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.

4. OPPORTUNITIES AND THREATS:

Strength:

During the year under review, KK Shah Hospitals Limited continued to strengthen its infrastructure, technological capabilities, and service delivery mechanisms to enhance patient care and broaden its healthcare offerings. The key strengths achieved are as follows:

1. Commissioning of a New Hospital Facility at Thandla:

The Company successfully commissioned a new hospital with a capacity of 65 beds at Thandla. This strategic expansion is aimed at improving accessibility to quality healthcare services for patients in the region. The new facility is equipped with modern infrastructure and is designed to meet the growing demand for specialized medical care.

2. Installation of Advanced CT Scan Equipment:

To further enhance diagnostic accuracy and reduce turnaround times, the Company has installed a state-of-the-art CT Scan machine. This addition to our diagnostic capabilities enables better imaging quality, faster processing, and improved diagnostic efficiency, thereby supporting timely and precise treatment plans.

3. Introduction of Robotic Technology:

In a significant leap towards advanced healthcare delivery, KK Shah Hospitals Limited has installed a new robotic machine. This cutting-edge technology allows for enhanced precision in surgical procedures, reduced recovery time for patients, and improved overall clinical outcomes, thereby positioning the Company at the forefront of technological innovation in healthcare.

4. Expansion of Outpatient Departments (OPDs) and Facilities:

The Company has undertaken expansion of new OPDs and associated healthcare facilities to accommodate the increasing patient inflow and to provide comprehensive services under one roof. This expansion is expected to significantly improve patient experience by reducing waiting times, offering a wider range of consultation services, and enhancing overall operational efficiency.

These strategic initiatives underscore the Companys commitment to delivering superior healthcare services while strengthening its competitive position in the industry. The continued investments in infrastructure, technology, and patient-centric facilities ensure that KK Shah Hospitals Limited remains well-equipped to meet the evolving healthcare needs of the community.

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 in the new multispecialty hospital located at Thandla, District Jhabua - 457777 (M.P.) and with multi facilities including high technology CT Scan Machine.

• Collaborations & Tie-ups:

Opportunities exist for collaborations with corporate organizations, government schemes (like Ayushman Bharat), and insurance companies for cashless treatment. This can significantly boost patient volumes and revenue streams.

• Medical Tourism & Specialty Care:

Given the adoption of robotic technology and advanced diagnostics, the hospital could explore medical tourism by attracting patients from neighboring states or even internationally, especially for cost-effective robotic surgeries.

• Training & Research Center

The hospital can establish training programs for robotic surgery and advanced diagnostics, in collaboration with medical colleges and technology partners. This not only positions KK Shah as a knowledge hub but also creates an additional revenue stream.

• Digital Healthcare & Preventive Programs

Expansion of digital health initiatives (teleconsultations, remote monitoring) and preventive health checkup packages can help capture a wider patient base, including working professionals and elderly patients who prefer remote care options.

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. Others

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:

1. Regulatory & Compliance Risks

• Hospitals operate under strict regulatory frameworks (clinical establishment norms, biomedical waste management, patient data privacy laws, etc.).

• Non-compliance can result in hefty penalties, license cancellations, or reputational damage.

• Frequent changes in government policies (e.g., price caps on drugs and medical devices) can impact profitability.

2. Rising Operational Costs

• High costs of medical equipment, maintenance, and consumables directly impact margins.

• Human resource costs (doctors, specialists, paramedics) are rising, and retaining skilled staff is challenging.

3. Competition & Price Pressure

• Increasing competition from corporate hospital chains and specialized clinics creates pricing pressures.

• Patients are becoming more cost-conscious, often preferring government schemes or budget hospitals.

4. Technological Obsolescence

• Rapid advancements in medical technology make equipment obsolete quickly.

• Continuous investments in upgrades (e.g., robotic systems, imaging machines) are required, impacting cash flows.

5. Dependence on Key Medical Staff

• Attrition of skilled doctors and specialists can disrupt operations and affect patient trust.

• The industry faces a shortage of trained medical professionals, especially in semi-urban/rural regions.

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.

9. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

Share Capital:

As on 31^st March, 2025, the Authorised Capital of the Company is Rs. 7,50,00,000/- 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. 660.74 Lakhs as on period ended on 31^st March, 2025.

Total Income:

The Company has earned total Income 955.40 Lakhs on Standalone Basis as on period ended on 31^st March, 2025.

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. 2024-25 was -2.44 and for F.Y. 2023-24 was 4.31. It has been declined due to loss in the financial year 2024-25.

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 theaccuracy 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.