Krishna Institute of Medical Sciences Ltd

Dear shareholders,

I am delighted as ever in welcoming you to the Annual General Meeting 2024-25. As I present the Annual Report, two events stand out in my mind. One fills the heart with terrific horror and the other with sublime joy.

I am referring to the dastardly terrorist attack at Pahalgam in April 2025, where 26 innocent tourists were killed. In a heroic retaliatory attack aptly titled OPERATION SINDHOOR, India taught a fitting lesson to the enemy nation. In confronting terrorism, India stood united, resolute and unambiguous in its message to the world.

Second event is the Maha- Kumbh mela in January 2025 lasting 45 days which turned out to be the largest human congregation in the world symbolising faith and tradition. It proved what faith and determination can accomplish despite numerous hurdles. People from all walks of life - rich and poor, famous and ordinary, the rulers and the ruled took part in the joyous event.

On both occasions, the nation stood as one in condemning the former and celebrating the latter.

This year assumes special significance as it is our Silver Jubilee year. KIMS was born 25 years ago in my native town- Nellore with a staff strength of less than hundred. Over the years, it has evolved into a Reservoir of Healthcare with presence in five states

and a bed capacity of 8000+ and a strong workforce of 20,400.

In this Silver jubilee year, we made our foray into Mumbai and Karnataka. In April 2025, we launched our Thane unit followed by two units at Bangalore.

These units constitute a big leap for your company as they are going to be new growth centres catering to a wide array of patients. We also opened two units at Kannur and Kollam in Kerala. All these are full-fledged centres with all specialties, super specialties and latest equipment.

Expansion has no meaning unless it is accompanied by Excellence. Each new unit is yet another TEMPLE OF HEALTH brimming with passion and expertise.

With the launch of new centres, KIMS further strengthens its mission of pursuing excellence in ethical and sustainable healthcare, backed by advanced technology. It represents a seamless blend of modern infrastructure and a deep-rooted value system. It not only stands for Medical Excellence but also embodies our unwavering faith in Equity, Empathy and Ethical care.

Our core agenda is to make healthcare available at places where people earlier had to travel to far off cities for surgeries and specialist services. It gladdens my heart to see that today even Organ transplantations are taking place in remote towns, thanks to the presence of KIMS.

The first liver transplantation in Rayalaseema region in Andhra Pradesh took place in KIMS hospitals at Kurnool. Similarly, another liver transplantation took place at KIMS in Srikakulam, a backward district in the same state. These accomplishments offer a strong hope that top class healthcare can truly reach the remote corners of the nation.

Our lives are encompassed by quest for quality which remains elusive in most cases. We want quality food, quality sleep, quality air, quality time for family and quality in everything. Quality is not a by-product. It is essentially the result of a conscious and continuous and an on-going effort.

At KIMS, quality is all pervasive. It includes clinical excellence, timely attendance, care and concern, ensuring patient comfort at every stage from entry to the point when patient is discharged. Our doctors, nurses and staff are imbued with quality consciousness and the systems and the process are designed to exude quality at every stage.

KIMS was born with fundamental principle of quality, and we nurtured it in letter and spirit. That remains the secret of our success, sustainability and growth.

On this occasion, I am overwhelmed with a sense of gratitude, pride, and determination · gratitude to the millions of patients for their trust; pride in having lived up to their expectations; and determination to serve them even better in the coming years by blending technology with our trademark hospitality and personalised care.

I am pleased to state that your company recorded impressive growth in all areas as can be seen from the following financial analysis.

? Our consolidated revenue stood at H 30,670 Mn for FY 25 compared to H 25,143 Mn in FY 24, showing a growth of 22%.

? EBIDTA stood at H 8,148 Mn against H 6,533 Mn in FY 24 recording a growth of 25%.

? PAT for the year stood at H 4,148 Mn against H 3,359 Mn in the previous year FY 24 recording a growth of 23%.

? IP & OP volumes grew by 11.6 % & 14.1% respectively.

? ARPOB for FY 25 stood at H 39,158 against H 31,916 in FY 24, registering an increase of 22.7%.

