KK Shah Hospitals Ltd Management Discussions

1. INTRODUCTION:

Our Company was originally incorporated under the name "Jeevan Parv Healthcare Limited" on August 25, 2022 under the provisions of the Companies Act, 2013 and Certificate of Incorporation was issued by the Registrar of Companies, Central Registration Centre, Manesar. The Corporate Identification Number of our Company is U85100MP2022PLC062407. Subsequently, our Company has changed its name from "Jeevan Parv Healthcare Limited" to "KK Shah Hospitals Limited" pursuant to a Special Resolution passed at the Extra-Ordinary General Meeting of our Company held on September 30, 2022 and a fresh Certificate of Incorporation dated November 30, 2022 issued by the Registrar of Companies, Gwalior, Madhya Pradesh. Consequently, our Company has acquired the entire running business with the assets and liabilities of M/s Shah Hospital, sole proprietorship concern of one of our Promoters Dr. Kirti Kumar Shah vide Business Transfer Agreement dated December 31, 2022. Further the Company has issued share pursuant to Initial Public Offer (IPO) and listed on SME platform of BSE LTD on 06, November, 2023.

2. INDUSTRY STRUCTURE:

Changing economic and business conditions, rapid technology, innovation and adoption and globalization are creating an increasingly competitive market environment that is driving corporations to transform the manner in which they operate. Companies in this environment are now focusing even more on their business objectives such as revenue growth, profitability and asset efficiency.

3. INVESTMENTS/ DEVELOPMENTS:

We are increasing our reach in the industry by expanding our client base across sectors/verticals. Development of software products aiming at various sectors to improve the depth of our engagement with the industry.

Strength:

Growth in the Indian economy and demand creates unprecedented opportunities for company to invest significantly in each of its core businesses. Outlook for the overall industries is positive. In keeping with the philosophy of continuous consumer centric approach which is the hall mark of any organization, several developmental activities have been planned for the next fiscal year.

Opportunities:

• Vast Industrial Presence in both Public and Private Sectors

• Huge demand for healthcare services in domestic as well as Overseas market

• Avail of Low-cost, Skilled Human Resources.

• Proactive government continued thrust on reforms- Further liberalization under process.

• Expansion of business of Company through opening of new multispecialty hospital at 50, Tilak

Marg, Thandla, District Jhabua - 457777 (M.P.) and started the business with multi facilities including high technology CT Scan Machine.

Threats:

As cybersecurity threats continue to evolve and become more sophisticated, enterprise IT must remain vigilant when it comes to protecting their data and networks. Further there are global and external factors, changes in Information Technology & Security Laws, tax laws, litigation and significant changes in the Global political and economic environment exert tremendous influence on the performance of the company. The Company has laid down procedures to inform Board Members about the risk assessment and minimization procedures.

5. SEGMENT-WISE OR PRODUCT-WISE PERFORMANCE:

The Company is working in the various segments as mentioned below:

1. Orthopedic

2. General surgery

3. Gynecology & Obstetrics

4. General Medicine

5. Pediatrics

6. Dental

7. Radiology

8. Physiotherapy

6. OUTLOOK:

The Continual growth in the in India sector is necessary to give necessary support to the industry. The company is making all effort to accelerate the growth of its business. It Expect to improve its position in the market by focusing in the technologically advanced and more profitable Product and market segment and working aggressively in the area of productivity, efficiency and cost reduction.

7. RISKS AND CONCERNS:

The industry is exposed to the following risk and concerns:

• Complex Global Supply-Chain:

Companies have to juggle internal and external resources while staying within international standards. Issues such as traceability and compliance are increasing operational burdens.

• Uncertain Demand:

Aggregately, economic volatility and cyclical demand cause fluctuations in production. On a more granular level, consumer preference can cause spikes in demand for an individual products or company. Efficient lean capabilities must be in place to keep inventory aligned with demand.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Company has an effective and reliable internal control system commensurate with the size of its operations. At the same time, it adheres to local statutory requirements for orderly and efficient conduct of business, safeguarding of assets, the detection and prevention of frauds and errors, adequacy and completeness of accounting records and timely preparation of reliable financial information. The efficacy of the internal checks and control systems is validated by self-audits and internal as well as statutory auditors.

Share Capital:

During the year under review, the Company has issued and allotted 19,50,000 Equity Shares of face value of Rs. 10.00/- each fully paid up on the issue price of Rs. 45/- per Equity Share through Initial Public Offer (IPO) in the Board Meeting held on 02^nd November, 2023.

As on 31^st March, 2024, the Authorised Capital of the Company is Rs. 7,00,00,000/- divided into 75,00,000 Equity Shares of Rs 10 each and paid-up capital of Company is Rs. 6,80,85,420/- divided into 68,08,542 Equity Shares of Rs 10 each.

Reserves and Surplus:

The Reserve and Surplus of Company on Standalone Basis is Rs. 728.42 Lakhs as on period ended on 31^st March, 2024.

Total Income:

The Company has earned total Income 1,409.28 Lakhs on Standalone Basis as on period ended on 31^st March, 2024.

10. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES/INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED:

Your 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 Companys Human Resources is commensurate with the size, nature and operations of the Company.

11. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR. INCLUDING:

12. DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF:

The Return on Net Worth for F.Y. 2023-24 was 4.31 and for F.Y. 2022-23 was 4.28.

13. CAUTIONARY STATEMENT:

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.

MANAGING DIRECTOR DIN: 09119113

PLACE: RATLAM

DATE: 29-07-2024