MIRA INFORM REPORT

Report Date :

22.10.2012

IDENTIFICATION DETAILS

Name :	HEALTHCARE GLOBAL ENTERPRISES LIMITED [w.e.f.05.07.2006]
Formerly Known As :	HEALTHCARE GLOBAL ENTERPRISES PRIVATE LIMITED CURIE CENTRE OF ONCOLOGY PRIVATE LIMITED
Registered Office :	HCG Tower, No.8, P. Kalinga Rao Road, Sampangi Rama Nagar, Bangalore-560 027, Karnataka
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	12.03.1998
Com. Reg. No.:	08-23489
Capital Investment / Paid-up Capital :	Rs.533.035 Millions
CIN No.: [Company Identification No.]	U15200KA1998PLC023489
TAN No.: [Tax Deduction & Collection Account No.]	BLRC01355E
PAN No.: [Permanent Account No.]	AAACC8412H
Legal Form :	A Closely Held Public Limited Liability Company
Line of Business :	Subject is engaged in setting up and managing cancer hospitals, cancer centers and medical diagnostic services, etc.
No. of Employees :	350 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (45)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 6800000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. It has achieved health growth in its total income earned during 2011 from its operations. Financial position has improved during 2011. Trade relations are reported as decent. Business is active. Payments are reported to be usually correct. The company can be considered for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Ms. Manta
Designation :	Assistant of Chairman
Contact No.:	91-80-33669999
Date :	20.10.2012

LOCATIONS

Registered Office :	HCG Tower, No.8, P. Kalinga Rao Road, Sampangi Rama Nagar, Bangalore-560 027, Karnataka, India
Tel. No.:	91-80-40206000/ 33669999/ 40206232
Fax No.:	91-80-22485962
E-Mail :	vasudeva@hcgonclolony.com sunumanuel@hcgoncology.com info@hcgoncology.com venkatp@hcgoncology.com
Website :	www.hcgoncolony.com

DIRECTORS

AS ON 29.09.2011

Name :	Dr. Basavalinga Ajaikumar Sadashivaiah
Designation :	Whole Time Director
Address :	No.850, Park House, Mirza Road, Nazarbad, Mysore-570 010, Karnataka, India
Date of Birth/Age :	22.08.1951
Date of Appointment :	07.03.2000
Din No.:	00713779
Name :	Mr. Gangadhara Ganapati
Designation :	Director
Address :	T.84, B, 29^th Cross Street, Besant Nagar, Chennai-600 090, Tamilnadu, India
Date of Birth/Age :	01.04.1966
Date of Appointment :	21.12.2005
Din No.:	00489200
Name :	Dr. Ganesh Nayak
Designation :	Director
Address :	No.8, 7^th Cross Jakkasandra Blk, Koramangala, Bangalore-560034, Karnataka, India
Date of Birth/Age :	27.05.1943
Date of Appointment :	25.04.2007
Din No.:	00540697
Name :	Dr. Gopinath Kodaganur Srinivasachar
Designation :	Director
Address :	# 20, Sainivas, 5^th Main , 5^th Cross, BSK 3^rd Stage, Behind Balaji, Choultry BG, Bangalore-560085, Karnataka, India
Date of Birth/Age :	27.03.1952
Date of Appointment :	14.07.2006
Din No.:	00517895
Name :	Mr. Pinto P. Michael
Designation :	Director
Address :	405, Shalaka Maharshi Karve Road, Bangalore-400021, Karnataka, India
Date of Birth/Age :	27.05.1943
Date of Appointment :	25.04.2007
Din No.:	00021565
Name :	Dr. Anula Kusum Jayasuriya
Designation :	Director
Address :	26010, Torello, LN Los Altos, HLS, Californa, USA-94022
Date of Birth/Age :	19.12.1956
Date of Appointment :	29.03.2007
Din No.:	01514719
Name :	Mr. Anantkumar Srinivasrao Kulkarni
Designation :	Director
Address :	A 2002, Royal Residency, Lalbaug Industrial Estate Area, Chivada Galli, Mumbai-400012, Maharashtra, India
Date of Birth/Age :	22.02.1967
Date of Appointment :	29.09.2011
Din No.:	02078034
Name :	Mr. Sayed Parvez Mustafa
Designation :	Director
Address :	4, Almambra, 1^st Floor, 3 Carmichael road, Mumbai-400 026, Maharashtra, India
Date of Birth/Age :	01.07.1949
Date of Appointment :	23.04.2008
Din No.:	00014427
Name :	Mr. Prakash Parthasarathy
Designation :	Director
Address :	#347, 2^nd Phase, White Field Road, Adarsh Palm, Meadows, Ramagondanhalli, Bangalore-560 066, Karnataka, India
Date of Birth/Age :	04.03.1971
Date of Appointment :	23.04.2008
Din No.:	02011709
Name :	Mr. Panemanalore Dayananda Pai
Designation :	Director
Address :	SY.25, Farm House, Bytarayanapura, Bellary Road, Bangalore-560 092, Karnataka, India
Date of Birth/Age :	08.02.1945
Date of Appointment :	14.07.2006
Din No.:	00097896
Name :	Dr. Amit Varma
Designation :	Director
Address :	49 B, Aradhana Enclave, RK Puram, Sector 13, Ring Road, New Delhi-110066, India
Date of Birth/Age :	15.09.1968
Date of Appointment :	11.02.2010
Din No.:	02241746

