kims healthcare management limited annual report … - 2016.pdf · dear shareholders, we are also...
TRANSCRIPT
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KIMS HEALTHCARE MANAGEMENT LIMITED
ANNUAL REPORT 2015-2016
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REPORTS TO SHAREHOLDERS
• License and Permits• Electronic Clearing Services [ECS] Mandate Form• Nomination Request Form• Proxy Form & Attendance Slip• Members Feedback Form
124 ANNEXURES
123 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES [FORM AOC 1]
05 ABOUT KIMS• Corporate Information• Performance at a glance• Chairman’s Review
15 • Directors’ Report• Corporate Governance Report• Management Discussion & Analysis Report
67 FINANCIAL STATEMENTS [STANDALONE]• Auditor’s Report• Balance Sheet• Profit & Loss Account• Cash Flow Statement• Notes to the Financial Statements
95 FINANCIAL STATEMENTS [CONSOLIDATED]• Auditor’s Report • Balance Sheet• Profit & Loss Account• Cash Flow Statement• Notes to the Financial Statement
CONTENTS
The one memorable line which made me decide on showing my daughter at KIMS is when the doctor said, “I will treat her as I would treat my daughter”
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CORPORATE INFORMATION
FINANCIAL INSTITUTIONS
Andhra Bank | Canara Bank|State Bank of India | South Indian Bank | ICICI Bank | HDFC Bank |Union Bank of India | Axis Bank
REGISTERED OFFICE
KIMS Healthcare Management Limited
PB.No 1, Anayara.P.O, Trivandrum 695 029, Kerala, India, web: www.kimsglobal.com
email : [email protected], Ph: + 91 471-2557165, 3041000
Dr. M.I.SahadullaChairman & Managing Director
Mr. E.M.NajeebExecutive Director
Human Resources,Procurement & Projects
Mr. E. IqbalDirector - Support Services
CA Harifa.MGroup Finance Controller
STATUTORY AUDITORSM/s. BSR & Associates, LLP(Firm Regn No. 116231W/ W-100024)
Chartered Accountants, III Floor,
Syama Business Center, NH Bye pass Road,
Vytilla, Kochi 682 019
SECRETARIAL AUDITORCS G. Raman PillaiPractising Company Secretary
Bhasuram, NSS Collage Road, Neeramonkara, Trivandrum
COST AUDITORSM/s. BSS & Associates, LLP62/102. 1st floor, Menmanasserry Illom
Illom Road, Palliam Road, Kochi - 682 016
Dr. G.VijayaraghavanVice Chairman & Director
Mr. C.H.A RaheemExecutive Director
Corporate Finance & CFO
CS Binu K.BGroup Company Secretary
INTERNAL AUDITORSM/s ERNST & YOUNG LLP
9th floor, Abad Nucleus
NH-49, Maradu P.O.,
Kochi - 682 304
FINANCE CONSULTANT M/s. HARI & KRISHNA
Chartered Accountants
CORPORATE CONSULTANTCS Bijoy. P. Pulipra
Practicing Company Secretary
LEGAL ADVISORSMr. K.L.Narasimhan, BSc [Engg.], LLB
M/s K.G. Mohan Das Pai & Associates
M/s Abdul Kharim & Associates
MANAGEMENT TEAM
It was so refreshing to be treated with so much of courtesy, compassionand competence
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PERFORMANCE AT A GLANCE
Stan
dalo
ne [Rs
. In
Mill
ion]
Cons
olid
ated
[Rs. I
n M
illio
n]
4172
38132014-15
2015-16
REVENUE
5496
42972014-15
2015-16
REVENUE
3011
27672014-15
2015-16
GROSSBLOCK
5688
50112014-15
2015-16
GROSSBLOCK
797
7092014-15
2015-16
OPERATING PROFIT
724
6402014-15
2015-16
OPERATING PROFIT
257
1922014-15
2015-16
FOREIGNEXCHANGE
257
1922014-15
2015-16
FOREIGNEXCHANGE
552
5332014-15
2015-16
PROFITBEFORE TAX
226
3532014-15
2015-16
PROFITBEFORE TAX
1003
10032014-15
2015-16
SHARECAPITAL
1003
10032014-15
2015-16
SHARECAPITAL
353
3492014-15
2015-16
PROFIT AFTER TAX
149
2362014-15
2015-16
PROFIT AFTER TAX
85
852014-15
2015-16
PROPOSED DIVIDEND
85
852014-15
2015-16
PROPOSED DIVIDEND
Underwent a knee replacement surgery at KIMS. All the staff have been wonderfully
gracious and kind!
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I consider myself fortunate to write to you once again through this annual report. We at KIMS uphold the philosophy that “patient is first and they should be treated with respect and compassion.” The ethos system consisting of quality healthcare delivery based on evidence based medicine, patient safety, infection control and ethical principles guides our activity every day. I am happy to note that our patients have certainly found value in this system and put their trust on us and accepted us. What is even more satisfying is that we are considered on par with the world’s best healthcare institutions.
GROWTH AND EXPANSION
Fifteen years ago, KIMS commenced operations and by the grace of God Almighty we have become the largest healthcare corporate in Kerala, with more than 1,700 beds and 6,000 employees including 750 doctors. KIMS has a track record of consistent growth, and today owns nine facilities in India (7 Hospitals and 2 Medical Centers) and nine facilities in the GCC region (3 Hospitals and 6 Medical Centers) with a total of 1,975 beds. We can proudly say that we have received 15 international and national accreditations for quality in healthcare, in addition to many awards and recognitions.
STRATEGIC BUSINESS UNITS (SBU)
KIMS AL SHIFA
It has been 18 months since Al Shifa hospital, Perinthalmanna became KIMS Al Shifa and many processes and systems have been streamlined to ensure quality and patient satisfaction. We are half way through the renovation of the old block and expect most of the work to be completed by October, 2016. This will create additional facilities —four new operation theatres, medical ICU, post-operative ICU, a new IPR division and about 100 patient beds.
CHAIRMAN’S REVIEW
Dear Shareholders,
We are also looking at starting a Cancer Centre in KIMS Al Shifa with Linac, Medical Oncology, Surgical Oncology and other facilities.
In one-and-a-half years, KIMS has added tremendous value to the institution by implementing various systems. As a result, we were able to achieve 89% compliance in the recent NABH interim survey.
KIMS-BIBI
KIMS-BIBI hospital in Hyderabad is our second Cancer Centre and was acquired in December 2015. Intense efforts are on to bring the hospital upto KIMS standards. As a part of this process, a high-end Varian Linac machine has arrived on site and is being installed. Our efforts are to make it a cancer-focused general hospital by starting specialties such as Medical and Surgical Gastroenterology, Gynaecology, Internal Me dicine and General Surgery. We are also trying to improve cash and insurance patients, consultations and reduce the dependence on subsidized schemes sponsored by the state government.
“The future depends on what we do in the
present.”
Mahatma GandhiPatient is first and
they should be treated with respect
and compassion
Dr. M. I. SahadullaChairman & Managing Director
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NEW SERVICES
KIMS Liver Transplant Center has achieved the highest success rate in Kerala. We have also received permission from the government to start ‘KIMS Authorization Committee’ for transplants, which can expedite the process for permission. We have also received approval from the government to conduct Pancreatic Transplant. The team of transplant surgeons (Hepatobiliary & Liver Transplant) performed the first liver transplant in a Government Medical College in Kerala, thus setting an example for the PPP model in Kerala.
We have entered into a joint initiative with Med Genome, a leading genomics-based diagnostics and research company, to set up a Genetic Counseling Center in our hospital. The center will play a key role in the genetic testing requirements of patients and families in the hospital, and facilitate research aimed at improving healthcare outcomes.
UNIQUE PROCEDURES PERFORMED IN KIMS
• The liver of a deceased 82-year-old man was successfully transplanted to a young recipient. This was the first such case in Kerala and one of very few in India.
• A 55-year-old Omani woman underwent a rare cervical surgery on the neck where an artificial disc was used. This was the first such surgery by any hospital in South Kerala.
• In a unique form of embolisation treatment, an Omani patient with urinary retention and dependent on catheter was successfully treated by Prostrate Artery Embolization.
• In a rare procedure, a patient with recurrent episodes of fainting was put under a cardiac microchip implant monitoring device for diagnosis and treatment.
• A 28-year-old female from Tamil Nadu was diagnosed with Idiopathic Thrombocytopenic Purpura (ITP). It is a condition where the platelet gets destroyed in the spleen due to problems with immune response, and a unique Splenic Artery Embolization was performed successfully with positive results.
• First successful bone marrow transplant performed at KIMS Cancer Center.
• A very unique procedure, reverse shoulder replacement, was performed on a 45-year-old male, enabling better range of movement and cure from a tumor that was developing.
• TB Tracking with The Union (The International Union Against TB and Lung Diseases). Web-based software has been deployed in association
with The Union to provide real-time case reporting and treatment adherence support to TB patients treated in the private sector. This is the first installation in Kerala.
• We are the only hospital in Kerala that has both linear and radial EBUS facility for rapid diagnosis of many lung conditions.
• KIMS has started doing Argon Plasma Coagulation to relieve airway obstruction.
• We are also doing Flexible Rigid Pleuroscopy for diagnosis of pleural diseases, which is done in very few centers in India.
KIMS CSR
KIMS is in its 15thyear of service. As we recap our performance over the past years, we feel proud to have been able to adhere to our mission — ‘Care with Courtesy, Compassion and Competence’. We dedicate our success to teamwork, to our relentless pursuit of quality and to the acceptance by and support from the community and we remain a socially committed corporate.
According to the Ministry of Corporate Affairs, 2% of a company’s net profit over the previous three years is the mandatory expenditure for CSR activities in the current year (2% net profit Rs.80, 56,335 /-, total CSR expenditure for 2015-16 – Rs. 85,21,607/-).
Some of the major CSR activities of 2015-16 are listed below:
1. Schedule VII Item (i) - Promotion of Preventive Healthcare: KIMS conducts regular free medical camps in rural areas and outskirts and surrounding areas of the city. At least 2 free preventive and medical camps planned for every month and have been conducted.
2. Schedule VII Item (ii) - Employment for the differently-abled: Employment for differently-abled candidates was included in KIMS’ CSR activities, and we currently have 6 differently-abled employees. The productivity of these staffers is very high, and the morale generated by them within their departments and in the organization, at large, is also high. Thus, not only is the individual provided with a means of livelihood, there is a contribution to the harmony of the work place and enthusiasm spreads throughout the organization. This results in an indirect benefit to the company and its stakeholders. By the end of this financial year, KIMS plans to increase the strength of this special workforce by two.
3. Schedule VII Item (iv) - Ensuring Environmental Sustainability: In order to conserve resources, solar heating is used for hot water in all inpatient
ANNEXURE TO CHAIRMAN’S MESSAGE
KIMS KOLLAM
After a year of relatively poor performance, KIMS Kollam is now growing at a faster pace. Construction of the new hospital building is ahead of schedule and at this pace we hope to commence operations by July 2017. This will make it a 200-bed secondary / tertiary care hospital providing high quality care.
KIMS KOTTAYAM
Though small, it is a beautiful boutique facility, well received by the public and its performance is on budget. We are awaiting permission to start construction of an annex, which will transform it into a secondary / tertiary care hospital. The recent NABH re-accreditation survey of KIMS Kottayam was highly encouraging, with minimum non-compliance and we hope that we will be able to accredit the hospital by December 2016. This will make all our hospitals in Kerala NABH accredited.
KIMS KOCHI
KIMS Kochi is steadily growing in terms of the number of outpatients and average inpatients. Various measures have been taken to increase the procedure volumes and reduce expenditure. We are also examining the feasibility of developing a green field facility in Kochi.
KIMS CANCER CENTRE
Over the last five years, KIMS Cancer Care And Research Center Pvt Ltd has grown to be the most sought after oncology destination in Kerala. We are the only cancer center with both national and international accreditations. Multidisciplinary approach to cancer with the help of Tumor Board, Evidence based treatment protocols, best critical care units, sophisticated radiation therapy unit including IGRT, IMRT and brachytherapy, palliative unit etc are some of our USPs. We offer specialised services like dedicated dietician and counselling by Onco - psychologist for all patients. We have moved ahead with the addition of the Bone Marrow Transplant Unit which has a steady flow of patients from the time of inception; ably supported by two full time medical oncologists, trained nursing, NABL accredited laboratory, pathology and all other supporting services.
KIMS TRIVANDRUM
For the expansion of KIMS Trivandrum we have been waiting for the past three years for permission for KIMS East and hopefully, we should be able to break ground before the end of this year. The plans for KIMS Thonnakkal have also been submitted for environmental clearance and is expected in 2-3 months.
NEW PE FUNDING
With the current scale of operations and expansion plans in India and the GCC region, we have started
the process to infuse new funds into the company. This is required since the present PE partners will be exiting by 2016 as per the agreement with them. We have selected investment bank Rothschild to help us find the right private equity partners, with business objectives aligned with ours.
FINANCE
While we do all these we have not forgotten to increase the turn over and we have crossed the 500 crore mark last year. Total Revenue was Rs.550 crores in FY16 as compared to Rs.430 crores last year registering a 28% growth. EBITDA grew from Rs.64 crores in FY 15 to Rs.72 crores in FY16 registering a 13% growth.
Again we dream that we can achieve 600 crore mark by next year if the national GDP continues to grow at the predicted rates. We are glad to inform that the Board has recommended a dividend of 8.5% for FY16.
WAY FORWARD
Our dream is to create many Centers of Excellence and make KIMS Trivandrum one of the most sought after centers of ultimate healthcare delivery, comparable to the most well known medical facilities in the world. Let us all pray for that dream to come true, which can happen only with the Grace of God, support from all stakeholders and directors and the team work of our doctors and staff.
ACKNOWLEDGEMENT
Today, KIMS is not only a reputed name in India but also in the Gulf countries. This has been possible only because of the trust and faith that our shareholders have placed in us, which encourages us to grow. I would also like to sincerely appreciate the dedication, ownership and hard work of our doctors, nurses and all staff. Last, but not the least, I convey my special thanks to the entire management team for their efficiency and leadership in bringing KIMS to this levelof excellence.
Yours sincerely,
Dr. M. I. SahadullaChairman & Managing Director
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Various nursing courses conducted under Kerala University of Health Sciences (KUHS) are:
1. MSc Nursing
2. BSc Nursing
3. PCBSc (Post Certificate BSc Nursing)
Various paramedical courses conducted under Directorate of Medical Education, Government of Kerala are:
1. DRT (Diploma in Radiological Techniques)
2. DOTAT (Diploma in Operation Theatre and Anesthesia Techniques)
3. DNT (Diploma in Neurology Technology course)
4. DDT(Diploma in Dialysis Technology course)
In order to provide professionally qualified nurses, paramedics and others with high quality training, we conduct the following KIMS certificate courses:
1. Post-Graduate Diploma in Nurse Practitioner course
2. Neonatal Nursing Fellowship
3. Post-Graduate Diploma in Management of Learning Disabilities
4. Diploma in Endoscopy Technology
5. Infection Control Certification program
6. Diploma in Cardiac Lab Technician
7. Certified course in Clinical Engineering
8. Diploma in CSSD Technician course
9. Dental Assistant course
10. Pre Employment training course for nurses
As a part of taking our high quality training programs to overseas candidates, we are conducting specialty training for HEMAS Hospitals, Sri Lanka and various paramedical courses for the Royal Army of Oman.
We have state of the art training infrastructure and a large number of retired professors as faculty. We also conduct national and international CMEs, workshops and webcasts throughout the year.
CONFERENCES
A one-day conference on Disaster Preparedness was organized in association with the Kerala State Disaster Management Authority. The conference was a learning opportunity for the course of action to be adopted in the before-during-after cycle of any crisis. It also provided a platform to learn from experts on the practical approaches to managing various kinds of disasters in the most efficient and effective manner.
We organized the following national level CME programs during the year:
• Fifth National Conference on ‘Comprehensive Echo Doppler Evaluation Techniques’ (CEDET- 2016)
• Neonatal Emergencies Simulation Team Training
• KIMS Transplant Infectious Diseases Conference 2016
• Gynecologic Oncology Update 2016
• Family Medicine Update 2016
At the State level, we had the Annual Conference of Kerala Heart Rhythm Society 2016 and CME and Workshop on Thoracic Ultrasonography
ITInformation Technology (IT) is a key strategic component of KIMS’ management philosophy. With consistent efforts over the years, KIMS has gained the distinction of being a pioneer and leader in digital healthcare delivery. IT systems at KIMS contribute significantly to streamlining operations, ensuring quality / safe patient care, facilitating process standardization and enabling growth. All KIMS hospitals use Hospital Information System / Electronic Medical Records (EMR), with integrated lab equipment for online results reporting. Picture Archiving and Communication System (PACS) is used in all centers in Tele radiology mode. Intranet and email is used for internal communication. The team is currently focusing on implementation of the new Enterprise Resource Planning (ERP) system.
These are some of the notable projects executed by the IT team last year:
• Video Conferencing - A landmark project to seamlessly connect all our centers through videoconferencing, which has revolutionized the way we communicate with all our centers.
• CCTV surveillance cameras installed across centers.
• Online Nurses Assessment System for organized, timely and effective nursing recruitment.
• We are proud to say that KIMS Kochi and KIMS Kottayam has become fully IP EMR for inpatient care.
• Quality Management System meeting NABH requirements.
• Innovations: Developed an Online Complaint Tracking Application (OCTA) and Discharge Accelerator.
rooms. Solar energy is also used for lighting the parking area. Recycled water is used in toilets and to water the lawns and plants. All bulbs have been changed to LED to conserve power. Taps are fitted with sensors. STP with a capacity of 300 kiloliters per day has been installed. Biogas is made and used. Finally, KIMS is moving steadily towards a paperless system of patient records with Electronic Medical Records.
4. Schedule VII Item (iii) - Facilities for Senior Citizens: KIMS CSR has a tie-up with an old age home, Care Home, in Pulaynarkotta, Trivandrum to visit the inmates regularly and provide facilities for them. All festivals are celebrated with them and every month we arrange for our bus to take the inmates on a day outing.
5. Schedule VII Item (i) - Free surgeries for the under-privileged: Free cardiac surgeries under the Hrudaya Spandanam scheme are conducted (9). Also, free spine surgeries are conducted through the Spine Foundation.
6. Schedule VII Item (i) - Subsidized healthcare for the under-privileged: Discounts are given to inpatients who belong to the under-privileged category and are not able to settle their bills. Patients are assessed by a CSR executive on the basis of financial background, support from the government and other groups and frequency of admission. Sufficient documentation is collected and the request for discount is classified into Category A, B or C. Category C – 15% discount on room rent, ventilator and procedure and 10% on investigations. Category B – 12.5% discount on room rent, 10% on ventilator and procedure and 7.5% on tests. Category A – 10% discount on room rent, ventilator and procedure and 5% on investigations.
7. Schedule VII Item (ii) - Promoting Education: KIMS KIDS WORLD is a play school to help working mothers, enabling them to leave their young children in a child-friendly environment during the day, when they are not able to take care of the child.
8. Regular health talks on TV and radio and other awareness programs are conducted by KIMS to educate the public on health, hygiene and lifestyle modification.
9. Schedule VII Item (ii) - Promoting Education: Skill Training Programs: Various training programs are regularly conducted for skilled professionals. A Public-Private Partnership (PPP) program was started with the Government Medical College to facilitate skill training as well as to conduct highly specialized organ transplants.
10. Schedule VII Item (ii) – Promoting Education: Sponsorship for Higher Education: Students belonging to financially under-privileged families
who have an ambition to pursue their higher studies in professional colleges are identified and KIMS CSR pays a part of their fees.
11. Financial assistance for a medical student with limited financial resources was given by paying one year’s college fees in the Dental College. Financial assistance for higher studies for top-scorer Iser Mohali, s/o Mr Thulasidharan was also given. Laptops and projectors were given to Government Cotton Hill LPS for its smart class rooms. Education for children affected by Endosulfan pollution was supported through the Malayalam Manorama Nallapaadam Charitable Society.
QUALITY & NURSING
KIMS has invested immensely in quality and safe patient care and we are proud to declare that “Quality, patient safety and innovation are the key philosophy for the KIMS group.” We are the 6th hospital in India to get ‘Nursing Excellence Certification’ by NABH.
AWARDS AND RECOGNITIONS
It gives me immense pleasure to announce that we have received the prestigious national ‘NIB Awards 2016’, jointly organized by Ernakulum Press Club and Public Relations Council of India, in the house journal category for KIMS Expressions and KIMS Proceedings. KIMS Expressions also won the ‘CMO Asia National Award’ in the best in-house magazine category.
We firmly believe that ‘Quality is not an act, it is a habit’, a conviction that is inculcated deep in every member of KIMS. Hence I was humbled when the ACHS (Australian Council of Healthcare Standards) bestowed the ‘ACHS Medal for International Healthcare Leadership’2015, for leadership in quality and patient safety in an international context, on me. I also had the opportunity to receive the “TiEcon Best Entrepreneur Award’ for the year 2015.
ACADEMICS
KIMS is the only hospital in Kerala with 19 DNB programs and over 150 candidates in various specialties. We also conduct various other Fellowship programs for doctors, and nursing and paramedical courses. Some of the courses conducted for doctors are:
1. Post Doctoral (super specialty) courses in 8 specialties
2. Post-Graduate (broad specialty) courses in 11 specialties
3. Fellowship courses in 5 specialties
4. PhD in Cardiology (Irkutsk State Medical University)
5. KIMS Master of Emergency Medicine (Upstate University, USA)
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DIRECTORS’ REPORT
Dear Members,We are delighted to present the Twenty First Annual Report on the business and operations of the Company together with the Audited Statement of Accounts and the Auditors Report of the Company for the year ended 31st March 2016.
Financial Highlights The following are the results of the activities for the financial year ended 31st March 2016
STANDALONE[Rs. In Million]
2014-15 2015-16
Revenue 3,813 4,172
Operating Profit 709 797
Profit before tax 533 552
Profit after tax 349 353
Gross Block 2,767 3,011
Foreign exchange earnings 192 257
Share capital 1,003 1,003
Proposed dividend 85 85
CONSOLIDATED[Rs. In Million]
2014-15 2015-16
Revenue 4,297 5,496
Operating Profit 640 724
Profit before tax 353 226
Profit after tax 236 149
Gross Block 5,011 5,688
Foreign exchange earnings 192 257
Share capital 1,003 1,003
Proposed dividend 85 85
We went through9 months of magic and
9 months of care
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condition that same will be ratified at every Annual General Meeting. Hence the appointment of M/s. BSR & Associates LLP will be ratified at ensuing Annual General Meeting and they have confirmed their willingness and non disqualification if ratified.
Corporate Governance
The company has complied with the Corporate Governance requirements under the Companies Act, 2013. The Company is committed to maintain the highest standards of corporate governance and adhere to the corporate governance requirements. The Company’s policies, practices and philosophy adopted since inception are in line with Corporate Governance. These policies, practices are required periodically to ensure its effective compliance. The composition of Board of Directors is well balanced with a view to manage the affairs of the Company efficiently and professionally. The Company’s philosophy is to provide service in healthcare sector of high quality conforming to the International Standards and provide satisfaction to all stakeholders including customers, shareholders and employees. A separate Section of Corporate Governance is annexed and forms part of the Annual Report.
Corporate Social Responsibility
In terms of section 135 and Schedule VII of the Companies Act, 2013, the Board of Directors of your Company has constituted a Corporate Social Responsibility Committee [CSR Committee]. The Committee comprises of Independent Director. CSR Committee of the Board has developed a CSR Policy for the Company and the same is reproduced as Annexure III to this report along with statement of CSR spending as per Rule 8 of The Companies (Corporate Social Responsibility Policy) Rules, 2014]
Unique cases done in KIMS
• The liver of a deceased 82 year old man was successfully transplanted to a young recipient. This was the first case in Kerala and one among the very few in India.
• A 55 year old Omani woman underwent a rare cervical surgery on the neck where an artificial disc was used. This was the first surgery by any hospital in South Kerala.
• In a rare form of embolisation treatment an Omani patient with urinary retention and dependent on catheter was successfully treated by Prostrate Artery Embolisation
• In a rare procedure a patient with recurrent episodes of fainting was put under a cardiac microchip implant monitoring device for diagnosis and treatment.
• Unique Splenic Artery Embolisation: A 28 year old female from Tamilnadu was diagnosed of a condition called as Idiopathic Thrombocytopenic Purpura (ITP). It is a condition where the platelet
gets destroyed in the spleen due to problem with immune response and Splenic Artery Embolisation was performed successfully with results.
• First successful bone marrow transplant performed at KIMS Cancer Centre
• A very unique procedure, reverse shoulder replacement was performed in a 45 year old male which enabled better range of movement and cure from a tumour that was developing.
• TB Tracking with The UNION - The International Union Against TB and Lung Diseases - Web-based software has been deployed in association with The Union to provide real time case reporting and treatment adherence support to TB patients treated in the private sector. This is the first installation in Kerala.
• We are the only hospital in Kerala who has both liner and radial EBUS facility for rapid diagnosis of many lung conditions.
• Started doing Argon Plasma coagulation to relieve airway obstruction.
• We are also doing Flexible rigid Pleuroscopy for diagnosis of plural diseases which is done only a very few centres in India
Number of Meetings of the Board
The Board met four times at Osler Hall, Kims North, Trivandrum, during the financial year. The details are given below. The intervening gap between any two meetings was within the period prescribed by the Companies Act, 2013.
Directors̀ Responsibility Statement
Pursuant to the requirement under Section 134 (5) of the Companies Act, 2013 with respect to Director’s Responsibility Statement it is hereby declared that:
a) in the preparation of the annual accounts for the financial year ended 31st March 2016, the applicable accounting standards had been followed along with proper explanation relating to material departures;
b) the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year 31st March, 2016 and of the profit of the Company for that year;
Sl. No.
Date TimeNo. of
Attendance
1 30.05.2015 11.00 AM 14
2 31.07.2015 2.00 PM 17
3 07.11.2015 10.30 AM 18
4 05.02.2016 2.00 PM 18
State of affairs of the company
Your company is engaged in the field of healthcare and running hospitals and clinics. The Company has one hospital in Trivandrum and another in Kochi and also running one Wellness Clinic in Trivandrum and one in Kochi. The Company is also running a Nursing institute at Thonnakkal, Trivandrum with B Sc Nursing and M Sc Nursing. In addition to this Company is running hospitals and Cancer centres through its subsidiary companies.
Details of Subsidiary, Joint Venture or AssociatesCompany has following direct & indirect subsidiaries;
1. KIMS Bellerose Institute of Medical Sciences Pvt. Ltd.
2. KIMS Kollam Multi Speciality Hospital India Pvt. Ltd.
3. KIMS Cancer Care and Research Centre Pvt. Ltd.4. BIBI Hospitals Pvt. Ltd.5. KIMS Al Shifa Healthcare Pvt. Ltd.6. Al Shifa Scan Centre Pvt. Ltd.7. KIMS Nagercoil Institute of Medical Sciences Pvt.
Ltd.
Dividend
Yours Directors have recommended a dividend of 8.5% on Equity and Preference Shares held by the share holders, which if approved at the ensuing Annual General Meeting, will be paid to all those Equity and Preference shareholders whose name appear in the Register of members as on 16.09.2016.
The Register of Members and share transfer books will remain closed from 16th September, 2016 to 30th September, 2016 both days inclusive. The Annual General Meeting of the Company has been scheduled on 30.09.2016
Share Capital
The Authorized Share Capital of the Company is Rs. 111,00,00,000/-(Rupees one hundred and eleven crores only) divided into 7,09,99,000 ( Seven crores nine lakhs and ninety nine thousand only) equity shares of Rs.10/-(Rupees Ten only), 1,000 (One Thousand only) Class A Equity Shares of Rs.10/- (Rupees ten only) and 4,00,00,000 (Four crores only) Preference Shares of Rs.10/- (Rupees ten only).
Changes in share capital, if any
There has been no change in the Share Capital of the company during the year.
Securities Premium
During the year no allotment was made by the company. As on 31.03.2016 the securities premium balance is Rs. 1,49,85,16,675/- [Rupees one hundred forty nine crores eighty five lacs sixteen thousand six hundred seventy five only]
Transfer of Reserves
The Board of directors meeting held on 4th June, 2016
recommended a dividend @ 8.5% and no amount has been proposed to be transferred to reserves
Extract of Annual Return
The extract of Annual Return, in format MGT -9, for the Financial Year 2015-16 has been enclosed with this report.
Credit Rating
Your Company continues to have A- Stable (SO) Credit Rating from M/s. Crisil and we expect to improve up on the rating subject to the better performances by new units added to the Company. The rating indicates “Adequate degree of safety with regard to timely payment of financial obligations.”
Board of Directors
At present the total number of directors are 18, out of them 5 are Whole time directors and 2 Nominee Directors. The nominee directors and 2 of the Whole-time directors - Chairman and Vice-chairman are not liable to retire by rotation. From the remaining 14 directors, 1/3rd should retire at every ensuing annual general meeting which comes to 4 directors this year. On the basis of seniority, the following Directors are liable to retire by rotation at ensuing 21st Annual General Meeting, and being eligible, offer themselves for reappointment.
1. Dr. Sheriff M Sahadulla 2. Mr. A.K.Mukthar 3. Mr. K.Jalaluddin and4. Mr. V.Radhakrishnan
Fixed Deposits
The total fixed deposits of the company as on 31.03.2016 is Rs.50,00,000/- and this includes deposits amounting to Rs.33,65,000/- and Rs.16,35,000/-matured on 28.02.2010 and 18.03.2010 respectively but pending repayment in view of the dispute as to the actual claimants. We have issued two letters dt.05.09.2012 and 22.11.2012 to Mr.Mathew Jacob the Deposit holder and M/s.H.K.AL Sadiq Sons Contracting Company to settle the dispute with each other otherwise the amount will be transferred to Investor Education and Protection Fund of Government of India.
As per Section 13 of Companies (Acceptance of Deposit) Rules, 2014 Company has maintained 15% of the maturing amount as Liquid Assets in a fixed deposit account in schedule bank, which is free from charge or lien and your Company, has complied with the same Auditors
The auditors M/s. BSR & Associates LLP, Koramangala, Bangalore has been appointed as auditors of the Company for a period of five years with effect from 1st April, 2014, subject to the
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ACKNOWLEDGEMENT
Your Directors thank the patients, investors and banks for their continued support during the year. The Board place on record its appreciation of the contribution made by the employees at all levels. The consistent growth for this Company was made possible by their hard work, solidarity, cooperation and support.
