Aprameya Engineering Ltd

To

The Members of,

Your Directors have pleasure in presenting the 4^th Annual Report on the business and operations of the Company together with Audited Statement of Accounts for the year ended on 31^st March 2025 with Auditor's Report thereon.

(Rs in Lakhs)

The above performance is based on standalone basis. Consolidated figures are not applicable. The accounts are prepared as per Indian Accounting Standards (Ind-AS) notified.

Revenue from operations during the Financial Year under review was ' 13,570.71 Lakhs, which is 108% increase in turnover from the previous year. Profit before Tax has been increased from ' 461.32 Lakhs to ' 2171.77 Lakhs, which is about 371% increase from the previous year.

Total comprehensive Income (Comprising of profit and other Comprehensive Income for the period) has increased from ' 347.67 Lakhs to ' 1609.33 Lakhs, which is about 362% increase.

Your Company expects with the growing emphasis and importance of health in the Country, the Company expects to receive more orders in the years to come and will eventually lead to increase in demand for the Company.

Further the Company has expanded its operations in various other states.

Growing health care demand and thrust by the Government for providing health care facilities will lead to requirement of more hospitals and which will ultimately provide an opportunity to the Company for better prospectus.

The opening Balance of Retained Earnings is ' 940.31 Lakhs. There was addition of ' 1609.33 Lakhs to Retained Earnings. Further there was addition of Securities premium of ' 2419.20 Lakhs. There was utilization of ' 446.74 Lakhs from Securities Premium. The closing balance of other equity stands at ' 4522.11 Lakhs (Securities Premium ' 1972.46 Lakhs and Retained Earnings ' 2549.65 Lakhs).

Your Directors do not recommend any payment of dividend for the year ended 31^st March, 2025. The Company has developed a suitable Dividend Distribution Policy which is available on the Website of the Company at the web link at https://www.aelhealth.com/corporate-policies.php

Your Company is engaged in the business of trading of medical devices and equipments. Your Company is also engaged in the business of turnkey supply of goods. During the year there was no Change in the nature of Business during the FY 2024-25

The provisions of Section 125(2) of the Companies Act, 2013 do not apply as there was no dividend declared and paid last year.

No material changes or commitments have occurred during the financial year affecting the financial position of the Company. However during the year review the Company has raised the amount of share capital by way of public issue. No material changes and commitments occurred after the close of the financial year till the date of this report, which affect the financial position of the Company or future operations of the Company.

To the best of their knowledge and belief and according to the information and explanations obtained by them, your Directors make the following statement in terms of Section 134(3)(c) of the Companies Act, 2013:

(a) in the preparation of the annual accounts for the year ended on 31^st March, 2025, the applicable accounting standards had been followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give

a true and fair view of the state of affairs of the company at the end of the financial year ended on 31^st March, 2025 and of the profit of the company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis; and

(e) the Company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(f) the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

The Board of Directors and Member of various Committees are met during the year on following dates:

In respect of all above meetings, proper notices were given and the proceedings were properly recorded and the Minutes Book maintained for the purpose.

All the recommendations of the Committee meetings were duly accepted by the Board.

As on 31^st March, 2025 the authorised Share Capital of the Company stands at ' 2000.00 Lacs divided into 2,00,00,000 (Two Crore) Equity Shares of ' 10/- (Rupees Ten Only) each.

During the year under review, the Company has made a public issue of Equity Shares of 50,40,000 at a price of ' 58/- per Share (inclusive of premium of ' 48/- per Equity Share). Consequently the paid up Equity Share Capital of the Company stands increased to ' 1904.00 Lacs.

No Bonus Shares were issued during the year.

No Employee Stock Option were issued during the year.

There are no outstanding convertible instruments as at the end of year.

The Company is listed on SME Platform of National Stock Exchange Limited ("NSE EMERGE") on 1^st August, 2024 and the NSE Symbol is "APRAMEYA". The ISIN of the Company is INE0LQG01010

The Company has not accepted any public deposits within the meaning of Section 73 of the Companies Act 2013 as at 31^st March, 2025.

The total outstanding loans availed from the Director as on 31^st March, 2025 is ' 531.27 Lacs.

Your Company has complied with the mandatory secretarial standards as notified under Section 110 of the Companies Act, 2013.

