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1 CARE Ratings Limited Press Release Apollo Rajshree Hospitals Private Limited March 2 5 , 2021 Ratings Facilities/Instruments Amount (Rs. crore) Ratings [1] Rating Action Long Term Bank Facilities 13.95 (Reduced from 16.56) CARE A+ (CE); Stable [Single A Plus (Credit Enhancement); Outlook: Stable ] Reaffirmed Short Term Bank Facilities 6.00 CARE A1+ (CE) [A One Plus (Credit Enhancement) ] Reaffirmed Total Bank Facilities 19.95 (Rs. Nineteen c rore and n inety - f ive l akhs o nly) Details of instruments/facilities in Annexure - 1 ^Note: The bank facilities as above are backed by the ‘Letter of Comfort’ from Apollo Hospitals Enterprise Limited (AHEL). Unsupported Rating 1 As stipulated vide SEBI circular dated June 13, 2019 CARE A - / CARE A2+ (Single A Minus/ A Two Plus) [Reaffirmed] Note: Unsupported Rating does not factor in the explicit credit enhancement Detailed Rationale & Key Rating Drivers for the credit enhanced debt The rating assigned to the bank facilities of Apollo Rajshree Hospitals Private Limited (ARHPL) is based on credit enhancemen t in the form of Letter of comfort (LOC) issued by Apollo Hospitals Enterprise Limited (AHEL) for the facilities availed by ARHPL. As per CARE’s criteria, the rating of the debt backed by LOC will lie somewhere between the standalone rating of the issuer and that of the LOC provider. Detailed Rationale & Key Rating Drivers of the LOC provider i.e. Apollo Hospitals Enterprise Limited The rating assigned to the bank facilities of Apollo Rajshree Hospitals Private Limited (ARHPL) is based on the credit enhancement in the form of letter of comfort from Apollo Hospitals Enterprise Limited (AHEL). The credit profile of AHEL continues to der ive strength from its established and leading market position in the domestic healthcare segment, well qualified and experienced management team and consistent growth in income and profits in the past three years ended FY20 (refers to the period April 01 t o March 31). The credit profile of AHEL is, however, constrained by project risk associated with setting up of new hospitals, losses in few of its subsidiaries thereby impacting the overall profitability moderate leverage and the challenges associated with attracting and retaining quality doctors/medical professionals in the fragmented and competitive healthcare industry. Key Rating Drivers of the Issuer, Apollo Rajshree Hospitals Private Limited The rating assigned to the bank facilities of Apollo Rajshre e Hospitals Private Limited derive strength from the vast experience and established track record of AHEL which operates the largest chain of hospitals in India. The ratings factor in the turna round in profit after tax of the company in FY20 as opposed to the losses being incurred until FY19 due to better revenue & cost rationalization . The ratings are constrained by small scale of operations, challenges of attracting and retaining quality doctors, fragmented nature of healthcare industry and regulatory risks. Rating Sensitivities (AHEL) Positive Factors  Improvement in the performance of its subsidiaries mainly AHLL.  Improvement in leverage. Negative Factors  Any other large debt - funded capital expenditure leading to moderation of the capital structure.  S ignificant decline in profitability. 1 Complete definitions of the ratings assigned

are available at www.careratings.com and in other CARE publications. 1 As stipulated vide SEBI circular no SEBI/ HO/ MIRSD/ DOS3/ CIR/ P/ 2019/ 70 dated June 13, 2019 . As per this circular, the suffix ‘CE’ (Credit Enhancement) is assigned to the ratings with explicit external credit enhancement, against the earlier us ed suffi x ‘SO’ (Structured Obligation). 2 CARE Ratings Limited Press Release Detailed description of the key rating drivers Key rating Strengths Qualified and experienced management team Dr. Prathap C. Reddy, Chairman of AHEL, is the founder of Apollo Hospitals group. He is an MBBS, M.D ( Masters in Medicine), FCCP, FICA, FRCS (Hon.) and has over three decades of experience in the healthcare industry. Ms. Preetha Reddy, daughter of Dr. Prathap Reddy, is the Executive Vice Chairman of AHEL and has completed her Bachelor’s degree in Chemistry , Master’s degree in Public Administration and has been conferred as Doctor of Science degree by Dr. M.G.R. Medical University, Tamil Nadu. The operations of ARHPL are managed by the Bhargava family, the founders of ARHPL. Dr.Devendra Bhargava, MS in surge ry has over two decades of experience. He is supported by Dr. Ashok Bajpai, MD in Medicine who has an experience of