Your Board thanks the Government of India, Income Tax and other Departments, Reserve Bank of India, the State Government and their Departments and agencies for their valuable support, and look forward to their continued support in future as well.
Dr.M.I.SahadullaPlace: Trivandrum Chairman & Managing DirectorDate: 04.06.2016 DIN 00600608
Particulars 2014-15 2015-16
Travelling and conveyances 37,23,793 18,45,597
Advertisement and sales promotion 89,31,780 43,81,079
Accreditation expenses 38,38,289 3,02,070
Membership, subscription and sponsorship 28,350 -
TOTAL 1,65,22,212 65,28,746
Comparative Statement of foreign exchange earnings, along with details are given below.
Particulars 2014-15 2015-16
Revenue from services 18,77,41,576 25,08,61,556
Franchise income 46,32,836 66,26,856
TOTAL 19,23,74,412 25,74,88,412
Comparative Statement of foreign exchange outgo, along with details are given below. [Amount in Rs.]
• Old Cooling towers are replaced with new one to improve the efficiency
• Chilled water lines are cleaned with chemical to improve efficiency
• STP renovated and capacity was enhanced from 3 Lakh KLD to 6 Lakh KLD
• Energy efficient 750 Kva DG was installed in place of Old 500 Kva DG
Benefits
• By Installing drinking water plant we are making our own portable water. We stopped procuring bottled drinking water from external sources ensuring financial gain both for the Company as saved the fuel for the Country.
• KIMS has installed a bio gas plant ( 45 m3/ day) and the gas from it is used for cooking. Waste
disposal is also taken care of to some extent. We are getting approximately 16.91 kg of LPG per day
• Power factor has been improved.
• Replacing all other lights to LED is in progress
• Heat and ventilation Air Conditioning efficiency has improved
• Sewage Treatment Plant capacity improved
• More energy conservation modes are being implemented as a measure to get Singapore Go – Green accreditation for the hospital.
Foreign exchange earning and outgo
During the year under review, the foreign exchange earnings amounted to Rs. 25,74,88,412/- against Rs.19,23,74,412/- during the previous year.
c) the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
d) the Directors had prepared the annual accounts 2015-16 on a going concern basis.
e) 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.
Statement of Declaration Given By Independent Directors
• Apart from receiving Director’s sitting fee, the Independent Directors of the Company do not have any material pecuniary relationships with the Company, its holding or associate company, or their Promoters, or Directors during the two immediately preceding financial years or during the current financial year
• none of the relatives of the Independent Directors has or has had pecuniary relationship or transactions with the Company, its holding or associate company, or their Promoters, or Directors, amounting to two per cent during the two immediately preceding financial years or during the current financial year
• neither the Independent Directors themselves nor any of their relatives –
i. holds or have held the position of a key managerial personnel or is or have been employee of the company or its holding or associate company in any of the three financial years immediately preceding the financial year in which they are proposed to be appointed;
ii. is or have been an employee or proprietor or a partner, in any of the three financial years immediately preceding the financial year in which they are proposed to be appointed, of –
a) a firm of auditors or company secretaries in practice or cost auditors of the company or its holding or associate company; or
b) any legal or a consulting firm that has or had any transaction with the company, its holding or associate company amounting to ten per cent or more of the gross turnover of such firm;
iii. holds together with their relatives two per cent or more of the total voting power of the company; or
iv. is a Chief Executive or director, by whatever name called, of any non-profit organisation
that receives twenty-five per cent or more of its receipts from the Company, any of its Promoters, Directors or its holding or associate company or that holds two per cent or more of the total voting power of the Company;
v. is a material supplier, service provider or customer or a lessor or lessee of the Company;
Explanations or comments by the board on every qualification, reservation or adverse remark or disclaimer made:
NIL
Particulars of loans, guarantees or investments under section 186;
Your Company does not have any Loans, Guarantees and Investments which require under the provisions of Section 186 of the Companies Act, 2013
Particulars of contracts and arrangements with related party transactions as per section 188
Related party transactions that were entered during the financial year were on arm’s length basis and were in the ordinary course of business. Related Party Transactions were placed before the Audit Committee as well as before the Board of Directors for their approval. There were no materially significant related party transactions with the Company’s Promoters, Directors, Management or their relatives, which could have had a potential conflict with the interest of the company. Transactions with related party entered by the company in the normal course of business are periodically placed before Audit Committee for its approval and the particulars of contracts entered during the year. Annexure II AOC 2 is attached to the report
Conservation of energy and technology absorption
The information in Conservation of Energy as per Section 134 of the Companies Act, 2013 read with Companies (Accounts) Rules, 2014 is not applicable to your Company since it is running in service sector. However your Company has tried to conserve the energy and adopt latest technologies where ever possible.
• KIMS hospital is one of the very few hospitals to incorporate many latest technologies to conserve the energy, by using alternate source of energy and investing on energy conservation projects.
Energy Conservation Steps taken in the last three years;
• Phase wise replacement of Lights to Low energy LED Lights
• Two numbers of 90 kva UPS is installed having high power factor
• New renovated ICU’s have energy efficient lighting
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of Managerial Personnel) Rules 2014 the Company needs to have a Chief Financial Officer and the position was filled on 31.07.2015 during the financial year of the Company.
2. As per Section 148 of Companies Act, 2013 and The Companies (Cost Records and Audit Rules) 2014, the Company needs to maintain the cost records and appoint cost Auditor and the same was done on 31.07.2015, during the financial year .
3. The Company has appointed 3 Independent Directors to the Board as per Section 149 of the Companies Act, 2013 on 31.07.2015 and approved by shareholders in Annual General Meeting held on 30.09.2015.
4. The Company has appointed a Woman Director to the Board as per Section 149 of Companies Act, 2013 on 31.07.2015 and approved by shareholders in Annual General Meeting held on 30.09.2015.
5. The Company had reconstituted a Corporate Social Responsibility Committee at its 90th Board meeting held on 31.07.2015, including at least one independent Director as per Section 135 of Companies Act, 2013 .
6. The Company had Audit Committee for the last few years, however the same was reconstituted by appointing majority Independent Directors as per Section 177 of Companies Act, 2013 by 90th Board meeting of the Company held on 31.07.2015
We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive and Independent Directors at the close of the year. The changes in the composition of the Board of Directors that took place during the year under review were carried out partly in compliance with the provisions of the Act.
However the following observations are found out in
Composition of Board of the Company;
1. The total strength of Boar of director of the Company was 17 at the beginning of the year. The Company increased the total strength to 18 by appointing a Woman Director to the Board during the year. In order to comply with the requirement of 2/3 of total number of rotational directors as per Section 152 of Companies Act, 2013 the Company amended Clause No.150 of Articles of Association and made the Executive Directors count in computing the 2/3 directors.
2. The Company had Remuneration Committee, however the same was re-named as Nomination and Remuneration Committee and re constituted with three or more Non Executive Directors of which half being Independent Directors as per Section 178 of Companies Act, 2013 by the Board of Directors at its meeting held on 04.06.2014.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through while the dissenting members’ views, if any, are captured and recorded as part of the minutes.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the year under report, M/s.KIMS Healthcare Management Limited has undertaken event / action having a major bearing on the Company’s affairs in pursuance of the above referred laws, rules, regulations, guidelines, standards, etc.
The total investment made by the Company in its various subsidiary Companies are as follows :
Sr. No.
Name of the Company Amount invested during the year
Total investment as on 31.03.2016
% of holding as on 31.03.2016
1KIMS Cancer Care and Research Center Private Limited
Rs.20.74 Cr Rs.27.94 Cr 87%
2KIMS Kollam Muli-speciality Hospital India Private Limited
Rs.2.98 Cr Rs.24.60 Cr 64%
3KIMS Bellerose Institute of Medical Sciences Private Limited
Rs.5.20 Cr Rs.25.28 Cr 79%
4KIMS Nagercoil Institute of Medical Sciences Private Limited
Rs.20 lacs Rs.9.38 Cr 52%
5KIMS Al Shifa Healthcare Private Limited
Rs.3.13 Cr Rs.97.41 Cr 51%
6 *Al Shifa Scan Centre Private Limited Nil Rs.0.72 Cr 100%
7 **Bibi Hospitals Private Limited 13.44 Cr Rs.13.44 Cr 51%
FORM NO. MR-3SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2016[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of The Companies (Appointment and Remu-
neration of Managerial Personnel) Rules, 2014]
ANNEXURE I
To
The Members of KIMS Healthcare Management LimitedCIN No. U85110KL1995PLC009336PB No.01, Anayara POTrivandrum, Kerala 695029
Dear Sirs,
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate governance practice by M/s.KIMS Healthcare Management Limited (hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conducts / statutory compliances and expressing our opinion thereon.
Based on our verification of the M/s.KIMS Healthcare Management Limited’s Books, Papers, Minutes Books, Forms and Returns filed and other records maintained by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that in my opinion, the Company has, during the audit period covering the financial year ended 31st March, 2016, complied with the statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
1. We have examined the books, papers, minute books, forms and returns filed and other records maintained by M/s.KIMS Healthcare Management Limited (“the Company”) as given in Annexure I, for the financial year ended on 31st March, 2016, according to the provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made there under;
(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment and Overseas Direct Investment and External Commercial Borrowings;
v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) were not
applicable to the Company under the financial year under report:-:-
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;
c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999;
e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client;
g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 and
h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998
2. We have relied on the representation made by the Company and its Officers for systems and mechanism formed by the Company for compliances under other applicable Acts, Laws and Regulations to the Company. The list of major head/groups of Acts, Laws and Regulations as applicable to the Company is given in Annexure II.
We have also examined compliance with the applicable clauses of the following:
(i) Secretarial Standards issued by The Institute of Company Secretaries of India
The Company being an unlisted Company the Listing agreements are not applicable to the Company.
During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above except the following;
1. As per Section 203 of Companies Act, 2013 and The Companies (Appointment and Remuneration
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ANNEXURE - II
List of applicable laws to the Company
List of applicable laws to the Company and its hospitals/clinics/education institution situated at:
Trivandrum
KIMS Trivandrum Hospital, PB No.01, Anayara PO, Trivandrum 695029
KIMS Wellness Centre, TC 4/2559 (3), LMP Tower, Kowdiar PO, Thrivandrum
KIMS College of Nursing, Chempakamangalam, Thonakkal, Korani PO, Trivandrum
Kochi
KIMS Kochi Hospital, 24/140 D, M, Pathadipalam, Edappally Ernakulam
KIMS Kochi Wellness Centre, XII/760B1, Vazhakkala, Padamugal, Kochi, Ernakulam 682021
Under the Major Group and Head
Human Resources :
1. Employees Provident Fund and Miscellaneous Provisions Act, 1952
2. Employees State Insurance Act, 1948
3. Employers Liability Act, 1938
4. Equal Remuneration Act, 1976
5. Maternity Benefits Act, 1961
6. Minimum Wages Act, 1948
7. Negotiable Instruments Act, 1881
8. Payment of Bonus Act, 1965
9. The Kerala Shops and Establishments Act, 1960
10. Payment of Gratuity Act, 1972 and other labour laws
Operations
1. Environment Protection Act, 1986 and other environmental laws
2. Indian Contract Act, 1872
3. Indian Stamp Act, 1999
4. Drugs and Cosmetics Act, 1940 and Rules made there under
5. Kerala Muncipality Building Rules and Kerala Panchayath Building Rules
6. Atomic Energy Act, 1962 and Rules made there under
7. Directorate of Radiation Safety, Government of Kerala
8. The petroleum Act, 1934 and Rules made there under
9. Foreign Trade Policy 2009-14 and 2015-20
10. Medical Termination of Pregnancy Act,1971 and Rules made there under
11. Food and Safety Standards Act, 2006
12. Kerala Panchayath Raj Act 1994 and Rules made there under
13. Human Organ Transplantation Act, 1994
14. Kerala Narcotic and Psychotropic Substances Act, 1985
15. Mental Health Act, 1987 and Rules made there under
16. Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994
17. Birth and Death and Marriage Registration Act 1886
18. Blood Bank Regulations under Drugs and Cosmetics Act, 1940
19. Dentists Act 1948
20. Legal Metrology Act, 2009
21. The Bio Medical Waste (Management and Handling) Rules, 1981
Taxation
1. Income Tax Act, 1961 and Rules made there under
2. Customs Act, 1962 and Rules made there under
3. Central Sales Tax Act and Rules made there under
4. Kerala Value Added Tax Act, 2003 and Rules made there under
5. Chapter V of Finance Act, 1994 and Service Tax Rules 1994
6. The Kerala Tax on Luxuries Acts, 1976
Place : TrivandrumDated: 04.06.2016.
G.Raman PillaiCOMPANY SECRETARYDated: 04.06.2016. FCS No.: 2421COP No.: 1596
*Subsidiary Company of KIMS Al Shifa Healthcare Private Limited** Subsidiary Company of KIMS Cancer Care and Research Center Private Limited
G.Raman PillaiCOMPANY SECRETARY
Place:Trivandrum FCS No.: 2421Date: 04.06.2016 COP No.: 1596
This Report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this Report.
To
The Members,KIMS Healthcare Management LimitedPB No.01, Anayara POTrivandrum, Kerala 695029CIN: U85110KL1995PLC009336
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the company. Our responsibility is to express an opinion on these secretarial records based on my audit.
2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial records. We believe that the processes and practices followed, provide a reasonable basis for my opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules, and regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws ,rules, regulations, standards is the responsibility of the management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company.
ANNEXURE - I
List of documents verified
1. Memorandum & Articles of Association of the Company.
2. Annual Report for the financial year ended 31st March, 2015 .
3. Minutes of the meetings of the Board of Directors, Audit Committee, CSR Committee, Share Transfer Committee, along with Attendance Register held during the financial year under report.
4. Minutes of General Body Meetings held during the financial year under report.
5. Statutory Registers viz. - Register of Directors & KMP - Register of Directors’ Shareholding - Register of loans, guarantees and security and
acquisition made by the Company
6. Agenda papers submitted to all the directors / members for the Board Meetings and Committee Meetings.
7. Declarations received from the Directors of the Company pursuant to the provisions of Sec 184 of the Companies Act, 2013.
8. e-Forms filed by the Company, from time-to-time, under applicable provisions of the Companies Act, 1956 and Companies Act, 2013 and attachments thereof during the financial year under report.
9. Filings made with Reserve Bank of India under the Foreign Direct Investment Guidelines and for Overseas Direct Investments made by the Company.
10. Documents related to payments of dividend made to its shareholders during the financial year under report.
ANNEXURE A
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s tr
ansa
ctio
ns
fD
ate(
s) o
f ap
pro
val b
y th
e B
oard
04.0
6.20
1604
.06.
2016
04.0
6.20
1604
.06.
2016
gA
mou
nt
pai
d a
s ad
van
ces,
if
an
y:N
ilN
ilN
ilN
il
h
Dat
e on
wh
ich
th
e sp
ecia
l re
solu
tion
was
pas
sed
in
gen
eral
mee
tin
g as
re
qu
ired
un
der
fir
st
pro
viso
to
sect
ion
188
Not
Ap
plic
able
Not
Ap
plic
able
Not
Ap
plic
able
Not
Ap
plic
able
FO
RM
NO
. AO
C-2
(P
ursu
ant
to c
laus
e (h
) of
sub
-sec
tion
(3)
of s
ecti
on 1
34 o
f the
Act
an
d R
ule
8(2)
of t
he C
omp
anie
s (A
ccou
nts
) R
ules
, 201
4)
Form
for
dis
clos
ure
of p
arti
cula
rs o
f con
trac
ts/a
rran
gem
ents
en
tere
d in
to b
y th
e co
mp
any
wit
h re
late
d p
arti
es r
efer
red
to
in s
ub-s
ecti
on (
1) o
f sec
tion
188
of
the
Com
pan
ies
Act
, 201
3 in
clud
ing
cer
tain
arm
s le
ng
th t
ran
sact
ion
s un
der
thi
rd p
rovi
so t
here
to
1. D
etai
ls o
f co
ntr
acts
or
arra
nge
men
ts o
r tr
ansa
ctio
ns
not
at
arm
’s le
ngt
h b
asis
aN
ame(
s) o
f the
rel
ated
par
ty a
nd
nat
ure
of r
elat
ion
ship
N
ILN
ILN
ILN
ILN
ILN
ILN
IL
bN
atur
e of
con
trac
ts/a
rran
gem
ents
/tra
nsa
ctio
ns
NA
NA
NA
NA
NA
NA
NA
cD
urat
ion
of t
he c
ontr
acts
/ a
rran
gem
ents
/tra
nsa
ctio
ns
NA
NA
NA
NA
NA
NA
NA
dSa
lien
t te
rms
of t
he c
ontr
acts
or
arra
ng
emen
ts o
r tr
ansa
ctio
ns
incl
udin
g t
he v
alue
, if a
ny
NA
NA
NA
NA
NA
NA
NA
eJu
stif
icat
ion
for
ente
rin
g in
to s
uch
con
trac
ts o
r ar
ran
gem
ents
or
tra
nsa
ctio
ns
NA
NA
NA
NA
NA
NA
NA
fD
ate(
s) o
f ap
pro
val b
y th
e B
oard
NA
NA
NA
NA
NA
NA
NA
gA
mou
nt
pai
d a
s ad
van
ces,
if a
ny:
NA
NA
NA
NA
NA
NA
NA
hD
ate
on w
hich
the
sp
ecia
l res
olut
ion
was
pas
sed
in g
ener
al
mee
tin
g a
s re
qui
red
un
der
firs
t p
rovi
so t
o se
ctio
n 1
88N
AN
AN
AN
AN
AN
AN
A
AN
NE
XU
RE
II
27
KH
ML
21st
An
nua
l Rep
ort
2015
-201
6
26
2. D
etai
ls o
f m
ater
ial c
ontr
acts
or
arra
nge
men
t or
tra
nsa
ctio
ns
at a
rm’s
len
gth
bas
is
aN
ame(
s) o
f th
e re
late
d p
arty
an
d n
atu
re o
f re
lati
onsh
ip
KIM
S N
ager
coil
In
stit
ute
of
Med
ical
Sci
ence
s P
riva
te
Lim
ited
Roy
al B
ahra
in H
osp
ital
WL
LSO
CO
ME
RK
amed
a In
folo
gics
Pri
vate
L
imit
ed
bN
atu
re o
f co
ntr
acts
/ar
ran
gem
ents
/tra
nsa
ctio
ns
sale
, pur
chas
e or
sup
ply
of
any
goo
ds
or m
ater
ials
, sel
ling
or
oth
erw
ise
dis
pos
ing
of,
or
buy
ing
, lea
sin
g o
f pro
per
ty
of a
ny
kin
d, a
vaili
ng
or
ren
der
ing
of a
ny
serv
ices
, ap
poi
ntm
ent
of a
gen
t fo
r p
urch
ase
or s
ale
of g
ood
s,
mat
eria
ls, s
ervi
ces
or p
rop
erty
or
oth
erw
ise
dis
pos
ing
of a
ny
goo
ds,
mat
eria
ls o
r p
rop
erty
or
ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es
sale
, pur
chas
e or
sup
ply
of
any
goo
ds
or m
ater
ials
, sel
ling
or
oth
erw
ise
dis
pos
ing
of,
or
buy
ing
, lea
sin
g o
f pro
per
ty
of a
ny
kin
d, a
vaili
ng
or
ren
der
ing
of a
ny
serv
ices
, ap
poi
ntm
ent
of a
gen
t fo
r p
urch
ase
or s
ale
of g
ood
s,
mat
eria
ls, s
ervi
ces
or p
rop
erty
or
oth
erw
ise
dis
pos
ing
of a
ny
goo
ds,
mat
eria
ls o
r p
rop
erty
or
ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es
sale
, pur
chas
e or
sup
ply
of
any
goo
ds
or m
ater
ials
, sel
ling
or
oth
erw
ise
dis
pos
ing
of,
or
buy
ing
, lea
sin
g o
f pro
per
ty
of a
ny
kin
d, a
vaili
ng
or
ren
der
ing
of a
ny
serv
ices
, ap
poi
ntm
ent
of a
gen
t fo
r p
urch
ase
or s
ale
of g
ood
s,
mat
eria
ls, s
ervi
ces
or p
rop
erty
or
oth
erw
ise
dis
pos
ing
of a
ny
goo
ds,
mat
eria
ls o
r p
rop
erty
or
ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es
sale
, pur
chas
e or
sup
ply
of
any
goo
ds
or m
ater
ials
, sel
ling
or
oth
erw
ise
dis
pos
ing
of,
or
buy
ing
, lea
sin
g o
f pro
per
ty
of a
ny
kin
d, a
vaili
ng
or
ren
der
ing
of a
ny
serv
ices
, ap
poi
ntm
ent
of a
gen
t fo
r p
urch
ase
or s
ale
of g
ood
s,
mat
eria
ls, s
ervi
ces
or p
rop
erty
or
oth
erw
ise
dis
pos
ing
of a
ny
goo
ds,
mat
eria
ls o
r p
rop
erty
or
ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es
cD
ura
tion
of
he
con
trac
ts /
ar-
ran
gem
ents
/tra
nsa
ctio
ns
For
all t
ran
sact
ion
s of
till
the
en
d o
f fin
anci
al y
ear
2016
-17
For
all t
ran
sact
ion
s of
till
the
en
d o
f fin
anci
al y
ear
2016
-17
For
all t
ran
sact
ion
s of
till
the
en
d o
f fin
anci
al y
ear
2016
-17
For
all t
ran
sact
ion
s of
till
the
en
d o
f fin
anci
al y
ear
2016
-17
d
Sali
ent
term
s of
th
e co
ntr
acts
or
arr
ange
men
ts o
r tr
ansa
c-ti
ons
incl
ud
ing
the
valu
e, if
an
y
Tota
l tra
nsa
ctio
n v
alue
R
s.20
Mn
Tota
l tra
nsa
ctio
n v
alue
R
s.10
Mn
Tota
l tra
nsa
ctio
n v
alue
R
s.1
Mn
Tota
l tra
nsa
ctio
n v
alue
R
s.11
Mn
eJu
stif
icat
ion
for
en
teri
ng
into
su
ch c
ontr
acts
or
arra
nge
-m
ents
or
tran
sact
ion
s
The
se t
ran
sact
ion
s ar
e en
tere
d
into
as
par
t of
nor
mal
bus
ines
s tr
ansa
ctio
ns
The
se t
ran
sact
ion
s ar
e en
tere
d
into
as
par
t of
nor
mal
bus
ines
s tr
ansa
ctio
ns
The
se t
ran
sact
ion
s ar
e en
tere
d
into
as
par
t of
nor
mal
bus
ines
s tr
ansa
ctio
ns
The
se t
ran
sact
ion
s ar
e en
tere
d
into
as
par
t of
nor
mal
bus
ines
s tr
ansa
ctio
ns
fD
ate(
s) o
f ap
pro
val b
y th
e B
oard
04.0
6.20
1604
.06.
2016
04.0
6.20
1604
.06.
2016
gA
mou
nt
pai
d a
s ad
van
ces,
if
any:
Nil
Nil
Nil
Nil
h
Dat
e on
wh
ich
th
e sp
ecia
l re
solu
tion
was
pas
sed
in
gen
eral
mee
tin
g as
req
uir
ed
un
der
fir
st p
rovi
so t
o se
ctio
n
188
Not
Ap
plic
able
Not
Ap
plic
able
Not
Ap
plic
able
Not
Ap
plic
able
Pla
ce: T
riva
nd
rum
D
r. M
.I. S
ahad
ull
aD
ate:
04.
06.2
016
Ch
airm
an &
Man
agin
g D
irec
tor
D
IN 0
0600
608
2. D
etai
ls o
f m
ater
ial c
ontr
acts
or
arra
nge
men
t or
tra
nsa
ctio
ns
at a
rm’s
len
gth
bas
is
aN
ame(
s) o
f th
e re
late
d
par
ty a
nd
nat
ure
of
rela
tion
ship
Con
dis
In
dia
Hea
lth
care
L
imit
ed
KIM
S P
inn
acle
Can
cer
Car
e an
d R
esea
rch
C
ente
r P
riva
te L
imit
edK
IMS
Tru
stK
IMS
Man
agem
ent
Inte
rnat
ion
al F
ZC
KIM
S K
olla
m M
ult
i Sp
ecia
lity
Hos
pit
al I
nd
ia
Pri
vate
Lim
ited
bN
atu
re o
f co
ntr
acts
/ar
ran
gem
ents
/tr
ansa
ctio
ns
sale
, pur
chas
e or
sup
ply
of
an
y g
ood
s or
mat
eria
ls,
selli
ng
or
othe
rwis
e d
isp
osin
g o
f, or
buy
ing
, le
asin
g o
f pro
per
ty o
f an
y ki
nd
, ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es,
app
oin
tmen
t of
ag
ent
for
pur
chas
e or
sal
e of
g
ood
s, m
ater
ials
, ser
vice
s or
pro
per
ty o
r ot
herw
ise
dis
pos
ing
of a
ny
goo
ds,
m
ater
ials
or
pro
per
ty o
r av
ailin
g o
r re
nd
erin
g o
f an
y se
rvic
es
sale
, pur
chas
e or
sup
ply
of
an
y g
ood
s or
mat
eria
ls,
selli
ng
or
othe
rwis
e d
isp
osin
g o
f, or
buy
ing
, le
asin
g o
f pro
per
ty o
f an
y ki
nd
, ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es,
app
oin
tmen
t of
ag
ent
for
pur
chas
e or
sal
e of
g
ood
s, m
ater
ials
, ser
vice
s or
pro
per
ty o
r ot
herw
ise
dis
pos
ing
of a
ny
goo
ds,
m
ater
ials
or
pro
per
ty o
r av
ailin
g o
r re
nd
erin
g o
f an
y se
rvic
es
sale
, pur
chas
e or
sup
ply
of
an
y g
ood
s or
mat
eria
ls,
selli
ng
or
othe
rwis
e d
isp
osin
g o
f, or
buy
ing
, le
asin
g o
f pro
per
ty o
f an
y ki
nd
, ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es,
app
oin
tmen
t of
ag
ent
for
pur
chas
e or
sal
e of
g
ood
s, m
ater
ials
, ser
vice
s or
pro
per
ty o
r ot
herw
ise
dis
pos
ing
of a
ny
goo
ds,
m
ater
ials
or
pro
per
ty o
r av
ailin
g o
r re
nd
erin
g o
f an
y se
rvic
es
sale
, pur
chas
e or
sup
ply
of
an
y g
ood
s or
mat
eria
ls,
selli
ng
or
othe
rwis
e d
isp
osin
g o
f, or
buy
ing
, le
asin
g o
f pro
per
ty o
f an
y ki
nd
, ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es,
app
oin
tmen
t of
ag
ent
for
pur
chas
e or
sal
e of
g
ood
s, m
ater
ials
, ser
vice
s or
pro
per
ty o
r ot
herw
ise
dis
pos
ing
of a
ny
goo
ds,
m
ater
ials
or
pro
per
ty o
r av
ailin
g o
r re
nd
erin
g o
f an
y se
rvic
es
sale
, pur
chas
e or
sup
ply
of
an
y g
ood
s or
mat
eria
ls,
selli
ng
or
othe
rwis
e d
isp
osin
g o
f, or
buy
ing
, le
asin
g o
f pro
per
ty o
f an
y ki
nd
, ava
ilin
g o
r re
nd
erin
g o
f an
y se
rvic
es,
app
oin
tmen
t of
ag
ent
for
pur
chas
e or
sal
e of
g
ood
s, m
ater
ials
, ser
vice
s or
pro
per
ty o
r ot
herw
ise
dis
pos
ing
of a
ny
goo
ds,
m
ater
ials
or
pro
per
ty o
r av
ailin
g o
r re
nd
erin
g o
f an
y se
rvic
es
cD
ura
tion
of
the
con
trac
ts
/ ar
ran
gem
ents
/tr
ansa
ctio
ns
For
all t
ran
sact
ion
s of
till
th
e en
d o
f fin
anci
al y
ear
2016
-17
For
all t
ran
sact
ion
s of
till
th
e en
d o
f fin
anci
al y
ear
2016
-17
For
all t
ran
sact
ion
s of
till
th
e en
d o
f fin
anci
al y
ear
2016
-17
For
all t
ran
sact
ion
s of
till
th
e en
d o
f fin
anci
al y
ear
2016
-17
For
all t
ran
sact
ion
s of
till
th
e en
d o
f fin
anci
al y
ear
2016
-17
d
Sali
ent
term
s of
th
e co
ntr
acts
or
arra
nge
men
ts o
r tr
ansa
ctio
ns
incl
ud
ing
the
valu
e, if
an
y
Tota
l tra
nsa
ctio
n v
alue
R
s.53
Mn
Tota
l tra
nsa
ctio
n v
alue
R
s.58
Mn
Tota
l tra
nsa
ctio
n v
alue
R
s.2
Mn
Tota
l tra
nsa
ctio
n v
alue
R
s.19
Mn
Tota
l tra
nsa
ctio
n v
alue
R
s.10
Mn
e
Just
ific
atio
n f
or e
nte
rin
g in
to s
uch
con
trac
ts
or a
rran
gem
ents
or
tran
sact
ion
s
The
se t
ran
sact
ion
s ar
e en
tere
d in
to a
s p
art
of n
orm
al b
usin
ess
tran
sact
ion
s
The
se t
ran
sact
ion
s ar
e en
tere
d in
to a
s p
art
of n
orm
al b
usin
ess
tran
sact
ion
s
The
se t
ran
sact
ion
s ar
e en
tere
d in
to a
s p
art
of n
orm
al b
usin
ess
tran
sact
ion
s
The
se t
ran
sact
ion
s ar
e en
tere
d in
to a
s p
art
of n
orm
al b
usin
ess
tran
sact
ion
s
The
se t
ran
sact
ion
s ar
e en
tere
d in
to a
s p
art
of n
orm
al b
usin
ess
tran
sact
ion
s
fD
ate(
s) o
f ap
pro
val b
y th
e B
oard
04.0
6.20
1604
.06.
2016
04.0
6.20
1604
.06.
2016
04.0
6.20
16
gA
mou
nt
pai
d a
s ad
van
ces,
if a
ny:
Nil
Nil
Nil
Nil
Nil
h
Dat
e on
wh
ich
th
e sp
ecia
l res
olu
tion
w
as p
asse
d in
gen
eral
m
eeti
ng
as r
equ
ired
u
nd
er f
irst
pro
viso
to
sect
ion
188
Not
Ap
plic
able
Not
Ap
plic
able
Not
Ap
plic
able
Not
Ap
plic
able
Not
Ap
plic
able
29
KH
ML
21st
An
nua
l Rep
ort
2015
-201
6
28
KIMS CSR POLICY
1. PREAMBLE:
With effect from April 1, 2014, every company, private limited or public limited, which either has a net worth of Rs 500 crore or a turnover of Rs.1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility activities. The CSR activities should not be undertaken in the normal course of business and must be with respect to any of the activities mentioned in Schedule VII of the 2013 Act.