The Company has received a declaration from all the independent Directors pursuant to Section 149 of the Companies Act, 2013.

Separate Meeting of Independent Director was held on 24^th March, 2025. All independent Directors attended the same.

Since your Company is listed on SME Platform, the provision of Corporate Governace as per Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 is not applicable to your Company.

A separate section on management discussion and analysis is provided by way of Annexure I to the Directors Report.

Pursuant to the provision of Section 178 of the Companies Act, 2013 and of Section 134 (3) (e) of the Companies Act, 2013 the policy on Directors Appointment and remuneration is provided on the website of the Company i.e. https:// aelhealth.com/corporate-policies.php

In line with the requirements of the Companies Act and SEBI Listing Regulations, the Company has formulated a Policy on of Related Party Transactions which is also available on the Company's website at https://www.aelhealth.com/ corporate-policies.php. The Policy intends to ensure that proper reporting, approval and disclosure processes are in place for all transactions between the Company and its Related Parties. All related party transactions are placed before the Audit Committee for review and approval.

All contracts / arrangements / transactions, if any, entered by the Company during the financial year with related parties were in the ordinary course of business and on an arm's length basis.

No Bad Debts of related parties. The requisite details in form AOC - 2 in respect of related party transactions is as under :

Healthcare has become one of India's largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players.

India's healthcare delivery system is categorized into two major components - public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centers (PHCs) in rural areas. The private sector provides most secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier-I, and tier-II cities.

India's competitive advantage lies in its large pool of well-trained medical professionals. India is also cost- competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one- tenth of that in the US or Western Europe. The low cost of medical services has resulted in a rise in the country's medical tourism, attracting patients from across the world. Moreover, India has emerged as a hub for R&D activities for international players due to its relatively low cost of clinical research.

The healthcare sector, as of FY24, is one of India's largest employers, employing a total of 7.5 million people. A recent research report predicts that the integration of Artificial Intelligence (AI) within the Indian healthcare sector will create nearly 3 million new jobs by 2028.

India remains one of the world's strongest-performing economies, with estimated GDP growth of 6.2% in FY 2024-25. This performance is supported by strong private consumption, a steady decline in inflation, and healthy capital expenditure by both public and private sectors.

Inflation has eased to 5.2%, and food inflation has moderated as per recent RBI and CMIE updates. The

RBI's reduction in the repo rate to 6.0% in April 2025 is aimed at boosting credit growth and supporting consumption amid a softer global environment.

India attracted USD 81.04 billion in FDI in FY25, driven by sectors like electronics, pharmaceuticals, healthcare, and retail. Policy support under schemes like 'Make in India', 'China+1', and the PLI (Production Linked Incentive) scheme — with an allocation of INR 15,000 crore — continues to boost domestic manufacturing and import substitution.

India is now the fourth-largest economy globally, having surpassed Japan, and is expected to become the third-largest by FY 2028, ahead of Germany. This growth is underpinned by a favorable demographic profile, strong macroeconomic management, and rising investment activity.

India's healthcare sector is one of the country's largest and fastest-growing industries, both in terms of revenue and employment. It encompasses hospitals, medical devices, diagnostics, telemedicine, medical tourism, clinical trials, health insurance, and medical equipment. The sector continues to expand rapidly due to growing healthcare awareness, rising public and private expenditure, and improvements in infrastructure and services.

India's healthcare delivery system operates through two major segments:

Public Healthcare, which primarily offers primary care in rural regions via Primary Health Centres (PHCs) and has limited secondary and tertiary facilities in urban areas.

Private Healthcare, which delivers the majority of secondary, tertiary, and quaternary care, concentrated mainly in metros and Tier-1 and Tier-2 cities.

While public initiatives aim to improve accessibility, the private sector plays a dominant role in driving innovation, infrastructure development, and advanced treatment facilities.

India holds a strong advantage due to its large pool of skilled medical professionals and cost-competitive healthcare services. The cost of surgery in India is approximately one- tenth of that in developed countries such as the United States or Western Europe. This affordability, along with high-quality care, has helped India become a preferred destination for medical tourism, with tourist volumes expected to reach 7.3 million in CY 2024. Leading hospital chains such as Apollo, Fortis, Max, and Medanta are key drivers of this growth.

