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Page 1: 2013-2014€¦ · Registered Office Jaipur Hospital, Lal Kothi, Near S.M.S. Stadium Tonk Road, Jaipur-302015 Phone: 2742557, 2742619, 2742266, 2740936, ... ITC Limited, Parivar Seva
Page 2: 2013-2014€¦ · Registered Office Jaipur Hospital, Lal Kothi, Near S.M.S. Stadium Tonk Road, Jaipur-302015 Phone: 2742557, 2742619, 2742266, 2740936, ... ITC Limited, Parivar Seva

A UNIT OF

SHARMA EAST INDIA HOSPITALS

& MEDICAL RESEARCH LIMITED

Annual Report2013-2014

25th

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2013-2014Annual Report25

th

Contents

Board of Directors 01

Major Achievements of the Company 02

Notice 04

Director's Report 11

Management Discussion and Analysis 15

Corporate Governance Report 18

CEO/CFO Certification 28

Auditors Certificate on Corporate Governance 29

Auditors Report 30

Balance Sheet 35

Statement of Profit and Loss Account 36

Cash Flow Statement 37

Significant Accounting Policies 39

Notes forming part of the Financial Statements 43

Proxy Form & Attendance Slip 53

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BOARD OF DIRECTORS

th25 Annual General MeetingTHWEDNESDAY THE 24 SEPTEMBER, 2014

AT SHARMA AGRICULTURE FARMTAKIA KI CHOWKI, KALWAD ROAD,

JHOTWARA, JAIPURAT 3.00 PM

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

1

Chairman Shri Ganpat Rai Sharma

Managing Director Dr. Shailendra Kumar Sharma

Directors Dr. Karan Sharma

Shri Subhash Chand Jain

Shri Madhur Krishna Khaitan

Mrs. Avani Kanoi

Auditors M/S Gopal Sharma & Company

Company Secretary Bhavyata Soni

Bankers PNB, SBBJ & SBI

Registered Office Jaipur Hospital,

Lal Kothi, Near S.M.S. Stadium

Tonk Road, Jaipur-302015

Phone: 2742557, 2742619, 2742266, 2740936, 2741465

Registrar and Transfer M/s Beetal Financial & Computer Services P. Ltd

Agent Beetal House, 3rd Floor, 99, Madangir, Behind

Local Shopping Centre, Near Dada Harshukh Das

Mandir, New Delhi-110062

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Major Achievements During the year :-

1. Final assessment was conducted by National Accreditation Board for Hospitals and

Health Care Providers (NABH), NABH accreditation system is one of the methods for

commitment to quality enhancement throughout the whole of the health care system in

India. It involves all professional and service groups to ensure that high quality in health

care is achieved, while minimizing the inherent risks associated with modern health care

delivery. NABH accreditation will be a scarce jewel for the Company.

2. Performance of the organization against the stated mission is achieved by the increase in

number of patients and number of surgeries from the last year.

3. After the new approvals now company is empanelled with 64 Institutions and TPAs

namely, Jaipur Development Authority (JDA), Med save Health Care Limited, MD India

Healthcare Services (TPA) (P) Ltd., Medicare TPA Services (I) Pvt.Ltd., Rajasthan Rajya

Sahakari Bhoomi Vikas Bank Limited, Rajasthan State Pollution Control Board, Central

Institute of Plastics Eng. & Technology, Mecon Limited, National Textile Corporation

2

2013-2014Annual Report25

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(Delhi, Punjab, & Raj.)Ltd., Rajasthan Tours Pvt.Ltd, Central Sheep &Wool Research

Institute, Central Bank of India, The Bank Officers'(Retired)Association, Rajasthan

Sanskrit University, ITC Limited, Parivar Seva Sanstha, Hotel Jaipur Ashok, University of

Rajasthan, Ashok Club, Airport Authority Of India, Hexacom India Limited, Dedicated

Healthcare Services TPA (P) Ltd., Rashtriya Chemical & Fertilizers Limited, Rajasthan

State Cooperative Marketing Federation Limited (RAJFED), Rajasthan State Mines &

Minerals Limited, Tata Memorial Center Hospital (Tissue Bank), National Fertilizers

Limited, Employees' State Insurance Corporation, Programs The Smile Train, Rajasthan

State Industrial Development & Investment RIICO, Food Corporation Of India (FCI),

Hindustan Petroleum Corporation Ltd, The Bank of Rajasthan Limited, Housing & Urban