over three decades as a reputed consultant in Indore in area of critical care, chest and internal medicine, and is one of the founders o f AR HPL. Established operations of AHEL along with its leading market position in the healthcare segment The concept of corporate hospitals was first introduced in India by AHEL and is currently the market leader in the Indian pri vate healthcare segment. The c ompany was able to create a strong footing due to its early mover advantage. AHEL operates a chain of 71 hospitals in India which includes 66 owned hospitals including 22 day care & cradle centers (as of December 2020) and has a leading market position in the domestic healthcare industry. The company has increased its owned hospital’s bed capacity from 6,382 beds in FY13 to 8,816 beds as of December 2020. Of its total owned hospitals 30 have been in operation for over 10 years. It has presence predominantl y in Chennai and Hyderabad clusters, and has expanded to regions such as Mumbai and tier - 2 and 3 towns. Its market leadership is driven by strong brand equity and superior quality of service due to strong relationships with highly qualified consultants. Th e company has been consistently maintaining occupancy levels for the last 5 years at a mean deviation of 1.85% despite increase in the operating bed capacity from 6,724 beds in FY16 to 7,491 beds in FY20. The number of In - patient admissions have increased from 374,000 in FY16 to 478,000 in FY20. Consistent growth in income and profits The hospital segment has majorly contributed to the total operating income of AHEL at 51% of total operating income during FY20 (PY:55%), whereas the retail pharmacy segment has contributed 43% of total operating income during FY20 (PY:39%). The Consolidated top - line has grown at a CAGR of 17% from FY13 - 20 and Pharmacy segment revenue has grown at a CAGR of 23% from FY13 - 20 and health care services revenue has grown at a CAGR of 12% from FY13 - 20. The Average Revenue per Occupied Bed per day (ARPOB) witnessed an improvement from Rs.34,226 in FY19 to Rs.37,397 during FY20, an increase of 9.2%. The PBILDT margin of AHEL (consolidated) improved during FY20 to 14.2% from 11.3% in F Y19. The operating margin of the ne

w hospitals has been improving consistently from - 1% to 2% to 7% to 8% in FY17, FY18, FY19 and FY20 respectively, further the operating margin of the Standalone Pharmacy (SAP) segment has also been consistently improving from 4% in FY17 to 6% in FY20. The interest coverage has remained comfortable at 3.01x in FY20 as against 3.33x times during FY19. Key rating Weaknesses Continued losses in Apollo Health and Lifestyle Limited (AHLL) albeit an improvement AHLL, is a 70.25% subsidiary of the Company engaged in the business of providing primary healthcare facilities through a network of owned/franchised clinics across India offering specialist consultations, diagnostics, preventive health checks, telemedicine facilities and a 24 - hour pharmacy all under one roof. AHLL has been incurring losses in the past few Financial years, also impacting the overall profitability of the group at consolidated level. Although there is an improvement, the company continues to incur net losses a t Rs. 77 crore in FY20 against loss of Rs. 132 crore in FY19. Similar to other business segments AHLL has also witnessed a drop in the revenue by 11% for YoY 9MFY21 on account of the pandemic. Dependence on scarcely available professionals and growing regu lation in the industry The healthcare industry is highly dependent on the availability of qualified and experienced medical professionals. As per Wo rld Health Statistics primary data 2007 - 2018, the density of physicians per 10,000 population for India stan ds at 8 which is very low compared to that of other major countries. However, the increasing competition and the scarcity of medical specialists, the ability of the hospital to retain its current pool would be a key differentiator. Further, the loss of the services of any senior medical personnel may seriously impair the company’s ability to continue to manage and expand its operations due to highly skill driven nature of medical services. Furthermore, the performance of the hospital sector has been affecte d due to multiple regulatory interventions; further apart from licensing and approvals, the Government is also constantly regulating the prices of drugs and consumables. Project risk associated with new hospital expansion having longer gestation period AHE L has been investing and increasing its capacity with addition beds and new hospitals over the last few years. Considering