KIMS, is a corporate entity committed to serve the people by provision of healthcare in line with our mission statement: Care with Courtesy, Compassion and Competence. Our strategic Corporate Social Responsibility (CSR) initiatives are based on social and environmental consequences and at the same time, due consideration is given to the interests of its stakeholders including shareholders, customers, employees, suppliers, business partners, local communities and other organizations.
2. PURPOSE:
The key objective of this policy is to:-
• Define what CSR means to us and the approach adopted to achieve our goals
• Define the kind of projects that will come under CSR
• Identify broad areas of intervention in which the company will undertake projects
• Serve as a guiding document to help execute and monitor CSR projects
• Budget the expenditure for CSR activities for the year
• Explain the manner in which the surpluses from CSR projects will be treated
3. POLICY STATEMENT:
The CSR Policy of KIMS focuses on addressing social, environmental and economic needs of the marginalized/underprivileged sections of the society. Through this policy, we align our CSR strategy with the company’s vision and goals. We adopt an approach that integrates the solutions to
these problems into the strategies of the company to benefit the communities at large and create social and environmental impact.
4. SCOPE OF CSR ACTIVITIES:
We classify only those projects that are over and above our normal course of business as CSR. The scope of CSR will not only have a wide impact on the society and community at large, but will also remain committed towards sustainable development and inclusive growth. This policy applies to all our CSR projects and will be further reviewed and updated.
5. GOVERNANCE:
The CSR Committee of KIMS will consist of three Directors of the Company and one Advisory Member – Dr.M.I.Sahadulla, Mr.E.M.Najeeb, Mr.K.Jalaludeen and Mr.G.Vijayaraghavan. The convenor of the committee will be Ms.Vasuki Devadas, Sr.Manager-CSR. The responsibilities of the CSR Committee include:
a) Formulate and recommend to the Board, a CSR Policy which shall indicate the activities to be undertaken, as specified in Schedule VII of the Companies Act 2013.
b) Recommend the amount of budgeted expenditure to be incurred on the activities referred to in clause 5 a) above.
c) Monitor the CSR policy and activities of the company on a quarterly basis.
d) Approve projects/activities of value which are outside the gambit of Schedule VII
6. KEY FOCUS AREAS:
The chosen KIMS CSR projects relating to activities specified in Schedule VII of the Companies Act, 2013:
• Promoting preventive healthcare
• Employment for persons with disability (PWD)
• Promotion of gender equality and empowering
women
• Setting up and providing facilities for
Old-age Homes
• Ensuring environmental sustainability
• Promoting education
• Others, as maybe identified in the future
1. A brief outline of the company’s CSR Policy,
including overview of projects or programs
propose to be undertaken and a reference to
the web-link to the CSR policy and projects or
programs
• CSR policy of company is given below
•Web-link: trivandrum.kimsglobal.com/csr-policy/
2. The Composition of the CSR Committee
1. Dr.M.I.Sahadulla : Chairman 2. Dr.G.Vijayaraghavan : Member 3. Mr.E M Najeeb : Member 4. Mr.C H A Raheem : Member 5. Mr.K Jalaluddin : Member 6. Mr.K Radhakrishnan : Member
3. Average net profit of the company for the last
three financial years
Rs. 402,816,788/-4. Prescribed CSR Expenditure (two percent of
the amount as in item 3 above)
Rs. 8,056,335/-5. Details of CSR spent during the financial year
a) Total amount to be spent for the financial
year 8,521,607/- b) Amount unspent, if any NIL c) Manner in which the amount spent during
the financial year is detailed below
ANNUAL REPORT OF CORPORATE SOCIAL RESPONSIBILITIES ACTIVITIES[Pursuant to Section 135 of Companies Act, 2013 and Rule 8 of The Companies
(Corporate Social Responsibility Policy) Rules, 2014]
Sl. no.
CSR Project or activ-ity identified
Sector in which the Project is covered
Projects or pro-grams (1) Local area or other (2) Specify the State and district where projcets or programs was undertaken
Amount outlay (budget) project or pro-grams wise
Amount spent on the projects or programs Sub-heads: (1) Direct expendi-tur on projects or programs. (2) Overheads
Cumu-lative expendi-ture upto to the reporting period
Amount spent: Direct or through imple-menting agency
1 Promotion of preventive healthcare
- - - - - -
2 Free surgeries for underprivileged
HealthcareTrivandrum, Kerala
NA 7,520,852 7,520,852 Direct
3 Subsidized healthcare for underprivileged
- - - - - -
4 Ensuring environmental sustainability
- - - - - -
5 Promotion of SportsSports
Trivandrum, Kerala
NA 243,625 243,625 Direct
6 Employment of differently-abled persons
Empowerment of differently
abled persons
Trivandrum, Kerala
NA 237,130 237,130 Direct
7 Promotion of Education
EducationTrivandrum, Kerala
NA 520,000 520,000 Direct
TOTAL 8,521,607 8,521,607
ANNEXURE III
KIMS HEALTHCARE MANAGEMENT LIMITED
Dr. M.I Sahadulla Chairman & Managing Director [DIN 00600608]
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I. REGISTRATION & OTHER DETAILS:
1. CIN U85110KL1995PLC009336
2. Registration Date 17.08.1995
3. Name of the Company KIMS HEALTHCARE MANAGEMENT LIMITED
4. Category/Sub-category of the Company Company Limited by Shares
5. Address of the Registered office & contact details PB No.01, Anayara PO, Trivandrum
Kerala 695029, Ph: 0471-2557165, 3041307
Fax : 0471-2446535
E Mail: [email protected]
6. Whether listed company No 7. Name, Address & contact details of the Registrar & Transfer Agent, if any. NA
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (All the business activities contributing 10 % or more of the total turnover of the company shall be stated)
FORM NO. MGT 9EXTRACT OF ANNUAL RETURNAs on financial year ended on 31.03.2016
Pursuant to Section 92 (3) of the Companies Act, 2013 and rule 12(1) of the Company(Management & Administration) Rules, 2014.
ANNEXURE IV
Sl. No.
Name and Address of the Company
CIN/GLN Holding /Subsidiary /
Associate
Percentage of Holding
Applicable Section
1 Condis India Healthcare Limited, Mullassery Tower, Ground Floor, Punnen Road, Vandross Junction, Secretariate PO, Trivan-drum 695033
U74999KL2006PLC019208 HoldingCompany
59.28 * 2(46)
2 KIMS Cancer Care and Research Center Private Limited, PB No.01, Anayara PO, Trivandrum 695029
U85110KL2008PTC022467 Subsidiary Company
86.94 2(87)
3 KIMS Kollam Multi Special-ity Hospital India Private Limited, PB No.01, Anayara PO, Trivandrum 695029
U85110KL2013PTC033566 Subsidiary Company
63.54 2(87)
Sl. No. Name and Description of main products / services
NIC Code of the Product/service
% to total turnover of the company
1 Healthcare 861 100
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES -
7. IDENTIFICATION OF PROJECTS:
Any new projects and activities of CSR will be appraised by the sub-committee and screened before submission for approval to the CSR Committee. The sub-committee will consist of Ms.Vasuki Devadas, Sr Manager-CSR, Mr.Iqbal, Director-SS, Ms.Harifa, Group Head Finance & Accounts and Mr.Jerry Philip, Group Head Healthcare Operations.
8. CSR BUDGET:
The total budget for the CSR projects will be decided by the CSR Committee. The Companies Act, 2013 stipulates that at least 2% of the average of net profits of the company made during the three immediate preceding financial years shall be earmarked as CSR budget.
9. TREATMENT OF SURPLUS:
Any surplus generated from CSR projects will be tracked and channelized into the CSR corpus. These funds will be further used in development of the CSR projects and will not be added to the normal business profits of the company.
10.DUTIES & RESPONSIBILITIES OF CSR STAFF:
a. Will report to Sr.Manager - CSR
b. Will be responsible for overall activities in CSR
department
c. Monitor the CSR activities approved by the CSR
Committee for each quarter
d. Schedule the activities planned for next
quarter.
e. Maintain accounts for all CSR activities
f. Document all Free & subsidized health/medical
camps conducted by marketing department
g. Document all Free surgeries conducted under
the Hrdayaspandanam, Guruvandanam, etc
h. Coordinate free Antenatal classes on weekly
basis
i. Collect proof of income from poor patients and
submit for recommendation of CSR discount.
j. Socio-economic assessment of poor patients
requesting discounts in bill.
k. Conduct health and hygiene awareness
programs in schools and rural areas
l. Visit Care Home, Pulaynarkottah (Govt run Old-
Age Home) every month
m. Coordinate recreational activities for inmates of
Old-Age Home.
n. Participation in free medical camps and
public interactive sessions along with marketing
department.
o. Any other duties that are assigned by the
management from time to time
11. ELIGIBILITY CRITERIA FOR DISCOUNTS:
Patients are assessed by CSR Executive on the basis of financial background, support from government and other groups and frequency of admission. Sufficient documentation is collected and the request for discount is classified into Category A, B or C.
Category C – 15% discount on room rent, ventilator & procedure and 10% on investigations:
i. Family monthly income is below Rs.6000/.
ii. Unemployed/Pensioner with a pension amount of less than Rs.8000/-
iii. Senior citizen without financial support from children or others
iv. Employed but long absence from work due to illness
v. Hospital bill amount Rs.2.5 lakh and above.
Category B – 12.5% discount on room rent, 10% on ventilator & procedure and 7.5% on investigations:
i. Family monthly income is below Rs.10,000/.
ii. Senior citizen with financial support less than Rs.10,000/-
iii. Hospital bill amount Rs.2 lakh and above.
Category A - 10% discount on room rent, ventilator & procedure and 5% on investigations:
i. Family monthly income is below Rs.15,000/.
ii. Senior citizen with financial support less than Rs.12,000/-
iii. Chronic disease patient
iv. Hospital bill amount is less than Rs.2 lakh.
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(2) Foreign
- - - - - - - - -
a) NRI Individual
- - - 0.00% - - - 0.00% 0.00%
b) Other indicidual
- - - 0.00% - - - 0.00% 0.00%
c) Bodies Corp.
- - - 0.00% - - - 0.00% 0.00%
d) Banks / FI
- - - 0.00% - - - 0.00% 0.00%
e) Any other - - - 0.00% - - - 0.00% 0.00%
Sub Total A (2)
0.00% - - - 0.00% 0.00%
TOTAL (A) 28,993,696 28,993,696 41.40% - 29,588,595 29,588,595 42.25% 2.05%
B. Public - - - - - - - - -
1. Institu-tions
- - - - - - - - -
a) Mutual Funds
- - - 0.00% - - - 0.00% 0.00%
b) Banks / FI
- - - 0.00% - - - 0.00% 0.00%
c) Central Govt
- - - 0.00% - - - 0.00% 0.00%
d) State Govt(s)
- - - 0.00% - - - 0.00% 0.00%
e) Venture Capital Funds
- - - 0.00% - - - 0.00% 0.00%
f) Insurance Companies
- - - 0.00% 0.00% 0.00%
g) FIIs - - - 0.00% - - - 0.00% 0.00%
h) Foreign Venture Capital Funds
- - - 0.00% - - - 0.00% 0.00%
i) Others (specify)
- - - 0.00% - - - 0.00% 0.00%
Sub-total (B)(1):-
- - - 0.00% - - - 0.00% 0.00%
2. Non- In-stitutions
a) Bodies Corp.
- - - - - - - - -
i) Indian - 625 625 0.00% - 625 625 0.00% 0.00%
ii) Overseas
- 625 625 0.00% - 625 625 0.00% 0.00%
b) Individu-als
- - -
4 KIMS Bellerose Institute of Medical Sciences Private Limited, PB No.01, Anayara PO, Trivandrum 695029
U85110KL2010PTC026107 Subsidiary Company
78.93 2(87)
5 KIMS Nagercoil Institute of Medical Sciences Private Limited, PB No.01, Anayara PO, Trivandrum 695029
U74999KL2014PTC036894 Subsidiary Company
52.00 2(87)
6 KIMS AL Shifa Healthcare Private Limited, TC 14/2008, PB No.01, Anayara PO, Trivandrum 695029
U85110KL2000PTC013813 Subsidiary Company
51.00 2(87)
7 * * Al Shifa Scan Centre Private Limited, TC 14/2008, PB No.01, Anayara PO, Trivandrum 695029
U85195KL1996PTC010066 Subsidiary Company
100.00 2(87)
8 * * Bibi Hospitals Private Limited ,H No. 16-3-991/1/C, Malakpet, Hyderabad - 500036, Telangana, INDIA
U74900TG2015PTC098172 Subsidiary Company
81.75 * 2(87)
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
I) CATEGORY-WISE SHARE HOLDING
Category of Sharehold-ers
No. of Shares held at the beginning of the year [As on 31-March-2015]
No. of Shares held at the end of the year[As on 31-March-2016]
“% Change
dur-ing the year”
Demat Physical Total% of Total
SharesDemat Physical Total
% of Total
Shares
A.Promoters
(1) Indian
a) Individu-al/ HUF
- 244,513 244,513 0.35% 419,012 419,012 0.60% 71.37%
b) Central Govt
- - - 0.00% - - - 0.00% 0.00%
c) State Govt(s)
- - - 0.00% - - - 0.00% 0.00%
d) Bodies Corp.
- 28,749,183 28,749,183 41.06% - 29,169,583 29,169,583 41.66% 1.46%
e) Banks / FI
- - - 0.00% - - - 0.00% 0.00%
f) Any other - - - 0.00% - - - 0.00% 0.00%
Sub Total A (1)
28,993,696 28,993,696 41.40% - 29,588,595 29,588,595 42.25% 2.05%
* Includes both Equity shares and Preference Shares * * Al Shifa Scan Centre Private Limited is a subsidiary of KIMS Al Shifa Healthcare Private Limited and
Bibi Hospitals Private Limited is a subsidiary of KIMS Cancer Care and Research Center Private Limited
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II) SHAREHOLDING OF PROMOTER
Sl No
Shareholder’s NameShareholding at the beginning of the year [As on 01.04.2015]
“Shareholding at the end of the year [As on 31.03.2016]” %
change in
share-hold-ing
during the year
No. of Shares
% of total
Shares of the com-pany
%of Shares
Pledged / en-cum-bered
to total shares
No. of Shares
% of total
Shares of the com-pany
%of-hares
Pledged / encum-
bered to total shares
1 Dr.M.I.Sahadulla 25,000 0.04% Nil 25,000 0.04% Nil 0.00%
2 Dr.G.Vijayaraghavan 1,250 0.00% Nil 1,250 0.00% Nil 0.00%
3 Mr.E.M.Najeeb 25,000 0.04% Nil 25,000 0.04% Nil 0.00%
4 Mr.C.H.A.Raheem 100 0.00% Nil 100 0.00% Nil 0.00%
5 Mr.E.Iqbal 1,000 0.00% Nil 1,000 0.00% Nil 0.00%
6 Dr.Sheriff M Sahadulla 1250 0.00% Nil 1,250 0.00% Nil 0.00%
7 Dr.M.A.Mohammed 1000 0.00% Nil 1,000 0.00% Nil 0.00%
8 Mr.Aariz Illias Sahadulla 41750 0.06% Nil 41,750 0.06% Nil 0.00%
9 M/s.Condis India Health-care Limited
28749183 41.06% Nil 29,169,583 41.66% Nil 1.46%
10 Ms.Bayan Sudheer 14000 0.02% Nil 14,000 0.02% Nil 0.00%
11 Mr.Adhan Sahadulla 10000 0.01% Nil 20,000 0.03% Nil 100.00%
12 Mr.Muhammed Samer Sahadulla
45163 0.06% Nil 60,163 0.09% Nil 33.21%
13 Mrs.Zubaida Rahim 50000 0.07% Nil 50,000 0.07% Nil 0.00%
14 Mr.Dawood Samer Sahadulla
16000 0.02% Nil 31,000 0.04% Nil 93.75%
15 Mr.Hisham A Rahim 13000 0.02% Nil 13,000 0.02% Nil 0.00%
16 Ms.Kadeeja Maseeja Nil 0.00% Nil 17,450 0.02% Nil 0.00%
17 Innaya Minaal Zaheer Nil 0.00% Nil 10,000 0.01% Nil 0.00%
18 Mr.Samer Sahadulla Nil 0.00% Nil 10,000 0.01% Nil 0.00%
19 Azar Sheriff Sahadulla Nil 0.00% Nil 10,000 0.01% Nil 0.00%
20 Ms.Reshmi Aysha Nil 0.00% Nil 26,700 0.04% Nil 0.00%
21 Yusuf Samer Sahadulla Nil 0.00% Nil 20,000 0.03% Nil 0.00%
22 Dr.P.M.Zuhara Nil 0.00% Nil 10,000 0.01% Nil 0.00%
23 Ms.Ramla Iqbal Nil 0.00% Nil 8,333 0.01% Nil 0.00%
24 Sherin Ayyoob Nil 0.00% Nil 5,350 0.01% Nil 0.00%
25 Dr.Saffia P M Nil 0.00% Nil 16,666 0.02% Nil 0.00%
TOTAL 28,993,696 41.40% Nil 29,588,595 42.25% Nil 2.05%
III) CHANGE IN PROMOTERS’ SHAREHOLDING (Please Specify, If There Is No Change)
Sl No.
Particulars
Shareholding at thebeginning of the year
Cumulative Shareholding during the year
No. of shares% of total shares of the company
No. of shares% of total shares of
the company
1 At the beginning of the year 28,993,696 41.40% 0.00%
2 Changes during the year 28,993,696 41.40%
i) Individual sharehold-ers holding nominal share capi-tal upto Rs. 1 lakh
- 209,113 209,113 0.30% - 241,380 241,380 0.34% 15.43%
ii) Indi-vidual sharehold-ers holding nominal share capi-tal in excess of Rs 1 lakh
- 40,821,010 40,821,010 58.29% - 40,193,844 40,193,844 57.40% -1.54%
c) Others (specify)
- - - 0.00% - - - 0.00% 0.00%
Non Resident Indians
- - - 0.00% - - - 0.00% 0.00%
Overseas Corporate Bodies
Foreign Nationals
- - - 0.00% - - - 0.00% 0.00%
Clearing Members
- - - 0.00% - - - 0.00% 0.00%
Trusts - - - 0.00% - - - 0.00% 0.00%
Foreign Bodies - D R
- - - 0.00% - - - 0.00% 0.00%
Sub-total (B)(2):-
41,031,373 41,031,373 58.60% - 40,436,474 40,436,474 57.75% -1.45%
Total Public (B)
- 41,031,373 41,031,373 58.60% - 40,436,474 40,436,474 57.75% -1.45%
C. Shares held by Custodian for GDRs & ADRs
- - - 0.00% - - - 0.00% 0.00%
Grand Total (A+B+C)
- 70,025,069 70,025,069 - 70,025,069 70,025,069
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V) SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:
Sl No.
Shareholding of each Directors and each Key Managerial Person-
nel
Date
Reason
“Shareholding at the beginning of the year”
“Cumulative Share holding during the
year”
No. of shares
% of total shares of the company
No. of shares
% of total
shares
Dr M.I.Sahadulla, Chairman and Managing Director
1 At the beginning of the year 01.04.2015 25,000 0.04% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 25,000 0.04% 25,000 0.04%
8 Mrs.Beena Muraleedharan
At the beginning of the year 01.04.2015 625,000 0.89% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 625,000 0.89% 625,000 0.89%
9 Mr. Aboobacker Kunju Asiff
At the beginning of the year 01.04.2015 577,800 0.83% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 577,800 0.83% 577,800 0.83%
10 Mr. Raveendran Pillai B.
At the beginning of the year 01.04.2015 545,700 0.78% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 545,700 0.78% 545,700 0.78%
Mr. E. M. Najeeb, Executive Director
1 At the beginning of the year 01.04.2015 25,000 0.04% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 25,000 0.04% 25,000 0.04%
Mr.C. H. A Raheem, Executive Director
1 At the beginning of the year 01.04.2015 100 0.00% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 100 0.00% 100 0.00%
Mr. E. Iqbal, Executive Director
1 At the beginning of the year 01.04.2015 1,000 0.00% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 1,000 0.00% 1,000 0.00%
Dr. G Vijayaraghavan, Vice Chairman and Director
1 At the beginning of the year 01.04.2015 1,250 0.00% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 1,250 0.00% 1,250 0.00%
3 Share Transfer on 28.05.2015 554,733 0.79% 29,548,429 42.20%
4 Share Transfer on 29.07.2015 10,700 0.02% 29,559,129 42.21%
5 Share Transfer on 04.11.2015 10,700 0.02% 29,569,829 42.23%
6 Share Transfer on 04.02.2016 18,766 0.03% 29,588,595 42.25%
At the end of the year 29,588,595 42.25%
IV) SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS: (Other than Directors, Promoters and Holders of GDRs and ADRs):
Sl No.
For each of the Top 10 share-holders
Date Rea-son
“Shareholding at the beginning of the
year”
Shareholding at the end
of the year
No. of shares
% of total shares of the com-
pany
No. of shares
% of total
shares of the com-pany
1 Mr. Neeleshwar Bhatnagar
At the beginning of the year 01.04.2015 1,250,000 1.79% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 1,250,000 1.79% 1,250,000 1.79%
3 Mr.Sheik Meeran Liaquet Ali Khan
At the beginning of the year 01.04.2015 802,500 1.15% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 802,500 1.15% 802,500 1.15%
2 Mr.K.M.Kader
At the beginning of the year 01.04.2015 901,666 1.29% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 901,666 1.29% 901,666 1.29%
4 Mr. Ajayachandran Nair K.G
At the beginning of the year 01.04.2015 749,000 1.07% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 749,000 1.07% 749,000 1.07%
5 Mr. Alukkas Varghese Joy
At the beginning of the year 01.04.2015 735,000 1.05% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 735,000 1.05% 735,000 1.05%
6 Dr. Yoosaf Abdul Nazer
At the beginning of the year 01.04.2015 701,554 1.00% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 701,554 1.00% 701,554 1.00%
7 Mr.Saif Malik
At the beginning of the year 01.04.2015 657,934 0.94% - 0.00%
Changes during the year - 0.00% - 0.00%
At the end of the year 31.03.2016 657,934 0.94% 657,934 0.94%
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Sl No.
Shareholding of each Directors and each Key Managerial
Personnel
Date
Reason
“Shareholding at the beginning of the year”
“Cumulative Share holding during the
year”
No. of shares
% of total shares of the company
No. of shares
% of total
shares
Mr. T. C. Wilson, Director
1 At the beginning of the year 01.04.2015 937,500 1.34% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 937,500 1.34% 937,500 1.34%
Mr. V. Radhakrishnan, Director
1 At the beginning of the year 01.04.2015 1,211,458 1.73% - 0.00%
2 Changes during the year - 0.00% - 0.00%
3 At the end of the year 31.03.2016 1,211,458 1.73% 1,211,458 1.73%
Dr. P.M. Zuhara, Director
1 At the beginning of the year 01.04.2015 - 0.00% - 0.00%
2 Changes during the year - 0.00% - 0.00%
3 At the end of the year 31.03.2016 24,286 0.03% 24,286 0.03%
Dr. Sunny Sharma, Director
1 At the beginning of the year 01.04.2015 - 0.00% - 0.00%
2 Changes during the year - 0.00% - 0.00%
3 At the end of the year 31.03.2016 - 0.00% - 0.00%
Mr. Sunil Kumar Kolangara, Director
1 At the beginning of the year 01.04.2015 - 0.00% - 0.00%
2 Changes during the year - 0.00% - 0.00%
3 At the end of the year 31.03.2016 - 0.00% - 0.00%
Mr. Binu K.B, Company Secretary
1 At the beginning of the year 01.04.2015 - 0.00% - 0.00%
2 Changes during the year - 0.00% - 0.00%
3 At the end of the year 31.03.2016 - 0.00% - 0.00%
VI) INDEBTEDNESS - Indebtedness of the Company including interest outstanding/accrued but not due for payment.
Particulars Secured Loans excluding deposits
Unsecured Loans
Deposits TotalIndebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 1,516,459,842.00 57,201,574.00 5,000,000.00 1,578,661,416.00
ii) Interest due but not paid - - 1,537,259.00 1,537,259.00
iii) Interest accrued but not due 9,949,046.00 539,954.00 - 10,489,000.00
Total (i+ii+iii) 1,526,408,888.00 57,741,528.00 6,537,259.00 1,590,687,675.00
Sl No.
Shareholding of each Directors and each Key Managerial
Personnel
Date
Reason
“Shareholding at the beginning of the year”
“Cumulative Share holding during the
year”
No. of shares
% of total shares of the company
No. of shares
% of total
shares
Mr. K Muraleedharan, Director
1 At the beginning of the year 01.04.2015 668,750 0.96% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 668,750 0.96% 668,750 0.96%
Mr. K Radhakrishnan, Director
1 At the beginning of the year 01.04.2015 1,005,125 1.44% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 1,005,125 1.44% 1,005,125 1.44%
Mr. Ahmed Koya Mukthar, Director
1 At the beginning of the year 01.04.2015 623,125 0.89% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 623,125 0.89% 623,125 0.89%
Mr. Naseerudeen T.M., Director
1 At the beginning of the year 01.04.2015 500,000 0.71% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 500,000 0.71% 500,000 0.71%
Mr. N. Sathyadevan, Director
1 At the beginning of the year 01.04.2015 802,500 1.15% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 802,500 1.15% 802,500 1.15%
Mr. Kabeer Jalaluddin, Director
1 At the beginning of the year 01.04.2015 535,000 0.76% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 535,000 0.76% 535,000 0.76%
Dr. Sheriff M Sahadulla, Director
1 At the beginning of the year 01.04.2015 1,250 0.00% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 1,250 0.00% 1,250 0.00%
Dr. M. A. Mohammed, Director
1 At the beginning of the year 01.04.2015 1,000 0.00% 0.00%
2 Changes during the year 0.00% 0.00%
3 At the end of the year 31.03.2016 1,000 0.00% 1,000 0.00%
41
KH
ML
21st
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-201
6
40
B.
Rem
un
erat
ion
to
oth
er d
irec
tors
Sl
No
Par
ticu
lars
of
Rem
un
erat
ion
Nam
e of
Dir
ecto
rsTo
tal A
mou
nt
Mr.K
.Mur
ale
edha
ran
Mr.K
.Rad
hakr
ishn
anM
r.A.K
.M
ukth
arM
r.P.M
. Naz
rud
din
Dr.M
.A.
Moh
amm
ed(R
s/L
ac)
1In
dep
end
ent
Dir
ecto
rs
Fee
for
atte
nd
-in
g b
oard
com
-m
itte
e m
eeti
ng
s
--
--
-
Com
mis
sion
--
--
-
Oth
ers,
ple
ase
spec
ify
--
--
-
Tota
l (1)
--
--
-
2O
ther
Non
-Exe
c-ut
ive
Dir
ecto
rs
Fee
for
atte
nd
-in
g b
oard
com
-m
itte
e m
eeti
ng
s
50,
000.
00 2
5,00
0.00
2
5,00
0.00
50,0
00.0
0 1
00,0
00.0
0 2,
50,0
00
Com
mis
sion
--
--
-
Oth
ers,
ple
ase
spec
ify
--
--
-
Tota
l (2)
50,
000.
00
25,
000.
00
25,
000.
00
50,
000.
00
100
,000
.00
2,50
,000
Tota
l (B
)=(1
+2)
50,
000.
00
25,
000.
00
25,
000.
00
50,
000.
00
100
,000
.00
2,50
,000
Tota
l Man
age-
rial
Rem
un
era-
tion
--
--
-
Ove
rall
Cei
lin
g as
per
th
e A
ct4,
00,0
004,
00,0
004,
00,0
004,
00,0
004,
00,0
0020
,00,
000
VII. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL- A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl no
Particulars of Remuneration
Name of MD/WTD/ ManagerTotal
Amount
1 Gross salary Dr.M.I.Sahadulla
Dr.G.Vi-
jayaragha-van
Mr.E.MNajeeb
Mr.C.H.A.Raheem
Mr.E.Iqbal
Designation Chairman & Managing Director
Vice Chair-man &
Executive Director
Executive Director
Executive Director
Executive Director
(a) Salary as per provisions con-tained in section 17(1) of the Income-tax Act, 1961
1,66,05,000 80,85,000 89,69,000 89,69,000 4,48,900 4,30,76,900
(b) Value of per-quisites u/s 17(2) Income-tax Act, 1961
- 61,725 - - - 61,725
(c) Profits in lieu of salary under sec-tion 17(3) Income- tax Act, 1961
- - - - - -
2 Stock Option - - - - - -3 Sweat Equity - - - - - -4 Commission
- as % of profit- others, specify…
- - - - - -
5 Others, please specify (professional fees)
- 36,00,000 - - - 36,00,000
Total (A) 1,66,05,000 1,17,46,725 89,69,000 89,69,000 4,48,900 4,67,38,675
Ceiling as per the Act 6 % of N/P 5 % of N/P 5 % of N/P 5 % of N/P 5 % of N/P 10 % of N/P
Change in Indebtedness during the financial year
* Addition - - -
* Reduction 777,719,095.00 2,423,193.00 - 780,142,288.00
Net Change 777,719,095.00 2,423,193.00 - 780,142,288.00
Indebtedness at the end of the financial year
i) Principal Amount 738,740,747.00 54,778,381.00 5,000,000.00 798,519,128.00
ii) Interest due but not paid - - 1,857,259.00 1,857,259.00
iii) Interest accrued but not due 2,594,265.00 642,621.00 - 3,236,886.00
Total (i+ii+iii) 741,335,012.00 55,421,002.00 6,857,259.00 803,613,273.00
43
KH
ML
21st
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-201
6
42
C. R
emun
erat
ion
To
Key
Man
ager
ial P
erso
nn
el O
ther
Tha
n M
d/M
anag
er/W
td
Sl N
o.P
arti
cula
rs o
f R
emu
ner
atio
n
CE
OC
FO
CS
TO
TAL
1G
ross
sal
ary
(a)
Sala
ry a
s p
er p
rovi
sion
s co
nta
ined
in s
ecti
on 1
7(1)
of t
he I
nco
me-
tax
Act
, 196
1-
89,6
9,00
024
,41,
680
1,14
,10,
680
(b)
Val
ue o
f per
qui
site
s u/
s 17
(2)
Inco
me-
tax
Act
, 196
1-
-21
,600
21
,600
(c)
Pro
fits
in li
eu o
f sal
ary
und
er s
ecti
on 1
7(3)
In
com
e- t
ax A
ct, 1
961
--
--
2St
ock
Op
tion
--
--
3Sw
eat
Eq
uity
--
--
4C
omm
issi
on-
as
% o
f pro
fit
- o
ther
s, s
pec
ify…
--
--
5O
ther
s, p
leas
e sp
ecif
y-
--
-
Tota
l-
89,6
9,00
024
,63,
280
1,14
,32,
280
VII
. PE
NA
LTIE
S /
PU
NIS
HM
EN
T/
CO
MP
OU
ND
ING
OF
OF
FE
NC
ES:
Typ
eSe
ctio
n o
f th
e C
omp
a-n
ies
Act
Bri
ef D
escr
ipti
onD
etai
ls o
f P
enal
ty /
P
un
ish
men
t/ C
om-
pou
nd
ing
fees
imp
osed
Au
thor
ity
[RD
/ N
CLT
/ C
OU
RT
]A
pp
eal m
ade,
if a
ny
(giv
e D
etai
ls)
A. C
OM
PAN
Y
Pen
alty
NA
NA
NA
NA
NA
Pun
ishm
ent
NA
NA
NA
NA
NA
Com
pou
nd
ing
NA
NA
NA
NA
NA
B. D
IRE
CT
OR
S
Pen
alty
NA
NA
NA
NA
NA
Pun
ishm
ent
NA
NA
NA
NA
NA
Com
pou
nd
ing
NA
NA
NA
NA
NA
C. O
TH
ER
OF
FIC
ER
S IN
DE
FAU
LT
Pen
alty
NA
NA
NA
NA
NA
Pun
ishm
ent
NA
NA
NA
NA
NA
Com
pou
nd
ing
NA
NA
NA
NA
NA
Sl
No
Par
ticu
lars
of
Rem
un
erat
ion
Nam
e of
Dir
ecto
rsTo
tal A
mou
nt
Mr.
