Aprameya Engineering Ltd Management Discussions

OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with our “Restated Financial Statements” beginning on page 146.

This Red Herring Prospectus may include forward-looking statements that involve risks and uncertainties, and ouractual financial performance may materially vary from the conditions contemplated in such forward-looking statements as a result of various factors, including those described below and elsewhere in this Red Herring Prospectus. For further information, see “Forward-Looking Statements” on page 18. Also read “Risk Factors” and “Significant FactorsAffecting our Results of Operations” beginning on pages 28 and 18 respectively, for a discussion of certain factors thatmay affect our business, financial condition or results of operations.

Our fiscal year ends on March 31 of each year, and references to a particular fiscal are to the twelve months ended March31 of that year. Unless otherwise indicated or the context otherwise requires, the financial information for Fiscals 2022, 2023 and 2024 included herein is derived from the Restated Financial Information, included in this Red Herring Prospectus. For further information, see “Restated Financial Statements” on page 146.

Unless otherwise indicated or the context otherwise requires, in this section, references to “the Company” or “our Company” are to Aprameya Engineering Limited.

Unless otherwise indicated, industry and market data used in this section has been derived from the report ICU Set-Up And Maintenance Market Report prepared and issued by Reports & Data which has been exclusively commissioned and paid for by our Company for an agreed fee for the purposes of confirming our understanding of the industry in connectionwith the Issue. Also see, “Certain Conventions, Presentation of financial, Industry and Market Data and Currency of Presentation - Industry and Market Data ” on page 16.

Overview

Our Company is engaged in the business of installation, set up & maintenance of Intensive Care Units (“ICU”), Neonatal Intensive Care Units (“NICU”), Pediatric Intensive Care Units (“PICU”), Operation Theatre, dialysis centres and prefabricated structure ward (hereinafter referred to as “Healthcare Infrastructure projects”) in the hospitals and medical care centres on turnkey basis along with supply of high value healthcare equipment and diagnostic equipment to private hospitals, Government hospitals and medical practitioners. Over the years, on the basis of our knowledge and understanding of the requirements of medical practitioners, industry standards and utility of the medical equipment, we have evolved ourselves and developed our capabilities in offering solutions in the field of healthcare services relating to ICU set up, dialysis centres setup, operation theatre setup and providing medical equipment for easing operation related to patient treatment, monitoring and diagnosis by hospitals, medical practitioners and diagnostic service providers. The company is engaged in the business of setting up of medical, healthcare infrastructure, supply of consumables, trading of medical and healthcare equipments and maintenance of the equipment supplied and installed by the company. Further, the company has many times received commission from the equipment suppliers for supply of the medical equipment directly to the customers.

We started the business as a partnership firm on September 05, 2003 and have grown our business with the objective of delivering healthcare solutions focused on cost effectiveness and improved accessibility. We are engaged in selling of high value medical equipment as a dealer of medical equipment manufacturers and suppliers such as Johnson & Johnson Private Limited, Stryker India Private Limited and many other medical equipment manufacturers. Apart from these companies we also have established cordial relationship with medical device manufacturers like Alan Electronic Systems Pvt Ltd, Draeger Medical India Private Limited, Siemens Healthcare Private Limited, Schiller Healthcare India Private Limited, Epsilon, Resmed and many other medical devices manufacturers and suppliers for easy and timely procurement. With the knowledge and experience of over one & half decade in delivering the medical devices for patient care at reasonable outlay, we have during the year 2020 expanded our business activity by providing turnkey healthcare infrastructure solution by setting-up of ICU, NICU, PICU, operation theater projects and prefabricated structure ward on turnkey basis. Further, during the year 2024, we have undertaken setting up, installing and commissioning of dialysis centres across the state of Rajasthan,

Our portfolio of products and services can be classified into two different segments i.e. setting up of healthcare infrastructure within the hospitals and medical care centres and dealing in high value medical equipment. We provide need based medical

equipment to hospitals, medical practitioners, and diagnostic service providers, including patient monitoring systems, cardiology devices, respiratory management systems and radiology/ imaging systems. We have over the years worked on maintaining healthy relationship with our customers through timely delivery of the medical equipment at reasonable cost. These relationships has enabled us to create a wide customer base of doctors, medical practitioners, private and government hospitals, medical colleges including AIIMS (All India Institute Medical Science) and diagnostic service providers across the country.

