Press Release

Brickwork Ratings assigns provisional rating BWR AA-(SO) for PCR Investments Limiteds proposed secured Non-Convertible Debentures of `100 Crore with a tenure of 36 months and limits the validity of its Rating for the Term Loan facility up to `150 Crore

NCD Issue: Provisional BWR AA- (SO)

Outlook : Stable

Brickwork Ratings has assigned a provisional rating of BWR AA-(SO) [Pronounced BWR Double AA Minus (Structured Obligation)] for PCR Investments Limiteds (PCR or the Company) proposed Non-Convertible Debentures of `100 crore with a tenure of 36 months. Instruments with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The rating would be confirmed on execution of all the documents as per the terms of the structure shared with Brickwork Ratings and on provision of final legal opinion. Brickwork had initially assigned provisional rating of BWR AA-(SO) to PCR Investments Limiteds secured term loan facility of `250 crore on March 19th, 2012. The company has informed BWR that they have borrowed `150 crore as rupee term loan and remaining `100 crore would be raised in form of Non-Convertible Debentures with similar terms. Accordingly, the rating of BWR AA-(SO) assigned by us on March 19, 2012 for the Companys Secured Term loan facility is valid up to an amount of `150 crore only and the aforementioned rating for the proposed issue of Non-Convertible Debentures of `100 crore is within the overall `250 crore borrowing facility rated by BWR. The Provisional rating of BWR AA- (SO) assigned to the proposed NCD issue of Rs.100 crore of PCR Investments Limited has also , inter alia, factored the credit enhancement in form of non-disposal undertaking (NDU) to maintain 2.0 times cover of the outstanding amount in form of equity shares of Apollo Hospital Enterprise Limited (AHEL), fundamentals of AHEL, the cap on the total financial indebtedness of the company & promoter group and the availability of the sufficient unencumbered AHEL shares with the company & promoter group to maintain the security cover during tenure of the facility. The aforementioned NDU would be in favour of the Trustee for the benefit of the Lenders. The rating is sensitive to the issuer complying with applicable SEBI guidelines, business performance of AHEL, exposure of the aggregate cover to the market volatility risk and timely liquidation of shares in case of occurrence of event of default (as per terms of the issue) at any point prior to the final maturity date of the facility. BWR has essentially relied upon the draft term sheet outlining the structure of the deal, audited financial results of PCR Investments Ltd & AHEL, draft legal opinion and information and clarification provided by the company. The proceeds of the facility would be

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20 April 2012

used by the company towards its general corporate purposes and towards the repayment/ prepayment of its existing debts. PCR Investment Limited has been promoted by Dr. Prathap C Reddy and his Family Members, who are the promoters of Apollo Hospitals Group. The company has been registered with Reserve Bank of India to carry on the business of a non-banking financial institution. The Main Objects of the Company is to invest in the Equity Shares and carry on the activities of Financial Services including the provision of Consultancy Services in all areas of Corporate Management. The company had reported loss of `23 crore on income of `7.02 crore for FY11. The company held `218 crore as investments in equity shares, mutual fund and gold as on year ended FY11. Analysts NishantAnshul nishant.a@brickworkratings.com Nirav Kamdar nirav.k@brickworkratings.com Media Anitha G media@brickworkratings.com Relationship Contact K N Suvarna Senior VP Business Development kn.suvarna@brickworkratings.com Phone: 1-860-425-2742

Disclaimer: Brickwork Ratings (BWR) has assigned the rating based on the information obtained from the issuer and other reliable sources, which are deemed to be accurate. BWR has taken considerable steps to avoid any data distortion; however, it does not examine the precision or completeness of the information obtained. And hence, the information in this report is presented as is without any express or implied warranty of any kind. BWR does not make any representation in respect to the truth or accuracy of any such information. The rating assigned by BWR should be treated as an opinion rather than a recommendation to buy, sell or hold the rated instrument and BWR shall not be liable for any losses incurred by users from any use of this report or its contents. BWR has the right to change, suspend or withdraw the ratings at any time for any reasons.

www.brickworkratings.com

20 April 2012