KEY EXECUTIVES

Name :	Ms. Manta
Designation :	Assistant of Chairman
Name :	Mr. Sunu Manuel
Designation :	Company Secretary
Address :	81/1, 5^th Cross Wilson Garden, Bangalore, Karnataka, India
Date of Birth/Age :	02.06.1978
Date of Appointment :	14.07.2006
Pan No.:	ANMPM3149B

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 29.09.2011

NOTE: SHAREHOLDING DETAILS FILE ATTACHED.

AS ON 17.11.2011

Name of Allottee	No. of Shares Allotted
K. S. Gopinath	11587
Selvarani Rupendu	4983
G. N. Ravindranath	5794
Prakash Nayak	57937
Ajay Garg	28970
K R Madhava	35487
Gangadhara Ganapati	41715
Shankar Narayanan and Simmi Shankar Narayanan	57937
Channabasappa and Indumathi C	2318
B S Ajai Kumar	115875
H N Chandrappa	4635
V. Channaraya	1159
H M Krishnamurthy	2317
Total	370714

AS ON 17.11.2011

Name of Allottee	No. of Shares Allotted
B S Ajai Kumar	450
Bhagya Ajai Kumar	450
Jayasankar	20
Naveen Nagar	20
N S Sundar Rajan	39600
Bhaskar	19800
Papanna and Chayadevi	7200
M R Srinivasan	4950
Papanna; Shakuntala C and Susheela	3600
Chayadevi; Susheela C and Shakuntala	3600
Susheela C; Shakuntala and Papanna	3600
V Krishnaparasd	3600
Manjula Parakash	1980
Prem Kumar	1980
D. M. Purnesh	1980
Ashok Kumar Srichand and Ajita Totlani	1800
Rajini K. M. Reddy	1800
S. Sainath	1080
Rajashree Ganesh	900
Manjunath G	900
H. Chikkabyarappa	900
M. Abdul Jaleel	594
M. V. Prasad	396
Shumshine Fathima Jaleel	396
Mohmed Anwar	360
Rajendra	360
R Mamatha	360
Tanvir Ahmed Anwar	270
Sarah Anwar	270
C. S. Thimaiah	180
K. Shashikala	180
Manjunath V	180
S. Shankara Narayana	180
Zeenat Ahmed	180
Shashid Ameer Ahmed	180
Reshma Naheed	180
Mohammed Mohsin	180
Tyagarajan. R. V.	180
Narasimha Murthy	18
Total	104854

AS ON 30.09.2011

Equity Share Breakup	Percentage of Holding
Category
Venture capital	42.68
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]	10.00
Bodies corporate	4.37
Directors or relatives of directors	32.51
Other	10.44
Total	100.00

BUSINESS DETAILS

Line of Business :	Subject is engaged in setting up and managing cancer hospitals, cancer centers and medical diagnostic services, etc.
Terms :
Selling :	Cash and Credit
Purchasing :	Cash and Credit

GENERAL INFORMATION

Customers :

Retailers

No. of Employees :

350 (Approximately)

Bankers :