We started the business of setting up of ICUs and operation theatres in 2020, and have since then completed the installation of around 2000 critical care beds including ICUs, NICUs, PICUs and modular operation theatre across the state of Rajasthan. These healthcare infrastructure projects have been undertaken for different government hospital namely Dr. S N Medical College - Jodhpur, Government Medical College - Kota, RMSCL - Jaipur, RNT Medical College - Udaipur and SMS Medical College - Jaipur. Further, during the Fiscal year 2024, we have undertaken setting up, installing and commissioning of dialysis centres for Rajasthan Services Medical Corporation Limited in over 150 different locations in the state of Rajasthan.

We are led by our experienced Promoters Saurabh Kishorbhai Bhatt & Chetan Mohan Joshi, who are supported by our team of experienced senior management, engineers and other personnel. Our Promoters, Saurabh Kishorbhai Bhatt & Chetan Mohan Joshi, have an experience of over 20 years in the field of dealing in high-value medical equipment. We have gained from the knowledge and experience of our Promoters pertaining to marketing, understanding of technical specification & utility of high value medical equipment along with the industry standards applicable to the medical industry. Under the leadership and guidance of our Promoters, we have evolved from a small organization into a successful company engaged in providing healthcare infrastructure solutions to the needs of the healthcare sector by delivering medical equipment.

Financial Snapshot

(All amounts in Rs. Lakhs)

Key Financial Performance	For the year
	31-Mar-24	31-Mar-23	31-Mar-22
Revenue from operations™	6,516.23	7,811.91	19,999.46
EBITDA(2)	593.07	874.63	2475.41
EBITDA Margin(3)	9.10%	11.20%	12.38%
PAT(4)	345.67	536.92	1,661.91
PAT Margin(5)	5.30%	6.87%	8.31%
RoE(%)(6)	15.97%	31.17%	182.04%
RoCE (%)(7)	9.60%	18.22%	88.38%

Notes:

(1) Revenue from operation means revenue from sales and other operating revenues

(2) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income

(3) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations

(4) PAT is calculated as Profit before tax - Tax Expenses

(5) ‘pat Margin is calculated as PAT for the year divided by revenue from operations.

(6) Return on Equity is ratio of Profit after Tax and Average Shareholder Equity

(7) Return on Capital Employed is calculated as EBIT divided by capital employed, which is defined as shareholders equity plus total borrowings (current & non-current).

Explanation for KPI metrics:

KPI	Explanations
Revenue from Operations	Revenue from Operations is used by our management to track the revenue profile of the business and in turn helps to assess the overall financial performance of our Company and volume of our business
EBITDA	EBITDA provides information regarding the operational efficiency of the business
EBITDA Margin (%)	EBITDA Margin (%) is an indicator of the operational profitability and financial performance of our business
PAT	Profit after tax provides information regarding the overall profitability of the business.
PAT Margin (%)	PAT Margin (%) is an indicator of the overall profitability and financial performance of business.
RoE(%)	RoE provides how efficiently Company generates profits from shareholders funds.
RoCE (%)	RoCE provides how efficiently Company generates earnings from the capital employed in the business.