As a healthcare professional, I tend to dwell about health on every occasion and today is no exception. The age-old adage - PREVENTION IS BETTER THAN CURE, sounds more relevant now than ever because of the upsurge we are witnessing in lifestyle diseases. The country has already got the dubious distinction of being the global capital of diabetes contributing 23.7% of global diabetic patients. Obesity has become a silent epidemic and the studies reveal that over 20% Indian men and Women are obese. This increases the public health challenge by exacerbating conditions such as Type 2 diabetes, cardiovascular diseases and musculoskeletal disorders. The Prime Minister took the ‘weight' upon himself in launching a drive against the obesity. It had an electrifying ripple effect.

The CBSE directed all its schools to establish ‘sugar boards' to educate students about perils of excessive sugar or oil.

In tune with CBSE directive, several Private schools also have launched awareness campaigns. In the wake of Prime Minister's call, now all government offices including various ministries, hospitals, railway stations and even airports will display ‘oil and sugar boards' to promote healthy lifestyles and combat non- communicable diseases (NCDS). On our part, we have intensified our campaigns for creating awareness on healthy food habits. However, in addition to the awareness programs initiated at various levels, fiscal policies must be introduced to make healthy food options affordable and accessible while discouraging unhealthy choices through higher taxes on sugar-sweetened beverages and ultra- processed foods.

Unlike earlier times when focus was more on curative aspects, the future demands that we need to concentrate our energies and strategies on preventive measures. The government, the hospitals and the society must take an active part in ushering awareness and implementing necessary initiatives.

Considering that the senior citizens population is increasing, we must gear up the infrastructure for increased palliative and end-of-life care to ensure a better quality of life. The rehabilitation centres also assume increased importance in this context. We have recently opened an exclusive Rehabilitation center at Hyderabad and we are planning to add more. Thus, PREVENTIVE CARE AND CARE FOR THE AGED are the areas that deserve immediate attention and action.

We have a vast intersection of humanity, each with a distinct cadence of thought, vision and dreams.

The WOMEN STRENGTH is more than our MANPOWER. Women employees comprising of eminent Doctors, scientists, technicians, nurses, administrators and others constitute 53 percent of our total workforce.

A crucial function of leaders at all levels is to replicate their leadership by nurturing and mentoring talent. We have a congenial and competitive work environment that fosters dynamic teamwork to excel and achieve the corporate objectives. The crux is to optimise professional accomplishment and personal fulfilment that is curated by our work culture.

KIMS upholds highest standards of corporate governance ensuring transparency, accountability and integrity in all our operations. Corporate governance is not merely a statutory requirement but a fundamental pillar of our culture, guiding our decision-making process and actions to create long-term value for our stakeholders.

The company's transformative CSR initiatives are a source of pride and fulfilment for us. From addressing public health to imparting skill education to empowering women, KIMS is playing a key role through its CSR activities. We conduct camps continuously in remote parts creating awareness and distributing medicines. A special Cancer Mobile Unit is always on the move, spreading knowledge and conducting screening tests for early detection. Special focus is laid on providing education to underprivileged sections of society.

As a part of CSR initiatives, we launched National Tele Medicine facility for the deaf and dumb which offers sign language- enabled virtual care ensuring communication and access to medical consultations. Majority of deaf people don't approach the doctors because of the communication problem and our initiative will help in mitigating such obstacles and make healthcare accessible to them.

Another stellar contribution worth mentioning is - DRISTI, an AI based smart vision glasses that provide real-time audio guidance and object detection to visually impaired users enabling independent mobility and digital integration for care monitoring. The product was launched and free distribution of glasses was done in a solemn function graced by the governor of Telangana Sri Jishnu Dev Varma and other luminaries like Padma Sri awardee Gullapalli Nageswara Rao, founder- LV Prasad eye institute. This apparatus will greatly help the visually impaired to be on their own.

Recently a promising youth came and told me that his father sold his KIMS shares purchased four years ago to fund his education abroad as the value quadrupled. These are the things that keep us driving to add value to your investment. Stakeholder value through ‘purposeful performance' is indeed the bedrock on which healthy enterprises are built. This kind of value addition is sure to spawn further growth.