N.
Sath
yad
evan
Mr.
Kab
eer
Ja
lalu
dd
inM
r.T. C
.W
ilson
Mr.V
. R
adha
kris
hnan
Dr.S
heri
ff M
Sa
had
ulla
Dr.
P. M
Zuh
ara
(Rs/
Lac
)
1In
dep
end
ent
Dir
ecto
rs
Fee
for
atte
nd
-in
g b
oard
com
-m
itte
e m
eeti
ng
s
--
--
-
Com
mis
sion
--
--
-
Oth
ers,
ple
ase
spec
ify
--
--
-
Tota
l (1)
--
--
-
2O
ther
Non
-Exe
c-ut
ive
Dir
ecto
rs
Fee
for
atte
nd
-in
g b
oard
com
-m
itte
e m
eeti
ng
s
100
,000
.00
75,
000.
00 1
00,0
00.0
0 1
00,0
00.0
0-
-6,
25,0
00
Com
mis
sion
--
--
--
Oth
ers,
ple
ase
spec
ify
--
--
--
Tota
l (2)
100
,000
.00
75,
000.
00 1
00,0
00.0
0 1
00,0
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0-
-6,
25,0
00
Tota
l (B
)=(1
+2)
100
,000
.00
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000.
00 1
00,0
00.0
0 1
00,0
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-6,
25,0
00
Tota
l Man
age-
rial
Rem
un
era-
tion
--
--
-
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rall
Cei
lin
g as
per
th
e A
ct4,
00,0
004,
00,0
004,
00,0
004,
00,0
00-
36,0
0,00
0
45
KH
ML
21st
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l Rep
ort
2015
-201
6
44
CORPORATE GOVERNANCE REPORT
1. A brief statement on company’s philosophy on code of governance.
KIMS believes that corporate governance provides the framework for attaining company’s objectives.Corporate governance encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.Thus, Your Company considers the board of directors as the primary direct stakeholder influencing corporate governance. The board is tasked with making important decisions, while in some instances, board obligations stretch beyond financial optimization, when shareholder resolutions call for certain concerns to be prioritized. This
objective extends not merely to comply with the statutory requirements but by putting into place procedures and systems, which are in accordance with the best practice of governance. Your Company strongly believes that good corporate governance creates a transparent set of rules and controls in which shareholders, directors and officers have aligned incentives.
2. Board of Directors: a. Composition and category of directors, for
example, promoter, executive, nonexecutive, independent nonexecutive, nominee director, which institution represented as lender or as equity investor
We love the care we receive from the nurses and doctors like our son who is abroad with his job
47
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Mr. Jalal DheenAdvisory Board Member
Mr. Sunil Kumar KolangaraNominee Director[DIN 00022480]
Dr. Sunny SharmaNominee Director[DIN 002267273]
Mr. M.G.PushpakaranAdvisory Board Member
Mr.J.M.Abdul AzizAdvisory Board Member
Mr.AlukkasVarghese Joy Advisory Board Member
Mr.G.RaghavanAdvisory Board Member
Mr. K.M. KhaderAdvisory Board Member
Mr. Liaquet Ali Khan.SAdvisory Board Member
PadmasreeDr.B. Raveendran Pillai
Advisory Board Member
Mr.K.G.Ajayachandran NairAdvisory Board Member
Mr. A.K AsiffAdvisory Board Member
Mr. Neeleshwar BhatnagarAdvisory Board Member
Sr. No. Number of Board Meeting Date of Board Meeting
1 89th Board Meeting 30th May,2015
2 90th Board Meeting 31st July, 2015
3 91st Board Meeting 07th November, 2015
4 92nd Board Meeting 05th February, 2016
b. Number of Board Meetings and the date on which it is held
c. Attendance of each director at the Board Meetings and the last AGM
Name of Director
Number of Board
Meetings held
Number of Board
Meetings attended
Last AGM attendance
(Yes/No)
Number of Directorship other than
KHML
Number of other Boards or Board Committees in which he/she
is a member or Chairperson
Dr. M. I. Sahadulla 4 4 Yes 11 06 - Chairperson
Padmasree Prof. Dr. G Vijayaraghavan
4 3 Yes 06 04 - Member
Mr. E. M. Najeeb 4 4 Yes 14 03 - Member
Board of Directors & Advisors
Dr. M I SahadullaMD, F.R.C.P (IRELAND), M.B.A (Hull, U.K), F.R.C.P (LON)
Chairman & Managing Director[DIN 00600608]
Mr. E.M Najeeb MBA,D.J
Executive Director[DIN 00100234]
PadmasreeProf.Dr.G Vijayaraghavan
M.D,D.M (Cardiology),F.R.C.P (Edin),
FACC, F.R.C.P (LON)
Vice Chairman & Director[DIN 00751450]
Mr. C.H.A Raheem, CA Executive Director
Corporate Finance & CFO[DIN 02243301]
Mr. T.C. WilsonDirector
[DIN 00198998]
Mr. Vijayan RadhakrishnanDirector
[DIN 00040305]
Dr. M.A. MohamedDirector[DIN 00169699]
Dr. Sheriff M. SahadullaDirector
[DIN 00210484]
Mr. E.IqbalDirector - Support Services[DIN 00050616]
Mr.K.JalaluddinDirector
[DIN 01717447]
Mr. Ahmed Koya Mukthar Director
[DIN 00199027]
Mr. K.MuraleedharanDirector
[DIN 03232525]
Dr.P.M.ZuharaWoman Director[DIN 02847362]
Mr. P.M.NasarudeenIndependent Director
[DIN 02467028]
Mr. N SathyadevanIndependent Director
[DIN 00048368]
Mr. K.RadhakrishnanIndependent Director
[DIN 01500866]
49
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iii. Meetings and attendance during the year.
Sr. No. Name
1. Dr. M. I. Sahadulla Chairman
2. Mr. E. M. Najeeb Member
3. Mr. C.H.A.Raheem Member
4. Mr.A.K.Mukthar Member
5. Mr. N. Sathyadevan Member
6. Dr.Sunny Sharma Member
7. Mr.Sunil Kumar Kolangara Member
8. Dr. G. Vijayaraghavan Member
9. Mr. KabeerJalaluddheen Member
10. Mr. V.Radhakrishnan Member
Sr. No. Name No. of Attendance
1. 29th May,2015 7/10
2. 30thJuly, 2015 7/10
3. 06th November, 2015 5/5
4. 04th February, 2016 5/5
4. Nomination and Remuneration Committee:
i. Brief description of terms of reference
Nomination and Remuneration Committee was re-constituted pursuant to the provisions of the Section 178 of the Companies Act, 2013. The functions of Nomination and Remuneration Committee is as follows:
1. To formulate the criteria for determining qualifications, positive attributes and independence of a director and recommend to the board a policy, relating to the remuneration for the directors, key managerial personnel and other employees.
2. To ensure that level and composition of remuneration is reasonable and sufficient, relationship of remuneration
to performance is clear and meets performance benchmarks, and involves a balance between fixed and incentive pay
3. To identify persons who may be appointed in senior management in accordance with the criteria laid down.
4. To carry out evaluation of every director’s performance and recommend to the board his/her appointment and removal based on the performance.
ii. Composition, name of members and Chairperson
iii. Attendance during the year
There was only One Meeting held during the financial year 2015-16,i.e. 31st July,2015 in which all the Members were present.
iv. Remuneration policy
Remuneration is decided on the basis of the review of the performance based on certain criteria approved
Prior to that, i.e. 30th July, 2015, the following were the Members of the Audit Committee:
Sr. No. Name
1. Dr.Sunny Sharma Chairman
2. Mr.Sunil Kumar Kolangara Member
3. Mr. K. Muraleedharan Member
4. Mr.K.Radhakrishnan Member
5. Mr. G. Vijayaraghavan Member
3. Audit Committee:
i. Brief description of terms of reference – The Audit Committee reviews the following matters with the Management, Statutory Auditors and the Internal Auditors:
1. Review of Quarterly and Annual Financials of the Company and of all the units under KIMS
2. Approval and review of Capital Budgets and Revenue Budgets
3. Approval of the Minutes of the Audit Committee
4. Matters of material nature and having impact on the financials of the Company.
5. Any material default in the financial obligations to and by the Company.
6. Non-compliance of any regulatory or statutory requirement.
7. Approval and review of related party transactions
8. Scrutiny of inter-corporate loans and investments
9. Recommendation for appointment, remuneration and terms of appointment of auditors
10. Review and monitorauditor’s independence and performance and effectiveness of audit process.
11. Valuation of undertakings or assets
12. Evaluation of internal financial controls and risk management systems
13. Monitoring the procedures and complaints under Vigil mechanism and take necessary action.
14. Discuss issues with internal and statutory auditors
ii. Composition, name of members and Chairperson
Audit Committee was re-constituted in the Board Meeting dated 30th July, 2015. The Members of the Audit Committee are:
Sr. No. Name
1. Mr. Sunil Kumar Kolangara Chairman
2. Mr. K Radhakrishnan Member
3. Mr. P.M. Nazaruddin Member
4. Mr. C.H.A Raheem Member
5. Mr. N. Sathyadevan Member
Mr. C.H.A. Raheem 4 4 Yes 12 04 - Member
Mr.E.Iqbal 4 4 Yes 09 -
Dr. Sheriff.M.Sahadulla 4 3 No 01 -
Mr. K. Muraleedharan 4 4 No 10 01 - Member
Mr. K. Radhakrishnan 4 4 No 03 01 - Member
Mr. Ahmed KoyaMukthar 4 4 Yes 01 -
Mr. P.M. Nazaruddin 4 3 No 00 01 - Member
Dr. M.A. Mohamed 4 4 Yes 06 -
Mr.N.Sathyadevan 4 4 No 00 01 - Member
Mr.KabeerJalaluddin 4 3 No 02 01 - Member
Mr. V. Radhakrishnan 4 4 No 02 -
Mr.T.C.Wilson 4 4 No 00 -
Dr.Sunny Sharma 4 4 No 16 -
Mr.Sunil Kumar Kolangara 4 4 No 06 02 - Chairperson
Dr.P.M.Zuhara 4 4 Yes 05 -
51
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Audit Committee and thereafter, approved by the Board. None of the interested directors participated or voted in the discussion.
ii. Whistle Blower policy and affirmation that no personnel has been denied access to the audit committee
KIMS considers its employees as the most precious assets of the organization and empowers its employees through various training and orientation programmes designed to meet individual needs. KIMS believes in conducting its affairs in a fair and transparent manner, providing a secure environment to employees by adopting high standards of professionalism, honesty, integrity and ethical behavior.
The Whistle Blower Policy cum Vigil Mechanism set up by the Company shall enable the employees and the Directors to report their genuine concerns or grievances about the actual or potential violation of principles and standards laid down herein. The Vigil Mechanism shall provide for adequate safeguard against victimization of persons who can also use such mechanism for reporting genuine concerns. The policy details has been uploaded on the website of the Company. Employees can make Protected Disclosure to the Chairman of the Audit Committee.
iii. Details of compliance with mandatory requirements and adoption of the non - mandatory requirements of this clause.
All the mandatory requirements under Companies Act, 2013 has been complied. Besides that, your Company has planning to adopt the following non-mandatory requirements:
1. Introduction of Internal Financial Control (IFC)
2. Implementation of IFRS.
8. Means of communication i. Quarterly results – Presented before the Audit Committee and Board
9. General Shareholder information:
i. AGM: Date, time and venue – 30th September, 2016 at 3.30 PM at Osler Hall, KIMS North,
Anayara, Trivandrum
ii. Financial year – 01st April to 31st March, 2016
iii. Date of Book closure - 16th September, 2016 to 30th September,
2016 (both days inclusive)
iv. Dividend Payment Date - 1st October,2016
v. Distribution of shareholding –
vi. Hospital Locations -
1. KIMS Hospital, Trivandrum - PB No. 01, Anayara PO, Trivandrum – 695029
2. KIMS Hospital, Kochi - Pathadipalam, Changampuzha Nagar Post, Edappally, Kochi - 682033
3. KIMS Wellness Clinic, Trivandrum - LMP Towers, Kowdiar, Trivandrum.
4. KIMS Wellness Clinic, Kochi - Kochi Thrikkakara,XII/760, B1-B5 Padamugal, Kakkanad, Cochin -682030
5. KIMS College of Nursing - Chempakamangalam, Korani.P.O, Thiruvananthapuram - 695104, Kerala
vii. Address for correspondence –
Company Secretary
KIMS Healthcare Management Ltd, PB No. 01, Anayara PO, Trivandrum – 695029
Ph. 0471-2557165, 3041307, Email: [email protected], Website : www.kimsglobal.com
Category % of holding
Promoter - Individuals 0.60%
Promoter – Body Corporates 41.66%
Others 57.74%
by the Board. In reviewing the overall remuneration of the Board of Directors and Senior Management, the Committee ensures that the remuneration is reasonable and sufficient to attract, retain and motivate the best managerial talent.
5. Details of remuneration to all the directors, as per format in main report.
6. General Body meetings:
i. Location and time, where last three AGMs held
ii. Whether any special resolutions passed in the previous 3 AGMs For the Financial year 2014-15
1. Amendment of Articles of Association
2. Re appointment and fixation of remuneration of Chairman and Managing Director
3. Re appointment and fixation of remuneration of Vice Chairman and Director
4. Re appointment and fixation of remuneration of Executive Director Business Development, Human Resources, Procurement and Projects Re designation of Executive Director Corporate Finance as Executive Director Corporate Finance and CFO and fixation of his remuneration
5. Re appointment and fixation of remuneration of Director Support Services
6. Approval for inter corporate investments and guarantees
7. Approval of related party transaction
For the Financial year 2013-14
1. Revision of the remuneration of Chairman and Managing Director
2. Revision of the remuneration of Vice Chairman and Director
3. Revision of the remuneration of Executive Director, Business Development, HumanResources, Procurement
and Projects4. Revision of the remuneration of Executive Director Corporate Finance
5. Revision of the remuneration of Director Support Services
For the Financial year 2012-131. Increasing the remuneration of Chairman and Managing Director
2. Increasing the remuneration of Vice Chairman and Director
3. Increasing the remuneration of Executive Director, Business Development, Human Resources, Procurement and Projects
4. Increasing the remuneration of Executive Director Corporate Finance
5. Increasing the remuneration of Director Support Services
6. Alteration of Articles of Association of the Company
7. Disclosures: i. Disclosures on materially significant related party transactions that may have potential conflict with the
interests of company at large
There are no materially significant related party transactions that may have potential conflict with the interests of company at large except the details of the transactions disclosed in the Notes forming part of the Accounts as required under Accounting Standards 18 of the Institute of Chartered Accountants of India. All related party transactions are negotiated at arm’s length price and have been reviewed by the
Year Date Time Venue
2014-15 30.09.2015 3.30 pm Osler Hall, KIMS North
2013-14 30.09.2014 3.30 pm Osler Hall, KIMS North
2012-13 28.09.2013 5.00 pm Osler Hall, KIMS North
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MANAGEMENT DISCUSSION &ANALYSIS REPORT
The Company has been growing over the years and has been expanding its business in new areas. Considering this fact, this report contains various aspects for the overall growth of the healthcare industry and the future prospects of the Company based on the Audited Consolidated Financial Statements and notes thereto for the year ended 31st March, 2016.
MARKET
Reports show thatthe overall Indian healthcare market today is worth US$ 100 billion and is expected to grow to US$ 280 billion by 2020, which is a Compound Annual Growth Rate (CAGR) of 22.9%. This growth is likely to be fuelled by the changing demographics, rising incomes, accelerated health awareness,
changing disease profile (towards lifestyle diseases), increasing penetration of health insurance, medical tourism, and the increasing bed count of hospitals across multiple clusters of the country. Healthcare delivery, which includes hospitals, nursing homes and diagnostics centres, and pharmaceuticals, constitutes 65 % of the overall market. There is a significant scope for enhancing healthcare services considering that healthcare spending as a percentage of Gross Domestic Product (GDP) is rising. Rural India, which accounts for over 70 % of the population, is set to emerge as a potential demand source. India requires 600,000 to 700,000 additional beds over the next five to six years, indicative of an investment opportunity of US$ 25-30 billion. Given this demand for capital, the number of transactions in the healthcare space is expected to witness an increase in near future. The
KIMS has touched my life, thanks to its wonderful doctors and staff. Thank you KIMS
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Cluster Operational beds
KIMS Healthcare Management Limited 650 beds
KIMS Hospital, Kochi 185 beds
KIMS Cancer Care and Research Centre Private Limited NA
KIMS Bellerose Institute of Medical Sciences Private Limited 90 beds
KIMS Kollam Multi-speciality Hospital (India) Private Limited 100 beds
KIMS Al Shifa Healthcare Private Limited 600 beds
Bibi Hospitals Private Limited 150 beds
KIMS Wellness Centre, Trivandrum NA
KIMS Wellness Centre, Kochi NA
patient, then care has not been delivered at all.Milestones in the year 2015-16
• Launch of Amrutham - Organ donation awareness campaign
• First awake craniotomy performed in KIMS Trivandrum
• Rare liver stenting at KIMS Trivandrum• First cerebral bypass procedure• First Laryngology department started in KIMS• Inauguration of KIMS Kottayam• KIMS signs MOU with Enaya Group, Saudi
Arabia• Started Acute Care Unit • Inauguration of KIMS Spine Foundation• Launch of Genetic research and study in KIMS• Foundation stone laying ceremony of KIMS
Kollam Annex
KIMS International Patient Relations (IPR) offers it’s patients from overseas world-class treatment,
personalized attention and a comfortable stay.Understanding the importance of cultural differences and the uncertainties that go with them, KIMS International Patient Care center ensures that the foreign nationals are given personal assistance for enabling hassle-free procedures during the various course of treatment.
HIGHLIGHTS
• Single window facility• Ultra-modern designer rooms• Arrangements for medical visa• Liasioning with Insurance and GPs• Airport pick up, drop and travel support• Hi –tech ambulance• Multi cuisine restaurant• Currency exchange and travel desk• Trained multi lingual staff and translators• Co-ordination for sight-seeing and tour arrangements
CLUSTER-WISE DETAILS FUTURE OUTLOOK
With the plans for a new block at Trivandrum, Kottayam, Kollam and initiation of a new project at Nagercoil, your Company is foreseeing many opportunities for growth and expansion. As we move ahead, we aim to enhance our economies of scale
and cost efficiencies, thereby increasing our revenue and profitability. Focusing on our vision – “To be a model of excellence for the provision of healthcare and wellness services”, your Company would strive to focus on investing in latest technology, attracting and retaining skilled physicians and surgeons and developing our expertise in serving the increased demand for healthcare services.
average investment size by private equity funds in healthcare chains has already increased to US$ 20-30 million from US$ 5-15 million.
CURRENT HEALTHCARE MARKET IN INDIA
The existing contrast in the availability of India’s healthcare seems as large as its population. The majority of India lives below the poverty line in rural areas and has extremely limited access to medical care. Most rely on homeopathic or cultural remedies. Besides that, Indian people expenditure in healthcare is one of the lowest in the world. Thirdly, from capacity view point, the bed density has been quite low compared to the global median. The stark inequality of available healthcare has shaped the current market environment. Besides the lack of overall healthcare infrastructure, the second most important influence on India’s healthcare industry is its lack of a medically insured population and high out-of-pocket expenditure (71.13%).
SOCIAL HEALTH INITIATIVES
It is both challenging and expensive to try to attain the goal of universal health coverage in a country where most of its people are unemployed or employed informally. India’s universal health plan that aims to offer guaranteed benefits to a sixth of the world’s population will cost an estimated Rs 1.6 trillion (US$ 23.72 billion) over the next four years. From 1948 to now, the Indian government has launched a series of social health insurance schemes to ensure healthcare access to the middle and upper classes as well as the poor and other special populations.
KEY GROWTH DRIVERS
A combination of demographic and economic factors are expected to drive growth in the healthcare delivery market in India. The following can be considered as the key factors for growth:
1. India’s overall bed density is lower as compared to the global median and other developing countries.
2. Increase in the population which will be augmented by increasing life expectancy and declining infant mortality.
3. Growth in the household income and disposable income.
4. Increase in lifestyle related, non-communicable illnesses.
5. Lower per capita expenditure by the Government, which enables the private players to penetrate and make their presence.
6. Relatively lower cost for healthcare as compared to the developed countries makes India an attractive destination for medical tourism.
7. Increase in the demand for healthcare delivery services due to increase in the urbanization
and awareness for preventive and curative healthcare.
MEDICAL TOURISM INDUSTRY
Over the years, India has grown to become a top-notch destination for medical value travel because it scores high over a range of factors that determines the overall quality of care. The Indian medical tourism industry is pegged at US$ 3 billion per annum, with tourist arrivals estimated at 230,000. The Indian medical tourism industry is expected to reach US$ 6 billion by 2018, with the number of people arriving in the country for medical treatment set to double over the next four years. With greater number of hospitals getting accredited and receiving recognition, and greater awareness on the need to develop their quality to meet international standards, Kerala aims to become India’s healthcare hub in five years.The high-end healthcare system in India is as good as the best in the world. India maintains not only a robust accreditation system but also a large number of accredited facilities (about 275 such facilities that match any global infrastructure). India has a good number (22) of JCI (Joint Commission International) accredited hospitals and compares well with other countries in Asia. These set of approved hospitals in India can provide care at par or above global standards.
COMPANY REVIEW
KIMS is a 650-bed multi-specialty tertiary care hospital, having its flagship hospital in Trivandrum, where a competent team of specialists and sophisticated technology come together to deliver high-quality medical aid. Launched in January 2002, KIMS has emerged as one of the leading centers of pioneering medical work, research and academics in South India with a global outreach. Later, KIMS made its presence in Kochi with a 154-bedded hospital with the help of a team of highly qualified and experienced consultants who have proved their caliber at their respective fields. Over the years, operation have been extended to Kollam, Kottayam, Perinthalmanna and Hyderabad.
The commitment that defines every aspect of the clinical care, research and education at KIMS Group is to reach out to the community and beyond, to make quality, world-class healthcare affordable and accessible.
KIMS has invested immensely in the area of quality and safe patient care. KIMS in 2006 successfully completed both National Accreditation Board for Hospitals (NABH) and Australian Council on Healthcare Standards International (ACHSI) accreditation thus becoming the first hospital in India with both National & International accreditations. KIMS mission of ‘Care with Courtesy, Compassion and Competence‘, is rooted deeply in the belief that if quality care is not delivered to each and every
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EBITDA RATIO (%) EBITDA (Rs.in Mn) PE RATIO (In Rs.)
Market Price / Earnings Per Share Earnings per share =
Basic Earnings per shareMarket Price = Highest transfer /
issue price
(Operating Revnue-Operating Expenditure)
DEBT EQUITY RATIO (In %)RETURN ON CAPITAL EMPLOYED RATIO (In %)
EBITDA / (Total Assets -Current Liabilities)
Long Term Debt / Shareholders Fund
17.8%19.8% 25.2% 14.4% 22.0% 18.1%
797.3 709.4 604.4 15.7 13.5 10.3
(EBITDA/Operating Revenue)
2015-16
2015-16 2015-16
2015-16 2015-162014-15
2014-15 2014-15
2014-15 2014-152013-14
2013-14 2013-14
2013-14 2013-14
RATIO ANALYSIS
HOW WE EARN ONE RUPEE ?
50%Operational Expenditure
6% Depreciation
18% Employee cost
17%Professional fees
6% Administration
cost
2%Other Income
24%Clinical Department
6%Restaurant
6%Registration/Consultation
6%Room Rent
34%Pharmacy
22%Laboratory
HOW WE SPEND ONE RUPEE ?
3% Finance cost
EMPLOYEEAGE GROUP (in%)
Above 56 46 - 55 36-45 26-35 Below 25
EMPLOYEECATEGORISATION
ContractProfessionals\Others
ParaMedicals Nurses Doctors
EMPLOYEE GENDER RATIO 2015-16
63% Female37% Male
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Nursing Excellence Certification - NABH
KIMS Expressions won the CMO Asia National Award for Best In - house Magazine
NIB Awards 2016 for KIMS Expressions
AWARDS & RECOGNITIONS DURING THE YEARO
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First birthday celebration of patient Adrin who underwent liver transplant at KIMS when he was
11 months old
Pink Volunteer Camp( Cancer Awareness Programme )
COO Meet
Inauguration of CME on Organ transplantion: Nursing care Perspective
Vaibhava - A special summer workshop and artwork exhibition of children under the Department of Holistic Medicine and Learning
Enhancement
Inauguration of CME on Biomedical Engineering
Inauguration of Ayurveda Week
Infection Control Book Release
EVENTS DURING THE YEAR
Inauguration of Liver FoundationAlia Fathima - A pediatric liver transplant performed by KIMS under a special order issued by the High Court of Kerala
Inauguration of KIMS Liver ClinicPress Meet KIMS & Medgenome Collaboration
on Genomics Center
ACHIEVEMENTS DURING THE YEAR
Hi-tech Ambulance Flag offInauguration of AmruthamA campaign to create awareness and promote the cause of organ sharing
Inauguration of Spine Foundation Inauguration of Sakhi ( A Breast Cancer Detection Initiative)
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Inauguration of Excel Paces
Inauguration of World Health Day
Inauguration of National Conference on Evaluation and Managementof Fascial Dysfunctions
Inauguration of Gynecologic Update 2016Inauguration of Mothers Day
Inauguration of CME on Respiratory Medicine
Inauguration of Nutrition Week
Launch of Sawharrdham Logo
EVENTS DURING THE YEAR
Inauguration of EMTOX 2015
Inauguration of World Liver Day
Inauguration of World Daibetic Day
Inauguration of International Nurses WeekInauguration of World Heart Day
Inauguration of World Physiotherapy week
Inauguration of World Asthma Day
Inauguration of CEDET 2016
EVENTS DURING THE YEAR
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II phase of KIMS Kollam Foundation Stone Laying Ceremony
Inauguration of Save a Knee Foudation at KIMS Kottayam
Inauguration of MRI Scan - KIMS Kottayam
Balamithra was launched at Kendriya Vidyalaya, NAD, Aluva - KIMS Kochi
Launch of Good Neighbour’s Privilege Health Scheme - KIMS Kochi
Inauguration of Laryngology Clinic - KIMS Kottayam
World Heart Day observed with Kochi Metro Workers - KIMS Kochi
Pollution Control Board Award - KIMS Al-Shifa
ACHIEVEMENTS AND EVENTS DURING THE YEAR
Doctors Day Celebration
Inauguration of Brain Tumor Update 2016
Inauguration of KIMS Geriatric Specialty Clinic
Inauguration of Family Medicine Update 2016
Walkathon - Organ Donation Day 2016
Inauguration of National Safety Week
EVENTS DURING THE YEAR
World Voice Day Celebration Inauguration of CME on Disaster Management
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I am grateful for the top class facility and affordable treatment provided to me
FINANCIAL STATEMENTSSTANDALONE
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KIMS HEALTHCARE MANAGEMENT LIMITED
REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of KIMS Health Care Management Limited (the “Company”), which comprise the balance sheet as at 31 March 2016, the statement of profit and loss and the cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.
MANAGEMENT’S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters
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which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
OPINION
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;
(b) in our opinion proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) the balance sheet, the statement of profit and loss and the cash flow statement dealt with by this report are in agreement with the books of account;
(d) in our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations received from the directors as on 31 March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2016 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B; and
(g) with respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its financial position in its financial statements – Refer Note 2.30 to the financial statements
ii. ii. the Company did not have any long term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. there has been no delay in transferring amounts, required to be transferred to the Investor Education and Protection Fund by the Company
for B S R AND ASSOCIATES LLPChartered AccountantsFirm registration No.: 116231W/W-100024
CHANDRASHEKHAR BPartner | Memb. No. 114161
Thiruvananthapuram4 June 2016
Sd/-
ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT
The Annexure referred to in our Independent Auditor’s Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company
(ii) The inventory has been physically verified by the management during the year. In our opinion, the frequency of such verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material.
(iii) The Company has granted an unsecured loan to one of it’s subsidiary covered in the register maintained under section 189 of the Companies Act, 2013 (‘the Act’). In our opinion and according to the information and explanations given to us and based on legal interpretation, the Company does not consider the reimbursement of costs and outstanding against the same to fall under the purview of loans.
(a) In our opinion, the rate of interest and other terms and conditions on which the loan had been granted to the subsidiary covered in the register maintained under Section 189 of the Act was not, prima facie, prejudicial to the interest of the Company.