Our Location

Registered Office	908,Venus Atlantis Corporate Park, Anand Nagar road, Prahladnagar, Ahmedabad, Gujarat-380015
Branch Office	GF-23,Ground floor , Jaipur Electronic market, Near Riddhi Siddhi , Jaipur , Rajasthan-302018
	Unit No. 712, Seventh Floor, Venus Atlantis Corporate Park, Anand Nagar road, Prahladnagar, Ahmedabad, Gujarat-380015
Warehouse	Unit No. 215, Second Floor, Gala Empire, Survey No. 49/3, Final Plot No. 113, T.P. Scheme No. 2, Memnagar, Ahmedabad
	Unit No. 216, Second Floor, Gala Empire, Survey No. 49/3, Final Plot No. 113, T.P. Scheme No. 2, Memnagar, Ahmedabad
	Unit No. 4, 1st Floor, Shreyas Complex, Survey No. 2116, Final Plot No. 113, T.P Scheme No. 3, Nr. Dinesh Hall, Ashram Road, Ahmedabad - 38009

SIGNIFICANT FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our financial performance and results of operations are influenced by a number of important factors, some of which are beyond our control, including without limitation, intense competition, general economic conditions, changes in conditions in the regional markets in which we operate, changes in costs of supplies and evolving government regulations and policies. Some of the more important factors are discussed below, as well as in the section titled “Risk Factors” on page 28.

1. General economic and business conditions in the markets in which we operate and in the local, regional, national and international economies;

2. Changes in focus toward the healthcare infrastructure demand;

3. Any change in government policies resulting in increases in taxes payable by us;

4. Our ability to retain our key managements persons and other employees;

5. Changes in laws and regulations that apply to the healthcare industry in which we operate.

6. Our failure to keep pace with rapid changes in technology;

7. Our ability to grow our business;

8. Our ability to make interest and principal payments on our existing debt obligations and satisfy the other covenants contained in our existing debt agreements;

9. General economic, political and other risks that are out of our control;

10. Inflation, deflation, unanticipated turbulence in interest rates, equity prices or other rates or prices;

11. Companys ability to successfully implement its growth strategy and expansion plans ;

12. Failure to comply with regulations prescribed by authorities of the jurisdictions in which we operate;

13. Inability to successfully obtain registrations in a timely manner or at all;

14. Occurrence of Environmental Problems & Uninsured Losses;

15. Conflicts of interest with affiliated companies, the promoter group and other related parties;

16. Any adverse legal proceedings initiated against our company or its promoters, directors and key managerial personnels;

17. Concentration of ownership among our Promoters;

18. The performance of the financial markets in India and globally; and

19. Impact of covid-19 on our business and operations.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of “Statement of Significant Accounting Policies”, please refer to Annexure IV of Restated Financial

Statements beginning on page 146 of this Red Herring Prospectus.

CHANGES IN ACCOUNTING POLICIES

There were no changes in accounting policies during the years of Special purpose Ind AS financial statements.

PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS Income

Our total income comprises revenue from operations and other income. We generate majority of our revenue through the execution of the turnkey projects related to ICU, dialysis centres and operation theatre setup, marketing and sales and service

of medical equipment, consumable, diagnostic equipment and allied medical equipment.

Revenue from Operations

Revenue from operations comprises revenue from sale of products, revenue from turnkey projects like setting up of ICU , dialysis centres and operation theatre, dealing in medical equipment, and service and maintenance of these equipment.

Other Income

Other income includes (i) interest income on bank deposits and income tax refunds; (ii) rent income; (iii) sundry balance written off.

Expenses

Our expenses comprise (i) purchases of stock-in-trade; (ii) Trunkey project expenses; (iii) changes in inventories of finished goods and work-in-progress; (iv) employee benefits expense; (v) finance costs; (vi) depreciation and amortisation expense; and (vii) other expenses.

Purchases of Stock-In-Trade

Purchase of stock-in-trade consists primarily of our purchases related to the medical equipment

Trunkey project expenses

Trunkey project expenses consists of project supplies and project direct expenses such as installation charges, civil work and labour works expenses, project labour etc.

Changes in Inventories of Finished Goods and Work-in Progress

Changes in inventories of finished goods and work-in-progress denotes increase/ decrease in inventories of finished goods and work in progress between opening and closing dates of a reporting period.

Employee Benefit Expense

Employee benefit expenses primarily includes (i) salaries wages and other expenses; (ii) contributions to statutory fund; and (iii) staff welfare expenses.

Finance Cost

Finance cost includes interest on bank and financial institution borrowings and other borrowings; and (ii) other borrowing costs.