Development Co. Ltd , Ex-Servicemen Contributory Health Scheme (ECHS), The

General manager Caim Dept. (RAJCOMP), Central Government Health Scheme,

Rajasthan State Road Development & Construction Corporation Limited, Rajasthan

Tourism Development Corporation Limited (RTDC), Alan kit Health Care Limited,

Rajasthan State Seeds Corporation Limited, Family Health Plan Ltd., Rajasthan Energy

Development Agency, Raksha TPA Pvt. Ltd., Rajasthan State Ware House Corporation,

UCO Bank, Rajasthan Cooperative Dairy Federation Ltd., State Bank Of India, Rastriya

Ispat Nigam Limited, State Bank of Bikaner & Jaipur, Paramount Health Services (P)

Limited, Reserve Bank Of India, E-Meditek TPA Services Limited, Bank of India.

3

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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NOTICE:

Notice is hereby given that the 25th Annual General Meeting of the members of Sharma East India Hospitals & Medical Research Limited will be held as per the schedule below:

Date : 24th September,2014

Day : Wednesday

Time : 3.00 P.M.

Place : Sharma Agricultural Farm, Takia Ki Chowki,

Kalwad Road, Jhotwara, Jaipur

To transact the following business:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Statement of Profit and Loss for the year ended March 31, 2014 and the Balance Sheet as at that date together with the Reports of the Board of Directors and the Auditors thereon.

2. To appoint an Independent Director in place of ShriMadhurKrishanKhaitan (DIN: 00820760) who retires by rotation and being eligible, offers himself for re-appointment.

3. To appoint an Independent Director in place of Mrs.AvaniKanoi (DIN: 03121949) who retires by rotation and being eligible, offers herself for re-appointment.

4. Appointment of Auditors

To appoint Auditor and to fix their remuneration and in this regard, to consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary resolution:

"RESOLVED THAT pursuant to Sec. 139 and other applicable provisions, if any, of the Companies Act, 2013 and the Rules framed thereunder, as amended from time to time, M/s Gopal Sharma & Co., Chartered Accountants,(Firm Registration No. 002803C) situated at 307, Ocean Appartment, Kanti Chand Road, Bani Park, Jaipur be and is hereby re-appointed as the Auditors of the Company, to hold office from the conclusion of this Annual General Meeting until the conclusion of the Thirtieth Annual General Meeting to be held in the year 2019 (subject to ratification of their appointment at every Annual General Meeting), to audit the accounts of the Company, including audit of cash flow statements, at such a remuneration as may be mutually agreed between the Board of Directors of the Company and the Auditors."

Ordinary resolution:

4

BY ORDER OF THE BOARD

Sd/-Bhavyata Soni

(COMPANY SECRETARY)

2013-2014Annual Report25

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Date: 14.08.2014

Registered OfficeJaipur HospitalLal Kothi, Near S.M.S. StadiumTonk Road, Jaipur-302015CIN:L85110RJ1989PLC005206

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NOTES :

1. A member entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of

himself and the proxy need not to be a member of the Company. The instrument appointing the

proxy, in order to be effective, must be deposited at the Company's Registered Office, duly

completed and signed, not less than FORTY-EIGHT HOURS before the meeting. Proxies

submitted on behalf of limited companies, societies, etc., must be supported by appropriate

resolutions/authority, as applicable. A person can act as proxy on behalf of Members not

exceeding fifty (50) and holding the aggregate not more than 10% of the total share capital of the

Company. In case a proxy is proposed to be appointed by a Member holding more than 10% of

the total share capital of the Company carrying voting rights, then such proxy shall not act as a

proxy for any other person or shareholder.

2. The Register of Members and Share Transfer Books of the Company will remain closed from 18th

September, 2014 to 24th September, 2014 both days inclusive.

3. Members holding shares in dematerialized form are requested to intimate all changes pertaining

to their bank details, National Electronic Clearing Service (NECS), Electronic Clearing Service

(ECS), mandates, nominations, power of attorney, change of address, change of name, e-mail

address, contact numbers etc., to their Depository Participant (DP), changes intimated to the DP

will then be automatically corrected in the Company's records which will help the Company and

the Company's Registrars and Transfer Agents M/s Beetal Financial & Computers Services (P)

Ltd. to provide efficient and better services. Members holding shares in physical form are

requested to intimate such changes to M/s Beetal Financial & Computers Services (P) Ltd.