Moreover, India is emerging as a global hub for clinical research and medical R&D, attracting foreign players due to lower costs and a skilled workforce.

Despite progress, India continues to face a significant infrastructure deficit:

India has only 2 million hospital beds, far below the 4.9 million beds recommended by the World Health Organization (WHO).

Bed density remains at 1.3 per 1,000 population, compared to the global average of 2.9.

The shortfall of over 3 million beds, coupled with workforce shortages (1.5 million doctors and 2.4 million nurses needed), highlights the urgent need for continued investment.

Due to insufficient infrastructure in Tier 2 and Tier 3 cities, patients are frequently forced to travel to urban centres, leading to higher costs and delays in care.

In response, listed private hospital networks have announced plans to increase capacity by ~32% between FY24 and FY27, focusing significantly on expanding in non-metro cities.

The Union Budget for FY25 allocated ?98,311 crore to healthcare, marking a 9.8% YoY increase, with ?37,226 crore dedicated to the National Health Mission (NHM) for expanding public hospital networks.

Development of 200 new cancer centres and upgradation of district hospitals into day-care oncology units

Expansion of premier medical institutes with 11 AIIMS operational and 5 more in the pipeline, expected to add 5,000+ beds public spending on healthcare is expected to rise from 1.6% to 2.5% of GDP by 2025

This push is complemented by the private sector, which is responsible for nearly 60% of new healthcare capacity, largely through brownfield expansion and Operations & Maintenance (O&M) contracts.

The Indian medical devices market, valued at USD 11 billion in 2022, is expected to reach USD 50 billion by 2030, driven by:

Growing demand for smart hospitals, AI-enabled diagnostics, and modular operating rooms.

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Rising affordability and insurance penetration, especially in Tier 2 and 3 regions

Government incentives through the PLI (Production Linked Incentive) Scheme, and creation of 13 new greenfield manufacturing plants

Increasing global R&D inflows, such as Siemens Healthineers' new R&D center in Bengaluru

Aprameya Engineering Ltd is a trusted partner in India's healthcare infrastructure space, with over two decades of experience in delivering turnkey hospital projects and integrated medical technology solutions across public and private sectors.

Turnkey Healthcare Infrastructure: Comprehensive solutions for setting up modular OTs, ICUs, dialysis centres, and prefabricated hospital blocks, managed end-to-end from design to commissioning.

Medical Equipment Integration: Through OEM partnerships, Aprameya sources and installs critical care equipment across specialties.

Post-Installation Support: Offers preventive and corrective maintenance services, including AMC and CAMC contracts.

The company has delivered advanced modular and mobile healthcare units, including:

Mobile CT Scan Units and Stroke Units Electrophysiology (EP) Labs

Surgical Robots, including India's first indigenous system Market Presence and Expansion:

Aprameya currently operates in Rajasthan, Ahmedabad (Gujarat), Delhi, and Maharashtra, and is expanding into Bihar, Sikkim, Odisha, and Chhattisgarh to meet growing regional demand.

With over ?300 crore worth of turnkey projects executed, 2,000+ critical care beds installed, and 30+ hospitals served, the company has a strong order book and robust execution pipeline. Aprameya is well-positioned to scale its operations and support India's healthcare infrastructure mission through innovative, cost-effective solutions.

Over two decades of experience in healthcare infrastructure and medical equipment integration.

Proven execution record across turnkey hospital projects across multiple states.

Low level of complaints and claims, resulting in lower cost of after-sales service.

Dedicated and skilled in-house service team ensuring reliable post-installation support.

Historical concentration in Rajasthan, with geographic diversification still in progress.

Lack of in-house manufacturing capabilities for medical devices and components.

No presence in export markets at present.

Dependence on OEMs and third-party suppliers for critical equipment and systems.

Large and growing population of over 1.4 billion driving sustained demand for hospitals and healthcare infrastructure.

Increased healthcare spending by both government and private sector, including schemes like Ayushman Bharat.

Rising healthcare awareness and high out-of-pocket medical expenditure boosting infrastructure requirements.

Potential for service revenue growth through AMC, CAMC, and long-term support contracts.

Heavy reliance on imported medical devices exposes the sector to foreign exchange risks and global supply chain disruptions.

