KK Shah Hospitals Ltd Directors Report

To,

The Members,

KK SHAH HOSPITALS LIMITED

Your directors have pleasure in submitting their 2^nd Annual Report of the Company together with the Audited Statements of Accounts for the year ended 31^st March, 2024.

1. FINANCIAL PERFORMANCE:

The Financial performance of the Company during the year was as under:

	(Amount In Lakhs.)
	Standalone Financials
PARTICULARS	2023-24	2022-23
Income from operations	687.85	211.86
Other Income	47.84	2.25
Total revenue	735.69	214.11
Total Expenses	665.98	184.97
Prior Period Adjustment	-	-
Profit before tax	69.71	29.14
Current Tax	19.72	7.17
Prior Period Tax Charge	1.04	-
Deferred Tax Charge	-11.77	0.16
Profit from continuing operation after Tax (PAT)	60.72	21.81

2. BUSINESS OPERATION:

During the year under the review, the Company has Increased its turnover from Rs. 211.86 lakhs to Rs. 687.85 Lakhs. Your directors are expecting strong growth in near future.

Further during the year, the net profit after tax (PAT) has shown strong growth and increased by 178.40 % i.e. Rs. 60.72 Lakhs as against profit of Rs. 21.81 Lakhs in the previous year.

3. DIVIDEND

The Board of directors of the Company has recommended Dividend of Rs 0.50/- per equity share (5%) for the financial year 2023-24.

4. CHANGE IN THE NATURE OF BUSINESS, IF ANY:

There is no change in its nature of business of Company during the year under review.

5. LISTING OF SHARES THROUGH IPO ON BSE LTD:

The Company has listed its equity shares on SME Platform of BSE LTD w.e.f. November 6^th, 2023.

6. AMOUNT TRANSFERRED TO RESERVES

The Company has not transferred its profits into Reserves & Surplus Account during the year under review.

7. ANNUAL RETURN:

As per Section 92(3) of Companies Act, 2013, the draft copy of Annual Return of Company in form MGT - 7 has been uploaded on the website of Company and web link of the same is https://shahhospitalratlam.com/index.php/annual-returns/

8. NUMBER OF BOARD MEETINGS/ COMMITTEE/ SHAREHOLDERS MEETINGS CONDUCTED DURING THE YEAR:

During the year ended March 31, 2024, the Board met 8 times. The intervening gap between the Meetings was within the period prescribed under the Companies Act, 2013 (the "Act"). Required quorum was present throughout each meeting as per the requirement of the said Act, the details of Board meetings are given below;

Details of Board Meeting during F.Y. 2023-24

Sr. No	Date of Board Meeting	Amit Shah	Kirti Kumar Shah	Hansa Shah	Milli Shah	Achint Porwal	Gaurav Ajmera	Meetesh Gadia	Sanjay Kumar Luniya
.		MD	WTD	ED	ED	ID	ID	ID	ID
1	15 May 2023	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes
2	13 July 2023	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
3	4 Aug 2023	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
4	21 Oct 2023	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
5	2 Nov 2023	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
6	7 Dec 2023	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
7	27 Dec 2023	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
8	15 Mar 2024	Yes	Yes	Yes	No	Yes	Yes	Yes	Yes

I. AUDIT COMMITTEE

The audit committee of the Company is constituted under the provisions of section 177 of the Companies Act, 2013.

Composition of the Committee:

1. Achint Porwal, Non-Executive, Independent Director (Chairman);

2. Sanjay Kumar Luniya, Non-Executive, Independent Director (Member);

3. Dr. Amit Shah, Chairman and Managing Director (Member)

The Company Secretary of Company is Secretary of the Committee

The scope of Audit Committee shall include but shall not be restricted to the following:

• Oversight of the Issuers financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient, and credible.

• Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal of the statutory auditor and the fixation of audit fees.

• Approval of payment to statutory auditors for any other services rendered by the statutory auditors.