(b) In the case of the unsecured loan granted to the subsidiary, the terms of the loan arrangement do not stipulate any repayment terms of principle/ interest and are repayable on demand. The borrower has been regular in the payment of the principal and interest as and when the same has been demanded by the Company.
(c) As the loan has been fully repaid during the year, there are no overdue amounts. Accordingly,
paragraph 3 (iii) (c) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans, guarantees given and investments made.
(v) In our opinion and according to the information and explanations given to us, the Company has complied with the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder, where applicable with regard to the deposits accepted from the public.
(vi) We have broadly reviewed the books of account relating to materials, labour and other items of cost maintained by the Company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148 of the Companies Act, 2013 and we are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2016 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, value added tax, duty of customs, service tax and cess which have not been deposited with the appropriate authorities on account of any dispute.
However, according to information and explanations given to us, the following dues of luxury tax have not been deposited by the Company on account of disputes:
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(viii) In our opinion and according to the information and explanations given to us, The Company has not defaulted in repayment of dues to its banks. The Company did not have any outstanding debentures and dues to financial institutions during the year.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments). According to the information and explanations given to us, the term loans taken by the Company have been applied for the purposes for which they were raised.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and
188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
for B S R AND ASSOCIATES LLPChartered AccountantsFirm registration No.: 116231W/W-100024
CHANDRASHEKHAR BPartner | Memb. No. 114161
Thiruvananthapuram4 June 2016
Sd/-
ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (“THE ACT”)
We have audited the internal financial controls over financial reporting of KIMS Health Care Management Limited (“the Company”) as of 31 March 2016 in con-junction with our audit of the standalone financial statements of the Company for the year ended on that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets,
Sd/-
Name of the statute
Nature of dues Amount (in Rs.)
Period to which the amount relates
Forum where dispute is pending
The Kerala Tax on Luxuries Act, 1976
Luxury tax demand
9,938,169* 2009 – 10 Sales Tax Appellate Tribunal,Thiruvananthapuram
* Rs 1,710,295 has been paid under protest against this demand
the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING
Because of the inherent limitations of internal finan-cial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate be-cause of changes in conditions, or that the degree of compliance with the policies or procedures may de-teriorate.
OPINION
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
for B S R AND ASSOCIATES LLPChartered AccountantsFirm registration No.: 116231W/W-100024
CHANDRASHEKHAR BPartner | Memb. No. 114161
Thiruvananthapuram4 June 2016
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Notes As at
31 March 2016As at
31 March 2015
EQUITY & LIABILITIES
Share Holders’ fundShare Capital 2.1 1,003,271,000 1,003,271,000 Reserves & Surplus 2.2 2,409,390,528 2,168,067,279
3,412,661,528 3,171,338,279
Non Current Liabilities
Long - Term Borrowings 2.3 491,361,677 696,792,673
Deffered Tax Liabilities (Net) 2.4 54,834,600 72,526,900
Other Long - Term Liabilities 2.5 28,777,197 24,642,013 Long - Term Provisions 2.6 39,719,000 28,127,000
614,692,474 822,088,586 Current Liabilities
Short - Term Borrowings 2.7 95,829,437 719,969,795
Trade Payables 2.8
Total outstanding dues of micro and small enterprises - -
Total outstanding dues of creditors other than mi-cro and small enterprises
192,952,278 175,316,704
Other Current Liabilities 2.9 484,414,930 451,708,379
Short - Term Provisions 2.10 124,035,453 106,232,209
897,232,098 1,453,227,087
4,924,586,100 5,446,653,952 ASSETS
Non - Current AssetsFixed Assets
- Tangible Fixed Assets 2.11 1,692,566,484 1,676,173,799 - Intangible Fixed Assets 2.12 10,934,105 10,515,497
- Capital Work-in Progress 118,863,669 62,286,324
Non - Current Investment 2.13 2,178,332,575 1,855,813,986 Long - Term Loans and Advances 2.14 113,217,060 198,827,430 Other Non-Current Assets 2.15 6,949,702 11,256,618
4,120,863,595 3,814,873,654 Current Assets
Inventories 2.16 159,685,748 127,515,673
Trade Receivables 2.17 319,940,150 279,150,210 Cash & Bank Balances 2.18 182,588,319 1,073,621,518 Short Term Loans and Advances 2.19 75,412,304 63,684,680
Other Current Assets 2.20 66,095,984 87,808,217
803,722,505 1,631,780,298
4,924,586,100 5,446,653,952
BALANCE SHEET AS AT 31 MARCH 2016 (All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
Significant accounting policies 1The notes referred to above form an integral part of the standalone financial statements
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
Sd/-
Notes For the year ended
31 March 2016For the year ended
31 March 2015
REVENUE
Revenue from Operations 2.21 4,087,539,049 3,672,305,426
Other Income 2.22 84,171,721 141,001,665
TOTAL REVENUE 4,171,710,770 3,813,307,091
EXPENSES
Purchase of medicines and consumables 1,478,734,374 1,386,128,704
Changes in inventories of medicines and consumables 2.23 (29,611,245) (40,927,278)
Employee benefits expense 2.24 656,708,590 542,866,616
Other expenses 2.25 1,193,688,153 1,086,475,031
CSR expenditure 2.26 8,521,607 5,131,447
Finance cost 2.27 111,551,390 117,094,911
Depreciation and amortisation 2.28 200,357,928 183,403,214
TOTAL EXPENSES 3,619,950,797 3,280,172,645
Profit before taxes 551,759,973 533,134,446
Provision for tax: 2.29
Current tax 212,082,000 184,596,000
Deferred tax (credit) / charge (13,051,600) (657,581)
Profit after taxes 352,729,573 349,196,027
Earning per share (equity share of face value of Rs.10 each) 2.31
Basic 4.59 4.82
Diluted 3.21 3.30
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2016(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
Significant accounting policies 1The notes referred to above form an integral part of the standalone financial statements
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
Sd/-
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For the year ended 31 March 2016
For the year ended 31 March 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxes 551,759,973 533,134,446
Adjustments for :
Depreciation and amortisation 200,357,928 183,403,214
Unrealised loss on foreign exchange restatement - 2,563,031
Loss on sale of fixed assets 979,197 1,112,094
Bad debts written off - 7,559,400
Provision for doubtful debts 17,491,233 -
Interest expense 111,551,390 115,199,851
Interest income (43,945,226) (110,773,455)
Operating cash flows before working capital changes 838,194,495 732,198,581
(Increase) in trade receivables (58,281,173) (100,742,132)
(Increase) in inventories (32,170,075) (40,342,496)
(Increase)/decrease in loans and advances 733,817,974 (329,508,974)
Increase in liabilities and provisions 32,794,032 127,076,435
Cash generated by operating activities before taxes 1,514,355,253 388,681,414
Income taxes paid (173,861,232) (224,548,792)
Net cash generated by operating activities (A) 1,340,494,021 164,132,622
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of fixed assets 882,414 476,939
Purchase of fixed assets (223,483,102) (378,351,273)
Purchase / advance for investments (358,038,212) (1,418,628,319)
Interest received 60,496,962 111,834,308
Net cash used in investing activities (B) (520,141,938) (1,684,668,345)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of share capital - 1,000,000,000
Dividend paid including dividend tax (102,636,209) (79,880,909)
Long-term borrowings availed (156,001,930) 428,866,001
Short-term borrowings availed / (repaid) (624,140,358) 209,267,416
Interest paid (118,803,505) (104,710,851)
Net cash generated /(used in ) from financing activities (C) (1,001,582,002) 1,453,541,657
Net increase in cash and cash equivalents (A+B+C) (181,229,919) (66,994,066)
Cash and cash equivalents at the beginning of the year 231,169,621 298,163,687
Cash and cash equivalents at end of the year 49,939,702 231,169,621
(refer to note (a) below and note 2.18- Cash and bank balances)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2016(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
Note(a): Cash and cash equivalents at the end of the year is net of book overdrafts amounting to Rs 1,690,429 (previous year: Rs 8,602,694)The notes referred to above are an integral part of the standalone financial statements.
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
Sd/-
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 BACKGROUNDKIMS HealthCare Management Limited (‘the Company’) was incorporated on 17 August 1995 as a public limited company. The registered office of the Company is located at PB No.1 Anayara P O, Trivandrum, Kerala. The Company is primarily engaged in the business of running hospitals. The Company is a subsidiary of Condis India Healthcare Limited, Trivandrum, Kerala.
1.2 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTSThese financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act, as applicable, Accounting Standards issued by the Institute of Chartered Accountants of India and other generally accepted accounting principles in India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. All amounts included in the standalone financial statements are reported in Indian rupees, except share and per share data, and have been rounded off to nearest rupee.
1.3 USE OF ESTIMATES
The preparation of the standalone financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes and the useful lives of fixed tangible assets and intangible assets.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the standalone financial statements.
1.4 TANGIBLE AND INTANGIBLE FIXED ASSETS Fixed assets are carried at cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes freight, duties, taxes and other incidental expenses related to the acquisition of those fixed assets. In respect of major projects involving construction, related directly attributable costs form part of the value of assets capitalised. Borrowing cost directly attributable to acquisition / construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use is capitalized. Intangible asset is recorded at its acquisition cost.
Advances paid towards the acquisition of fixed assets, outstanding at each balance sheet date are shown under long-term loans and advances.
The cost of the fixed asset not ready for their intended use before such date is disclosed under capital work-in-progress.
1.5 DEPRECIATION AND AMORTISATIONDepreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged.
The management estimates the useful lives for the fixed assets as under:
ASSET USEFUL LIVES (YEARS)
General and hospital equipments * 10Computer 3Furniture and fixtures 10Electrical fittings 10Office equipments 5Buildings * 53Books * 1Vehicles 8 Leasehold improvements are amortized over the period of the lease or estimated useful lives of assets, whichever is lower.
Intangible assets comprising computer software are amortized over their estimated useful lives of three years from the date of capitalization.
Goodwill on amalgamation is capitalized and amortized over a period of 5 years from the date of the event.
* For the above mentioned class of assets, the Company believes that the useful lives as given above best represent the useful lives of assets based on an internal assessment and supported by technical advice, where necessary, which is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.
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1.6 IMPAIRMENTThe786 Company assesses at each balance sheet date whether there is any indication that an asset forming part of its cash generating units may be impaired. If any such indications exists, the Company estimates the recoverable amount of the asset or the group of assets comprising, a cash generating unit. For an asset or a group of assets that does not generate largely independent cash flows, the recoverable amount is determined for the cash generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount. An impairment loss is reversed only to the extent that the carrying amount of the asset does not exceed the book value that would have been determined; if no impairment loss has been recognized.
1.7 INVESTMENTSLong-term investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.
1.8 INVENTORIESInventories are valued at the lower of cost and net realisable value. Cost of inventories comprises purchase price and other costs incurred in bringing the inventories to their present location and condition. Cost of pharmacy medicines and medical consumables are determined by applying the weighted average cost method method. The comparison of cost and net realisable value is made on an item-by-item basis.
1.9 REVENUE RECOGNITIONThe Company derives its revenue primarily from rendering medical and healthcare services. Income from medical and healthcare services comprises of income from hospital services and sale of pharma products.
Revenue from hospital services to patients is recognised as revenue when the related services are rendered unless significant future uncertainties exist. Revenue is also recognised in relation to the services rendered to the patients who are undergoing treatment/observation on the balance sheet date to the extent of services rendered.
Income from academic service is recognized as revenue as and when the related services are rendered unless significant future uncertainties exist.
Revenue from sale of pharma products within hospital premises is recognised on sale of medicines and similar products to the buyer. The amount of revenue recognised is net of sales returns and exclusive of sales tax, discounts and revenue shared.
‘Unbilled revenue’ represents value of medical and healthcare services rendered in excess of amounts billed to the patients as at the balance sheet date
Interest on deployment of surplus funds is recognized using the time proportionate method, based on the transactional interest rates. 1.10 FOREIGN CURRENCY TRANSACTIONSForeign currency transactions are recorded using the exchange rate prevailing on the dates of the respective transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the statement of profit and loss for the year.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. The resultant exchange differences are recognized in the statement of profit and loss. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
1.11 FORWARD CONTRACTSPremium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Any profit or loss arising on the cancellation or renewal of forward contracts is recognized as income or as expense for the period. The Company does not use the foreign exchange forward contracts for trading or speculation purposes.
In relation to the forward contracts entered into to hedge the foreign currency risk of the underlying outstanding at the balance sheet date, the exchange difference is calculated as the difference between the foreign currency amount of the contract translated at the exchange rate at the reporting date, or the settlement date where the transaction is settled during the reporting period, and the corresponding foreign currency amount translated at the later of the date of inception of the forward exchange contract and the last reporting date. Such exchange differences are recognized in the profit and loss account in the reporting period in which the exchange rates change.
1.12 BORROWING COSTInterest and finance charges on borrowings which are not attributable to acquisition/construction of fixed assets which take substantial period of time to get ready for its intended use are recognised as expenditure in the statement of profit and loss.
1.13 INCOME TAXES
The current income tax charge is determined in accordance with the relevant tax regulations applicable to the Company in India.
Deferred tax charge or credit is recognised for the future tax consequences attributable to timing difference that result between the profit offered for income taxes and the profit as per the financial statements. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realised.
The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.
1.14 EMPLOYEE BENEFITS
Short-term employee benefitsEmployee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the related service is rendered by employees.
Post-employment benefitsDefined contribution plans
Contributions payable to the recognized provident fund, which is a defined contribution scheme, is made monthly at predetermined rates to the appropriate authorities and charged to the statement of profit and loss on an accrual basis. There are no other obligations other than the contribution payable to the respective fund.
Defined benefit plansGratuity, a defined benefit scheme, is accrued based on an actuarial valuation at the balance-sheet date, carried out by an independent actuary. The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional units of employee benefit entitlement and measures each unit separately to build up the final obligation.
Compensated absencesLeave encashment, a defined benefit plan, is accrued based on an actuarial valuation at the balance sheet date, carried out by an independent actuary. Actuarial gain/losses are immediately taken to the statement of profit and loss and are not deferred.
1.15 LEASESLeases where the lessor effectively retains substantially all the risks and rewards of ownership of the leased item, are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.
Lease income from operating leases is recognised in the statement of profit and loss on a straight line basis over the lease term unless another systematic basis is more representative of the time pattern in which benefit derived from the leased asset is diminished. Costs, including depreciation, incurred in earning the lease income are recognised as expenses.
1.16 EARNINGS PER SHAREThe basic earnings per share (‘EPS’) is computed by dividing the net profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at a later date. In computing dilutive earning per share, only potential equity shares that are dilutive i.e. which reduces earnings per share or increases loss per share are included.
1.17 PROVISIONS AND CONTINGENT LIABILITIESThe Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When the likelihood of outflow of resources, in case of a possible obligation or a present obligation is remote no provision or disclosure is made.
Provision for onerous contracts i.e. contracts where the expected unavoidable cost of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognised when it is possible that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.
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1.18 CASH AND CASH EQUIVALENTSCash and cash equivalents comprise of cash-in-hand and balance in bank in current accounts and deposit accounts. All short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value to be cash equivalents.
1.19 CASH FLOW STATEMENTCash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
2.1 SHARE CAPITAL As at 31 March 2016 As at 31 March 2015Number of
Shares Amount
Number of Shares
Amount
AUTHORISED
Equity shares of Rs. 10 each 70,999,000 709,990,000 70,999,000 709,990,000
Class A equity shares of Rs. 10 each 1,000 10,000 1,000 10,000
Compulsorily convertible cumulative prefer-ence shares of Rs. 10 each
40,000,000 400,000,000 40,000,000 400,000,000
111,000,000 1,110,000,000 111,000,000 1,110,000,000
ISSUED, SUBSCRIBED AND PAID-UP
Equity shares of Rs. 10 each 70,024,069 700,240,690 70,024,069 700,240,690
Class A equity shares of Rs. 10 each 1,000 10,000 1,000 10,000
Compulsorily convertible cumulative prefer-ence shares of Rs. 10 each
30,302,031 303,020,310 30,302,031 303,020,310
100,327,100 1,003,271,000 100,327,100 1,003,271,000
Reconciliation of shares outstanding at the be-ginning and at the end of the reporting period
Equity shares of Rs. 10 each fully paid-up
At the beginning of the year 70,024,069 700,240,690 50,024,069 500,240,690
Issued during the year - - 20,000,000 200,000,000
At the end of the year 70,024,069 700,240,690 70,024,069 700,240,690
Class A equity shares of Rs. 10 each
At the beginning and at the end of the year 1,000 10,000 1,000 10,000
1,000 10,000 1,000 10,000
Compulsorily convertible cumulative prefer-ence shares of Rs. 10 each
At the beginning and at the end of the year 30,302,031 303,020,310 30,302,031 303,020,310
30,302,031 303,020,310 30,302,031 303,020,310
RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO EQUITY SHARES
The Company has two classes of equity shares.
(a) CLASS A EQUITY SHARES: Shall be entitled to voting rights equal to 51% in the fully diluted equity share capital of the Company and not entitled to receive any dividends. In the event that the Class A Shareholders hold ordinary equity shares in the Company, then the voting rights attached to the Class A equity shares shall be reduced to the extent of such ordinary equity shareholding.
(b) ORDINARY EQUITY SHARES: The ordinary equity shares are entitled to receive dividend as declared from time to time after payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands)
are in proportion to shareholders’ share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO PREFERENCE SHARES
Compulsorily convertible cumulative preference shares (CCCPS) were issued at par in December
As at 31 March 2016 As at 31 March 2015
Number of Shares% holding
in the class Number of
Shares % holding in the class
Condis India Healthcare Limited - holding company
Equity shares of Rs. 10 each 29,168,583 42% 28,748,183 41%
Class A equity shares of Rs. 10 each 1,000 100% 1,000 100%
Compulsorily convertible cumulative preference shares of Rs. 10 each
30,302,031 100% 30,302,031 100%
2.1 SHARE CAPITAL (Continued)a) Shares held by ultimate holding company/ holding company and their subsidiaries/ associates
As at 31 March 2016 As at 31 March 2015
Number of Shares% holding
in the class Number of
Shares % holding in the class
Condis India Healthcare Limited
Equity shares of Rs. 10 each 29,168,583 42% 28,748,183 41%
Class A equity shares of Rs. 10 each 1,000 100% 1,000 100%
Compulsorily convertible cumulative preference shares of Rs. 10 each
30,302,031 100% 30,302,031 100%
b) Details of shareholders holding more than 5% shares of the Company in each class of equity shares and preference shares
c) Details of buyback, bonus shares, shares issued for consideration other than for cash in the five years immediately preceding the balance sheet date
The Company has not allotted any fully paid-up equity shares by way of bonus shares nor has bought back any class of equity shares nor has there been any issue for consideration other than for cash during the period of five years immediately preceding the balance sheet date.
As at 31 March 2016
As at 31 March 20152.2 RESERVES AND SURPLUS
Securities premium account
At the commencement of the year 1,498,516,675 698,516,675
Additions during the year - 800,000,000
At the end of the year 1,498,516,675 1,498,516,675
Surplus in the statement of profit and lossBalance at the commencement of the year 669,550,604 433,302,264
Add: profit for the year 352,729,573 349,196,027
Less: depreciation adjustment (refer note below) (8,768,703) (10,311,478)
Balance at the end of the year 1,013,511,474 772,186,813
AppropriationsProposed dividend on CCCPS (dividend per share Rs. 0.85 (previous year Rs. 0.85) 25,756,726 25,756,726
Tax on proposed preference dividend 5,243,464 5,243,039
Proposed dividend on equity shares (dividend per share Rs. 0.85 (previous year Rs.0.85)
59,520,459 59,520,459
Tax on proposed equity dividend 12,116,972 12,115,985
Closing balance 910,873,853 669,550,604
Total reserves and surplus 2,409,390,528 2,168,067,279
2011. Preference shares carry a preferential right as to dividend over equity shareholders. Where dividend on cumulative preference shares is not declared for a financial year, the entitlement thereto is carried forward. The preference shares are entitled to one vote per share at meetings of the Company on any resolutions of the Company directly affecting their rights. However, a cumulative preference
shareholder acquires voting rights on par with an equity shareholder if the dividend on preference shares has remained unpaid for a period of not less than two years. In the event of liquidation, preference shareholders have a preferential right over equity shareholders to be repaid to the extent of capital paid-up and dividend in arrears on such shares.
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An amount of Rs. 8,768,703 (net of deferred tax of Rs.4,640,700) being depreciation of components of medical equipments identified having shorter useful life than the main equipment and representing the carrying amount of assets with revised useful life as nil) has been charged to the retained earnings pursuant to the requirement of Schedule II of lhe Companies Act, 2013.
As at 31 March 2016
As at 31 March 20152.3 LONG-TERM BORROWINGS
Secured loans from banks
Term loans 483,378,096 683,703,332
Vehicle loans 6,143,850 8,194,257
Unsecured term loans from others
Cisco Systems Capital (India) Private Limited 1,839,731 4,895,084
491,361,677 696,792,673
Note 1: Term loans from banks in Indian rupees are secured by equitable mortgage of certain immovable properties and hypothecation of the current assets of the Company and the rate of interest ranges between 11.25.% - 12.20% per annum. Loans are repayable in monthly/ quarterly instalments over a period of 36 to 82 months. Note 2: Term loan from State Bank of India (USD 250,772) as at March 31, 2015 is secured by equitable mortgage of certain immovable properties and hypothecation of the current assets of the Company and the rate of interest is Libor plus 3.25% per annum. Loan is repayable in 32 monthly instalments starting from April 2013. Note 3: Vehicle loans from banks are secured by hypothecation of the respective motor vehicles and the rate of interest ranges between 11%-12% per annum. Loan is repayable in 60 monthly instalments starting from April 2011.
Note 4: There are no defaults in repayment of principal or interest to lenders as at the balance sheet date.
As at 31 March 2016
As at 31 March 20152.4 DEFERRED TAX LIABILITIES (NET)
Deferred tax assets
Arising from timing differences in respect of:
Employee benefits 21,528,200 13,541,700
Other disallowances 6,053,400 340,400
27,581,600 13,882,100
Deferred tax liability
Excess of depreciation and amortisation on fixed assets under income-tax law over depreciation and amortisation provided in accounts
82,416,200 86,409,000
82,416,200 86,409,000
Deferred tax liabilities (net) 54,834,600 72,526,900
2.5 OTHER LONG-TERM LIABILITIES
Security deposits 23,837,851 16,707,497
Rent equalisation reserve 1,639,346 4,154,551
Deposits from students 3,300,000 3,779,965 28,777,197 24,642,013
2.6 LONG-TERM PROVISIONSFor employee benefitsGratuity (refer note 2.36) 29,814,000 20,197,000
Compensated absences 9,905,000 7,930,000 39,719,000 28,127,000
2.7 SHORT-TERM BORROWINGS Secured loans from banksCash credit 45,829,435 96,694,464
Short-term loans - loan against fixed deposits - 573,275,329
Unsecured loans from banksShort-term loans 50,000,002 50,000,002
95,829,437 719,969,795
Effective from April 1, 2014 the Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of lhe Companies Act, 2013. An amount of Rs. 10,311,478 (net of deferrcd tax of Rs. 5,457,619) representing the carrying amount of assets with revised useful life as nil, has been charged to the retained earnings pursuant to the provisions of the Companies Act, 2013.
As at 31 March 2016
As at 31 March 20152.8 TRADE PAYABLES
Total outstanding dues of micro enterprises and small enterprises* -
Total outstanding dues of creditors other than micro enterprises and small enterprises
192,952,278 175,316,704
192,952,278 175,316,704
*Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006 (“the Act”) based on the information available with the Company are given below:
The principal amount remaining unpaid to any supplier as at the end of the year
- -
The interest due on the principal remaining outstanding as at the end of the year
- -
The amount of interest paid under the Act, along with the amounts of the payment made beyond the appointed day during the year
- -
The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Act
- -
The amount of interest accrued and remaining unpaid at the end of the year
- -
The amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under the Act
- -
2.9 OTHER CURRENT LIABILITIES
Current maturities of the long-term borrowings (refer note 2.3) 206,328,014 156,898,948
Interest accrued but not due on borrowings 3,236,885 10,489,000
Amount payable to bank under forward contract - 15,592,623
Book overdraft 1,690,429 8,602,694
Dues to creditors for capital goods 11,957,468 12,981,875
Accrued expenses and dues to other creditors 130,120,846 146,856,341
Accrued salaries and benefits 63,758,270 44,603,192
Statutory dues payables 21,129,799 19,832,960
Advance from patients 32,673,247 25,368,599
Advance fee from students 492,133 -
Unclaimed dividend 6,170,580 3,944,888
Unsecured deposits from others 5,000,000 5,000,000
Interest accrued and due on above 1,857,259 1,537,259
484,414,930 451,708,379
As at 31 March 2016
As at 31 March 20152.10 SHORT-TERM PROVISIONS
For employee benefits:
Compensated absences 4,561,000 3,576,000
Proposed dividend on preference shares 25,756,726 25,756,726
Tax on proposed preference dividend 5,243,464 5,243,039
Proposed dividend on equity shares 59,520,459 59,520,459
Tax on proposed equity dividend 12,116,972 12,115,985
Provision for tax, net of advance tax and tax deducted at source 16,836,832 -
Provision for wealth tax - 20,000
124,035,453 106,232,209
(a) Cash credit and short - term loans from banks carry interest ranging between 10.5% - 11.5% per annum and are repay-able on demand. (b) Loans from banks are secured by hypothecation of inventories, receivables, other current assets and equitable mortgage of certain immovable properties.
