Fortis Healthcare

Dear Shareholder,
 
 It gives me immense pleasure to present to you our 12th Annual Report.
 Last year was a very eventful year for our Company, as we got listed on
 the BSE and NSE on May 09, 2007. At the very onset, I would like to
 thank all our shareholders who have been continuously extending their
 invaluable support to the Company.
 
 Whilst 2007-08 was a milestone year with regards to being listed-It
 also brought its share of challenges and events. Our objective for
 2007-08 was to consolidate our growth and invest in the building blocks
 of the Company. Added to this we had an unexpected event in our
 flagship hospital Escorts where we had to execute a quick leadership
 change.
 
 FINANCIALS
 
 Inspite of the disruption this caused, your company clocked a Revenue
 of Rs. 548 crores and EBIDTA of Rs. 62 crores. Apart from Escorts, the
 company grew at 32% and achieved EBIDTA of 15%, partially lower due to
 the addition of a new facility in Jaipur.
 
 GROWTH
 
 On the growth front we have continued to expand our geographical
 footprint with the commissioning of our Jaipur Hospital (Rajasthan) and
 our entry in the south with Malar Hospitals (Chennai) and a project
 ready for commissioning in the west in Vashi (Navi Mumbai).
 
 Apart from this, we started construction on both our mega projects, one
 in West Delhi (Shalimar Bagh) and our flagship hospital in Gurgaon. The
 Gurgaon Hospital is a first of its kind endeavour to set up a 1000 bed
 hospital with the objective of being the likes of a Mayo Clinic or
 Johns Hopkins. In the history of healthcare, no one has managed to set
 up such an institute from scratch and therefore, once completed, it
 will be something all of us would be proud of. This in addition to some
 in-roads for more M&As will give us adequate scope for expansion and
 growth in the next 2-3 years.
 
 ACCREDITATION
 
 I am proud to inform you that last year Fortis Hospital, Mohali, has
 received accreditation from JCI (Joint Commission International) which
 is the oldest and largest healthcare accreditating body in the world.
 This year also saw Fortis Hospital, Noida, becoming the first hospital
 in Uttar Pradesh to receive NABH Accreditation from the Quality Council
 of India (QCI). Fortis Escorts Hospital, Jaipur received NABH
 accreditation barely within 10 months of start of its operations. This
 is the fastest for any hospital in India. Further, Fortis Hospital in
 Mohali and Escorts Heart Institute And Research Centre, Delhi also
 received NABH accreditation. With this, Fortis has become the largest
 chain of accredited hospitals in private sector in India.
 
 Escorts Hospital in New Delhi was adjudged as the best super-speciality
 hospital in Delhi in terms of patients satisfaction by VOICE, a
 consumer organization funded and supported by the Union Ministry of
 Consumer Affairs. I assure you that we will continue to raise the
 quality bar in our hospitals and provide patients with the highest
 standards of safety and care.
 
 OPERATIONS
 
 The Paediatric Cardiac Programme at Escorts became one of the largest
 in the country with a record number of procedures performed. Fortis for
 the last few years has one of the largest Joint Replacement Programmes
 in the country. We also conducted the first Ankle Transplant surgery
 in India. We have also significantly grown our Neuro Sciences and Renal
 programmes and built a unique Diabetes management programme, in the
 NCR.
 
 BUILDING BLOCKS
 
 The above, coupled with a very strong focus on strengthening the
 building blocks and establishing common systems and standards across
 the network hospitals as also strengthening the leadership team, gives
 us enough reason to be very positive and hopeful for the year in
 session.
 
 We saw the beginning of two projects for improved efficiencies and
 enhanced productivity. The first is the Fortis Operating System (FOS)
 which is a replicable and scalable model to ensure standard and
 efficient healthcare delivery and patient care. The second is
 centralized Purchase Supply Management (PSM) which minimizes the
 overall costs alongwith efficient management of the supply chain. These
 endeavours will add to reducing costs and better patient satisfaction
 in the years to come.
 
 We have also set up the Fortis Institute of Enhanced Leadership
 Development (FIELD) which has been created to structure a measurable
 training system to consistently develop quality talent.
 
 Truly, we have invested last year in the foundations to support a
 healthy dynamic organization, built for the future.
 
 LOOKING AHEAD
 
 If the last year was marked with major events, the focus of this year
 (2008-09) will be the performance and the outcome of the last few
 years initiatives in the Company.
 
 Our PSM, FOS and other programmes will start delivering tangible
 results and newer units will start adding productively to the bottom
 line of the Company, whereas some of our older units will show improved
 and best in the Industry performance metrics.
 
 Further, with a focus on making the organization lean, productive and
 with stress on quality benchmarks, the management team of your Company
 is confident of returning positive returns starting early in the
 ensuing year. Along with that, we expect a robust growth in our
 revenues and a positive increase in the outcome of our Clinical
 programmes, Capabilities and Faculty of our selected
 super-specialities.
 
 All in all, we have started the year on a positive note and look
 forward to continued growth and robust performance in the years to
 follow.
 
 Sincerely,
 
 Shivinder M.Singh
 CEO & Managing Director
 
 Dated :30th June, 2008