Depreciation and Amortization expenses

Depreciation and amortization expenses primarily include depreciation expenses on our property, plant and equipment including buildings, furniture and fixtures, office equipment, computer equipment and vehicles.

Other Expenses

Other expenses comprises (i) auditor remuneration; (ii) electricity expenses; (iii) repairs and maintenance expenses; (iv) rent expenses; (v) installation expenses; (vi) directors remuneration; (vii) installation expenses; (viii) insurance expenses;

(ix) legal and professional expenses; (x) commission expenses; (xi) loss on sale of assets; (xii) rates & taxes; (xiii) travelling & conveyance expenses; (xiv) selling and distribution expenses; (xv) bad debts; (xvi) loss allowance on deposits; (xvii) loss allowance on trade receivable; (xviii) warranty expenses; and (xiv) other miscellaneous expenses.

RESULTS OF OPERATIONS INFORMATION BASED ON THE RESTATED FINANCIAL INFORMATION

The following table sets forth certain information with respect to our results of operations for Fiscal 2024, Fiscal 2023 and Fiscal 2022:

Rs. in lakhs unless stated otherwise

	Fiscal 2024		Fiscal 2023		Fiscal 2022
Particulars	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income
INCOME
Revenue from Operations	6,516.23	99.30	7811.91	99.73	19999.46	99.87
Other Income	45.99	0.70	21.44	0.27	26.7	0.13
Total Income	6,562.22	100.00	7833.35	100	20026.16	100
EXPENSES
Purchase of stock in trade	1,228.46	18.72	809.13	10.33	6805.34	33.98
Turnkey project expenses	3,302.47	50.33	4841.63	61.81	8991.78	44.9
Changes in inventories of finished goods and work-in-progress	448.72	6.84	-44.34	-0.57	-390.59	-1.95
Employee benefits expenses	270.55	4.12	257.69	3.29	301.8	1.51
Finance cost	211.33	3.22	207.81	2.65	91.75	0.46
Depreciation and amortization expenses	10.75	0.16	9.53	0.12	8.76	0.04
Other expenses	630.33	9.61	1003.87	12.82	1804.32	9.01
Total expenses	6,102.63	93.00	7085.32	90.45	17613.16	87.95
Profit/ (Loss) before tax	459.59	7.00	748.05	9.55	2,413.01	12.05
Tax expense
(a) Current tax	134.16	2.04	211.88	2.70	753.50	3.76
(b) Deferred tax	(20.23)	(0.31)	(0.75)	(0.01)	(2.40)	(0.01)
Total tax expense	113.92	1.74	211.13	2.70	751.10	3.75
Profit/ (Loss) after tax for the period	345.67	5.27	536.92	6.85	1,661.91	8.30
Other comprehensive income
(i) Items that will not be reclassified to profit or loss
Re-measurements of the defined benefit plans	(1.87)	(0.03)	3.51	0.04	(2.05)	(0.01)
(ii) Income tax relating to items that will not be reclassified to profit or loss
Re-measurements of the defined benefit plans	0.47	0.01	(0.88)	(0.01)	0.52	-
Total other comprehensive (loss)/ income for the year (net of tax)	(1.40)	(0.02)	2.63	0.03	(1.53)	(0.01)
Total comprehensive income	344.27	5.25	539.55	6.89	1,660.38	8.29

RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2024 COMPARED WITH FISCAL 2023 Income

Our total income has decreased significantly by 16.23% to Rs. 6562.22 lakhs in Fiscal 2024 from 7833.35 lakhs in Fiscal 2023. The main reason for decrease in Income was due to decrease in the revenue from turnkey projects that has decreased from Rs. 6460.55 lakhs in fiscal 2023 to Rs. 4578.76 lakhs in fiscal 2024 representing a decrease of 29.12%.