Limited domestic R&D in high-end medical technology could affect sector competitiveness.

Policy changes, delays in government tendering, or funding slowdowns may impact project timelines.

Increased competition from larger players in turnkey healthcare infrastructure could lead to pricing pressure.

Aprameya Engineering Ltd follows a proactive risk management approach to identify, assess, and mitigate key business risks that could impact operations, execution, or financial stability.

Execution & Project Delays: Risks related to site readiness, approvals, or contractor coordination are addressed through strong project management systems and regular client communication.

Dependence on Government Projects: With a large share of business from public sector contracts, any delay in funding or tendering may impact timelines. The company mitigates this by expanding into private hospital projects and diversifying across states.

Supply Chain & OEM Dependency: Delays or pricing volatility in equipment supply is mitigated through multiple vendor tie-ups and strategic partnerships with leading OEMs.

Working Capital Pressure: As project billing cycles can be long, the company closely monitors receivables and maintains strict cost controls to manage liquidity.

Geographic Expansion Risks: Entering new states involves regulatory and operational challenges. Aprameya addresses

this through local partnerships, experienced regional teams, and a phased approach.

The company reviews its risk framework periodically and adapts controls in response to evolving industry, economic, and operational dynamics.

In FY25, Aprameya Engineering Ltd delivered strong growth, supported by solid execution of turnkey healthcare infrastructure projects and expansion into new geographies.

The Company successfully completed its Initial Public Offering (IPO) during the year, issuing 50.40 lakh equity shares at ?58 per share, including a premium of ?48. As a result, the paid-up equity share capital increased to ?1,904.00 lakh. The IPO proceeds were primarily allocated towards incremental working capital requirements and general corporate purposes, strengthening the financial position and enabling operational scale-up.

Revenue from Operations: ?135.7 Cr (vs ?65.6 Cr in FY24) EBITDA: ?25.0 Cr EBITDA Margin: 18%

PAT: ?16.1 Cr PAT Margin: 12%

EPS: ?9.3

ROE: 31% ROCE: 26%

Total Comprehensive Income: ?16.09 Cr (up from

?3.47 Cr in FY24)

The Company's growth was largely driven by project execution in Maharashtra, along with rising demand for modular medical infrastructure. Aprameya's order book stood at ?60 Cr as of March 31, 2025, executable over the next 5-6 months. The revenue mix remained consistent, led by turnkey infrastructure (90%), followed by equipment (8%) and service revenues (2%).

Despite moderate working capital intensity, Aprameya continues to maintain a lean operating model, supported by efficient project execution and expanding regional presence.

Aprameya Engineering Ltd enters FY26 with strong momentum, backed by a healthy order book, growing demand for healthcare infrastructure, and increasing focus on modular and technology-led solutions.

The company expects continued opportunities in both government and private healthcare segments, especially in Tier 2 and 3 cities. With its presence in high-growth markets and planned expansion into new states, Aprameya aims to strengthen its execution footprint and deepen OEM-led solution offerings.

Rising healthcare capex across states

Greater demand for turnkey and mobile medical units

Expanding service revenues through AMC/CAMC contracts

Increased adoption of robotic surgery and digital diagnostics

With a solid foundation, lean business model, and experienced team, Aprameya remains well-positioned to scale operations and contribute meaningfully to India's healthcare infrastructure growth.

The Company has an effective and reliable internal control system, commensurate with its size and operations. It ensures compliance with statutory requirements, safeguards assets, prevents frauds and errors, and supports accurate and timely financial reporting. The system is regularly reviewed through internal audits, self-assessments, and statutory audits to maintain its effectiveness.

The Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Company's Human Resources is commensurate with the size, nature and operations of the Company. The number of people employed by the Company as at 31^st March 2025 was 40.

The Management Discussion and Analysis report containing your Company's objectives, projections, estimates, and expectations may constitute certain statements which are forward-looking within the meaning of applicable laws and regulations. The statements therein could differ materially from those expressed or implied. Important factors that could make a difference to the Company's operation include weather behavior, raw material availability and prices, cyclical demand, pricing in the Company's principal markets, changes in the governmental regulations, tax regimes, forex markets, and economic developments within India and in the countries with which the Company conducts business, and other incidental factors.