the gestation period of new hospitals, any major debt funded capex plans impacting the capital structure and turnaround of new hospit als/capacity will be key monitorable. Liquidity: Strong 3 CARE Ratings Limited Press Release The liquidity position of AHEL is strong with improvement in gross cash accruals (increased from Rs 643 crore in FY19 to Rs 1,148 crore in FY20). The company has free cash & bank balance and liquid investments of Rs.398 crore as on March 31, 2020. The total repayment of AHEL in FY21 is Rs.246 crore. Analytical approach: For assessment of credit profile of ARHPL, CARE has considered credit enhancement in the form of letter of comfort from AHEL. Asse ssment of Apollo Hospitals Enterprise Ltd (consolidated financials of AHEL its subsidiaries, associates and Joint ventures). The companies which have been consolidated for analysis purpose is attached as Appendix. Applicable Criteria Criteria on assigning ‘outlook’ and ‘credit watch’ to Credit Ratings CARE’s Policy on Default Recognition Criteria for Short Term Instruments Financial ratios –

Non - Financial Sector Factoring Linkages Parent Sub JV Group Criteria for Rating Credit Enhanced Debt Rating Methodology – Hospital Industry Consoli dation About the Company (AHEL) AHEL, founded by Dr. Prathap Reddy in 1979, is a listed company headquartered in Chennai. AHEL provides healthcare services, through hospitals, pharmacies, projects and consultancy services and primary clinics which are operated through various subsidiaries, joint ventures and associ ates. It runs large hospital clusters in Chennai and Hyderabad along with established hospitals in Delhi, Mumbai, Bangalore, Kolkata, Ahmedabad and Bhubaneshwar among others. Its healthcare facilities comprises a mix of primary, secondary and tertiary care facilities. The tertiary care hospitals in the network provide advanced levels of care in various specialties. Brief Financials (Rs. crore) (AHEL - Consolidated) FY19 (A) FY20 (A) Total income 9.639 11,264 PBILDT 1,090 1,603 PAT 200 434 Overall gearing (times) 1.19 1.82 Interest coverage (times) 3.33 3.01 A: Audited About the Company (ARHPL) Established in April 2008, Apollo Rajshree Hospitals Private Ltd (ARHPL) erstwhile, Rajshree Hospital and Research Centre Private Ltd (RHRPL) operates a modern multi - specialty hospital with 135 beds in Indore, Madhya Pradesh. ARHPL was initially promoted b y the Bhargava family based out of Indore. In December 2013, Apollo Hospitals Enterprise Limited (AHEL) picked up majority stake in the company and as on March 31, 2020 AHEL holds 54.63% equity stake. ARHPL provides services in the therapeutic segments of gastroenterology, gastro surgery, neurology, nephrology and interventional radiology. Brief Financials (Rs. crore) (ARHPL) FY19 (A) FY20 (A) Total income 67.00 75.00 PBILDT 4.76 7.70 PAT - 0.10 2.53 Overall gearing (times) 14.26 5.59 Interest coverage (times) 1.94 3.30 A: Audited Status of non - cooperation with previous CRA: Not applicable Any other information: Not applicable Rating History for last three years: Please refer Annexure - 2 Complexity level of various instruments rated for this company : Annexure 3 Covenants of rated instrument / facility: Detailed explanation of covenants of the rated instruments/facilities is given in Annexure - 4 Annexure - 1: Details of Instruments/Facilities 4 CARE Ratings Limited Press Release Name of the Instrument ISIN Date of Issuance Coupon Rate Maturity Date Size of the Issue (Rs. crore) Rating assigned along with Rating Outlook Fund - based - LT - Term Loan - - - September 2024 13.95 CARE A+ (CE); Stable Fund - based - ST - Bank Overdraft - - - - 6.00 CARE A1+ (CE) Un Supported Rating - Un Supported Rating (LT/ST) - - - - 0.00 CARE A - / CARE A2+ Annexure - 2: Rating History of last three years Sr. No. Name of the Instrument/Bank Facilities Current Ratings Rating history Type Amount Outstanding (Rs. crore) Rating Date(s) & Rating(s) assigned in 2020 - 2021 Date(s) & Rating(s) assigned in 2019 - 2020 Date(s) & Rating(s) assigned in 2018 - 2019 Date(s) & Rating(s) assigned in 2017 - 2018 1. Fund - based - LT - Term Loan LT 13.95 CARE A+ (CE); Stable - 1)CARE A+ (CE); Stable (25 - Feb - 20) 1)CARE AA - (SO); Stable (28 - Feb - 19)