4. The Notice of the AGM along with the Annual Report 2013-14 is being sent by electronic mode to

those Members whose e-mail addresses are registered with the Company/Depositories, unless

any Member has requested for a physical copy of the same. For Members who have not

registered their e-mail addresses, physical copies are being sent by the permitted mode.

5. GREEN INITIATIVE: The Ministry of Corporate Affairs ("MCA"), Government of India, through its

Circular No.17/2011 dated 21st April, 2011 and Circular No.18/2011 dated 29th April, 2011, has

allowed companies to send Annual Report comprising of Balance Sheet, Profit & Loss Account,

Directors Report, Auditors Report and Explanatory Statement etc. through electronic mode to the

registered e-mail address of the members. Keeping in view the underlying theme and the

circulars issued by MCA, we propose to send future communications in electronic mode to the e-

mail address provided by you to the depositories and made available by them being the

registered address. By opting to receive communication through electronic mode you have the

benefit of receiving communications promptly and avoiding loss in postal transit.

Members who hold shares in physical form and desire to receive the documents in electronic

mode are requested to please promptly provide their details (name, folio no., e-mail id) to the

Registrar and Transfer Agent of the Company. Members who hold shares in electronic form are

5

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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2013-2014Annual Report25

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requested to get their details updated with the respective Depositories.

The annual report and other communications/documents sent electronically would also be

displayed on the Company's website: www.jaipurhospital.co.in. As a Member of the Company,

you will be furnished, free of cost, a printed copy of the Annual Report of the Company, upon

receipt of a requisition from you.

We request you to support this initiative and opt for the electronic mode of communication by

submitting your e-mail address to your DP or to the Company's Registrar, in the interest of the

environment.

6. In compliance with the provisions of section 108 of the Companies Act, 2013 and the Rules

framed there under, the Members are provided with the facility to cast their vote electronically,

through the e-voting services provided by CDSL on all resolutions set forth in this Notice.The

business at the Annual General Meeting shall be transacted through electronic voting system.

The instructions for members for voting electronically are as under:-

(A) The voting period begins on Friday, 19th day of September, 2014 (10.00A.M.)and ends on

Saturday, 20th day of September, 2014(5.00 P.M.). During this period shareholders' of the

Company, holding shares either in physical form or in dematerialized form, as on the cut-off date

on Friday, the 22nd day of August, 2014 , may cast their vote electronically. The e-voting module

shall be disabled by CDSL for voting thereafter.

In case of members receiving e-mail:

(i) Log on to the e-voting website www.evotingindia.com

(ii) Click on "Shareholders" tab.

(iii) Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID,

b. For NSDL: 8 Character DP IDfollowed by 8 Digits Client ID,

c. Members holding sharesin Physical Form should enter Folio Number registered with

the Company.

(iv) Next enter the Image Verification as displayed and Click on Login.

(v) If you are holding shares in demat form and had logged on to www.evotingindia.comand

voted on an earlier voting of any company, then your existing password is to be used.

(vi) If you are a first time user follow the steps given below:

For Members holding shares in Demat Form and Physical Form

PAN* Enter your 10 digit alpha-numeric *PAN issued by Income Tax Department (Applicable for

both demat shareholders as well as physical shareholders)

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SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

7

• Members who have not updated their PAN with the Company/Depository Participant are

requested to use the first two letters of their name and the 8 digits of the sequence number

in the PAN field.

• In case the sequence number is less than 8 digits enter the applicable number of 0's before

the number after the first two characters of the name in CAPITAL letters. Eg. If your name is

Ramesh Kumar with sequence number 1 then enter RA00000001 in the PAN field.

DOB# Enter the Date of Birth as recorded in your demat account or in the company records for the

said demat account or folio in dd/mm/yyyy format.

Dividend Enter the Dividend Bank Details as recorded in your demat account or in the company

Bank records for the said demat account or folio.

Details#

• Please enter the DOB or Dividend Bank Details in order to login. If the details are not

recorded with the depository or company please enter the member id / folio number in

the Dividend Bank details field.

(vii) After entering these details appropriately, click on "SUBMIT" tab.

(viii) Members holding shares in physical form will then reach directly the Company selection screen.

However, members holding shares in demat form will now reach 'Password Creation' menu

wherein they are required to mandatorily enter their login password in the new password field.