• Reviewing, with the management, the annual financial statements before submission to the board for approval, with particular reference to:

Matters required to be included in the Directors Responsibility Statement to be included in the Boards report in terms of clause (c) of sub-section 3 of Section 134 of the Companies Act, 2013

1. Changes, if any, in accounting policies and practices and reasons for the same.

2. Major accounting entries involving estimates based on the exercise of judgment by management.

3. Significant adjustments made in the financial statements arising out of audit findings.

4. Compliance with listing and other legal requirements relating to financial statements.

5. Disclosure of any related party transactions.

6. Qualifications in the draft audit report.

• Reviewing, with the management, the half yearly financial statements before submission to the board for approval.

• Reviewing, with the management, the statement of uses/application of funds raised through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilized for purposes other than those stated in the offer document/notice and the report submitted by the monitoring agency monitoring the utilization of proceeds of a public or rights issue, and making appropriate recommendations to the Board to take up steps in this matter.

• Review and monitor the auditors independence and performance, and effectiveness of audit process.

• Approval or any subsequent modification of transactions of the Company with related parties.

• Scrutiny of inter-corporate loans and investments.

• Valuation of undertakings or assets of the Company, wherever it is necessary;

• Evaluation of internal financial controls and risk management systems;

• Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control systems.

• Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit.

• Discussion with internal auditors any significant findings and follow up there on.

• Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board.

• Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern.

• To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non-payment of declared dividends) and creditors.

• To review the functioning of the Whistle Blower mechanism.

• Approval of appointment of CFO (i.e., the whole-time Finance Director or any other person heading the finance function or discharging that function) after assessing the qualifications, experience & background, etc. of the candidate.

• Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.

Explanation (i): The term "related party transactions" shall have the same meaning as contained in the Accounting Standard 18, Related Party Transactions, issued by The Institute of Chartered Accountants of India.

Explanation (ii): If the Issuer has set up an audit committee pursuant to provision of the Companies Act, the said audit committee shall have such additional functions/features as is contained in this clause.

The Audit Committee enjoys following powers:

1. To investigate any activity within its terms of reference.

2. To seek information from any employee.

3. To obtain outside legal or other professional advice.

4. To secure attendance of outsiders with relevant expertise if it considers necessary.

5. The audit committee may invite such of the executives, as it considers appropriate (and particularly the head of the finance function) to be present at the meetings of the committee, but on occasions it may also meet without the presence of any executives of the Issuer. The finance director, head of internal audit and a representative of the statutory auditor may be present as invitees for the meetings of the audit committee.

The Audit Committee shall mandatorily review the following information:

a. Management discussion and analysis of financial condition and results of operations;

b. Statement of significant related party transactions (as defined by the audit committee), submitted by management;

c. Management letters/letters of internal control weaknesses issued by the statutory auditors;

d. Internal audit reports relating to internal control weaknesses; and

e. The appointment, removal and terms of remuneration of the Chief internal auditor shall be subject to review by the Audit Committee.

The recommendations of the Audit Committee on any matter relating to financial management, including the audit report, are binding on the Board. If the Board is not in agreement with the recommendations of the Committee, reasons for disagreement shall have to be incorporated in the minutes of the Board Meeting and the same has to be communicated to the shareholders. The Chairman of the committee has to attend the Annual General Meetings of the Company to provide clarifications on matters relating to the audit.

Meeting of Audit Committee and Relevant Quorum:

The audit committee shall meet at least four times in a year and not more than one hundred and twenty days shall elapse between two meetings. The quorum for audit committee meeting shall either

be two members or one third of the members of the audit committee, whichever is greater, with at least two independent directors.

The Chairman of the committee must attend the Annual General Meetings of the Company to provide clarifications on matters relating to the audit.

During the year under review, the Company held 6 Audit Committee meetings.