83
KH
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82
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As at 31 March 2016
As at 31 March 20152.13 NON-CURRENT INVESTMENTS
Unquoted investments (non- trade at cost)Investment in subsidiary:KIMS Pinnacle Cancer Care and Research Center Private Limited 22,257,992 (previous year : 7,106,000) equity shares of Rs. 10 each)
279,430,468 72,014,969
KIMS Bellerose Institute of Medical Science Private Limited (25,280,000 (previous year : 20,080,000) equity shares of Rs. 10 each)
252,800,000 200,800,000
KIMS Kollam Multi Speciality Hospital India Private Limited (24,598,706 (previous year : 21,617,247) equity shares of Rs. 10 each)
245,987,062 216,172,472
KIMS Nagercoil Institute of Medical Sciences Private Ltd ( 9,384,159 (previous year : 9,184,159) equity shares of Rs. 10 each)
93,841,590 91,841,590
KIMS Alshifa Hospital Private Limited (564,919 (previous year : 488,419) equity shares of Rs. 100 each)
974,108,334 942,819,834
Other investments
KIMS Holding Co B.S.C (2,139,746 (previous year : 2,139,746 ) equity shares of Bahrain dinar 1 each)
331,815,121 331,815,121
Investments in Corpus Fund of KIMS Trust 350,000 350,000
2,178,332,575 1,855,813,986
2.14 LONG-TERM LOANS AND ADVANCES
Unsecured ,considered good
Rent deposits 51,072,113 50,481,032
Electricity and other deposits 20,166,594 18,425,223
Advance for capital goods 27,856,117 94,415,003
Advance tax and tax deducted at source, net of provisions 13,948,976 35,332,912
Advance fringe benefit tax, net of provisions 173,260 173,260 113,217,060 198,827,430
2.15 OTHER NON-CURRENT ASSETSBalance with banks in deposit accounts (under lien) 6,949,702 7,503,628
Other deposits with banks (maturity period more than 12 months) - 3,751,413
Interest accrued on above - 1,577
6,949,702 11,256,618
2.16 INVENTORIESPharmacy medicines * 110,002,381 83,767,987
Surgical items and consumables * 39,318,530 36,732,834
Others * 10,364,837 7,014,852 159,685,748 127,515,673
* Do not individually exceed 10% of the total value of inventory2.17 TRADE RECEIVABLES Unsecured, Considered Good
Debts outstanding for a period exceeding six months from the date they are due for payment
86,724,393 53,435,045
Other debts 233,215,757 225,715,165 319,940,150 279,150,210
Unsecured, considered doubtful
Debts outstanding for a period exceeding six months from the date they are due for payment
17,491,233 -
Less: Provision for doubtful debts (17,491,233) - 319,940,150 279,150,210
2.18 CASH AND BANK BALANCESCash and cash equivalents
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
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2.19 SHORT-TERM LOANS AND ADVANCES
Unsecured, considered good
Due from subsidiary 213,197 29,718,986
Due from other related parties 4,830,399 3,026,844
Advance against investment in KIMS Holding Co. B.S.C. 35,519,623 -
Advance to suppliers of goods and services 17,342,926 6,977,587
Prepaid expenses 8,748,376 13,824,358
Advance to staff and other receivables 5,298,528 7,848,683
Fee receivable from students 3,459,255 2,288,222
75,412,304 63,684,680
2.20 OTHER CURRENT ASSETS
Unsecured, considered good
Forward contracts Receivable - 15,590,495
Interest accrued on fixed deposits 4,012,611 20,562,770
Unbilled revenue 62,083,373 51,654,952
66,095,984 87,808,217
2.21 REVENUE FROM OPERATIONS
Income from hospital and medical services 3,731,261,450 3,350,167,862
Sale of medicines 321,869,199 287,161,464 4,053,130,649 3,637,329,326
Other operating incomeIncome from academic services 25,408,400 25,976,100
Income from rent 9,000,000 9,000,000 34,408,400 34,976,100
4,087,539,049 3,672,305,426
2.22 OTHER INCOME Interest income on bank deposits 40,499,121 106,870,051
Interest on loan to subsidiary 3,446,105 3,903,404
Management fee 5,857,516 7,611,540
Franchise fee 6,626,856 4,632,836
Net profit on account of foreign exchange fluctuations 112,801 278,910
Miscellaneous income 27,629,322 17,704,924 84,171,721 141,001,665
2.23 CHANGES IN INVENTORIES OF MEDICINES AND CONSUMABLESOpening stock 120,500,821 79,573,543
Closing stock 150,112,066 120,500,821 (29,611,245) (40,927,278)
Cash on hand 8,421,792 2,880,449
Balance with banks in:Current accounts 34,884,854 23,402,746
Deposit accounts 8,323,485 213,489,120 51,630,131 239,772,315
Other bank balances (maturity period of 3 to 12 months)Balance in banks for margin money for guarantees and loans 11,427,961 712,819,858
Earmarked balance for unclaimed dividend 6,170,587 3,944,888
Deposit in banks under lien 20,343,784 11,321,697
Other deposits 93,015,856 105,762,760 182,588,319 1,073,621,518
As at 31 March 2016
As at 31 March 2015
2.25 OTHER EXPENSES
Rent 45,160,126 45,010,588
Power and fuel 149,418,778 140,327,452
Rates and taxes 5,400,728 3,933,501
Minor procedure expenses 14,627,352 11,403,637
Professional fees to doctors 617,789,970 546,671,205
Travel and conveyance 16,759,042 14,412,086
Legal, professional and consultancy 17,945,833 15,179,091
Advertisement and promotion 38,805,358 33,479,225
Water charges 15,364,028 30,244,650
Insurance 2,018,850 1,739,269
Repairs and maintenance - buildings 8,563,394 7,528,031
Repairs and maintenance - machinery and equipments 7,980,555 8,283,084
General maintenance 39,634,099 39,686,403
Security, housekeeping and other outsourced labour charges 134,469,724 122,026,044
Nursing college expense 6,271,905 4,922,250
Bad debts written-off - 7,559,400
Provision for doubtful debts 17,491,233 -
Printing and stationery 21,741,000 21,153,356
Net loss on account of foreign exchange fluctuations - 667,971
Credit card commission 7,524,388 6,183,394
Postage, telegram and telephone 7,508,925 6,584,653
Bank charges 2,086,961 2,883,981
Loss on sale / disposal of assets 979,197 1,112,094
Miscellaneous expenses 16,146,707 15,483,666
1,193,688,153 1,086,475,031
2.26 CSR EXPENDITURE
- Gross amount required to be spent during the year 8,056,336 5,131,447
- Amount spent during the year on
Construction/ acquisition of asset - -
On purposes other than above 8,521,607 5,131,447
8,521,607 5,131,447
2.27 FINANCE COST Interest 111,551,390 115,199,851
Net loss on account of foreign exchange fluctuations - 1,895,060 111,551,390 117,094,911
2.28 DEPRECIATION AND AMORTISATION Depreciation on tangible fixed assets 190,630,910 161,773,383
Amortisation on intangible fixed assets 9,727,018 21,629,831 200,357,928 183,403,214
2.29 TAX EXPENSE
Current tax 212,082,000 184,596,000
Deferred tax (Credit) /Charge (13,051,600) (657,581)
199,030,400 183,938,419
Salaries, wages and bonuses 553,329,612 458,037,291
Contribution to provident and other funds 66,367,056 55,840,555
Staff welfare and recruitment expenses 37,011,922 28,988,770 656,708,590 542,866,616
As at 31 March 2016
As at 31 March 20152.24 EMPLOYEE BENEFIT EXPENSES
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
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ort
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Year ended 31 March 2016
Year ended 31 March 20152.30 CAPITAL COMMITMENTS AND CONTINGENCIES
Estimated amount of contracts remaining to be executed on capital account (net of capital advances) and not provided for
29,291,240 25,024,747
Guarantees issued by banks (inclusive of guarantees given for EPCG scheme)
32,955,753 31,492,772
Guarantees issued by the Company on behalf of subsidiary to bank 120,000,000 120,000,000
Claims against the Company not acknowledged as debts -Provident Fund related matters
3,572,891 3,572,891
Employee bonus* 11,000,000 -
Year ended 31 March 2016
Year ended 31 March 20152.31 EARNINGS PER SHARE
Net profit attributable to equity share holders 321,730,234 318,196,262
Weighted average number of ordinary equity shares of Rs. 10 each outstanding during the year – basic
70,024,069 66,036,871
Earnings per share (EPS) (Rs.) – basic 4.59 4.82
Weighted average number of equity shares of Rs. 10 each out-standing during the year – diluted
100,327,100 96,339,902
Earnings per share (Rs.) – diluted 3.21 3.30
Calculation of net profit attributable to equity shareholders
Net profit for the year (as per the statement of profit and loss) 352,730,424 349,196,027
Less : preference dividend including tax on dividends 3,100,0190 30,999,765
Net profit attributable to equity shareholders 321,730,234 318,196,262
Calculation of weighted average number of equity shares for basic and diluted profit per share
Number of shares at the beginning of the year 70,024,069 50,024,069
Equity shares issued during the year - 20,000,000
Number of shares at the end of the year 70,024,069 70,024,069
Weighted average number of equity shares outstanding at the end of the year - basic
70,024,069 66,036,871
Dilutive instruments (Class A equity shares and Compulsorily convertible cumulative preference share)
30,303,031 30,303,031
Weighted average number of equity shares outstanding at the end of the year - diluted
100,327,100 96,339,902
Year ended 31 March 2016
Year ended 31 March 20152.32 AUDITORS REMUNERATION
(included in legal and consultancy, excluding service tax) Statutory audit 8,00,000 650,000
Tax audit 75,000 75,000
Other services 375,000 205,000
Total 1,250,000 930,000
* Employee bonus refers to amount payable to employees as per Payment of Bonus (Amendment) Act 2015 vis-à-vis retrospective application from 1 April 2014 to 31 March 2015. Company has relied on stay petition granted by the Honorable High Court of Kerala and Honorable High Court Madras against retrospective application of Pay-ment of Bonus (Amendment) Act 2015 from 1 April 2014. Pending disposal of the case, no provision has been made in the books of accounts. The Company has obtained an independent legal opinion in support of this.
2.36 GRATUITY
The following tables set out the status of the gratuity (defined benefit plan) as required under Accounting Standard-15:
Particulars 31 March 2016 31 March 2015
Obligations at the beginning of the year 28,826,000 21,611,000
Transfer In/(Out) 24,000 -
Service cost 6,451,000 5,391,000
Interest cost 2,248,000 1,967,000
Actuarial (gain) / loss 1,912,000 1,037,000
Benefits paid (3,686,000) (1,180,000)
Obligations at the end of the year 35,775,000 28,826,000
Change in plan assets
Plans assets at beginning of the year, at fair value 8,629,000 8,530,000
Expected return on plan assets 588,000 642,000
Actuarial gain (136,000) 11,000
Contributions 566,000 626,000
Benefits paid (3,686,000) (1,180,000)
Plans assets at the end of the year, at fair value 5,961,000 8,629,000
Reconciliation of the obligation and value of the plan assets:
Fair value of plan assets at the end of the year 5,961,000 8,629,000
Present value of defined benefit obligations at the end of the year 35,775,000 28,826,000
Net liability recognized in the balance sheet 29,814,000 20,197,000
Gratuity cost Service cost 6,451,000 5,391,000
Interest cost 2,248,000 1,967,000
Expected return on plan assets (588,000) (642,000)
Actuarial loss 2,048,000 1,026,000
Net gratuity cost 10,159,000 7,742,000
Year ended 31 March 2016
Year ended 31 March 2015
2.33 EXPENDITURE IN FOREIGN CURRENCYTravel and conveyance 1,845,597 3,723,793
Accreditation charges 302,070 3,838,289
Membership, subscription and sponsorship charges - 28,350
Advertisement and promotion 4,381,079 8,931,780Total 6,528,746 16,522,212
2.34 EARNINGS IN FOREIGN CURRENCYRevenue from services 250,861,556 187,741,576
Franchise income 6,626,856 4,632,836
Total 257,488,412 192,374,412
2.35 VALUE OF IMPORTS ON CIF BASISCapital goods 15,581,220 65,987,711
Total 15,581,220 65,987,711
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
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Assumptions 31 March 2016 31 March 2015
Interest rate per annum 7.5% 7.8%
Expected rate of return on plan assets 7.8% 8.00%
Expected rate of salary increase 5.00% 5.00%
Retirement age 60 years
Attrition
Up to 35 years of age 25% p.a, Above 35 years of age 4% p.a.
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.
Up to 35 years of age 25% p.a, Above 35 years of age 4% p.a.
Details of experience adjustments
ParticularsAs at 31 March
2016 2015 2014 2013 2012
Defined benefit obligation 35,775,000 28,826,000 21,611,000 11,869,010 9,160,907
Plan assets 5,961,000 8,629,000 8,530,000 8,485,275 7,674,564
Surplus/(deficit) (29,814,000) (20,197,000) (13,081,000) (3,383,735) (1,486,343)
Experience adjustment on plan li-abilities
203,000 (1,486,000) 3,562,000 2,708,103 3,027,179
Experience adjustment on plan assets (152,000) 11,000 62,000 810,711 1,205,454
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
Year ended 31 March 2016
Year ended 31 March 20152.37 REMITTANCES IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND
Number of non-resident share holders 3 3
Number of Equity Shares held by them (face value Rs.10 each) 699,358 699,358
Amount of dividend paid 696,452 594,454
Tax deducted at source Nil Nil
Year to which dividend relates 2014-15 2013-14
2.38 SEGMENT REPORTINGThe Company is engaged in the business of rendering health care and related services. The entire operations are organised and managed as one organisational unit with the same set of risks and returns, hence the same has been considered as representing a single primary segment. The Company renders its services in India only and does not have any operations in economic environments with different risks and returns; hence it is considered operating in a single geographic segment. Accordingly, no segment disclosure has been made in these financial statements.
2.39 LEASEA) THE OPERATING LEASE AS A LESSEEThe Company is obligated under non-cancellable operating leases for its office premises. Total rental expenses under such leases amounted to Rs 20,971,514 (previous year: Rs 28,481,052). Future minimum lease payments due under non-cancellable operating leases are as follows:
Year ended 31 March 2016
Year ended 31 March 2015
Not later than one year 20,400,000 21,469,500
Later than one year and not later than five years 11,900,000 32,300,000
Later than five years - -
32,300,000 53,769,500
The Company is also obligated under cancellable operating leases for residential and office space. Total rental expense under cancellable operating leases during the year was Rs.24,188,612 (Previous year: Rs.16,529,536).
B) OPERATING LEASE AS A LESSORThe Company has leased out building under operating lease. There is no escalation or renewal clause in the lease agree-ments and sub-letting is not permitted. The lease is cancellable and the total lease income recognised during the year was Rs9,000,000 (Previous year: Rs9,000,000).
2.40 DERIVATIVES AND UN-HEDGED FOREIGN CURRENCY EXPOSURE
(a) There are no un-hedged foreign currency receivables/ payables and no outstanding derivative instruments as at the balance sheet date.
(b) During the previous year, the Company had entered into forward contracts to hedge its foreign exchange fluctua-tion risk associated with the repayment of foreigncurrency borrowing from State Bank of India aggregating to USD 250,772. The aforesaid loan has been repaid during the year and forward contract has been settled.
KIMS HEALTHCARE MANAGEMENT LTDNOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
2.41 RELATED PARTIES
1. Names of related parties and description of relationship:
Particulars Name of the parties
Holding and ultimate holding company Condis India Healthcare Limited, India
Subsidiary company
KIMS Cancer Care and Research Center Private Limited, IndiaKIMS Bellerose Institute of Medical Science Private Limited, India.KIMS Kollam Multi Speciality Hospital India Private Limited, IndiaKIMS Alshifa Hospital Private Limited, IndiaKIMS Nagercoil Institute of Medical Sciences Private Limited, India
Key management personnel (KMP)
Dr.M.I Sahadulla – Chairman and Managing DirectorDr.G.Vijayaraghavan – Vice Chairman and DirectorMr.C.H.A.Raheem – Executive DirectorMr.E.M.Najeeb - Executive DirectorMr.E. Iqbal – Whole Time DirectorDr. P.M. Zuhara-Director
Relative of key managerial personnel Mr. Sameer Sahadulla, Mr. Safar Iqbal, Mr. Tariq E.N
Particulars Name of the parties
Entities in which KMP has significant influence
Air Travel Enterprises India Limited, India Oak India Healthcare Limited, IndiaThe Great India Car & Coach Rentals Private Limited, IndiaThe Great India Tour Company Private Limited, IndiaThe Great India Aviation Services Private Limited, IndiaGreat India Estates Private Limited, IndiaKIMS Trust, India KIMS Bahrain Medical Centre Co. WLL, BahrainKIMS Management International FZC, UAEKIMS Holding Co. BSC, BahrainKIMS Shares and Securities Private Limited, IndiaKIMS Oman Hospital LLC, Oman Royal Bahrain Hospital WLL, BahrainKameda Infologics Private Limited, IndiaChrysalis Communications Private Limited, IndiaReflections Advertising and Marketing Private Limited, IndiaSociety for Continuing Medical Education and Research (SOCOMER), India
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2. RELATED PARTY TRANSACTIONS:
(a) The Company has entered into the following transactions with related parties during the year ended 31 March 2016.
ParticularsYear ended
31 March 2016Year ended
31 March 2015
REVENUE FROM OPERATIONS
KIMS Cancer Care and Research Center Private Limited (net of revenue shared)
23,221,089 15,998,399
Air Travel Enterprises India Limited 7,700 400
KIMS Trust 895,276 434,710
KIMS Holding Co. BSC - 75,803
Royal Bahrain Hospital WLL 359,444 1,702,624
KIMS Oman Hospital LLC 151,204 17,375
KIMS Kollam Multi Speciality Hospital India Private Limited 3,887,456 3,592,071
KIMS Bellerose Institute of Medical Science Private Limited 999,682
INCOME FROM RENT
KIMS Cancer Care and Research Center Private Limited 9,750,000 9,000,000
INTEREST RECEIVED
KIMS Cancer Care and Research Center Private Limited 3,446,105 3,903,404
GUARANTEE COMMISSION RECEIVED
KIMS Cancer Care and Research Center Private Limited 1,560,000 780,000
MANAGEMENT FEE COLLECTED
KIMS Kollam Multi Speciality Hospital India Private Limited 3,780,983 4,036,541
KIMS Alshifa Hospital Private Limited 2,076,533 3,574,999
RENT PAID
Condis India Healthcare Limited 8,739,615 8,213,021
FRANCHISE FEE
KIMS Management International FZC 6,626,856 4,632,836
TRAVEL AND CLEARING AND FORWARDING EXPENSE
Air Travel Enterprises India Limited 9,983,052 4,854,273
The Great India Tour Company Private Limited 97,102 93,486
ACADEMIC & TRAINING EXPENSES
SOCOMER 376,424 -
ADVERTISEMENT AND PROMOTION
Chrysalis Communications Private Limited 8,745,181 7,342,302
REPAIRS AND MAINTENANCE
Condis India Healthcare Limited 81,707 1,909,037
Kameda Infologics Private Limited 2,466,540 2,665,179
EXPENSE MET BY KIMS
KIMS Cancer Care and Research Centre Private Limited 13,812,193 10,810,160
Condis India Healthcare Limited 679,805 8,134,069
KIMS Alshifa Hospital Private Limited 1,669,201 1,202,837
KIMS Nagercoil Institute of Medical Sciences Private Limited - 2,211,998
KIMS Trust 544,600 880,601
KIMS Oman Hospital LLC - 73,123
KIMS Holding Co. BSC - 143,370
Royal Bahrain Hospital WLL 210,456 -
Oak India Healthcare Limited - 6,500
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
KIMS Management International FZC 5,427,028 1,263,440
KIMS Bellerose Institute of Medical Science Private Limited 1,418,041 757,618
KIMS Kollam Multi Speciality Hospital India Private Limited 1,197,128 1,166,375
KIMS Shares & Securities Private Limited 3,080 18,200
SOCOMER 574,600 578,782
EXPENSE MET ON BEHALF OF KIMS
KIMS Trust 14,560 337,416
KIMS Cancer Care and Research Center Private Limited 143,500 205,706
KIMS Management International FZC 4,135,262 9,521,540
Royal Bahrain Hospital WLL 110,149 393,291
KIMS Kollam Multi Speciality Hospital India Private Limited - 315,043
KIMS Bellerose Institute of Medical Science Private Limited 16,204 1,508,079
KIMS Al Shifa Hospital Private Limited 5,500 -
PURCHASE OF ASSETS
Condis India Healthcare Limited 29,182,604 38,321,282
KIMS Bellerose Institute Of Medical Science Private Limited 700,000 -
Kameda Infologics Private Limited 6,840,000 -
SALE OF ASSETS
KIMS Bellerose Institute of Medical Science Private Limited - 466,275
ADVANCE FOR PURCHASE OF ASSETS
Kameda Infologics Private Limited - 3,800,000
ADVANCE FOR/PURCHASE OF INVESTMENT
KIMS Holding Co.BSC 35,519,623 -
REPAYMENT RECEIVED
KIMS Cancer Care and Research Center Private Limited - 16,214,151
REMUNERATION*
Dr.M.I.Sahadulla 16,605,000 14,400,000
Dr.G.Vijayaraghavan 11,685,000 10,200,000
Mr.E.M.Najeeb 8,969,000 7,800,000
Mr.C.H.A Raheem 8,969,000 7,800,000
Mr.E.Iqbal 4,489,500 3,900,000
SALARIES AND ALLOWANCES
Dr. P.M. Zuhara 5,700,000 4,680,000
Mr. Sameer Sahadulla 517,000 466,000
Mr. Safar Iqbal 441,371 393,107
Mr. Tariq E. N. 641,962 -
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
ParticularsYear ended
31 March 2016Year ended
31 March 2015
* The amounts does not include provision for gratuity and compensated absences as the same is determined for the Company as a whole based on an actuarial valuation.
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(b) Balance receivable from/ payable to related parties as at the balance sheet date:
ParticularsYear ended
31 March 2016Year ended
31 March 2015
DUES FROM SUBSIDIARIES
KIMS Cancer Care and Research Center Private Limited - 29,718,986
KIMS Al Shifa Hospital Private Limited 213,196 -
DUES FROM RELATED PARTIES
Royal Bahrain Hospital WLL 637,980 978,229
KIMS Oman Hospital LLC 803,115 766,511
KIMS Management International FZC 3,066,668 959,469
KIMS Holding Co. BSC 322,636 322,635
DUES TO RELATED PARTIES
Chrysalis Communications Private Limited 356,962 5,375
Condis India Healthcare Limited 420,582 1,034,625
KIMS Trust 1,360 -
ADVANCE FOR CAPITAL GOODS
Kameda Infologics Private Limited 6,800,000
ADVANCE TO SUPPLIERS OF GOODS AND SERVICES
Oak India Healthcare Limited 200,000 -
KIMS Shares & Securities Private Limited - 17,600
Air Travel Enterprises India Limited 468,008 6,22,568
ADVANCE AGAINST INVESTMENT IN
KIMS Holding Co BSC 35,519,623 -
NOTES TO THE STANDALONE FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LTD
2.42 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with associated enterprises during the financial year and expects such records to be in existence latest by the date of filing its income tax return as required by law. The Management is of the opinion that its international transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
2.43 Previous year figures have been regrouped/ reclassified wherever necessary to conform to current year presentation.
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
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They took great care of my son when he had a toddler fracture
FINANCIAL STATEMENTSCONSOLIDATED
INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTSTo the Members of KIMS Healthare Management Limited
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
We have audited the accompanying consolidated financial statements of KIMS Health Care Management Limited (“the Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries collectively referred to as the “Group”), comprising of the consolidated balance sheet as at 31 March 2016, the consolidated statement of profit and loss, the consolidated cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated financial statements”).
MANAGEMENT’S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
The Holding Company’s Board of Directors is responsible for the preparation of these consolidated financial statements in terms of the requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that give a true and fair view of
the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (particularly Accounting Standard 21 - Consolidated Financial Statements). The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error which have been used for the purpose of
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preparation of the consolidated financial statements by the Directors of the Holding Company, as aforesaid.
AUDITORS’ RESPONSIBILITYOur responsibility is to express an opinion on these consolidated financial statements based on our audit. While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under sub section 10 of Section 143 of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Holding Company’s preparation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports referred to in the “Other matter” paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.
OPINIONIn our opinion and to the best of our information and according to the explanations given to us, the consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
(a) in the case of the consolidated balance sheet, of the state of affairs of the Group as at 31 March 2016;
(b) in the case of the consolidated statement of profit and loss, of the profit of the Group for the year ended
on that date; and
(c) in the case of the consolidated cash flow statement, of the cash flows of the Group for the year ended on that date.
OTHER MATTERWe did not audit the financial statements / financial information of two subsidiaries, whose financial statements reflect total assets of Rs 190 million as at 31 March 2016, total revenues of Rs 14 million and net cash outflows amounting to Rs 15 million for the year then ended, as considered in the consolidated financial statements. These financial statements / financial information have been audited by other auditors whose report have been furnished to us by the Management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of the subsidiaries and our report in terms of sub-sections (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, is based solely on the report of the other auditors. Our opinion on the consolidated financial statements and our report on Other Legal and Regulatory Requirements below, is not modified in respect of this matter with respect to our reliance on the work done and the reports of the other auditors.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by sub-sections 3 of Section 143 of the Act, based on our audit and on the consideration of the reports of the other auditors on the separate financial statements and the other financial information of the subsidiaries, as noted in the ‘Other Matter’ paragraph, we report, to the extent applicable, that:
(a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the aforesaid consolidated financial statements;
(b) in our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors;
(c) the consolidated balance sheet, the consolidated statement of profit and loss and the consolidated cash flow statement dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of preparation of the consolidated financial statements;
(d) in our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) on the basis of the written representations
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received from the directors of the Holding Company as on 31 March 2016 taken on record by the Board of Directors of the Holding Company and the relevant assertion contained in the audit reports on the standalone financial statements of each subsidiary company, none of the Directors of the Group companies is disqualified as on 31 March 2016 from being appointed as a Director of that company in terms of sub-section 2 of Section 164 of the Act;
(f) with respect to the adequacy of the internal financial controls over financial reporting of the Group and the operating effectiveness of such controls, refer to our separate report in Annexure A; and
(g) with respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on separate financial statements as also the other financial information of the subsidiaries, as noted in the ‘Other Matter’ paragraph:
i. the Group has disclosed the impact of pending litigations on its consolidated financial position in its consolidated financial statements – Refer Note 2.30 to the consolidated financial statements;
ii. the Group did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. there were no amounts, which are required to be transferred to the Investor Education and Protection Fund by the Group.
for B S R and Associates LLPChartered AccountantsFirm registration No.: 116231W/W-100024
Chandrashekhar BPartner | Membership No.: 114161Thiruvananthapuram | 4 June 2016
ANNEXURE A TO THE INDEPENDENT AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (“THE ACT”)
We have audited the internal financial controls over financial reporting of KIMS Health Care Management Limited (“the Holding Company”) and its subsidiaries (the Holding Company and its subsidiaries collectively referred to as the “Group”) as of 31 March 2016 in conjunction with our audit of the consolidated financial statements of the Group for the year ended on that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS
The respective Board of Directors of the companies included in the Group are responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Group considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct
of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
AUDITORS’ RESPONSIBILITY
Our responsibility is to express an opinion on the Group’s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls
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over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of the report referred to in the “Other matter” paragraph below is sufficient and appropriate to provide a basis for our audit opinion on the Company’s internal financial controls system over financial reporting.
MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTINGA company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTINGBecause of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
OPINION
In our opinion, the Group has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2016, based on the internal control over financial reporting criteria established by the Group considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the ICAI.
OTHER MATTER
Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal controls over financial reporting insofar as it relates to two subsidiary companies, is based on the corresponding reports of the auditors of such companies.
for B S R and Associates LLPChartered AccountantsFirm registration No.: 116231W/W-100024
Chandrashekhar BPartner | Membership No.: 114161Thiruvananthapuram | 4 June 2016
Notes As at
31 March 2016As at
31 March 2015EQUITY & LIABILITIES Share Holders’ fund
Share Capital 2.1 1,003,271,000 1,003,271,000 Reserves & Surplus 2.2 2,055,115,726 2,017,298,122
3,058,386,726 3,020,569,122 Minority interest 428,763,574 483,449,862 Non Current Liabilities
Long Term Borrowings 2.3 1,517,400,938 1,601,776,546 Deffered Tax Liabilities (Net) 2.4 54,149,038 72,839,215 Other Long Term Liabilities 2.5 29,577,197 25,442,013 Long Term Provisions 2.6 57,736,911 41,828,446
1,658,864,084 1,741,886,220 Current Liabilities
Short Term Borrowings 2.7 224,532,339 805,506,180
Trade Payables 2.8
Total outstanding dues of micro and small enterprises - -Total outstanding dues of creditors other than micro and small enterprises
278,865,145 263,417,411
Other Current Liabilities 2.9 866,966,314 631,121,389 Short Term Provisions 2.10 126,349,453 107,570,701
1,496,713,251 1,807,615,681 6,642,727,635 7,053,520,885
ASSETSNon Current Assets
Fixed assets Tangible fixed assets 2.11 4,064,204,277 3,785,447,733 Intangible fixed assets 2.12 22,527,611 18,339,017 Capital work-in-progress 146,794,632 76,431,891
Goodwill on consolidation 777,267,033 729,144,016 Non-current investments 2.13 332,165,121 332,165,121 Long-term loans and advances 2.14 169,282,953 230,691,154 Other non-current assets 2.15 28,993,822 26,518,106
5,541,235,449 5,198,737,038 Current Assets
Inventories 2.16 205,070,745 159,430,713 Trade Receivables 2.17 432,269,638 350,043,374 Cash & Bank Balances 2.18 290,417,018 1,184,733,741 Short Term Loans and Advances 2.19 94,210,556 71,530,714 Other Current Assets 2.20 79,524,229 89,045,305
1,101,492,186 1,854,783,847 6,642,727,635 7,053,520,885
CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2016(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LIMITED AND ITS SUBSIDIARIES
Significant accounting policies 1The notes referred to above form an integral part of the consolidated financial statements
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
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Notes For the year ended
31 March 2016For the year ended
31 March 2015
REVENUERevenue from Operations 2.21 5,386,496,667 4,162,483,888 Other Income 2.22 109,636,111 134,285,241
TOTAL REVENUE 5,496,132,778 4,296,769,129 EXPENSES
Purchase of medicines and consumables 1,978,568,585 1,607,068,031
Changes in inventories of medicines and consumables 2.23 (42,090,936) (48,957,739)
Employee benefits expense 2.24 967,623,181 638,830,348
Finance cost 2.25 246,991,233 157,472,773
Depreciation and amortisation 2.26 353,496,575 249,036,619
Other expenses 2.27 1,756,620,078 1,334,805,892
CSR expenditure 2.28 8,521,607 5,131,447
TOTAL EXPENSES 5,269,730,323 3,943,387,371
Profit before taxes and minority interest 226,402,455 353,381,758
Provision for tax: 2.29
Current tax 213,347,822 184,769,070
Deferred tax benefit (14,049,478) (1,197,503)
Profit after taxes and before minority interest 27,104,111 169,810,191
Minority interest (122,119,817) (66,022,145)
Profit for the year 149,223,928 235,832,336
Earning per share (equity share of face value of Rs.10 each)
2.31
Basic 1.69 3.10
Diluted 1.49 2.45
Significant accounting policies 1
The notes referred to above form an integral part of the consolidated financial statements
CONSOLIDATED STATEMENT PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2016(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LIMITED AND ITS SUBSIDIARIES
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
Sd/-
For the year ended 31 March 2016
For the year ended 31 March 2015
CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxes 226,402,455 353,381,758
Adjustments for :Depreciation and amortisation 353,496,575 249,036,619
Unrealised loss on foreign exchange restatement - 2,563,031
(Profit)/loss on sale of fixed assets (26,313,088) 1,112,094
Provision for doubtful debts 18,041,233 -
Bad debts written off - 7,559,400
Interest expense 246,991,233 155,577,713
Interest income (44,114,145) (108,534,830)
Operating cash flows before working capital changes 774,504,263 660,695,785
(Increase)/decrease in trade receivables (81,871,745) (113,933,147)
(Increase) in inventories (44,999,332) (46,432,691)
(Increase)/decrease in loans and advances 692,987,276 (165,061,560)
Increase/(decrease) in liabilities and provisions 22,722,277 183,529,659
Cash generated by operating activities before taxes 1,363,342,739 518,798,046
Income taxes paid (198,443,443) (231,947,838)
Net cash generated by operating activities (A) 1,164,899,296 286,850,208
CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of fixed assets 33,258,677 (1,167,694,373)
Purchase of fixed assets (579,022,315) 476,939
Advance for investments (35,519,623) (253,203,843)
Consideration paid for entities acquired during the year (31,224,490) (853,197,023)
Proceeds from issue of shares to minority shareholders 20,535,002 188,319,633
Interest received 60,796,597 108,628,815
Net cash used in investing activities (B) (531,176,152) (1,976,669,852)
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from issue of share capital - 1,000,000,000
Dividend paid including dividend tax (102,636,236) (79,880,909)
Long-term borrowings availed 65,513,002 610,035,212
Short-term borrowings availed / (repaid) (580,973,841) 255,612,841
Interest paid (249,346,198) (121,808,462)
Net cash generated from / (used in) financing activities (C) (867,443,273) 1,663,958,682
Net increase in cash and cash equivalents (A+B+C) (233,720,129) (25,860,962)
Cash and cash equivalents at the beginning of the year 328,261,057 349,988,202
Cash and cash equivalents on acquisition of subsidiaries 20,226,139 4,133,817
Cash and cash equivalents at end of the year 114,767,067 328,261,057
(refer to note (a) below and note 2.18 Cash and bank balances)
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2016(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTH CARE MANAGEMENT LIMITED AND ITS SUBSIDIARIES
Note(a): Cash and cash equivalents at the end of the year is net of book overdrafts amounting to Rs 15,374,999 (previous year: Rs 16,912,987).The notes referred to above are an integral part of the consolidated cash flow statement
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
Sd/-
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LIMITED AND ITS SUBSIDIARIES
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 BACKGROUND
KIMS Health Care Management Limited (‘KHML/ the Company’) is a company with registered office in Kerala. The Company is primarily engaged in the business of running hospitals. The Company is a subsidiary of Condis India Healthcare Limited, Trivandrum, Kerala.
The Company has five subsidiaries, KIMS Cancer Care and Research Center Private Limited (‘KCC’), KIMS Bellerose Institute of Medical Sciences Private Limited (‘KIMS Kottayam’), KIMS Kollam Multi Speciality Hospital India Private Limited (‘KIMS Kollam’),KIMS Nagercoil Institute of Medical Sciences Private Limited (‘KIMS Nagercoil’), KIMS Al Shifa Healthcare Private Limited (‘KIMS AlShifa’) and two step down subsidiaries, Al Shifa Scan Centre Private Limited (‘AlShifa Scan’) and BIBI Hospitals Private Limited all engaged in the business of running hospitals and healthcare services.
1.2 BASIS OF ACCOUNTING AND PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements have been prepared and presented in accordance with the Indian Generally Accepted Accounting Principles (“IGAAP”) under historical cost convention on an accrual basis. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act, as applicable, Accounting Standards issued by the Institute of Chartered Accountants of India and other generally accepted accounting principles in India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change
in the accounting policy hitherto in use. All amounts included in the financial statements are reported in Indian rupees, except share and per share data, and have been rounded off to nearest rupee.