Kindly note that this password is to be also used by the demat holders for voting for resolutions of

any other company on which they are eligible to vote, provided that company opts for e-voting

through CDSL platform. It is strongly recommended not to share your password with any other

person and take utmost care to keep your password confidential.

(ix) For Members holding shares in physical form, the details can be used only for e-voting on the

resolutions contained in this Notice.

(x) Click on the EVSN for Sharma East India Hospitals & Medical Research Limited.

(xi) On the voting page, you will see "RESOLUTION DESCRIPTION" and against the same the

option "YES/NO" for voting. Select the option YES or NO as desired. The option YES implies that

you assent to the Resolution and option NO implies that you dissent to the Resolution.

(xii) Click on the "RESOLUTIONS FILE LINK" if you wish to view the entire Resolution details.

(xiii) After selecting the resolution you have decided to vote on, click on "SUBMIT". A confirmation box

will be displayed. If you wish to confirm your vote, click on "OK", else to change your vote, click on

"CANCEL" and accordingly modify your vote.

(xiv) Once you "CONFIRM" your vote on the resolution, you will not be allowed to modify your vote.

(xv) You can also take out print of the voting done by you by clicking on "Click here to print" option on

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2013-2014Annual Report25

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the Voting page.

(xvi) If Demat account holder has forgotten the changed password then Enter the User ID and the

image verification code and click on Forgot Password& enter the details as prompted by the

system.

(xvii) Note for Non - Individual Shareholders and Custodians

• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian

are required to log on to www.evotingindia.com and register themselves as Corporates.

• A scanned copy of the Registration Form bearing the stamp and sign of the entity should

be emailed to [email protected].

• After receiving the login details they have to create a compliance user should be created

using the admin login and password. The Compliance user would be able to link the

account(s) for which they wish to vote on.

• The list of accounts should be mailed to [email protected] and on

approval of the accounts they would be able to cast their vote.

• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have

issued in favour of the Custodian, if any, should be uploaded in PDF format in the system

for the scrutinizer to verify the same.

• In case you have any queries or issues regarding e-voting, you may refer the Frequently

Asked Questions ("FAQs") and e-voting manual available at www.evotingindia.com,

under help section or write an email to [email protected]

In case of members receiving the physical copy:

(B) Please follow all steps from sl. no. (i) to sl. no. (xvii) above to cast vote.

Other Instructions:

(i) The e-voting period commences on Friday, September 19, 2014(10.00 A.M.) and ends on

Saturday, September 20, 2014(5.00 P.M.). During this period, Members of the Company, holding

shares either in physical form or in dematerialized form , as on Friday, August 22, 2014, may cast

their vote electronically.

(ii) The Scrutinizer has been appointed to scrutinize the e-voting process(including the ballot form

received from the members who do not have access to the e-voting process) in a fair and

transparent manner.

(iii) The scrutinizer shall, within a period not exceeding three working days from the conclusion of the

e-voting period, unblock the votes in the presence of atleast two witnesses not in the employment

of the company and make a Scrutinizer's Report of the votes cast in favour or against, if any,

forthwith to the Chairman of the Company.

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(iv) A Member can opt for only one mode of voting i.e. either through E-Voting or by Ballot.

(v) The results declared along with the Scrutinizer's Report shall be placed on the Company's

website and on the website of CDSL within two days of passing of the resolution at the AGM.

7. Members are requested to lodge the transfer, transmission of shares at the registered office or to

the Registrar & Share Transfer Agent M/s.Beetal Financial & Computer Services (P) Ltd, Beetal

House, 3rd Floor, 99, Madangir, Behind Local Shopping Centre, Near Dada Harshukh Das

Mandir, New Delhi-110062 and to inform any change in their address immediately so as to enable

the company to do future communications at their correct address.

8. The Company's shares are listed on The Bombay Stock Exchange Limited.

9. Additional particulars of Directors retiring by rotation and eligible for re-appointment pursuant to

Clause 49 of the Listing Agreement are mentioned separately in this Annual Report.

10. Members desiring any information as regards to accounts are requested to write to the Company

at an early date so as to enable the Management to keep the information ready.

11. Members desirous of making a nomination in respect of their shareholding, as per Section 72 of

the Companies Act, 2013, are requested to write to the Share Transfer Agents of the Company for

the prescribed format.