Revenue from Operations

Our revenue from operations decreased significantly by 16.58% to Rs.6516.23 lakhs in Fiscal 2024 from Rs.7811.91 lakhs in Fiscal 2023. The main reason for decrease in Income was due to decrease in the revenue from turnkey project that has decreased from Rs. 6460.55 lakhs in fiscal 2023 to Rs. 4578.76 lakhs in fiscal 2024 representing a decrease of 29.12%. These decreases were

partly offset by increase in sale of traded goods from Rs. 1277.16 lakhs in fiscal 2023 to Rs. 1802.69 lakhs in fiscal 2024. Other Income

Our other income was Rs.21.44 lakhs in Fiscal 2023, which has been increased by 114.48% to Rs.45.99 lakhs in Fiscal 2024, which is primarily due to increase in the miscellaneous balances written back which increase from 0.62 lakhs in fiscal 2023 to 16.80 lakhs in fiscal 2024 & increase in the interest income from 17.19 lakhs in fiscal 2023 to 26.08 lakhs in fiscal 2024.

Expenses

Our total expenses have also decreased significantly by 13.86% to Rs 6102.62 lakhs in fiscal 2024 from Rs.7085.32 lakhs in Fiscal 2023. The substantial decrease in total expenses was due to decrease in turnkey project expenses which reduced from Rs. 4841.63 lakhs to Rs. 3320.47 lakhs, change in inventory of finished goods has substantially increase to Rs 448 .72 lakhs in fiscal 2024 from (44.34) lakhs in fiscal 2023 and other expenses which reduced from 1003.87 lakhs in fiscal 2023 to Rs 630.33 lakhs to fiscal 2024.

Purchase of stock in trade

Purchase of stock-in-trade has increased by 51.82% from Rs. 809.13 lakhs in Fiscal 2023 to 1228.46 lakhs in Fiscal 2024, primarily due to increase in the sale of medical equipments by the company, which increase in sale of traded goods from Rs. 1277.16 lakhs in fiscal 2023 to Rs. 1802.69 lakhs in fiscal 2024.

Turnkey project expenses

Our Trunkey project expenses has decreased significantly by31.79% to Rs. 3320.47 lakhs in Fiscal 2024 from Rs.4841.63 lakhs in Fiscal 2023 primarily due to decrease in the order book and number of turnkey projects undertaken by the company.

Employee benefits expenses

Employee benefit expenses increased by 4.99% from Rs.257.69 lakhs in Fiscal 2023 to Rs 270.55 lakhs in fiscal 2024, primarily due to an increased in salaries, wages and other expenses.

Finance cost

Finance costs has increased by 1.69% from Rs.207.81 lakhs in Fiscal 2023 to Rs.211.33 lakhs in Fiscal 2024 which consists of interest paid on bank and financial institution borrowings. The increase in the finance cost was attributable to the increase in the loans and borrowings taken by the company which increased from Rs. 2873.95 lakhs in fiscal 2023 to Rs. 4204.84 lakhs in fiscal 2024.

Depreciation and amortization expenses

Depreciation, amortisation and impairment expenses increased by 12.83% from Rs.9.53 lakhs in Fiscal 2023 to Rs.10.75 lakhs in Fiscal 2024, primarily due to additions in property, plant and equipments.

Other expenses

Other expenses decreased by 37.20% from Rs.1003.87 lakhs in Fiscal 2023 to Rs.630.33 lakhs in Fiscal 2024, due to decrease in Installation expenses from Rs. 103.50 lakhs in Fiscal 2023 to Rs. 93.71 lakhs in Fiscal 2024, decrease in legal & professional fees from 122.21 lakhs in fiscal 2023 to 24.83 lakhs in fiscal 2024, decrease in commission expenses from Rs. 82.97 lakhs in fiscal 2023 to 8.83 lakhs in fiscal 2024 and directors remuneration from Rs. 414.00 lakhs in Fiscal 2023 to Rs. 225.00 lakhs in Fiscal 2024.

These increases were partly offset by increase in insurance expenses and loss allowance on trade receivables.

Profit before Tax

For the reasons discussed above, profit before tax was significantly decreased by 38.56% from Rs.748.05 lakhs in Fiscal 2023 to Rs.459.59 lakhs in Fiscal 2024.