· Canara Bank,

Industrial Finance Branch, Richmond Road, Bangalore-560 025, Karnataka, India

· ICICI Bank Limited,

Mytree Centre, III Floor, No. 4/10, Hosur Road, Bommanahalli, Bangalore-560068, Karnataka, India

· Yes Bank Limited,

9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Rod, Worli, Mumbai-400018, Maharashtra, India

Facilities :

Secured Loan	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
Rupee term loans banks	642.467	3.545
Rupee term loans financial institutions	161.134	2.011
Working capital loans others	99.045	128.120
Working capital loans banks	0.000	54.590
Finance lease obligation long-term	126.439	0.000
Total	1029.085	188.266
Unsecured Loan	31.03.2011 [Rs. in Millions]	31.03.2010 [Rs. in Millions]
Fully convertible debentures	35.700	35.700
Rupee term loans banks	0.000	5.900
Rupee term loans others	0.000	0.409
Total	35.700	42.009

Banking Relations :	--
Financial Institution :	· Siemens Financial Services Private Limited, 130, Pandurang Budhkar Marg, Worli, Mumbai-400018, Maharashtra, India
Auditors :
Name :	Deloitte Haskins and Sells Chartered Accountants
Address :	Deloitte Centre, Anchorage II, 100/2 Richmond Road, Bangalore -560 025, Karnataka, India
PAN No:	AACFD3771D
Subsidiaries :	· Malnad Hospital and Institute of Oncology Private Limited · HealthCare Global Senthil Multi Specialty Hospital Private Limited · HCG Medi-Surge Hospitals Private Limited · HealthCare Global Vijay Oncology Private Limited · MIMS HCG Oncology Private Limited · HCG TVH Medical Imaging Private Limited
Joint Control :	· HealthCare Diwan Chand Imaging LLP
Related Parties :	· JSS Bharath Charitable Trust · Bharath Hospital and Institute of Oncology · Health Care Process Solutions (India) (Private) Limited · HCG Foundation

CAPITAL STRUCTURE

AS ON 30.09.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
65000000	Equity Shares	Rs.10/- each	Rs.650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
58796173	Equity Shares	Rs.10/- each	Rs.587.962 Millions

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
65000000	Equity Shares	Rs.10/- each	Rs.650.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
53303500	Equity Shares	Rs.10/- each	Rs.533.035 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		533.035	520.502	476.621
2] Share Application Money		77.921	0.000	0.000
3] Reserves & Surplus		1083.379	1073.574	879.677
4] (Accumulated Losses)		0.000	(240.988)	(145.799)
NETWORTH		1694.335	1353.088	1210.499
LOAN FUNDS
1] Secured Loans		1029.085	188.266	202.659
2] Unsecured Loans		35.700	42.009	13.952
TOTAL BORROWING		1064.785	230.275	216.611
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2759.120	1583.363	1427.110
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		2066.532	532.692	426.378
Capital work-in-progress		169.797	7.131	104.295
INVESTMENT		308.061	934.844	776.928
DEFERREX TAX ASSETS		18.900	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	46.896	15.079	13.162
	Sundry Debtors	321.011	113.542	67.618
	Cash & Bank Balances	49.074	19.009	15.406
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	251.967	181.443	147.696
Total Current Assets		668.948	329.073	243.882
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	361.569	172.508	102.912
	Other Current Liabilities	74.584	38.145	14.836
	Provisions	36.965	9.724	6.625
Total Current Liabilities		473.118	220.377	124.373
Net Current Assets		195.830	108.696	119.509
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		2759.120	1583.363	1427.110