BY ORDER OF THE BOARD

Sd/-Bhavyata Soni

(COMPANY SECRETARY)

Date: 14.08.2014

Registered OfficeJaipur HospitalLal Kothi, Near S.M.S. StadiumTonk Road, Jaipur-302015CIN:L85110RJ1989PLC005206

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

9

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Details of Directors seeking reappointment at the forthcoming Annual General Meeting

(in pursuance of Clause 49 of the Listing Agreement)

Name of Directors Mr. Madhur Krishan

Khaitan

Date of Birth 13.10.1982 26.04.1986

Date of Appointment 14.07.2011 14.07.2011

Expertise in Specific Area Administration & IT General Management

Qualification MBA B.A. in Journalism &

Psychology

Shareholding Nil Nil

List of Public Companies in

which outside Directorship WMM Metal Fabrics Ltd. Nil

held on 31.03.2014

Chairman/Member of Public

Companies on which he is Nil Nil

a Director as on 31.03.2014

Mrs. Avani Kanoi

2013-2014Annual Report25

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DIRECTOR'S REPORT

To,

The Members,

Your Directors are delighted in presenting the Twenty Fifth Annual Report on the business and operations of your Company together with Audited Annual Accounts and Cash Flow Statement for the year ended on 31st March, 2014.

1. FINANCIAL RESULTS

(` in Lacs)

For the year ended on

2013-2014 2012-2013

Professional Receipts & Other income 1354.51 1286.71

Profit before interest, Depreciation & Tax 222.12 230.97

Less : Interest 58.62 90.50

Operating Profit 163.50 140.47

Less: Depreciation 59.88 59.67

Net Profit before Tax 103.62 80.80

Less: Provision for Taxation

Current Tax 29.67 23.77

Deferred Tax (Net) 2.35 1.65

Net Profit After Tax 71.60 55.38

Add: Profit brought forward from Previous Year 171.01 115.63

Surplus carried forward to Balance Sheet 242.61 171.01

2 REVIEW OF OPERATIONS:

In spite of the stiff competition in the medical industry affecting the operations of your Company, your Company has performed satisfactorily by maintaining almost same profit level of the previous year before Interest, Depreciation and Taxes. Further your Company has been continuously making efforts to enhance the operations and also trying to hold its grip over upcoming opportunities in Medical & Health Industry. Net Profit after Tax has been increased by 29.29% as compared to the last year.

3 DIVIDEND:

In view of marginal funds, the Board of Directors doesn't recommend payment of dividend for the year under review.

11

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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4 DISCLOSURE OF MATERIAL CHANGES SINCE THE DATE OF BALANCE SHEET :

There is no material changes since the date of Balance Sheet regarding

(a) Disposal of a substantial part of undertaking

(b) Changes in Capital Structure of the Company

(c) Serious break down

(d) Alteration in wage structure arising out of trade union negotiations

(e) Providing medical and health services.

5. DISCLOSURE OF COMPOSITION OF THE AUDIT COMMITTEE:

The constitution of audit committee is in confirmation with the requirements of Section 292A of the Companies Act, 1956 and also as per the requirements of Clause 49(II) (A) of the listing agreement. The composition of Audit Committee has been changed on 29th May, 2014 due to the resignation of Mr. Ashok Kumar Agarwal, being an Independent Director of the company . Now the Audit Committee of the Company consists of 4 Directors: Shri Ganpat Rai Sharma, Shri Subhash Chand Jain, Shri Madhur Krishna Khaitan and Mrs. Avani Kanoi all being Non-Executive. The Committee is now chaired by Shri Madhur Krishna Khaitan an Independent Director. All the members of the audit committee are financially literate and majority of them are having accounting or related financial management expertise.

6. OUTLOOK FOR 2014-15:

The Company can look back with satisfaction at the last year performance as being ever improving. The Company is working towards sustaining this momentum in the current year also. During the year under review the hospital unit re-equipped with all latest facility with available high-tech equipments and expertise of all the specialties and maintained high quality service and status in the line. Your Company is running a successful Cardiac Department through JAIPUR HEART INSTITUTE. But the vision of management does not stop here itself. Constant exploration of new medical services, introduction of Hi-tech equipments which will benefit the patients would certainly drive the growth in the coming years. The Nursing College also started M.Sc. nursing batch and only two colleges are recommended by the Rajasthan Government to provide the masters degree in nursing and one of them is our college.

7. ATTACHMENT OF THE COMPLIANCE CERTIFICATE OBTAINED FROM A COMPANY SECRETARY IN PRACTICE:

Your Company has employed a whole time Company Secretary. So company doesn't require to obtain Compliance Certificate from a Company Secretary in Practice.