1)CARE AA - (SO); Stable (07 - Nov - 17) 2. Fund - based - ST - Bank Overdraft ST 6.00 CARE A1+ (CE) - 1)CARE A1+ (CE) (25 - Feb - 20) 1)CARE A1+ (SO) (28 - Feb - 19) 1)CARE A1+ (SO) (07 - Nov - 17) 3. Un Supported Rating - Un Supported Rating (LT/ST) LT/ST 0.00 CARE A - / CARE A2+ - 1)CARE A - / CARE A2+ (25 - Feb - 20) - - Annexure 3 – Complexity levels of various Instruments rated for this company Sr. No. Name of the Instrument Complexity Level 1. Fund - based - LT - Term Loan Simple 2. Fund - based - ST - Bank Overdraft Simple 3. Un Supported Rating - Un Supported Rating (LT/ST) Simple Annexure 4 - Covenants of rated instrument / facility – NA Appendix List of entities (as on March 31, 2020): S. No Company Relationship % of holding 1 Apollo Home Healthcare (India) Limited Subsidiary 100.00% 2 Apollo Home Healthcare Limited Subsidiary 70.75% 3 AB Medical Centers Limited Subsidiary 100.00% 4 Apollo Health and Lifestyle Limited Subsidiary 70.25% 5 Samudra Healthcare Enterprise Limited Subsidiary 100.00% 6 Imperial Hospital & Research Centre Limited Subsidiary 90.00% 7 Apollo Hospital (UK) Limited Subsidiary 100.00% 8 Apollo Nellore Hospitals Limited Subsidiary 80.87% 5 CARE Ratings Limited Press Release S. No Company Relationship % of holding 9 Apollo Rajshree Hospitals Private Limited Subsidiary 54.63% 10 Apollo Lavasa Health Corporation Limited Subsidiary 51.00% 11 Western Hospitals Corporation Private Limited Subsidiary 100.00% 12 Apollo Hospitals Singapore Pte Ltd, Singapore Subsidiary 100.00% 13 Sapien Biosciences Private Limited Subsidiary 70.00% 14 Total Health Subsidiary 100.00% 15 Apollo Healthcare Technology Solutions Ltd Subsidiary 40.00% 16 Assam Hospitals Limited Subsidiary 65.52% 17 Apollo Hospitals International Ltd Subsidiary 50.00% 18 Future Parking Private Limited Subsidiary 49.00% 19 Apollo Medicals Private Limited Subsidiary 100.00% 20 Apollo CVHF Limited Step - down subsidiary 66.67% 21 Apollo Dialysis Private Limited Step - down subsidiary 59.30% 22 Alliance Dental Care Limited Step - down subsidiary 69.54% 23 Apollo Sugar Clinics Limited Step - down subsidiary 80.00% 24 Apollo Specialty Hospitals Private Limited Step - down subsidiary 100.00% 25 Apollo Bangalore Cradle Limited Step - down subsidiary 100.00% 26 Apollo Pharmacies Limited Step - down subsidiary 100.00% 27 Kshema healthcare Private Limited Step - down subsidiary 100.00% 28 AHLL Diagnostics Limited Step - down subsidiary 100.00% 29 AHLL Risk Management Private Limited Step - down subsidiary 100.00% 30 Indraprastha Medical Corporation Limited Associate 22.03% 31 Stemcyte India Therapeutics Private Limited Associate 24.50% 32 Family Health Plan Insurance TPA Limited Associate 49.00% 33 Apollo Gleneagles Hospitals Limited Joint Venture 50.00% 34 Apollo Gleneagles PET - CT Private Limited Joint Venture 50.00% 35 ApoKos Rehab Private Limited Joint Venture 50.00% 36 Medics International Life sciences Limited Joint Venture 50.00% Note on complexity levels of the rated instrument: CARE has classified instrume

nts rated by it on the basis of complexity. This classification is available at ww w.careratings.com . Investors/market intermediaries/regulators or others are welcome to write to care@careratings.com for any clarifications. Contact us Media Contact Mradul Mishra Contact no. – +91 - 22 - 6754 3573 Email ID – mradul.mishra@careratings.com Analyst Contact Name: Mr P. Sandeep Tel: 044 - 2850 1000 Email ID: sandeep.prem@careratings.com Relationship Contact Name: Mr. V. Pradeep Kumar Contact no.: 2850 1001 Email ID: pradeep.kumar@careratings.com 6 CARE Ratings Limited Press Release About CARE Ratings: CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized as an Exter nal Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful place in the Indian capital mark et built around investor confidence. CARE Ratings provides the entire spectrum of credit rating that helps th e corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk - return expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent with the international best practices. Disclaimer CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not rec ommendations to san ction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE’s ratings do not convey su itability or price for the investor. CARE’s ratings do not constitute an audit on the rated entity. CARE has based its ratin gs/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results o btained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates ma y also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter - alia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The ratin g/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CA RE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating. Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, i f any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades. **For detailed Rationale Report and subscription information, please contact us at www.careratings.co