Tax Expenses

Current tax decreased by 36.68% from Rs. 211.88 lakhs in Fiscal 2023 to Rs. 134.15 lakhs in Fiscal 2024. The decrease in tax expenses was due to decrease in the profit before tax on the company.

Profit after Tax

For the various reasons discussed above, we recorded significant decreased of 35.62% in profit after tax from Rs.536.92 lakhs in Fiscal 2023 as compared to Rs.345.66 lakhs in Fiscal 2024. Further, due to the decrease in turnover the PAT margins of the company also reduced from 6.87% to 5.30% on the total income of the company.

RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2023 COMPARED WITH FISCAL 2022 Income

Our total income has decreased significantly by 60.88% to Rs. 7833.35 lakhs in Fiscal 2023 from Rs.20026.16 lakhs in Fiscal 2022. The main reason for decrease in Income was due to decrease in the revenue from turnkey project which decreased from Rs 11505.29 lakhs in fiscal year 2022 to Rs. 6460.55 in the fiscal 2023 representing a decrease of 43.85%. Also, the revenue from traded goods also decreased from Rs. 8383.50 lakhs in fiscal 2022 to Rs. 1277.16 lakhs in fiscal 2023 representing a decrease of 84.77%.

Revenue from Operations

Our revenue from operations Decreased significantly by 60.94% to Rs.7811.91 lakhs in Fiscal 2023 from Rs.19999.46 lakhs in Fiscal 2022. The main reason for decrease in Income was due to decrease in the revenue from turnkey project which decreased from Rs 11505.29 lakhs in fiscal year 2022 to Rs. 6460.55 in the fiscal 2023 representing a decrease of 43.85%. Also, the revenue from traded goods also decreased from Rs. 8383.50 lakhs in fiscal 2022 to Rs. 1277.16 lakhs in fiscal 2023 representing a decrease of 84.77%.

Other Income

Our other income was Rs.26.70 lakhs in Fiscal 2022, which has been decreased by 19.70% to Rs.21.44 lakhs in Fiscal 2023, which is primarily due to decrease in the miscellaneous balances written back which reduced from 14.11 lakhs in fiscal 2022 to 0.62 lakhs in fiscal 2023.

Expenses

Our total expenses has also decreased significantly by 59.77% to Rs.7085.32 lakhs in Fiscal 2023 from Rs.17613.16 lakhs in Fiscal 2022. The substantial decrease in total expenses was due to decrease in purchase of stock in trade which reduced from Rs. 6805.34 lakhs to Rs. 809.13 lakhs, Turnkey project expenses which reduced from Rs. 8991.78 lakhs to Rs. 4841.63 lakhs and other expenses which reduced from Rs. 1804.32 lakhs to Rs. 1003.87 lakhs.

Purchase of stock in trade

Purchase of stock-in-trade decreased by 88.11% from Rs.6805.34 lakhs in Fiscal 2022 to Rs.809.13 lakhs in Fiscal 2023, primarily due to decrease in the sale of medical equipments by the company.

Turnkey project expenses

Our Trunkey project expenses has decreased significantly by 46.15% to Rs.4841.63 lakhs in Fiscal 2023 from Rs.8991.78 lakhs in Fiscal 2022 primarily due to decrease in the order book and number of turnkey projects undertaken by the company.

Employee benefits expenses

Employee benefit expenses decreased by 14.62% from Rs.301.80 lakhs in Fiscal 2022 to Rs.257.69 lakhs in Fiscal 2023, primarily due to a decreased in salaries, wages and other expenses, by 14.39% from Rs.277.51 lakhs in Fiscal 2022 to Rs.237.57 lakhs in Fiscal 2023.

Finance cost

Finance costs has increased by 126.50% from Rs.91.75 lakhs in Fiscal 2022 to Rs.207.81 lakhs in Fiscal 2023 which consists of interest paid on bank and financial institution borrowings. The increase in the finance cost was attributable to the increase in the loans and borrowings taken by the company which increased from Rs. 1368.28 lakhs to Rs. 2873.95 lakhs in fiscal 2023.