A wide health insurance coverage is essential to make healthcare more affordable and accessible. What is causing concern is the down trend in insurance penetration. The share of total premiums to GDP edged down to 4 percent in 202223 from 4.2 percent in 2021-22. The concerns were recently reiterated by the Union government which asked the Insurance Regulatory and Development Authority (IRDAI) to rein in the skyrocketing premiums and speed up claims settlement.

Astronomical premiums and complex claim process with high rejection rates are the main factors impeding Insurance penetration. A recent survey showed that health insurance premiums have soared 73 percent since 2020. The steep rise in premiums from pre- Covid levels and rising rejection rates have pushed a larger section of consumers to opt out of coverage altogether.

It is observed that 11 percent of health insurance claims are usually denied, while 6 percent are kept pending for long. Apart from rejections, as many as half of claims suffer from partial approvals and delays. There has to be a clear, transparent and swift process for settlement of claims and government is nudging the Insurance authorities in this direction. There is also long stand8ng demand for the GST council to waive the 18% tax on premiums. Waiving GST for all health Insurance products would be a good start towards greater affordability and broader coverage.

The consumers should not consider insurance as a burden but as a gift to themselves and their families since it provides great relief in the hour of need.

It will be useful to have a roundtable conference of all concerned including the government and insurance authorities, hospitals and consumer forums to arrive at solutions for making health insurance mechanism more transparent, efficient and patient friendly so as to widen its coverage paving way for more accessible and affordable healthcare.

Artificial intelligence is no longer emerging, it is embedding.

It has made fast inroads into healthcare as well. One of its most significant impacts on healthcare is the ability to enhance diagnostic accuracy and speed. AI algorithms can analyse vast amounts of medical data, including images, genetic information and electronic health records to identify patterns and anomalies that may indicate disease leading to earlier detection and more efficient treatment. Moreover, AI is being used to develop personalised treatment plans based on individual patient characteristics by analysing genetic and medical history. These technologies have heralded unparalleled precision, efficiency and patient-centricity into healthcare.

However, we can't remain indifferent to the challenges and risks these technologies bring along in the form of cyberattacks and unethical deployment of AI. Despite soaring trends of AI enterprise adoption, only 19% of Indian organisations have implemented clear policies and training for Gen AI use. Also, only a few maintain a comprehensive inventory of AI systems which is crucial for managing supply chain risks.

AI is not to be considered a panacea- a cure for everything and anything but a tool to assist in improving the quality

and quantity of our services. Terms like ethics, values and standards which are fundamental to our existence are alien to AI. It is no substitute to empathy, compassion, dedication and intuition of a doctor. Clinical care still requires the pulse of human presence. We have to be conscious of its limitations and also guard ourselves against the risks. You cannot endow even the best machine with initiative, which is human prerogative.

Each organisation has to deploy security governance framework and operating model with resilient systems that proactively address emerging threats and enhance detection capabilities to detect threats sooner.

As I begin to end my address, I intend to recall a recent event that greatly inspired me.

We are used to phrases like - Sky is the limit. Here is the new norm. India's group captain Shubhanshu Shukla who is also the Mission Pilot of AXIOM -4 Mission spoke thus to Prime Minister Modi from the International Space Station (ISS)- SKY IS NEVER THE LIMIT, NOT FOR ME, NOT FOR YOU, NOT FOR THE 140 CRORE INDIANS, a distinct departure from the age-old motto of SKY IS THE LIMIT. The message from the young astronaut is indeed inspiring and we need to aim beyond the Sky. Sky is no longer the limit.

Our first Prime Minister Jawaharlal Nehru in his well acclaimed book - DISCOVERY OF INDIA, unearthed the roots and strengths of India.

A DISCOVERY OF NEW INDIA is taking place under the dynamic leadership of our present Prime Minister Narendra Modi who awakened the dormant potential of the nation. The world is witnessing a resilient, resurging and bold India

I would like to thank our Doctors and staff, the distinguished Board of Directors, Investors, Bankers and above all our PATIENTS and their families for their trust and support.

I conclude now reaffirming our resolute commitment to the future of healthcare that is not only technologically advanced but also rooted in trust, humility and humanity. We continue to play pivotal role in delivering ethical and affordable healthcare. The future of healthcare involves keeping people healthy, not just treating the sick.

Regards,