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	1601.700	662.004	406.386
		Other Income	29.041	13.094	10.891
		TOTAL (A)	1630.741	675.098	417.277
Less	EXPENSES
		Consumption Materials changed Inventories	525.291	308.457
		Manufacturing Expenses	41.835	9.721
		Employee Related Expenses	249.459	97.205	443.360
		Administrative, Selling and Other Expenses	536.834	277.782
		TOTAL (B)	1353.419	693.165	443.360
Less	PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		277.322	(18.067)	(26.083)
Less	FINANCIAL EXPENSES (D)		101.815	13.543	11.053
	PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		175.507	(31.610)	(37.136)
Less/ Add	DEPRECIATION/ AMORTISATION (F)		135.309	63.579	51.067
	PROFIT / (LOSS) BEFORE TAX (E-F) (G)		40.198	(95.189)	(88.203)
Less	TAX (H)		(276.050)	0.000	0.794
	PROFIT / (LOSS) AFTER TAX (G-H) (I)		316.248	(95.189)	(88.997)
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		NA	(145.799)	(42.620)
Add	Loss brought forward on Merger		NA	0.000	(76.680)
Add	Adjustment to securities premium as per scheme of merger		NA	0.000	60.358
Add	Adjustment on account of adoption of amendment to AS 11		NA	0.000	2.140
	BALANCE CARRIED TO THE B/S		NA	(240.988)	(145.799)
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export	24.259	5.450	6.587
	TOTAL EARNINGS		24.259	5.450	6.587
	IMPORTS
		Consumables	5.149	0.000	0.000
		Capital Goods	181.161	45.201	74.304
	TOTAL IMPORTS		186.310	45.201	74.304
	Earnings / (Loss) Per Share (Rs.)		0.86	(1.97)	(1.95)

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	19.39	(14.10)	(21.33)
Net Profit Margin (PBT/Sales)	(%)	2.51	(14.38)	(21.70)
Return on Total Assets (PBT/Total Assets}	(%)	1.47	(11.05)	(13.16)
Return on Investment (ROI) (PBT/Networth)		0.02	(0.07)	(0.07)
Debt Equity Ratio (Total Liability/Networth)		0.91	0.33	0.28
Current Ratio (Current Asset/Current Liability)		1.41	1.49	1.96

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	31.03.2011	31.03.2010	31.03.2009
	(Rs. In Millions)
Sundry Creditors
- Creditors due others	361.569	172.508	102.912
Total	361.569	172.508	102.912

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	Yes
9]	Name of person contacted	Yes
10]	Designation of contact person	Yes
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	Yes
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	Yes
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	PAN of Proprietor/Partner/Director, if available	No
32]	Date of Birth of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	No

RESULTS OF OPERATIONS:

The above standalone financial results for year ended March 31, 2011 of the Company is after giving effect to the Scheme of Amalgamation of one of the subsidiaries with the Company; and accordingly is not strictly comparable with the previous corresponding period.

The financial year 2010-11 has been a year of continuous progress for the Company; and as they enter this fiscal year, they leave a good momentum behind them. They are encouraged to see that their key performance indicators reflect a sustainable progress and they believe that it would continue both in the short and long term.

A very quick look at the numbers shows that the Company had make a commendable financial performance with revenue growth from Rs. 1655 Million to Rs. 2193 Million marking a growth over 32%, while the EBIDTA grew from Rs. 269 Million to Rs. 403 Million, marking a remarkable growth of over 50%, as compared to the previous financial year.

They are confident that this trend will continue in the coming quarters as well. They continue to drive bottom line results through revenue growth, improved patient care, reduced cost and a special focus on process management at all levels of the organization.

This achievement is a result of extensive efforts put in by the management for growing revenue, improving gross margins and generating efficiencies through increased productivity and leveraging scale. They believe that the Consolidated Financial Statements present a more comprehensive picture rather than the standalone financial statements.

While the results of the Company would have been impacted by certain one off items, the business model continues to be strong and sustainable and will continue to drive profitability.

BUSINESS AND OUTLOOK

The financial year 2010-11 has been an eventful year. While the emphasis remains on growth in the domestic market, we clearly have ambitions of taking the HCG value proposition international. They will continue to explore opportunities abroad, as they pursue their ambition to become one of the best Oncology Institution in the world, while they sustain the position of being South Asias largest cancer care network. They are convinced that the benefits realized from such platforms are many, including access to a wider talent pool, cost savings on account of economies of scale and environment of cross-pollination in terms of learning and experience.

The company continues to invest in strong operating systems, robust processes and talented people, with an unwavering focus on medical excellence and patient-centric cancer care. The business model builds the strength of their accumulated experience and extensive domain knowledge of the sector. They continue to evolve, as they walk the path of ever improving quality, with an eye on delivering reliable, accessible and affordable cancer care of the global standard.