1.3 USE OF ESTIMATES
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes and the useful lives of fixed tangible assets and intangible assets.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the consolidated financial statements.
1.4 PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the financial statements of KIMS Health Care Management Limited (“the Company” or the “parent company”), and all of its subsidiaries and step down subsidiaries (collectively referred to as the ‘Group’ and individually as ‘Group entities’), in which the parent company has more than one-half of the voting power of an enterprise or where the parent company controls the composition of the board of directors.
The consolidated financial statements include the results of the subsidiaries/ step down subsidiaries as listed below:
Name of the CompanyCountry of
incorporationProportion
of ownership interest (%)
Proportion of voting power
held directly or indirectly (%)
KIMS Cancer Care and Research Center Private Limited India 86.94 86.94
KIMS Bellerose Institute of Medical Science Private Limited India 78.93 78.93
KIMS Kollam Multi Speciality Hospital India Private Limited India 63.54 63.54
KIMS Nagercoil Institute of Medical Sciences Private Limited India 52.73 52.73
KIMS AlShifa Hospital Private Limited India 51.00 51.00
Al Shifa Scan Centre Private Limited (Step down subsidiary) India 99.99 99.99
BIBI Hospitals Private Limited (Step down subsidiary) India 51.00 51.00
The consolidated financial statements have been prepared on the following basis:
The financial statements of the parent company and the subsidiaries have been combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses after eliminating intra-group balances / transactions and resulting unrealized profits in full. Unrealized losses resulting from intra-group transactions have also been eliminated except to the extent that recoverable value of related assets is lower than their cost to the group. The amounts shown in respect of reserves comprise the amount of the relevant reserves as per the balance sheet of the parent company and its share in the post-acquisition increase in the relevant reserves of the subsidiaries.
The Group accounts for investments by the equity method of accounting wherever it is able to exercise significant influence over the operating and financial policies of the investee. Inter company profits and losses have been proportionately eliminated until realized by the investor or investee.
The excess / deficit of cost to the parent company of its investment in the subsidiaries and associates over its portion of equity at the respective dates on which investment in such entities were made are recognized in the financial statements as goodwill / capital reserve. The parent company’s portion of equity in such entities is determined on the basis of the book values of assets and liabilities as per the financial statements of such entities as on the
date of investment and if not available, the financial statements for the immediately preceding period adjusted for the effects of significant transactions, up to the date of investment.
The consolidated financial statements are presented, to the extent possible, in the same format as that adopted by the parent company for its separate financial statements.
The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances.
1.5 TANGIBLE AND INTANGIBLE FIXED ASSETS
Fixed assets are carried at cost of acquisition or construction less accumulated depreciation. The cost of fixed assets includes freight, duties, taxes and other incidental expenses related to the acquisition of those fixed assets. In respect of major projects involving construction, related directly attributable costs form part of the value of assets capitalised. Borrowing cost directly attributable to acquisition / construction of those fixed assets which necessarily take a substantial period of time to get ready for their intended use is capitalized. Intangible asset is recorded at its acquisition cost.
Advances paid towards the acquisition of fixed assets, outstanding at each balance sheet date are shown under long-term loans and advances. The cost of the fixed asset not ready for their intended use before such date is disclosed under capital work-in-progress.
Name of Entity
Net assets (Total assets – Total liabilities)
Share in profit or loss
As a % of consolidated
net assetsAmount
As a % of consolidated profit or loss
Amount
Parent Company
KIMS Healthcare Management Limited 111.58 3,412,661,529 236.38 352,729,573
Subsidiaries in India
KIMS Cancer Care and Research Center Private Limited
9.86 301,531,400 (3.40) (5,072,335)
KIMS Bellerose Institute of Medical Science Private Limited
2.75 84,205,026 (85.96) (128,268,435)
KIMS Kollam Multi Speciality Hospital India Private Limited
8.85 270,804,771 (36.27) (54,126,746)
KIMS Al Shifa Hospital Private Limited 11.23 343,377,285 (92.57) (138,143,687)
KIMS Nagercoil Institute of Medical Sciences Private Limited
5.71 174,723,491 (0.01) (14,259)
Minority interest in all subsidiaries (14.47) (442,682,460) 81.84 122,119,817
Total inter-company eliminations (35.52) (1,086,234,316) 0.00 -
Total 100 3,058,386,726 100 149,223,928
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1.6 DEPRECIATION AND AMORTISATION Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged.
The management estimates the useful lives for the fixed assets as under:
Leasehold improvements are amortised over the period of the lease or estimated useful lives of assets, whichever is lower. Intangible assets comprising computer software are amortised over their estimated useful lives of three years from the date of capitalisation. Goodwill on amalgamation is capitalised and amortised over a period of 5 years from the date of the event.
* For the above mentioned class of assets, the Group believes that the useful lives as given above best represent the useful lives of assets based on an internal assessment and supported by technical advice, where necessary, which is different from the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013.
1.7 IMPAIRMENTThe Group assesses at each balance sheet date whether there is any indication that an asset forming part of its cash generating units may be impaired. If any such indications exists, the group estimates the recoverable amount of the asset or the group of assets comprising, a cash generating unit. For an asset or a group of assets that does not generate largely independent cash flows, the recoverable amount is determined for the cash generating unit to which the asset belongs. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount. An impairment loss is reversed only to the extent that the carrying amount of the asset does not exceed the book value that would have been determined; if no impairment loss has been recognized.
1.8 GOODWILLAny excess of the cost to the parent of its investment in a subsidiary over the parent’s portion of equity of the subsidiary, at the date on which investment in the subsidiary is made, is recorded as goodwill arising on consolidation.
Goodwill arising on consolidation/acquisition of assets is not amortised. It is tested for impairment on periodic basis and written-off, if found impaired
1.9 INVENTORIESInventories are valued at the lower of cost and net realisable value. Cost of inventories comprises purchase price and other costs incurred in bringing the inventories to their present location and condition. Cost of pharmacy medicines and medical consumables are determined by applying the weighted average cost method. The comparison of cost and net realisable value is made on an item-by-item basis.
1.10 INVESTMENTSLong-term investments are carried at cost less any other-than-temporary diminution in value, determined separately for each individual investment.
1.11 REVENUE RECOGNITIONThe Group derives its revenue primarily from rendering medical and healthcare services. Income from medical and healthcare services comprises of income from hospital services and sale of pharma products.
Revenue from hospital services to patients is recognised as revenue when the related services are rendered unless significant future uncertainties exist. Revenue is also recognised in relation to the services rendered to the patients who are undergoing treatment/observation on the balance sheet date to the extent of services rendered.
Income from academic service is recognized as revenue as and when the related services are rendered unless significant future uncertainties exist.
Revenue from sale of pharma products within hospital premises is recognised on sale of medicines and similar products to the buyer. The amount of revenue recognised is net of sales returns and exclusive of sales tax, discounts and revenue shared.
‘Unbilled revenue’ represents value of medical and healthcare services rendered in excess of amounts billed to the patients as at the balance sheet date
Interest on deployment of surplus funds is recognized using the time proportionate method, based on the transactional interest rates.
ASSET CATEGORYUSEFUL LIVES
(YEARS)
General and hospital equipments * 10
Books * 1
Vehicles 8
Computers 3
Furniture and fixtures 10
Electrical fittings 10
Office equipments 5
Buildings * 53
1.12 LEASES
Leases where the lessor effectively retains substantially all the risks and rewards of ownership of the leased item, are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.
1.13 FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded using the exchange rate prevailing on the dates of the respective transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the statement of profit and loss for the year.
Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date. The resultant exchange differences are recognized in the statement of profit and loss. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
1.14 BORROWING COSTInterest and finance charges on borrowings which are not attributable to acquisition/construction of fixed assets which take substantial period of time to get ready for its intended use are recognised as expenditure in the statement of profit and loss.
1.15 FORWARD CONTRACTS
Premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Any profit or loss arising on the cancellation or renewal of forward contracts is recognized as income or as expense for the period. The Company does not use the foreign exchange forward contracts for trading or speculation purposes.
In relation to the forward contracts entered into to hedge the foreign currency risk of the underlying outstanding at the balance sheet date, the exchange difference is calculated as the difference between the foreign currency amount of the contract translated at the exchange rate at the reporting date, or the settlement date where the transaction is settled during the reporting period, and the corresponding foreign currency amount translated at the later of the date of inception of the forward exchange contract and the last reporting date. Such exchange differences are recognized in the profit and loss account in the reporting period in which the exchange rates change.
1.16 EMPLOYEE BENEFITSShort-term employee benefitsEmployee benefits payable wholly within twelve months of receiving employee services are classified
as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the related service is rendered by employees.
Post-employment benefits
Defined contribution plans
Contributions payable to the recognized provident fund, which is a defined contribution scheme, is made monthly at predetermined rates to the appropriate authorities and charged to the statement of profit and loss on an accrual basis. There are no other obligations other than the contribution payable to the respective fund.
Defined benefit plans
Gratuity, a defined benefit scheme, is accrued based on an actuarial valuation at the balance-sheet date, carried out by an independent actuary. The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation using the projected unit credit method, which recognizes each period of service as giving rise to additional units of employee benefit entitlement and measures each unit separately to build up the final obligation.
Compensated absences
The employees can carry-forward a portion of the unutilized accrued compensated absences and utilise it in future service periods or receive cash compensation. The Group records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the projected unit credit method.
1.17 EARNINGS PER SHARE
The basic earnings per share (‘EPS’) is computed by dividing the net profit after tax for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period unless issued at a later date. In computing dilutive earning per share, only potential equity shares that are dilutive i.e. which reduces earnings per share or increases loss per share are included.
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1.18 PROVISIONS AND CONTINGENT LIABILITIES
The Group recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When the likelihood of outflow of resources, in case of a possible obligation or a present obligation is remote, no provision or disclosure is made.
Provision for onerous contracts i.e. contracts where the expected unavoidable cost of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognised when it is possible that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on a reliable estimate of such obligation.
1.19 INCOME TAXES
The current income tax charge is determined in accordance with the relevant tax regulations applicable to each group entity in India.
Deferred tax charge or credit is recognised for the future tax consequences attributable to timing difference that result between the profit offered for income taxes and the profit as per the financial statements. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are
recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however, when there is a brought forward loss or unabsorbed depreciation under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realised.
The Each group entity offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.
1.20 CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Group are segregated.
1.21 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise of cash-in-hand and balance in bank in current accounts and deposit accounts. All short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value to be cash equivalents.
RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO EQUITY SHARES
The Company has two classes of equity shares.
a) Class A equity shares: Shall be entitled to voting rights equal to 51% in the fully diluted equity share capital of the Company and not entitled to receive any dividends. In the event that the Class A Shareholders hold ordinary equity shares in the Company, then the voting rights attached to the Class A equity shares shall be reduced to the extent of such ordinary equity shareholding.
b) Ordinary equity shares: The ordinary equity shares are entitled to receive dividend as declared from time to time after payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to shareholders’ share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeited of the shares.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all
preferential amounts in proportion to the number of equity shares held.
RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO PREFERENCE SHARES
Compulsorily Convertible Cumulative Preference Shares (CCCPS) were issued at par in December 2011. Preference shares carry a preferential right as to dividend over equity shareholders. Where dividend on cumulative preference shares is not declared for a financial year, the entitlement thereto is carried forward. The preference shares are entitled to one vote per share at meetings of the Company on any resolutions of the Company directly affecting their rights. However, a cumulative preference shareholder acquires voting rights on par with an equity shareholder if the dividend on preference shares has remained unpaid for a period of not less than two years. In the event of liquidation, preference shareholders have a preferential right over equity shareholders to be repaid to the extent of capital paid-up and dividend in arrears on such shares. Each CCCPS is convertible into one equity share of par value at any time on or after 1 April 2014 but not later than 31 December 2016 by the preference shareholders.
2.1 SHARE CAPITAL As at 31 March 2016 As at 31 March 2015
Number of Shares
Amount Number of
Shares Amount
AUTHORISED
Equity shares of Rs. 10 each 70,999,000 709,990,000 70,999,000 709,990,000
Class A equity shares of Rs. 10 each 1,000 10,000 1,000 10,000
Compulsorily convertible cumulative preference shares of Rs. 10 each
40,000,000 400,000,000 40,000,000 400,000,000
111,000,000 1,110,000,000 111,000,000 1,110,000,000
ISSUED, SUBSCRIBED AND PAID-UP
Equity shares of Rs. 10 each 70,024,069 700,240,690 70,024,069 700,240,690
Class A equity shares of Rs. 10 each 1,000 10,000 1,000 10,000
Compulsorily convertible cumulative prefer-ence shares of Rs. 10 each
30,302,031 303,020,310 30,302,031 303,020,310
100,327,100 1,003,271,000 100,327,100 1,003,271,000
Reconciliation of shares outstanding at the be-ginning and at the end of the reporting year
Equity shares of Rs. 10 each fully paid-up
At the beginning of the year 70,024,069 700,240,690 50,024,069 500,240,690
Add : Issued during the year - - 20,000,000 200,000,000
At the end of the year 70,024,069 700,240,690 70,024,069 700,240,690
Class A equity shares of Rs. 10 each
At the beginning and at the end of the year 1,000 10,000 1,000 10,000
Compulsorily convertible cumulative preference shares of Rs. 10 each At the beginning and at the end of the year 30,302,031 303,020,310 30,302,031 303,020,310
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LIMITED AND ITS SUBSIDIARIES
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As at 31 March 2016 As at 31 March 2015
Number of Shares% holding
in the class Number of Shares
% holding in the class
Condis India Healthcare Limited - holding company
Equity shares of Rs. 10 each 29,168,583 42% 28,748,183 41%
Class A equity shares of Rs. 10 each 1,000 100% 1,000 100%
Compulsorily convertible cumulative preference shares of Rs. 10 each
30,302,031 100% 30,302,031 100%
2.1 SHARE CAPITAL (Continued)a) Shares held by ultimate holding company/ holding company and their subsidiaries/ associates
As at 31 March 2016 As at 31 March 2015
Number of Shares% holding
in the class Number of Shares
% holding in the class
Condis India Healthcare Limited
Equity shares of Rs. 10 each 29,168,583 42% 28,748,183 41%
Class A equity shares of Rs. 10 each 1,000 100% 1,000 100%
Compulsorily convertible cumulative preference shares of Rs. 10 each
30,302,031 100% 30,302,031 100%
b) Details of shareholders holding more than 5% shares of the Company in each class of equity shares and preference shares
c) Details of buyback, bonus shares, shares issued for consideration other than for cash in the five years immediately preceding the balance sheet date
The Company has not allotted any fully paid-up equity shares by way of bonus shares nor has bought back any class of equity shares nor has there been any issue for consideration other than for cash during the period of five years immediately preceding the balance sheet date.
As at 31 March 2016
As at 31 March 20152.2 RESERVES AND SURPLUS
Securities premium accountAt the commencement of the year 1,498,516,675 698,516,675
Additions during the year - 800,000,000
Balance at commencement and at the end of the year 1,498,516,675 1,498,516,675
Surplus in the statement of profit and lossBalance at the commencement of the year 518,781,447 396,254,192
Add: profit for the year 149,223,928 235,832,336
Less: Depreciation reserve * (8,768,703) (10,668,845)
Balance at the end of the year 659,236,672 621,417,683
AppropriationsProposed dividend on CCCPS (dividend per share Rs. 0.85 (previous year Rs. 0.85) 25,756,726 25,756,726
Tax on proposed preference dividend 5,243,464 5,243,039
Proposed dividend on equity shares (dividend per share Rs. 0.85 (previous year Rs.0.85)
59,520,459 59,520,486
Tax on proposed equity dividend 12,116,972 12,115,985
Closing balance 556,599,051 518,781,447
Total reserves and surplus 2,055,115,726 2,017,298,122
An amount of Rs. 8,768,703 (net of deferred tax of Rs.4,640,700) being depreciation of components of medical equipments identified having shorter useful life than the main equipment and representing the carrying amount of assets with revised useful life as nil) has been charged to the retained earnings pursuant to the requirement of Schedule II of lhe Companies Act, 2013.
As at 31 March 2016
As at 31 March 20152.3 LONG-TERM BORROWINGS
Secured loans from banksTerm loans 1,508,029,849 1,588,043,372
Vehicle loans 7,531,358 8,838,090
Unsecured term loans from othersCisco Systems Capital (India) Private Limited 1,839,731 4,895,084
1,517,400,938 1,601,776,546
Note 1: Vehicle loans from banks are secured by hypothecation of the respective motor vehicles and the rate of interest ranges between 11% -12% per annum. Loan is repayable in 60 monthly instalments.
Note 2: There are no defaults in repayment of principal or interest to lenders as at the balance sheet date.
2.3 LONG-TERM BORROWINGS (Continued)Details of securities, terms and conditions of term loans:
Lenders name / type of facility
Security terms Interest rate (per annum) Tenure
Amount out-standing as on
31.03.2016
Amount out-standing as on
31.03.2015
State Bank of India - Foreign currency loan
Secured by equitable mortgage of 150.25 cents of land located at Kadakampally Village, Thiruvana-nthapuram District.
6 months Libor + 3.5%
30 months - 15,571,006
State Bank of India - Term loan
Secured by first charge over fixed assets and goods and machinery purchased out of banks finance
220 basis points above base rate
56 months
207,000,000 243,000,000
State Bank of India - Term loan
Secured by first charge over fixed assets and goods and machinery purchased out of banks finance
220 basis points above base rate
32 months
23,600,000 28,399,940
State Bank of India - Term loan
Secured by first charge over the entire Fixed assets of KIMS Health Care Management Limited, Kochi unit
375 basis points above base rate
78 months
36,711,400 39,462,451
State Bank of India - Term loan
Secured by first charge over the entire Fixed assets of KIMS Health Care Management Limited, Kochi unit.
375 basis points above base rate
65 months
9,940,000 13,228,635
HDFC Bank Limited- Equip-ment loan
Secured by hypothecatio of medi-cal equipments purchased using the term loan.
2.25% above base rate
48 months
4,702,570 10,352,253
South Indian Bank -Term loan
Secured by equitable mortgage of land and building in Thonakkal, second charge on fixed assets of the company already mortgaged to SBI and exclusive charge on as-sets of nursing college.
0.75% above base rate
42 months
402,784,000 509,072,251
Cisco Systems Capital (India) Private Limited
Unsecured loanFixed as per
agreement20
quarters 4,778,380 7,201,572
Effective from April 1, 2014 the Company has charged depreciation based on the revised remaining useful life of the assets as per the requirement of Schedule II of lhe Companies Act, 2013. An amount of Rs. 10,668,845 (net of deferrcd tax of Rs. 5,457,619) representing the carrying amount of assets with revised useful life as nil, has been charged to the retained earnings pursuant to the provisions of the Companies Act, 2013.
111
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110
Lenders name / type of facility
Security terms Interest rate (per annum) Tenure
Amount out-standing as on
31.03.2016
Amount out-standing as on
31.03.2015
State Bank of In-dia - Term loan
Secured by a first charge on the assets of the KCC and corporate guarantee of KHML
0.37% above base rate
96 months
35,400,000 53,213,346
South Indian Bank - Term loan
Secured by equitable mortgage of 305 cents of land located at Ayma-nam Village, Kottayam and hy-pothecation of machinery, hospital equipments, furniture and fixtures and stock and receivables.
1.5% above base rate
69 months
404,680,482 317,874,265
Canara Bank - Term loan
Secured by equitable mortgage of land situated at Perinthalmanna and hypothecation of medical equip-ments and furnitures.
1.5% above base rate
84 months
89,210,335 115,877,984
Canara Bank - Term loan
Secured by equitable mortgage of 153 cents of land and hypothecation of medical equipments and furni-tures.
1.5% above base rate
66 months
23,450,663 31,114,194
Canara Bank - Term loan
Secured by hypothecation of medical equipments and furnitures.
1.5% above base rate
84months
162,989,097 185,000,000
Canara Bank - Term loan
Secured by hypothecation of medi-cal equipments and furniture and fixtures
1.5% above base rate
84 months
187,500,000 202,500,000
Canara Bank - Term loan
Secured by hypothecation of Project Assets woth Rs. 31.33 Crores, Col-lateral : 15 Cents of Land with a six storied Ladies Hostel Building at Perinthalmanna
1.5% above base rate
84months
209,431,059 -
HDFC Bank Lim-ited- Term loan
Secured by first charge on Hospital land & building and all fixed assets including Plant & Machinery both existing & future located in Kotti-yam, Kollam. In addition first charge on Current assets of the Company Kims Kollam Multispecialty Hospital Private Limited
11% Fixed84
months 36,128,000 -
Vehicle loansSecured by hypothecation of ve-hicles purchased using the loan 11% to 12%
60 months
10,081,686 11,007,597
1,848,387,672 1,782,875,494
* includes current maturities of long term borrowings
As at 31 March 2016
As at 31 March 20152.4 DEFERRED TAX LIABILITIES (NET)
Deferred tax assetsArising from timing differences in respect of:Employee benefits 21,528,200 13,541,700
Other disallowances 6,738,962 340,400 28,267,162 13,882,100
Deferred tax liability
Excess of depreciation and amortisation on fixed assets under income-tax law over depreciation and amortisation provided in accounts
82,416,200 86,721,315
82,416,200 86,721,315
Deferred tax liabilities (net) * 54,149,038 72,839,215
* Includes deferred tax net liability of Nil (Previous year: Rs.312,315) on account of acquisition of a subsidiaryAs at
31 March 2016As at
31 March 20152.5 OTHER LONG-TERM LIABILITIESSecurity deposits 24,637,851 17,507,497
Rent equalisation reserve 1,639,346 4,154,551
Deposits from students 3,300,000 3,779,965 29,577,197 25,442,013
As at 31 March 2016
As at 31 March 2015
2.6 LONG-TERM PROVISIONSFor employee benefitsGratuity 46,820,911 33,322,446
Compensated absences 10,916,000 8,506,000 57,736,911 41,828,446
2.7 SHORT-TERM BORROWINGS Secured loans from banksCash credit and overdraft 174,532,337 156,580,849
Short-term loans - loan against fixed deposits - 573,275,329
Unsecured loans From banks 50,000,002 50,000,002
Directors of a Subsidiary - 25,650.000 224,532,339 805,506,180
(a) Cash credit, overdraft and short - term loans from banks carry interest ranging between 10.5% - 12% per annum and are repayable on demand. Loans from banks are secured by hypothecation of inventories, receivables, other current assets and equitable mortgage of certain immovable properties.(b) Loans against fixed deposits are secured against lien on fixed deposits and carry interest rate of deposit rate plus 0.5%.
As at 31 March 2016
As at 31 March 20152.8 TRADE PAYABLES
Total outstanding dues of micro enterprises and small enterprises* - -
Total outstanding dues of creditors other than micro enterprises and small enterprises
278,865,145 263,417,411
278,865,145 263,417,411
*Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006 (“the Act”) based on the information available with the Company are given below:
As at 31 March 2016
As at 31 March 2015
The principal amount remaining unpaid to any supplier as at the end of the year
- -
The interest due on the principal remaining outstanding as at the end of the year
- -
The amount of interest paid under the Act, along with the amounts of the payment made beyond the appointed day during the year
- -
The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the Act
- -
The amount of interest accrued and remaining unpaid at the end of the year
- -
The amount of further interest remaining due and payable even in the suc-ceeding years, until such date when the interest dues as above are ac-tually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under the Act
- -
113
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As at 31 March 2016
As at 31 March 2015
2.9 OTHER CURRENT LIABILITIESCurrent maturities of long-term borrowings (refer note 2.3) 330,986,734 181,098,948
Interest accrued but not due on borrowings 8,134,035 10,489,000
Amount payable to bank under forward contract - 15,592,623
Book overdraft 15,374,999 16,912,987
Dues to creditors for capital goods 37,748,100 29,664,257
Creditors for expenses 188,925,438 166,959,546
Accrued salaries and benefits 91,985,560 76,934,520
Advance from patients 41,222,538 26,654,946
Unclaimed dividend 6,170,580 3,944,888
Statutory dues payables 37,086,463 26,487,012
Unsecured deposit from others 5,000,000 5,000,000
Interest accrued and due on above 1,857,259 1,537,259
Security deposit 13,551,320 7,620,506
Advance from Shifa Medicare Trust (Net) 62,161,550 62,224,897
Amount payable to Bibi Enterprises 26,761,738 - 866,966,314 631,121,389
2.10 SHORT-TERM PROVISIONSFor employee benefits:
Gratuity 2,036,000 1,136,465 Compensated absences 4,839,000 3,778,000
Proposed dividend on preference shares 25,756,726 25,756,726 Tax on proposed preference dividend 5,243,464 5,243,039 Proposed dividend on equity shares 59,520,459 59,520,486 Tax on proposed equity dividend 12,116,972 12,115,985 Provision for tax, net of advance tax and tax deducted at source 16,836,832 - Provision for wealth tax - 20,000
126,349,453 107,570,701
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75,
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S
115
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ML
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As at 31 March 2016
As at 31 March 20152.13 NON-CURRENT INVESTMENTS
Unquoted investments (trade at cost)
KIMS Holding Co B.S.C (2,139,746 (previous year :2,139,746) equity shares of Bahrain dinar 1 each)
331,815,121 331,815,121
Investments in Corpus Fund of KIMS Trust 350,000 350,000
332,165,121 332,165,121
2.14 LONG-TERM LOANS AND ADVANCES
Unsecured ,considered good
Rent deposits 52,283,113 51,562,032
Electricity and other deposits 26,019,967 23,953,414
Advance for capital goods 46,054,903 112,183,191
Advance tax and tax deducted at source, net of provisions 44,751,710 42,819,257
Advance fringe benefit tax, net of provisions 173,260 173,260 169,282,953 230,691,154
2.15 OTHER NON-CURRENT ASSETSBalance in banks for margin money 26,797,560 25,685,468
Interest accrued on above 2,196,262 832,638
28,993,822 26,518,106
2.16 INVENTORIESPharmacy medicines * 148,831,775 113,757,350
Surgical items and consumables * 43,732,582 38,233,338
Others * 12,506,388 7,440,025 205,070,745 159,430,713
* Do not individually exceed 10% of the total value of inventory
2.17 TRADE RECEIVABLES
Unsecured, considered good
Debts outstanding for a period exceeding six months from the date they are due for payment
129,977,569 85,660,115
Other debts 302,292,069 264,383,259 432,269,638 350,043,374
Unsecured, considered doubtfulDebts outstanding for a period exceeding six months from the date they are due for payment
17,491,233 -
Less: Provision for doubtful debts (17,491,233) - 432,269,638 350,043,374
2.18 CASH AND BANK BALANCESCash and cash equivalents
Cash on hand 11,364,164 7,327,972
Balance with banks in:Current accounts 101,149,399 89,103,356
Deposit accounts 17,628,503 248,742,716 130,142,066 345,174,044
Other bank balancesBalance in banks for margin money 61,088,509 729,852,049
Earmarked balance for unclaimed dividend 6,170,587 3,944,888
Other deposits with banks (with maturity period of more than 3 months but less than 12 months)
93,015,856 105,762,760
290,417,018 1,184,733,741
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LIMITED AND ITS SUBSIDIARIES As at 31 March 2016
As at 31 March 20152.19 SHORT-TERM LOANS AND ADVANCES
Unsecured, considered goodDue from related parties (refer note 2.36) 4,979,892 3,026,844
Advance against investment in KIMS Holding Co. B.S.C. 35,519,623 -
Advance to suppliers of goods and services 24,420,411 42,936,989
Prepaid expenses 19,277,570 15,303,121
Advance to staff and others 6,553,805 7,975,538
Fee receivable from students 3,459,255 2,288,222 94,210,556 71,530,714
2.20 OTHER CURRENT ASSETS Unsecured, considered goodForward contract receivable - 15,590,495
Interest accrued on fixed deposits 4,116,040 20,798,494
Unbilled revenue 75,408,189 52,656,316 79,524,229 89,045,305
2.21 REVENUE FROM OPERATIONS Sale of medicines 539,386,959 406,502,912
Income from hospital and medical services 4,816,192,613 3,730,004,876 5,355,579,572 4,136,507,788
Other operating incomeIncome from academic services 29,673,136 25,976,100
Income from rent 1,243,959 - 30,917,095 25,976,100
5,386,496,667 4,162,483,888
2.22 OTHER INCOME Interest income on bank deposits 44,114,145 108,534,830
Franchise fee 6,626,856 4,632,836
Profit on Sale of asset 26,313,088 -
Other non-operating income 32,582,022 21,117,575 109,636,111 134,285,241
2.23 CHANGES IN INVENTORIES OF MEDICINES AND CONSUMABLES
Opening stock * 152,631,389 103,032,949
Closing stock 194,722,325 151,990,688
(42,090,936) (48,957,739)
* Includes inventory of Rs NIL (previous year : Rs. 13,433,406) representing inventory of a subsidiary acquired during the year.
2.24 EMPLOYEE BENEFITS EXPENSESalaries, wages and bonuses 838,450,855 544,668,262
Contribution to provident and other funds 86,639,382 63,145,796
Recruitment and staff welfare expenses 42,532,944 31,016,290 967,623,181 638,830,348
2.25 FINANCE COST Interest 246,991,233 155,577,713
Net loss on account of foreign exchange fluctuations - 1,895,060 246,991,233 157,472,773
2.26 DEPRECIATION AND AMORTISATION Depreciation on tangible fixed assets 337,296,224 225,000,035
Amortisation on intangible fixed assets 16,200,351 24,036,584 353,496,575 249,036,619
2.27 OTHER EXPENSES Rent 49,979,719 48,993,947
Power and fuel 226,692,514 166,733,466
Rates and taxes 10,999,259 7,334,561
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2.28 CSR EXPENDITURE- Gross amount required to be spent during the year 8,521,607 5,131,447
- Amount spent during the year on
Construction/ acquisition of asset - -
On purposes other than above 8,521,607 5,131,447 8,521,607 5,131,447
2.29 TAX EXPENSECurrent tax for the year 213,347,822 184,769,070
Deferred tax charge/ ( benefit) (14,049,478) (1,197,503) 199,298,344 183,571,567
2.30 CAPITAL COMMITMENTS AND CONTINGENCIES
Estimated amount of contracts remaining to be executed on capital account (net of capital advances) and not provided for
204,468,712 37,033,381
Commitment under Export Promotion Capital Goods (EPCG) scheme* 126,283,079 80,247,830
Guarantees issued by banks (inclusive of guarantees given for EPCG scheme)
61,635,853 31,492,772
Claims against the company not acknowledged as debts; Provident Fund related matters
3,572,891 3,572,891
Employee bonus ** 14,949,281 -
* The Group has obtained duty free/ concessional duty licenses for import of capital goods by undertaking export obligations under the EPCG scheme. As at 31 March 2016, export obligations remaining to the fulfilled amounts to Rs. 90,104,104 (Previous year: 80,247,832), which need to be fulfilled within a period of seven years. In the event that export obligations are not fulfilled, the Group would be liable to levies and liquidated damages.