8. FIXED DEPOSITS:

The Company has not accepted any public deposits and hence the rules made there under are not applicable to the Company.

9. COMMENTS ON RESERVATIONS, QUALIFICATIONS OR ADVERSE REMARKS GIVEN IN THE AUDITORS REPORT:

During the year under review, there was no audit qualification made by the Auditor in their Report on the Company's financial statements. The Company continues to adopt best accounting practices to ensure a regime of un-qualified financial statements.

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10. CORPORATE GOVERNANCE:

The Company has implemented the Corporate Governance requirements. Management Discussion and analysis and a report on compliance of Corporate Governance are enclosed as Annexure to the Director's Report.

11. DIRECTORS

In accordance with the provisions of the Companies Act, 2013 and the Articles of Association, Mr. Madhur Krishan Khaitan and Mrs. Avani Kanoi, Directors of the Company retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. During the year Mr. Ashok Kumar Agarwal, being an Independent Director has resigned from the Directorship and the Board of Directors duly accepted the same.

None of the Directors of the Company is disqualified for being appointed as Directors.

12. DIRECTOR'S RESPONSIBILTY STATEMENT U/S 217(2AA):

Pursuant to Section 217(2AA) of the Companies Act, 1956, the Directors based on the representation received from operating management, confirm that:

(i) In the Preparation of Annual Accounts, the applicable accounting standards had been followed along with proper explanation to the material departures.

(ii) Directors had in selection of the accounting policies, consulted the statutory auditors and have 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 and of the profit of the Company for the period.

(iii) Directors had taken proper and sufficient care, to the best of their knowledge and ability, for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

(iv) Directors had prepared the Annual Accounts on a going concern basis.

13. CONSERVATION OF ENERGY, TECHNOLOGY, FOREIGN EXCHANGE EARNINGS AND OUT GO:

Since the Company is engaged in medical service sector and has no activity pertaining to manufacturing hence furnishing of details pertaining to Conservation of Energy and Technology Absorption are not applicable as required under Section 217 (1) (e) of the Companies Act, 1956 read with Companies (Disclosure of particulars in the Report of Board of Directors) Rules 1988. There were no foreign exchange earnings and outgoing during the year.

14. AUDITORS AND AUDITOR'S REPORT:

The Observation and comments given by the Auditors in their report together with notes to Accounts are self explanatory and hence do not call for any further comments.

The Board on the recommendation of the Audit Committee had proposed that M/s Gopal Sharma & Co., Chartered Accountants, Jaipur be re-appointed as the Statutory Auditors of the Company to hold office till the conclusion of the Thirtieth Annual General Meeting of the Company. M/s Gopal Sharma & Co., Chartered Accountants, Jaipur have forwarded their certificate to the Company, stating that their re-appointment, if made, will be within the limit specified in that behalf as per

13

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Companies Act, 2013.

15. PARTICULARS OF EMPLOYEES :

The Company has not paid any remuneration attracting the provisions of Companies (Particulars of Employees) Rules, 1975 read with Section 217 (2A) of the Companies Act, 1956. Hence no information is required to be appended to this report in this regard.

16. REPORTS ON PROJECTION MADE IN OFFER DOCUMENTS FOR PUBLIC OR RIGHT ISSUE BY A LISTED COMPANY :

During the year under review Company had not issued any offer document.

17. REPORT OF THE UTILIZATION OF PROCEEDS OF THE PUBLIC, RIGHT ISSUE AND PREFERENTIAL ALLOTMENT OF SECURITIES

During the year under review Company had not come up with any public, right and preferential allotment.

18. DISCLOSURE FOR FAILURE TO COMPLETE BUY-BACK WITHIN TIME :

During the year under review Company had not dealt with any Buy back proposal.

19. DISCLOSURE FOR ISSUANCE OF SWEAT EQUITY SHARES :

During the year under review Company had not issued any Sweat Equity Shares.

20. ACKNOWLEDGEMENT

The Board expresses its grateful thanks for the assistance and co-operation extended by Punjab National Bank & other Banks, various departments of State & Central Government and other Associations.

Your Directors wish to convey their gratitude and appreciation to all employees of the Company for their valuable contribution during the year. They also wish to place on record their appreciation to the Company's Customers, Investors, Shareholders, Bankers, Suppliers, Distributors and other business associates for their cooperation and support.