II. NOMINATION AND REMUNERATION COMMITTEE:

The Nomination and Remuneration Committee of the Company is constituted under the provisions of section178 of the Companies Act, 2013.

Composition of the Committee:

1. Sanjay Kumar Luniya, Non-Executive, Independent Director (Chairman);

2. Gaurav Ajmera, Non-Executive, Independent Director (Member);

3. Meetesh Gadia, Non-Executive, Independent Director (Member);

The Company Secretary of Company is Secretary of the Committee

The scope of Nomination and Remuneration Committee shall include but shall not be restricted to the following:

a. Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the Board a policy, relating to the remuneration of the directors, key managerial personnel and other employees;

b. Formulation of criteria for evaluation of Independent Directors and the Board;

c. Devising a policy on Board diversity;

d. Identifying persons who are qualified to become directors and who may be appointed in senior management in accordance with the criteria laid down, and recommend to the Board their appointment and removal. The Company shall disclose the remuneration policy and the evaluation criteria in its Annual Report.

Meeting of Nomination and Remuneration Committee and Relevant Quorum:

The quorum necessary for a meeting of the Nomination and Remuneration Committee shall be two members or one third of the members, whichever is greater. The Committee is required to meet at least once a year.

During the year under review, the Company held 1 Nomination and Remuneration Committee meeting.

III. STAKEHOLDERS RELATIONSHIP COMMITTEE:

The Stakeholders Relationship Committee of the Company is constituted under the provisions of section 178 of the Companies Act, 2013.

Composition of the Committee:

1. Meetesh Gadia, Non-Executive, Independent Director (Chairman)

2. Sanjay Kumar Luniya, Non-Executive, Independent Director (Member)

3. Kirti Kumar Shah, Whole Time Director (Member)

The Company Secretary of Company is Secretary of the Committee

This committee will address all grievances of Shareholders/ Investors and its terms of reference include the following:

a) Allotment and listing of our shares in future.

b) Redressing of shareholders and investor complaints such as non-receipt of declared dividend, annual report, transfer of Equity Shares and issue of duplicate/split/consolidated share certificates;

c) Monitoring transfers, transmissions, dematerialization, re-materialization, splitting and consolidation of Equity Shares and other securities issued by our Company, including review of cases for refusal of transfer/ transmission of shares and debentures;

d) Reference to statutory and regulatory authorities regarding investor grievances;

e) To otherwise ensure proper and timely attendance and redressal of investor queries and grievances;

f) To do all such acts, things or deeds as may be necessary or incidental to the exercise of the above powers.

Meeting of Stakeholders Relationship Committee and Relevant Quorum:

The stakeholders Relationship committee shall meet once in a year. The quorum for a meeting of the Stakeholders Relationship Committee shall be two members present.

During the year under review, the Company held 1 Stakeholders Relationship Committee meeting.

IV. SHAREHOLDERS MEETING:

Sr. No. General Meeting Date	Business Transacted in the Meeting	Type of Meeting
1. 08/08/2023	1. To consider and adopt the Audited Standalone Financial Statements of the Company for the financial year ended March 31, 2023 together with the Report of the Board of Directors and the Auditors thereon.	AGM
	2. To appoint a director in place of Dr. Hansa Shah (DIN: 09715725), who retires by rotation and being eligible, offers herself for re-appointment.

V. INTERNAL COMPLAINT COMMITTEE:

The Company is committed to provide a safe and conducive work environment to its employees, during the year under review.

Your directors further state that during the year under review, there were no cases filed pursuant to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

VI. MEETING OF INDEPENDENT DIRECTOR:

During the year under review, the Company held 1 Independent Directors meeting.

9. DECLARATION OF THE INDEPENDENT DIRECTORS:

All Independent Directors have also given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013.

10. DETAILS OF SUBSIDIARY/JOINT VENTURE/HOLDING COMPANY:

The Company does not have a holding or subsidiary company or any joint venture or any associate Company.

