside a hospitals 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 hospitals facilities, equipment and employees. Other factors in a 104