Last but not the least Directors wish to place on records their deep sense of appreciation for the devoted services of Consultant Doctors and entire Nursing Staff at all levels of the Company for its growth.

BY THE ORDER OF THE BOARD

14

Place : JaipurDate : 14.08.2014

(Dr. SHAILENDRA KR SHARMA )MANAGING DIRECTOR

DIN: 00432070

(GANPAT RAI SHARMA)CHAIRMAN

DIN: 00458217

Sd/- Sd/-

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ANNEXURE-I

Management Discussions & Analysis Report

1. Mission & Business Strategy

The company is predominantly engaged in service activities related with the Medical & Health

Sciences. The demand for sophisticated modern healthcare facilities is expanding very fast. With

the ever expansive field of Medical Science and research the cult of health consciousness is

spreading rapidly.

The company aims at providing wide range of medical services in the field of Health Industry. The

objective is to offer best quality services to its customers at low costs and to achieve health growth

and profitability. Your Company is committed to achieve its objective while ensuring high levels of

ethical standards, professional integrity and regulatory compliances.

2. Opportunity & Threats

Your company has launched the S-ROM Modular Hip System, the most advanced artificial hip

implant designed to reduce stiffness and thigh pain. The hospital is providing the service of

Replacement surgery through the use of new and advance implant. As you all know that the

company is first in the state of Rajasthan which performed 'Replacement Surgery'. Our specially

designed state of Art operation theatre is first of its kind in Rajasthan. This theatre has total body

exhaust system and 'Antistatic' flooring which makes it totally sterile. That's why the company

became successfu l in get t ing reorgan izat ion f rom many reputed Govt .

Bodies/Corporations/Banks and other private enterprises for the purpose of reimbursement of

medical claims of their employees being treated at the hospital.

The threats are increasing competition in health industry and increase in power tariff under the

cost, huge price discrimination and low per capital expenditure.

3. Segment wise or Product wise performance

Not applicable to our company.

4. Outlook, Risks &Concerns

The outlook of the Company remains positive. Jaipur Hospital is cautiously optimistic about its

prospects in the coming years. The Company aims at providing high quality services and

treatments to the patients and to provide them with greater satisfaction. For last couple of years

the company has taken a number of initiatives to re- structure and re- engineer the operation to

enable the company to compete better in this profound competitive regime.

There are no major risks and concerns except the technology up gradation and increasing power

tariff and growing competition. The company is guarding itself against these risks by laying down

appropriate strategy which is to be supplemented by business plans and review mechanisms.

5. Adequacy of Internal Control

The Internal Controls are constantly upgraded based on internal audits and audit committees

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recommendations as also the perceived need to automate controls due to the increasing

complexity of operations. These have been designed to provide reasonable assurance with

regard to maintaining proper accounting controls, monitoring economy in cost and efficiency of

operations, proper recording and safeguarding of assets from unauthorized use or losses for

maintaining proper accounting records and reliability of financial Information. The ERP

(Enterprise Resource Planning) system has stabilized. Internal Controls relating to the Financial

Reporting are being closely monitored and related systems and processes are being refined

based on the recommendations from the audit Committee and statutory Auditors. The Internal

Audit programmed focuses on Operational and Systems audit aiming at up gradation of controls

to meet changing times and complex operating environment.

6. Discussion on financial performance with respect to operational performance

Jaipur Hospital has sustained its momentum on the profit path during the year ended 2013-14.The

company's Professional and other receipts for the year ended March 31, 2014 is Rs. 1354.51 Lacs

against Rs.1286.71 Lacs during previous year. The Net Profit before Depreciation, Interest and

Tax has increased to Rs.222.12 Lacs against Rs.230.97 Lacs during the previous year. The

provision for taxation for the current year is Rs. 29.67 lacs as compared to Rs.23.77 lacs for the

previous year, the profit after tax for the year is Rs.73.95 lacs as against Rs. 57.03 lacs during the

previous year.

7. How Company Fared

Net Profit after Tax has been increased by 29.29% as compared to the last year.

8. Human Resources Development/ Training

The Company believes that employees are not the man power but they are resource for the

Company. Employees can make the difference and it has been the company's continuous

endeavour to make it one of the best places to work in. Your company's human resource

Philosophy is to establish and build a strong and performance driven culture with greater

accountability and responsibility at all levels. To that extent the company views capability,

combination of right people on the right jobs, supported by the right process, systems, structure

and metrics. The HR department is working on NABH guidelines.