11. CHANGES IN 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.

12. DIRECTORSS RESPONSIBILITY STATEMENT:

In accordance with the provisions of Section 134(5) of the Companies Act, 2013 the Board of Directors of the company confirms that-

(i) In the preparation of the annual accounts for the year ended 31st March, 2024, the Company has followed the applicable accounting standards and there are no material departures from the same.

(ii) Accounting policies were adopted and applied consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the affairs of the Company as at 31st March 2024 and of the Profit of the Company for year ended on that date.

(iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Act of safeguarding the assets of the Company and for preventing/ detecting fraud and irregularities have been taken.

(iv) The Directors have prepared Annual Accounts on a "Going Concern" basis.

(v) They have laid down internal financial controls to be followed by the Company and such internal financial controls are adequate and operating effectively;

(vi) 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.

13. PERFORMANCE EVALUATION:

The Board of Directors carried out an annual evaluation of the Board itself, its committees, and individual Directors. The entire Board carried out performance evaluation of each Independent Director excluding the Independent Director being evaluated. The Nomination Remuneration Committee also carried out evaluation of every directors performance.

The evaluation was done after taking into consideration inputs received from the Directors, setting out parameters of evaluation. Evaluation parameters of the Board and Committees were mainly based on Disclosure of Information, Key functions of the Board and Committees, Responsibilities of the Board and Committees, etc. Evaluation parameters of Individual Directors including the Chairman of the Board and Independent Directors were based on Knowledge to Perform the Role, Time and Level of Participation, Performance of Duties and Level of Oversight and Professional Conduct etc.

Independent Directors in their separate meeting evaluated the performance of Non Independent Directors, Chairman of the Board, and the Board as a whole.

14. CORPORATE GOVERNANCE:

In terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 exempts Companies which have listed their specified securities on SME Exchange from compliance with corporate governance provisions.

Since the equity share capital of your Company is listed exclusively on the SME Platform of BSE, the Company is exempted from compliance with Corporate Governance requirements, and accordingly the reporting requirements like Corporate Governance Report, Business Responsibility Report etc. are not applicable to the Company. However, the Company is in compliance to the extent of applicable sections of Companies Act, 2013 with regard to Corporate Governance.

15. MANAGEMENT DISCUSSION AND ANALYSIS REPORT:

The Management Discussion and Analysis report has been separately furnished as Annexure - I in the Annual Report and forms a part of the Annual Report.

16. POLICIES AND DISCLOSURE REQUIREMENTS:

In terms of provisions of the Companies Act, 2013 the Company has adopted following policies which are available on its website www.shahhospitalratlam.com

• Whistle Blower Policy

• Archival & Preservation Policy

• Code of conduct for Board & Shareholders Meeting

• Policy for disclosure of Material Events

• Criteria for making payment to non-Executive director

• Policy on determination of Material Related Party Transactions

• Risk Management Policy

• Code of Conduct for prevention of Insider Trading

• Code for Independent Directors

• Nomination and Remuneration Policy

17. COMPANYS POLICY RELATING TO APPOINTMENT, PAYMENT OF REMUNERATION TO DIRECTORS AND DISCHARGE OF THEIR DUTIES:

Pursuant to the provision of Section 178 of the Companies Act, 2013 and at the recommendation of Nomination and Remuneration Committee has devised Nomination and Remuneration Policy relating to appointment of Key Managerial Personnel and Directors, Directors qualifications, positive attributes, independence of Directors and their remuneration and other related matters as provided under Section 178(3) of the Companies Act, 2013.

18. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OFTHE COMPANIES ACT, 2013:

The Company did not give Loans, provided Guarantees, and made Investments pertaining to section 186 of Companies Act, 2013 during the financial year under review.

19. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES:

All related party transactions that were entered during the financial year were on arms length basis and were in the ordinary course of business. There are no significant related party transactions made by the Company with Promoters, Directors, Key Managerial Personnel or other designated persons which may have a potential conflict with the interest of the Company at large.