The company is proud to state that it gives hope to over 30,000 new patients visiting their Centres every year, for cancer care. While it is humbling to think of the impact they make each day on the thousands of people that seek the care, knowledge of the vastly inadequate infrastructure in the oncology space in their country only adds to the burden of the responsibility they bear, as a cancer care provider in the country. They clearly have an integral role to play in Indias development; and a duty to deliver quality care, with a compassionate approach, in a caring environment, to those that need it.

Thinking and rethinking, observing and analyzing; one needs to constantly scrutinize and come up with new strategies in order to improve overall efficiency. The objective should always be to make a difference between where one was yesterday and where one is today. The Companies future growth strategy will be driven by certain key factors such as:-

· Sustain leadership in Oncology space; and continue to build focused Centers of Excellence with best technology, facilities and clinical practices;

Enhanced revenue momentum driven by robust geographical growth, capacity utilisation and enhancement;

Maximizing operating efficiencies and profitability across their network; including reduction of costs at all levels and to leverage the strengths of their growing network of hospitals by using size and scale to reduce SG& A and other costs;

Capital efficient expansion into target geographies to deliver affordable cancer care;

Enhance the engagement models and offerings and to pursue alliances and strategic acquisitions that seed and build strategic businesses that support core value proposition;

Implement stringent capital norms for each delivery format, and to strategically invest in medical equipment and technology, to ensure that their doctors, nurses and administrators have the very best resources at their disposal and develop deep industry knowledge;

Enhance brand visibility and to deliver a common brand experience to all patients visiting their hospitals;

Operational improvement by strengthening their processes to drive efficiency in their system and to bring in a common operating system to all their hospitals standardizing all key patient related activity;

· Attractive Return on Capital Employed through higher operating profits and better capital utilisation; and a strong balance sheet with contained debt level;

Strengthen the confidence building Patients and Investors.

HCG aspires to adopt best corporate governance practices while sustaining and strengthening their brand as the fastest growing oncology network in South Asia. The eminent Board of Directors advice and guide them on policies and proposals made by the operating management. The Board, acting through empowered committees, also oversees the operations and management of the company. The committees also guide the management to continuously upgrade standards, highlight any potential conflicts of interest, and ensure that fair disclosures are made at all times.

They aim to get all their hospitals NABH Accredited / NABH prepared and in the process, standardize their services across the group and strengthen their bottom line. The company also has international aspirations in terms of served patients, and with leading accreditations (JCI, CAP, etc), is rightly placed to offer unbeatable Medical value travel propositions. They already cater to international patients, and with the economic pressures being faced by western economies, are ready to play a larger role in providing quality healthcare services at attractive cost. They are evenly poised to aggressively expand their network, establish brand leadership, and emulate a business model which generates adequate returns for the shareholders.

Amalgamation of Banashankari Medical and Oncology Research Centre Limited (BMORCL) with the Company:

During the year, the Scheme of Amalgamation (Scheme) of Banashankari Medical and Oncology Research Centre Limited (BMORCL) with the Company was sanctioned by the Honble High Court of Karnataka; vide its order dated March 16, 2011. Pursuant to filing of certified copies of orders of the High Court of Karnataka, with the Registrar of Companies, Karnataka, BMORCL has been merged with HCG. The merger comes into effect from the Appointed Date i.e. April 1, 2009.

CONTINGENT LIABILITIES

Particulars	31.03.2011	31.03.2010
	(Rs. In Millions)
Estimated amount of unexecuted capital contracts (Net of advances and deposits)	231.213	5.545
Bank Guarantee	1.825	1.200
Corporate guarantee given on behalf of subsidiary :
- Healthcare Global Senthil Multi Speciality Hospitals Private Limited	10.607	15.007
- Banashankari Medical and Oncology Research Centre Limited	--
- HCG TVH Medical Imaging Private Limited	59.626	74.622
- HCG Medi-Surge Hospitals Private Limited	100.232	29.913
- HCG Vijay Oncology Private Limited	65.922	71.627
- HealthCare Diwan Chand Imaging LLP	24.210	--
Capital Commitments includes Rs. 119.575 Millions payable towards capital commitment for purchase of land for Surgical centre proposed to be registered on or before May 31, 2014 from land owners.
Claims against the company not acknowledged as debts - Rs.1.150 Millions.