Depreciation and amortization expenses

Depreciation, amortisation and impairment expenses increased by 8.79% from Rs.8.76 lakhs in Fiscal 2022 to Rs.9.53 lakhs in Fiscal 2023, primarily due to additions in property, plant and equipments.

Other expenses

Other expenses decreased by 44.36% from Rs.1804.32 lakhs in Fiscal 2022 to Rs.1003.87 lakhs in Fiscal 2023, due to decrease in Installation expenses from Rs. 266.67 lakhs in Fiscal 2022 to Rs. 103.50 lakhs in Fiscal 2023 and directors remuneration from Rs. 1125.00 lakhs in Fiscal 2022 to Rs. 414.00 lakhs in Fiscal 2023.

These increase were partly offset by increase in rent expenses, insurance expenses, loss allowance on trade receivables and other miscellaneous expenses.

Profit before Tax

For the reasons discussed above, profit before tax was significantly decreased by 69.00% to Rs.748.05 lakhs in Fiscal 2023 as compared to Rs.2413.01 lakhs in Fiscal 2022.

Tax Expenses

Current tax decreased by 71.88% from Rs. 753.50 lakhs in Fiscal 2022 to Rs. 211.88 lakhs in Fiscal 2023. The decrease in tax expenses was due to decrease in the profit before tax on the company.

Profit after Tax

For the various reasons discussed above, we recorded significant decreased of 67.69% in profit after tax from Rs.1661.91 lakhs in Fiscal 2022 as compared to Rs.536.92 lakhs in Fiscal 2023. Further, due to the decrease in turnover the PAT margins of the company also reduced from 8.31% to 6.87% on the total income of the company.

AUDITORS OBSERVATIONS

Except as disclosed in the Red Herring Prospectus, there are no audit qualifications which have not been given effect in the restated financial statements.

Information required as per Item (II)(C)(iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

1. Unusual or infrequent events or transactions

There has not been any unusual trend on account of our business activity. Except as disclosed in this Red Herring Prospectus, there are no unusual or infrequent events or transactions in our Company.

2. Significant economic changes that materially affected or are likely to affect income from continuing operations.

There are no significant economic changes that may materially affect or likely to affect income from continuing operations.

3. Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section “Risk Factors” beginning on page 28 of the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

4. Future changes in relationship between costs and revenues

Other than as described in the sections “Risk Factors”, “Our Business” and “Managements Discussion and Analysis of Financial Condition and Results of Operations” on pages 28, 98 and 205 respectively, to our knowledge, no future relationship between expenditure and income is expected to have a material adverse impact on our operations and finances.

5. Segment Reporting

There are two major Business segments. One is trading of Medical support Equipments(Trading Sales) and another is supplies for Infra Projects for health care sectors(Turnkey project supplies).

Particulars	For the year ended
	31st March 2024	31st March 2023	31st March 2022
1. Segment Revenue
a. Trading Sales	1,802.69	1,277.16	8,383.50
b. Trunkey Project Supply	4,713.55	6,534.75	11,505.29
Total Income from Segment	6,516.23	7,811.91	19,888.79

6. Status of any publicly announced New Products or Business Segment

Except as disclosed in the Chapter “Our Business”, our Company has not announced any new product or service.

7. Seasonality of business

Our business is not subject to seasonality. For further information, see “Industry Overview” and “Our Business” on pages 89 and 98 respectively.

8. Dependence on single or few customers

For the FY 2023-24, FY 2022-23 and FY 2021-22 our top 10 customers contributed to 78..59%, 96.28% and 90.02% of our revenue from operations. For further information, see “Risk Factors” on page 28 of this Red Herring Prospectus

9. Competitive conditions

Competitive conditions are as described under the Chapters “Industry Overview” and “Our Business” beginning on pages 89 and 98 respectively of this Red Herring Prospectus.

10. Details of material developments after the date of last balance sheet i.e., March 31, 2024

After the date of last Balance sheet i.e., March 31, 2024, no material events have occurred.