20. COMPLIANCE WITH SECRETARIAL STANDARDS:

The Company has complied with Secretarial Standards issued by the Institute of Company Secretaries of India while organizing the Board and Annual General Meetings.

21. MATERIAL CHANGES AND COMMITMENT:

No material changes and commitments affecting the financial position of the Company occurred during the year and between the end of the financial year to which these financial statements relate and on the date of this report.

22. DETAILS OF APPLICATION MADE OR ANY PROCEEDING PENDING UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 (31 OF 2016) DURING THE YEAR ALONGWITH THEIR STATUS AS AT THE END OF THE FINANCIAL YEAR:

There was no any application filed or any proceeding pending under Insolvency and Bankruptcy Code, 2016 (31 Of 2016) during the year under review. Hence the same is not applicable to Company.

23. DETAILS OF DIFFERENCE BETWEEN AMOUNT OF THE VALUATION DONE AT THE TIME OF ONE TIME SETTLEMENT AND THE VALUATION DONE WHILE TAKING LOAN FROM THE BANKS OR FINANCIAL INSTITUTIONS ALONG WITH THE REASONS THEREOF.

The Company did not settle any loan amount with Bank or Financial Institutions during the period under review. Hence the same is not applicable to Company.

24. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGEEARNINGS AND OUTGO:

The provisions of Section 134(3)(m) of the Companies Act, 2013 regarding the conservation of energy, technology absorption, foreign exchange earnings and outgo are not applicable to the Company considering the nature of activities undertaken by the Company during the year under review.

25. STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY:

Risk Management is the process of identification, assessment and prioritization of risks followed by coordinated efforts to minimize, monitor and mitigate/control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. The Company has laid down a comprehensive Risk Assessment and Minimization Procedure which is reviewed by the Board from time to time. These procedures are reviewed to ensure that executive management controls risk through means of a properly defined framework. The major risks have been identified by the Company and its mitigation process/measures have been formulated in the areas such as business, project execution, event, financial, human, environment and statutory compliance.

26. DETAILS OF POLICY DEVELOPED AND IMPLEMENTED BY THE COMPANY ON ITS CORPORATE SOCIAL RESPONSIBILITY INITIATIVES:

The provisions of Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014 are not applicable to the Company as on March 31, 2024. Hence, your Company is not required to adopt the CSR Policy or constitute CSR Committee during the year under review.

27. DEPOSITS:

The Company has not accepted/renewed any deposits during the year under review.

28. DETAILS OF DIRECTORS OR KEY MANAGERIAL PERSONNEL:

The Board is duly constituted according to the provisions of the Company Act.

The Directors on the Board have submitted notice of interest under Section 184(1), intimation under Section 164(2) of the Companies Act, 2013 and declaration as to compliance with the Code of Conduct of the Company.

The present Directors of the Company are Mr. Amit Shah, Mrs. Hansa Shah, Mrs. Milli Shah, Mr. Kirti Kumar Shah, Mr. Meetesh Gadia, Mr. Gaurav Ajmera, Mr. Achint Porwal, Mr. Sanjay Kumar Luniya.

Further during the year under review, following changes regarding appointment/reappointment has been done in Management of Company: NIL

Details of all Directors/KMP has been mentioned below:

S. No. Name of Director/KMP	Designation	Promoter/ Independent KMP/ Professional	Executive/ NonExecutive	Date of Appointment
1. Mr. Amit Shah	Chairman and Managing Director	KMP and Promoter	Executive	25/08/2022
2. Mr. Kirti Kumar Shah	Whole Time Director	KMP and Promoter	Executive	15/02/2023
3. Mrs. Hansa Shah	Executive Director	Promoter	Executive	25/08/2022
4. Ms. Milli Shah	Executive Director	Promoter	Executive	25/08/2022
5. Mr. Achint Porwal	Non- executive Independent Director	Independent	Non - Executive	28/02/2023
6. Mr. Gaurav Ajmera	Non- executive Independent Director	Independent	Non - Executive	28/02/2023
7. Mr. Meetesh Gadia	Non- executive Independent Director	Independent	Non - Executive	28/02/2023
8 Mr. Sanjay Kumar Luniya	Non- executive Independent Director	Independent	Non - Executive	28/02/2023
9 Ms. Vaishale Bohra	CFO	KMP	NA	Appointed on - 09/02/2023
10 Ms. Saloni Badjatya	Company Secretary	KMP	NA	Appointed on - 09/02/2023

In accordance with the provisions of the Companies Act, 2013, and the Articles of Association of the Company, Ms. Milli Shah retires by rotation at the forthcoming Annual General Meeting and being eligible, offers himself for re- appointment.

29. AUDITORS:

A. STATUTORY AUDITORS AND THEIR REPORT:

As per the provisions of Section 139 of the Act read with the Companies (Audit and Auditors) Rules, 2014, the members of the Company had appointed M/s. A Y & Company, Chartered Accountants (Firm Registration No. 020829C) as the Statutory Auditor of your Company to hold office for a period of five years from financial year 2022-23 till 2027-28 at such remuneration as may be mutually agreed between the Board of directors and Statutory Auditor of the company.

The Company has received written confirmation from the Auditor that they are not disqualified from acting as the Statutory Auditors of the Company in the terms of provisions of Section 139 and 141 of the Act and rules framed there under.

There is no qualifications, reservations or adverse remarks made by the M/s. M/s. A Y & Company, Statutory Auditor of Company in their Audit Report for the year under review.

B. INTERNAL AUDITOR:

The Company has appointed M/s J.P. Dafria & Company, Chartered Accountants (Firm Reg. No. 001153C)) as an Internal Auditor for conducting the Internal Audit of the Company in the Board Meeting held on 27^th December, 2023 for F.Y. 2023-24.

C. SECRETARIAL AUDITOR AND THEIR REPORT:

In accordance with the provisions of Section 204 of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Board of Directors in their meeting held on 27^th December, 2024 has appointed M/s. Dilip Swarnkar & Associates, Company Secretaries, as Secretarial Auditors for the financial year 2023-24. The Secretarial Audit Report for the financial year ended March 31, 2024 is set out in Annexure - II to this Report.

There is no qualifications, reservations or adverse remarks made by the Secretarial Auditor of Company in their Audit Report for the year under review.

30. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY:

The Board has laid down standards, processes, and procedures for implementing the internal financial controls across the organization. After considering the framework of existing internal financial controls and compliance systems; work performed by the Statutory Auditors, Secretarial Auditors and External Consultants; reviews performed by the Management and relevant Board Committees including the Audit Committee, the Board is of the opinion that the Companys internal financial controls with reference to the financial statements were adequate and effective during the financial year 2023-24.

31. INTERNAL CONTROL SYSTEMS:

Adequate internal control systems commensurate with the nature of the Companys business and size and complexity of its operations are in place and have been operating satisfactorily. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations and that all assets and resources are acquired economically, used efficiently and adequately protected.

32. COST AUDITOR:

As per provision of section 148(3) of Companies Act, 2013 and rule 6(2) of Companies (Cost records and audit) Rules, 2014, the Company is not required to appoint a cost auditor to audit the cost records of the Company.