BANKERS CHARGES REPORT AS PER REGISTRY

This form is for	Modification of charge
Charge identification number of the modified	10354150
Corporate identity number of the company	U15200KA1998PLC023489
Name of the company	Healthcare Global Enterprises Limited
Address of the registered office or of the principal place of business in India of the company	HCG Tower, No.8, P. Kalinga Rao Road, Sampangi Rama Nagar, Bangalore – 560027, Karnataka, India sunumanuel@hcgoncology.com
Type of charge	Immovable Property Any Interests in Immovable Property Book Debts Movable Property Floating Charge Others: Current Assets, Movable and Immovable Fixed assets
Particular of charge holder	· Yes Bank Limited, 9^th Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Rod, Worli, Mumbai-400018, Maharashtra, India CIN No.: L65190MH2003PLC143249 Email : shareholders@yesbank.in
Nature of description of the instrument creating or modifying the charge	1. Copy of Memorandum of Deposit -1 dated 07.08.12 2. Copy of Memorandum of Deposit - 2 dated 07.08.12
Date of instrument Creating the charge	07.08.2012
Amount secured by the charge	Rs.120.000 Millions
Brief particulars of the principal terms and conditions and extent and operation of the charge	Rate of Interest Floating: 2.35% p.a above Yes Bank's base rate plus applicable interest and taxes. YBL as on date is 10.50% pa. Hence the applicable rate as on date is 12.85% p.a Terms of Repayment 1. Tenor: 96 months 2. Repayment: 84 equal monthly installments after a moratorium of 12 months from the date of the first disbursement. Margin NA Extent and Operation of the charge 1. Second Pari Passu Charge on Immovable Fixed Assets (Present and Future) of the Company-mentioned below a) No.5 (CTS No.487), 2nd Cross, Sreevivasa Colony, Bangalore measuring East to West 115 + 112/ 2* 68 + 50/ 2 b) No.8, 8/1, 82/2 and 8/3 formerly a portion of No.8, previous no.6 at P. Kalinga Rao Road formerly Mission Road, Bangalore c) Lease hold property Ward No.77, Sampangirama Nagar, having PID No.77-1-7/1 d) Municipal No.6, New No.7 after biifurcation of P Kalinga Rao Road, Ward No.77, Sampangiram Nagar. Others Already created charge on: i)Exclusive charge on current assets and all receivables (both present and future) and movable fixed assets of HCG-BNH ii) Second pari passu charge on movable and current assets (both present and future) of the company.
Short particulars of the property charged	Second Pari passu charge on the movable fixed assets and current assets of the Company. Exclusive charge on current assets and all moveable fixed assets (both present and Future, which are not charged exclusively to any lender) of the Healthcare Global Balabhai Nanavati hospital (HCG-BNH) Second Pari Passu Charge on Immovable Fixed Assets of the Company-listed below (4 properties) Property No.1 - No.5 (CTS No.487), 2nd Cross, Sreevivasa Colony, Bangalore measuring East to West 115+112/2*68+50/2 Property No.2--No.8, 8/1, 82/2 & 8/3 formerly a portion of No.8, Previous No.6 at P. Kalinga Rao Road formerly Mission Road. Property No.3 - Lease hold Property Ward No.77, sampangirama Nagar, having PID No.77-1-7/1 measuring East to West 152ft., 6 inches and North to South 45ft. Property No.4 - Municipal No.6, New No.7 after biifurcation of P Kalinga Rao Road, Ward No.77, Sampangiram Nagar.
Date of latest modification prior to the present modification	04/05/2012
Particulars of the present modification	The facility is currently charged by Second Pari Passu Charge on Current Assets and Movable fixed assets of the company and exclusive charge on current assets and movable fixed assets of Healthcare Global - Balabhai Nanavati Hospital (HCG-BNH) In addition to the above, now charge is created on Second Pari Passu Charge on Immovable fixed assets of the company (total 4 properties) with SBI and Axis Bank. Original title deeds are deposited with SBI.

FIXED ASSETS:

· Plant and Machinery

· Vehicles

· Data Processing Equipment

· Office Equipment

· Furniture and Fixture

· Electrical Installations

· Lab Equipment

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.52.97
UK Pound	1	Rs.85.45
Euro	1	Rs.69.46

INFORMATION DETAILS

Information Gathered by :	PJA
Report Prepared by :	NIT

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	4
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
.--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		45

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.