** Employee bonus refers to amount payable to employees as per Payment of Bonus (Amendment) Act 2015 vis-à-vis retrospective application from 1 April 2014 to 31 March 2015. Company has relied on stay petition granted by the Hon-orable High Court of Kerala and Honorable High Court Madras against retrospective application of Payment of Bonus (Amendment) Act 2015 from 1 April 2014. Pending disposal of the case, no provision has been made in the books of accounts. The Company has obtained an independent legal opinion in support of this.
Legal and consultancy 26,365,364 18,644,975
Professional fees to doctors 940,247,063 683,455,220
Minor procedure expenses 14,627,352 11,936,564
Travel and conveyance 20,905,245 16,558,477
Advertisement and promotion 56,299,775 43,312,283
Water charges 15,672,484 30,504,854
Insurance 2,853,405 2,721,042
Repairs and maintenance - buildings 11,915,600 8,910,885
Repairs and maintenance - machinery and equipments 35,373,516 23,323,552
General maintenance 49,258,043 40,389,842
Security and housekeeping 182,682,227 149,508,574
Nursing college expense 6,271,905 4,922,250
Provision for doubtful debts 18,041,233 -
Bad debts written-off - 7,559,400
Printing and stationery 26,316,752 22,967,834
Net loss on account of foreign exchange fluctuations - 389,061
Credit card and other commission 7,524,388 6,183,394
Postage, telegram and telephone 9,803,162 7,208,373
Bank charges 4,977,988 3,108,255
Unamortised miscellaneous expense written-off - 2,245,509
Loss on sale of fixed asset - 1,112,094
Miscellaneous expenses 39,813,084 26,781,480
1,756,620,078 1,334,805,892
2.32 GRATUITYThe following tables set out the status of the gratuity plan as required under Accounting Standard-15
Particulars 31 March 2016 31 March 2015
Obligations at the beginning of the year 43,087,911 22,252,501
Service cost 9,862,000 5,941,000
Interest cost 3,387,000 2,024,000
Actuarial gain / (loss) 5,093,000 844,499
Acquisition during the year - 13,205,911
Benefits Paid (6,612,000) (1,180,000)
Obligations at the end of the year 54,817,911 43,087,911
Change in plan assetsPlans assets at beginning of the year, at fair value 8,629,000 8,530,000
Expected return on plan assets 588,000 642,000
Actuarial loss (136,000) 11,000
Contributions 566,000 626,000
Benefits paid (3,686,000) (1,180,000)
Plans assets at the end of the year, at fair value 5,961,000 8,629,000
Year ended31 March 2016
Year ended31 March 20152.31 EARNINGS PER SHARE
Net profit attributable to equity share holders (Rs.) 118,223,738 204,832,571
Weighted average number of ordinary equity shares of Rs. 10 each outstanding during the year – basic
70,024,069 66,036,871
Earnings per share (EPS) (Rs.) – basic 1.69 3.10
Net profit for the year (as per the statement of profit and loss) (Rs.) 149,223,928 235,832,336
Weighted average number of equity shares of Rs. 10 each outstanding during the year – diluted
100,327,100 96,339,902
Earnings per share (Rs.) – diluted 1.49 2.45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)(All amounts in Indian rupees, except share data and where otherwise stated)
KIMS HEALTHCARE MANAGEMENT LIMITED AND ITS SUBSIDIARIES
Year ended31 March 2016
Year ended31 March 2015
Calculation of net profit attributable to equity shareholders
Net profit for the year (as per the statement of profit and loss) 149,223,928 235,832,336
Less : preference dividend including tax on dividends 3,100,0190 30,999,765
Net profit attributable to equity shareholders 118,223,738 204,832,571
Calculation of weighted average number of equity shares for basic and diluted profit per shareNumber of shares at the beginning of the year 70,024,069 50,024,069
Equity shares issued during the year - 20,000,000
Number of shares at the end of the year 70,024,069 70,024,069
Weighted average number of equity shares outstanding at the end of the year - basic
70,024,069 66,036,871
Dilutive instruments (Class A equity shares and Compulsorily convert-ible cumulative preference share)
30,303,031 30,303,031
Weighted average number of equity shares outstanding at the end of the year - diluted
100,327,100 96,339,902
Year ended
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Details of experience adjustments – gratuity
ParticularsAs at 31 March
2016 2015 2014 2013 2012
Defined benefit obligation 54,817,911 43,087,911 22,252,501 12,040,226 9,247,778
Plan assets 5,961,000 8,629,000 8,530,000 8,485,275 7,674,564
Surplus/(deficit) (48,856,911) (34,458,911) (13,722,501) (3,554,951) (1,573,214)
Experience adjustment on plan liabilities 298,000 1,426,000 3,574,000 2,792,448 3,114,050
Experience adjustment on plan assets (152,000) 11,000 62,000 810,711 1,205,454
2.33 SEGMENT REPORTING
The Group is engaged in the business of rendering health care and related services. The entire operations are organised and managed as one organisational unit with the same set of risks and returns, hence the same has been considered as representing a single primary segment. The Group renders its services in India only and does not have any operations in economic environments with different risks and returns; hence it is considered operating in a single geographic segment. Accordingly, no segment disclosure has been made in these financial statements.
2.34 LEASE
The Group is obligated under non-cancellable operating leases for some of its office premises. Total rental expens-es under such leases amounted to Rs 20,971,514 (previous year: Rs 28,481,051). Future minimum lease payments due under non-cancellable operating leases are as follows
Year ended 31 March 2016
Year ended 31 March 2015
Not later than one year 20,400,000 21,469,500
Later than one year and not later than five years 11,900,000 32,300,00032,300,000 53,769,500
The Group is obligated under cancellable operating leases for residential and office space. Total rental expense under cancellable operating leases during the year was Rs 29,008,205 (previous year: Rs 20,512,896).
Assumptions 31 March 2016 31 March 2015
Interest rate per annum 7.5% - 8% 7.8% - 8%
Expected rate of return on plan assets 7.80% 8.00%
Expected rate of salary increase 5.00% 5.00%
Retirement age 60 years
AttritionUp to 35 years of age 20%-25% p.a,
Above 35 years of age 4% p.a
The estimates of future salary increases, considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.
Reconciliation of the obligation and value of the plan assets:
Fair value of plan assets at the end of the year 5,961,000 8,629,000
Present value of the defined benefit obligations at the end of the year
54,817,911 43,087,911
Net liability recognized in the balance sheet 48,856,911 34,458,911
Gratuity cost Service cost 9,862,000 5,941,000
Interest cost 3,387,000 2,024,000
Expected return on plan assets (588,000) (642,000)
Actuarial gain/(loss) 5.229,000 833,000
Net gratuity cost 17,890,000 8,156,000
2.35 DERIVATIVES AND UN-HEDGED FOREIGN CURRENCY EXPOSURE
(a) There are no un-hedged foreign currency receivables/ payables and no outstanding derivative instruments as at the balance sheet date.
(b) During the previous year, the Company had entered into forward contracts to hedge its foreign exchange fluc-tuation risk associated with the repayment of foreign currency borrowing from State Bank of India aggregating to USD 250,772. The aforesaid loan has been repaid during the year and forward contract has been settled.
1. Names of related parties and description of relationship:
A. Enterprises where control existParticulars Name of the parties
Holding and ultimate holding company Condis India Healthcare Limited, India
Subsidiaries and step down subsidiaries
KIMS Cancer Care and Research Center Private Limited, IndiaKIMS Bellerose Institute of Medical Science Private Limited, IndiaKIMS Kollam Multi Speciality Hospital India Private Limited, IndiaKIMS Al Shifa Hospital Private Limited, IndiaKIMS Nagercoil Institute of Medical Sciences Private Limited, IndiaAl Shifa Scan Centre Private Limited, IndiaBibi Hospitals Private Limited, India
B. Other related parties with whom the Company had transactions during the year
a) Key management personnel (KMP)
Dr.M.I Sahadulla – Chairman and Managing DirectorDr.G.Vijayaraghavan – Vice Chairman and DirectorMr.E.M.Najeeb - Executive DirectorMr.C.H.A.Raheem – Executive DirectorMr.E. Iqbal – Whole Time DirectorDr. P M Zuhara- Director
b) Relative of key managerial personnelMr. Samer SahadullaMrs. Reshmi AyshaMr. Safar Iqbal
c) Entities in which KMP has significant influence
Air Travel Enterprises India Limited, IndiaOak India Healthcare Limited, IndiaThe Great India Tour Company Private Limited, IndiaKIMS Trust, IndiaKIMS Management International FZC, UAEKIMS Holding Co. BSC, BahrainKIMS Shares and Securities Private Limited, IndiaKIMS Oman Hospital LLC, OmanRoyal Bahrain Hospital WLL, BahrainKameda Infologics Private Limited, IndiaChrysalis Communications Private Limited, IndiaSociety for Continuing Medical Education and Research (SOCOMER), India
2.36 RELATED PARTIES
C. RELATED PARTY TRANSACTIONS:
(a) The Group has entered into the following transactions with related parties during the year ended 31 March 2016
ParticularsYear ended
31 March 2016Year ended
31 March 2015
REVENUE FROM OPERATIONSAir Travel Enterprises India Limited 7,700 400
KIMS Trust 895,276 434,710
KIMS Holding Co. BSC - 75,803
Royal Bahrain Hospital WLL 359,444 1,702,624
KIMS Oman Hospital LLC 151,204 17,376
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RENT PAIDCondis India Healthcare Limited 8,739,615 8,213,021
FRANCHISE FEEKIMS Management International FZC 6,626,856 4,632,836
TRAVEL AND CLEARING AND FORWARDING EXPENSEAir Travel Enterprises India Limited 11,086,262 6,124,412
The Great India Tour Company Private Limited 97,102 93,486
TRAINING EXPENSESSOCOMER 376,424 -
ADVERTISEMENT AND PROMOTIONChrysalis Communications Private Limited 13,660,942 10,041,190
REPAIRS AND MAINTENANCECondis India Healthcare Limited 81,707 1,909,037
Kameda Infologics Private Limited 2,938,983 2,850,017
EXPENSE MET BY KIMSCondis India Healthcare Limited 679,805 10,810,160
KIMS Trust 806,474 1,030,640
KIMS Oman Hospital LLC - 73,123
KIMS Holding Co. BSC - 143,370
Royal Bahrain Hospital WLL 210,456 -
Oak India Healthcare Limited - 6,500
KIMS Management International FZC 5,427,028 1,263,440
KIMS Shares & Securities Private Limited 3,080 18,200
SOCOMER 574,600 578,782
EXPENSE MET ON BEHALF OF KIMSKIMS Trust 14,560 337,416
KIMS Management International FZC 4,135,262 9,521,540
Royal Bahrain Hospital WLL 110,149 393,291
PROFESSIONAL FEESCondis India Healthcare Limited - 974,160
ADVANCE FOR INVESTMENTKIMS Holding Co. BSC 35,519,623 -
PURCHASE OF ASSETSCondis India Healthcare Limited 43,221,466 47,436,175
Kameda Infologics Private Limited 6,840,000 6,047,200
REMUNERATION (including professional charges)Dr.M.I.Sahadulla 16,605,000 14,400,000
Dr.G.Vijayaraghavan 11,685,000 10,200,000
Mr.E.M.Najeeb 8,969,000 7,800,000
Mr.C.H.A Raheem 8,969,000 7,800,000
Mr.E.Iqbal 4,489,500 3,900,000
SALARIES AND ALLOWANCESMr. Samer Sahadulla 517,000 466,000
Mr. Safar Iqbal 441,371 393,107
Mr. Tariq E. N. 641,962 -
Dr. P. M. Zuhara 6,060,000 4,680,000
(b) Balance receivable from/ payable to related parties as at the balance sheet date)
ParticularsAs at
31 March 2016As at
31 March 2015
DUES FROM RELATED PARTIESRoyal Bahrain Hospital WLL 637,980 978,229
2.37 ACQUISITIONS
a) During the year ended 31 March 2016, the Group has acquired 51% of equity in Bibi Hospitals Private Limited on 15 December 2015. The written down value of the fixed assets taken over on account of acquisition amounts to Rs 74 million.
b) During the previous year, the Group has acquired 51% of equity in KIMS Al Shifa Hospital Private Limited on 14 January 2015. The initial purchase consideration paid was Rs 843 million. The goodwill of Rs 715 million comprises of value of expected synergies arising from the acquisition.
c) On 16 July 2014, the Group acquired 52.2% of equity of KIMS Nagercoil Institute of Medical Sciences Private Limited. The Group had paid a total consideration of Rs 92 million in cash and there are no goodwill / capital reserve on this acquisition.
d) During the year ended 31 March 2016, KIMS Al Shifa Healthcare Private Limited has filed a petition with the honourable high court of Kerala for its the merger with its subsidiary Al Shifa Scan Centre Private Limited. As per the direction of court, the company has conducted necessary extra ordinary general meeting under the supervision of the Chairman appointed by the court. The matter was approved unanimously by the shareholders in its meeting held on 30 March 2016 and necessary reports were presented to the honourable high-court by the Chairman. The matter is pending before the court for final orders.
2.38 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with associated enterprises during the financial year and expects such records to be in existence latest by the date of filing its income tax return as required by law. The Management is of the opinion that its international transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.
2.39 Previous year figures have been regrouped/ reclassified wherever necessary to conform to current year presentation.
KIMS Oman Hospital LLC 803,115 766,511
KIMS Management International FZC 3,066,668 959,469
KIMS Holding Co. BSC 322,636 322,635
DUES TO RELATED PARTIESCondis India Healthcare Limited - 937,000
Chrysalis Communications Private Limited 384,738 5,375
TRADE RECEIVABLESKIMS Trust 196,091 55,000
ADVANCE TO SUPPLIERS OF GOODS AND SERVICESAir Travel Enterprises India Limited 474,223 185,991
Oak India Healthcare Limited 200,000 -
KIMS Shares & Securities Private Limited - 17,600
Condis India Healthcare Limited 106,374 -
ADVANCE FOR CAPITAL GOODSKameda Infologics Private Limited 5,130 6,800,000
ADVANCE AGAINST INVESTMENTKIMS Holding Co BSC 35,519,623 -
CS BINU.K.B Company Secretary
Membership No. F 8071
C.H.A.Raheem, FCAExecutive Director Finance
DIN 02243301
Thiruvananthapuram 4 June 2016
Dr. M.I.SAHADULLAChairman & Managing Director
DIN 00600608CHANDRASHEKHAR BPartner | Memb. No. 114161
For and on Behalf of the Board of Directors of
KIMS HEALTHCARE MANAGEMENT LIMITED
Thiruvananthapuram 4 June 2016
As per our report of even date attached For B S R & ASSOCIATES LLP Chartered Accountants Firm Registration No : 116231W/W-100024
Sd/-
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Pursuant to first proviso to Sub section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014Statement containing salient features of the financial statement of Subsidiaries / associate Companies / Joint ventures
Part A : Subsidiaries (Information about each susidiary to be presented with amounts in Rs.)
FORM AOC -1
Sl Particulars 1 2 3 4 5 6 7
1 Name of the subsidiary
KIMS Cancer Care and Re-search Cen-ter Private Limited
KIMS Kollam Multispecial-ity Hospital India Private Limited
KIMS Belle-rose Institute of Medical Sciences Pri-vate Limited
KIMS Nager-coil Institute of Medical Sciences Pri-vate Limited
KIMS Al Shifa Healthcare Private Lim-ited
*Al Shifa Scan Cen-tre Private Limited
*Bibi Hospi-tals Private Limited
2
Reporting period for the subsidiary concerned, if different from holding Compan's reporting period
NA NA NA NA NA NA NA
3
Reporting currency and ex-change rate as on the last date of relevant Financial year in the case of foreign subsidiaries
NA NA NA NA NA NA NA
5 Share capital 256,022,120 387,116,234 320,300,000 177,950,560 110,768,500 7,200,000 164,399,490
6 Reserves and Surplus (14,570,327) (116,311,462) (236,094,974) (3,227,069) 229,669,738 5,006,856 485,118
7 Total Assets 318,620,073 346,952,092 581,034,195 176,817,164 1,293,098,715 13,896,328 207,449,117
8 Total liabilities 318,620,073 346,952,092 581,034,195 176,817,164 1,293,098,715 13,896,328 207,449,117
9 Investments 134,399,490 - - - 10,826,100 - -
10 Turnover 183,048,564 129,075,938 163,669,786 39,701 847,424,104 13,865,083 26,421,220
11 Profit before taxation (5,457,451) (54,126,745) (128,268,435) (14,259) (139,999,368) 2,123,625 485,118
12 Provision for taxsation - - - - - 267,944 -
13 Profit after taxation (5,457,451) (54,126,745) (128,268,435) (14,259) (139,999,368) 1,855,681 485,118
14 Proposed dividend - - - - - - -
15 Percentage of shareholding 86.94% 63.54% 78.93% 52.73% 51.00% 51.00% 51.00%
* Al Shifa Scan Centre Private Limited is a subsidiary of KIMS Healthcare Management Limited, as it is being subsidiary of KIMS Al Shifa Healthcare Private Limited - which is the subsidiary of KIMS Healthcare Management Limited.
* Bibi Hospital Private Limited is a subsidiary of KIMS Healthcare Management Limited, as it is being subsidiary of KIMS Cancer Care and Research Center Private Limited - which is the subsidiary of KIMS Healthcare Management Limited.
Note : 1. Names of subsidiaries which are yet to commence operations : KIMS Nagercoil Institute of Medical Sciences Private Limited2. Names of subsidiaries which have been liquidated or sold during the year : Nil
Part B : Associates and Joint Ventures Statement pursuant to section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
Sl No Name of Associates / Joint Ventures Name
1 Latest Audited Balance Sheet date
2 Shares of Associate / Joint Ventures held by the Company on the year end
Amount of investment in Associates / Joint Venture
Extend of Holding percentage
3 Description of how there is a significant influence
4 Reason why associate/ Joint venture is not consolidated
5 Networth attributable to sharehodling as per latest audited Balance Sheet
6 Profit / Loss for the year
i.Considered in consolidation
I not consdered in consolidation
Note : 1. Names of associates or joint ventures which are yet to commence operations : Nil 2. Names of associates or joint ventures which have been liquidated or sold during the year : Nil
NIL
C.H.A.RAHEEM, FCAExecutive Director Finance
DIN 02243301
Dr. M.I.SAHADULLAChairman & Managing DirectorDIN 00600608
For and on Behalf of the Board of Directors ofKIMS HEALTHCARE MANAGEMENT LIMITED
CS BINU.K.B Company Secretary
FCS 8071
COMPANY REGISTRATION NO. : U85110KL 1995 PLC 009336EXIM/TAXATION REGISTRATIONS
INCOME TAX PERMANENT ACCOUNT NO. : AABCT2300C
SERVICE TAX REGISTRATION NO. : AABCT2300CST001
INCOME TAX DEDUCTION ACCOUNT NO. : TVDT00511A
KGST NO. : 11134356/22.02.2002
CST NO. : 1139356/22.03.2002
TIN (VAT) NO. : 32010802795
IE CODE : 1000003353
FIEO RCMC NO. : FIEO/SR/3054/SP/2005-2006
SEPC RCMC NO : SEPC/03/1/35/2007
EXPORT HOUSE LICENSE NO : A-001347 / 15.09.2010
HOSPITAL OPERATIONSHOSPITAL TC.NO. ( MAIN BLOCK ) : 14/2008/2
HOSPITAL TC.NO. ( KIMS NORTH ) : 14/2008(6)
HOSPITAL REGISTRATION NO. : H 11/67309/14
DRUG LICENSE NO. ( II LEVEL KIMS ) : 1-09/20/2002 , 1-10/21/2002
DRUG LICENSE NO. ( VII LEVEL KIMS ) : 1-174/20/2009 , 1-175/21/2009, 1-176/20F/2009
DRUG LICENSE NO. ( KIMS NORTH IV LEVEL ) : KL-TVM-102209, KL-TVM-102210
DRUG LICENSE NO.(KIMS WELLNESS TVM) : 1-338/20/2011, 1-339/21/2011
BLOOD BANK LICENSE NO. : 0126/28C/KER/DC-CLAA/2002
BLOOD COMPONENTS SEPARATION LICENSE NO. : 9ML2-6871/2003/DC
FAMILY WELFARE SERVICE REGISTRATION NO. : GO(RT)3063/03/H&F.W.D.
POLLUTION CONTROL BOARD CONSENT : PCB/HO/TVPM/ICO/1/2008
BIOMEDICAL WASTE HANDLING AUTHORISATION : PCB/BMW/417/2002
RECTIFIED SPIRIT LICENSE NO. : 27/2009-2010TVPM
NARCOTIC DRUG LICENSE NO. : 1/2005-2006/TVPM
CERTIFICATE OF REGISTRATION (ULTRA SOUND / GENETIC COUNCILING CERTIFICATE) : PNDT/TVM/55/2002
RENAL TRANSPLANTATION LICENSE NO. : H5/1216/2009/DME
LIVER TRANSPLANTATION LICENSE NO. : H5/20239/2012/DME
BUILDING PERMIT ( MAIN BLOCK ) : 2K/818/2003
BUILDING PERMIT ( KIMS NORTH ) : 2K/2101/01/06
IMA CERTIFICATE : IMAGE/01/02
RADIATION SAFETY CERTIFICATE : DRS 331/07
INTERVENTIONAL RADIOLOGY (CATH LAB) INSTALLATION CERTIFICATE : AERP/RSD/LIC-MDX-R/KL-386(A)/2010/11493
LICENSE FOR CT SCAN : 695029 KL.001 (A)
TRADE MARK REGISTRATION NO. : 1283946, 973206
SOFTWARE LICENSE (ORACLE) : IN 75272/2008CSI#15897191
MICROSOFT OPEN LICENSE AGREEMENT NOS : 46602324,46602321, 40368502, 45186233,
47120205,42941174,43708963,16554431,
FOOD SAFETY & STANDARDS AUTHORITY OF INDIA LICENSE[TVM] : 11313001002122
FOOD SAFETY & STANDARDS AUTHORITY OF INDIA LICENSE[WELLNESS] : 21312011002188
FOOD SAFETY & STANDARDS AUTHORITY OF INDIA LICENSE[THONNAKKAL] : 11314001003679
EMPLOYEE RELATED LICENSE AND PERMITSEPF ACCOUNT NO. : KR/16661
ESI : 54-30523-101
LABOUR REGISTRATION CERTIFICATE NO. : D1/615/W II/33/KA
CONTRACT LABOUR REGISTRATION : CLR/03/2004
KIMS HEALTHCARE MANAGEMENT LIMITEDLICENSE AND PERMITS
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To
KIMS Healthcare Management Limited
P.B No. 1, Anayara P.O,
Trivandrum 695 029, Kerala
Dear Sirs,
FORM FOR ELECTRONIC CLEARING SERVICES FOR PAYMENT OF DIVIDEND/INTEREST .
Please fill-in the information in CAPITAL LETTERS IN ENGLISH ONLY. Please TICK (√ ) wherever is
appplicable.
Folio No. FOR OFFICE USE ONLY
ECS REF No.
Name of First Holder
Bank Name
Branch Name
Branch Code IFS CODE
(9 Digits Code Number appearing on the MICR Band of the cheque supplied by the Bank). Please attach a xerox copy of a cheque or a blank cheque of your bank duly cancelled for ensuring accuracy of the banks name, branch name and code number.
Account Type Savings Current Cash Credit
A/c. No. (as appearing in the cheque Book)
Effective date of this mandate
I, hereby, declare that the particulars given above are correct and complete. If any transaction is delayed or not effected at all for reasons of incompleteness or incorrectness of information supplied as above, the Company will not be responsible. I agree to avail the ECS facility provided by RBI, as and when implemented by the Company.
I further undertake to inform the Company any change in my Bank/branch and account number.
Dated:................................................ (Signature of First Holder)
ELECTRONIC CLEARING SERVICES (ECS) MANDATE FORM KIMS HEALTHCARE MANAGEMENT LIMITED
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KIMS HEALTHCARE MANAGEMENT LIMITED
[Pursuant to section 72 of the Companies Act, 2013 and rule 19(1) of the Companies (Share Capital and Debentures) Rules 2014]
ToName of the company:.................................................................................................................................................
Address of the company:..............................................................................................................................................
I/We …………...................................................................................................................................……the holder(s) of the securities particulars of which are given hereunder wish to make nomination and do hereby nominate the following persons in whom shall vest, all the rights in respect of such securities in the event of my/our death.
(1) PARTICULARS OF THE SECURITIES (in respect of which nomination is being made)
Nature of securities Folio No. No. of securities Certificate No. Distinctive No.
(2) PARTICULARS OF NOMINEE/S
(a) Name: ....................................................................................................................
(b) Date of Birth: ....................................................................................................................
(c) Father’s/Mother’s/Spouse’s name: ....................................................................................................................
(d) Occupation: ....................................................................................................................
(e) Nationality: ....................................................................................................................
(f) Address: ....................................................................................................................
(g) E-mail id: ....................................................................................................................
(h) Relationship with the security holder:..................................................................................................................
(3) IN CASE NOMINEE IS A MINOR
(a) Date of birth: ....................................................................................................................
(b) Date of attaining majority ....................................................................................................................
(c) Name of guardian: ....................................................................................................................
(d) Address of guardian: ....................................................................................................................
(4) PARTICULARS OF NOMINEE IN CASE MINOR NOMINEE DIES BEFORE ATTAINING AGE OF MAJORITY
(a) Name: ....................................................................................................................
(b) Date of Birth: ....................................................................................................................
(c) Father’s/Mother’s/Spouse’s name: ....................................................................................................................
(d) Occupation: ....................................................................................................................
(e) Nationality: ....................................................................................................................
(f) Address: ....................................................................................................................
(g) E-mail id: ....................................................................................................................
(h) Relationship with the security holder: (i) Relationship with the minor nominee..............................................
Name:.............................................................................................................................................................................
Address:........................................................................................................................................................................
Name of the Security Signature Witness with nameHolder (s) and address
Form No. SH-13 NOMINATION REQUEST FORM
KIMS HEALTHCARE MANAGEMENT LIMITED
P.B.No. 01, Anayara P.O, Trivandrum, Kerala 695029
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FORM MGT 11PROXY FORM
(Pursuant to Section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014)
KIMS HEALTHCARE MANAGEMENT LIMITEDRegd. Off: P.B.No. 01 Anayara P.O, Trivandrum, Kerala 695029
(CIN: U85110KL1995PLC009336)
21ST ANNUAL GENERAL MEETING
Name of the Member(s):
Registered Address:
E-Mail Id:
Folio No:
I/We being the member (s) of ………..........………...…. Shares of KIMS Healthcare Management Limited, hereby appoint
Name
Address:
E-Mail Id:
Signature: ……………………….................................................................................................., or failing him/her
as my / our proxy to attend and vote (on Poll) for me / us and on my / our behalf at the Twenty First Annual General Meeting of the company to be held at 3.30 pm on 30th September, 2016 at Oslar Hall, KIMS North, Anayara PO, Trivandrum – 695 029 and any adjournment thereof in respect of such resolution as are indicated below:
Name
Address:
E-Mail Id:
Signature: ……………………….................................................................................................., or failing him/her
Name
Address:
E-Mail Id:
Signature: ……………………….................................................................................................., or failing him/her
ORDINARY BUSINESS1. To receive, consider and adopt the Audited Balance Sheet of the Company as on 31st March 2016 and the Profit and
Loss Account for the year ended on that date and the Reports of the Directors and Auditors thereon.2. To declare dividend on equity and preference shares of the Company.3. To appoint a Director in the place of Dr. Sheriff M Sahadulla, who retires by rotation and being eligible offers himself
for re-appointment4. To appoint a Director in the place of Mr. A.K.Mukthar, who retires by rotation and being eligible offers himself for re-
appointment5. To appoint a Director in the place of Mr. K. Jalaluddin who retires by rotation and being eligible offers himself for
re-appointment.
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One RupeeRevenueStamp
SPECIAL BUSINESS
8. Revision of remuneration of Chairman and Managing Director9. Revision of remuneration of Vice Chairman and Director10. Revision of remuneration of Executive Director - Business Development, Human Resources, Procurement and Projects11. Revision of remuneration of Executive Director - Corporate Finance and CFO 12. Revision of remuneration of Director - Support Services
Signed this …........................................... day of September 2016
Signature of the Shareholder……..............................................……………………
Signature of the Proxy Holder(s)…………................................................…………..
Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of theCompany not less than 48 hours before the commencement of the Meeting.
KIMS HEALTHCARE MANAGEMENT LIMITEDATTENDANCE SLIP
21st ANNUAL GENERAL MEETING | Date: 30th SEPTEMBER 2016
Regd. Folio No..............................
I certify that I am a Registered Shareholder/Proxy for the Registered Shareholder of the Company, I hereby record my
presence at the 21ST ANNUAL GENERAL MEETING of the Company at Osler Hall, KIMS North,Anayara P.O, Trivandrum
on FRIDAY 30TH SEPTEMbER, 2016 AT 3.30 P.M
............................................................ ...........................................
Member’s/Proxy Name in Block Letters Member’s/Proxy’s Signature
Note : Please fill this attendance and hand it over at the ENTRANCE OF THE MEETING HALL.
6. To appoint a Director in the place of Mr. V. Radhakrishnan who retires by rotation and being eligible offers himself for re-appointment.
7. To ratify the appointment of Auditors
Name :.............................................................................................................................................................................
Address:.........................................................................................................................................................................................
......................................................................................................................................................................................................
......................................................................................................................................................................................................
Folio No:................................................................... Email id: ......................................................................................................
Signature of Member
MEMBERS FEEDBACK FORM 2015-16
Views/Suggestions for improvement, if any
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Directors’ Report
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Timely receipt of Dividend Warrants
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Presentation
KIMS HEALTHCARE MANAGEMENT LIMITED
Members are requested to send this feedback form to The Company Secretary
KIMS Healthcare Management LimitedPB.No 1, Anayara.P.O, Trivandrum 695 029
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