33. PARTICULARS OF EMPLOYEES AND REMUNERATION

The information required under Section 197 & Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is given below.

a) Ratio of remuneration of each Director to the employees median remuneration:

Director	Designation	Remuneration/ sitting fees p.a. (Rs.)	Ratio
Mr. Amit Shah	Chairman and Managing Director	84,00,000	87.83
Mr. Kirti Kumar Shah	Whole Time Director	36,00,000	37.64
Mrs. Hansa Shah	Executive Director	36,00,000	37.64
Ms. Milli Shah	Executive Director	60,00,000	62.74
Mr. Achint Porwal	Non- executive Independent Director	0	NA
Mr. Gaurav Ajmera	Non- executive Independent Director	0	NA
Mr. Meetesh Gadia	Non- executive Independent Director	0	NA
Mr. Sanjay Kumar Luniya	Non- executive Independent Director	0	NA
Ms. Vaishale Bohra	CFO	2,95,300	3.02
Ms. Saloni Badjatya	Company Secretary	3,25,000	3.40

b) Percentage decrease in the median remuneration of employees in the financial year 2023-24: Not applicable due to comparable figures are not available since the Company has acquired business of M/s Shah Hospital, sole proprietorship firm of the promoter of Company by business transfer agreement on December 31,2022.

c) Number of permanent employees including Executive Directors & KMP on the rolls of the Company as on March 31, 2024: 69 (Sixty-Nine)

d) Average percentile increase made in the salaries of employees other than key managerial personnel in the last financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are any exceptional circumstances for increase in the managerial remuneration: Not applicable due to comparable figures are not available since the Company has acquired business of M/s Shah Hospital, sole proprietorship firm

e) It is hereby affirmed that the remuneration paid during the year is as per the Remuneration policy of the Company.

f) There is no employee covered under the provisions of section 197(14) of the Companies Act, 2013.

g) There was no employee in the Company who drew remuneration of Rs. 1,02,00,000/ - per annum during the period under review. Hence, the Company is not required to disclose any information as per Rule 5(2) of the Companies (Appointment and Remuneration) Rules, 2014.

34. EXPLANATION OF BOARD OF DIRECTORS ON AUDITORS REPORTS:

A. Auditors Report

There are no qualifications or reservation or adverse remarks made by the Auditors in their report for the year under review.

Hence there is no Explanation required for the same.

B. Secretarial Audit Report

There are no qualifications or reservation or adverse remarks made by the Secretarial Auditors in their report for the year under review.

Hence there is no Explanation required for the same.

35. REPORTING OF FRAUDS BY AUDITORS

During the year under review, the Statutory Auditors have not reported any instances of frauds committed in the Company by its Officers or Employees under Section 143(12) of the

Companies Act, 2013

36. GENERAL:

Your directors state that no disclosure or reporting is required in respect of the following items as there were no transaction on these items during the year under review.

1. Details relating to Deposits covered under Chapter V of the Act.

2. Issue of equity shares with differential rights as to dividend, voting or otherwise.

3. Issue of equity shares (including sweat equity shares) and ESOS to employees of the Company under any scheme.

4. Except order passed by Ministry of Corporate Affairs on February 03, 2022 for condonation of delay under section 460(b) of the Companies Act, 2013, No significant or material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and Companys operations in future.

5. There were no instance of non-exercising of voting rights in respect of shares purchased directly by the employees under a scheme pursuant to section 67(3) of the Act read with Rule 16(4) of Companies (Share Capital and Debenture) Rules, 2014 and hence no information has been furnished.

37. ACKNOWLEDGEMENTS:

Your Directors would like to express their sincere appreciation of the co-operation and assistance received from Shareholders, Bankers, regulatory bodies and other business constituents during the year under review.

Your Directors also wish to place on record their deep sense of appreciation for the commitment displayed by all executives, officers and staff, resulting in successful performance of the Company during the year. Your Directors look forward to the continued support of all stakeholders in the future.

For and on behalf of the Board of
KK SHAH HOSPITALS LIMITED
Sd/-	Sd/-
AMIT SHAH	KIRTI KUMAR SHAH
MANAGING DIRECTOR	WHOLE TIME DIRECTOR
DIN-09119113	DIN-10039838
PLACE: RATLAM
DATE: 29-07-2024