Company's Human Resources (HR) systems are focused towards developing wider perspectives

in employees achieving organizational excellence and enhancing their contribution to meet

organizational goals. The Company recognizes the need for continuous growth and development

to its employees in order to provide greater job satisfaction and also to equip them to meet growing

organizational challenges. Specific Human Resources efforts were undertaken during the year to

strengthen Human Resources System and practices.

We are in the services industry. As such human resources become one of the most important

resources and needs to be carefully nurtured. The management team of the Company is

comprised of professional and marketing personnel.

During the year 103 employees joined us. As of 31st March, 2014, the company had 184

16

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employees on its rolls of which 17 were resident doctors, 83 were nursing staff and 84 belong to

other categories. During the year ended on 31st March, 2014 company had taken services of 36

consultant doctors.

9. Employment profile &Industrial Relations

The employee relationship continues to be cordial and the company received full co-operation

from employees at all levels. During the year measures for training, development, safety of the

employees and environmental awareness received top priority of the management.

10. Capital Structure

The authorized share capital of the company is Rs. 7.00 crore divided in 70 lacs equity shares of

Rs. 10.00 each. The paid up capital is Rs.328.38 Lac divided into 32,83,800 equity shares of

Rs.10/- each.

11. Depository System

The ISIN No. allotted to the Company is INE465H01012. The company has also established the

required connectivity with both the depositories through Beetal Financial and Computer Services

Private Limited. Delhi, who are the Registrar and Share Transfer Agent for both the Physical and

Demat Segments.

The equity shares of the Company can be held in electric form with any depository participant (DP)

with whom the Members/Investors have their depository account.

12. Cautionary Statement

This report to the shareholders is in compliance with the corporate Governance standard

incorporated in the listing agreement with the Stock Exchanges and as such cannot be construed

as holding out for any forecast, projection, exception, invitation, offer, etc. within the meaning of

applicable securities, laws and regulations.

Actual results may differ materially from those expressed or implied; significant factors that could

make a difference to the operations include changes in Government regulations, tax regimes and

other statutes and incidental factors.

17

BY THE ORDER OF THE BOARD

Place : JaipurDate : 14.08.2014

(Dr. SHAILENDRA KR SHARMA )MANAGING DIRECTOR

DIN: 00432070

(GANPAT RAI SHARMA)CHAIRMAN

DIN: 00458217

Sd/- Sd/-

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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CORPORATE GOVERNANCE REPORT FOR THE YEAR 2013-2014

Your company has been practicing the principles of good Corporate Governance, which comprise all activities that result in the control of the Company in a regulated manner, aiming to achieve transparent, accountable and fair management.

The Company's philosophy on Corporate Governance envisages the attainment of the highest levels of transparency, accountability and equity, in all facets of its operations, and in all interactions with its stakeholders including shareholders, employees, Government, lenders and the society. The Company believes that all its operations and actions must serve the underlying goal of enhancing long-term shareholder value. In our commitment to practice sound governance principles, we are guided by the following core principles:

1. Transparency

To maintain the highest standard of transparency in all aspects of our interactions and dealing.

2. Disclosures

To ensure timely dissemination of all price sensitive information and matters of interest to our stakeholders.

3. Empowerment and Accountability

To demonstrate the highest levels of personal accountability and to ensure that employees consistently pursue excellence in everything they do.

4. Compliances

To comply with all laws, rules and regulations applicable to the Company.

5. Ethical conduct

To conduct the affairs of the Company in an ethical manner.

6. Stakeholder's interest

To promote the interests of all stakeholders including customers, shareholders, employees, lenders, vendors and the community.

The Report on corporate Governance is pursuant to clause 49 of the listing agreement entered into with the Bombay Stock Exchanges and forms a part of the Report of the Board of Directors. The company has complied with the applicable requirements of the Clause 49 of the Listing Agreement.

1. COMPANY'S PHILOSOPHY ON CORPORATE GOVERNANCE

The basic philosophy of Corporate Governance in the Company is to achieve business excellence and dedicate itself to increase long-term Shareholder's value, keeping in view the needs and interests of all its Stakeholders. The Company is committed to transparency in all its dealing and places emphasis on business ethics.

The Company has always looked at good Corporate Governance as a way of life, observing the highest level of ethics in all its dealings. The company attaches equal importance to both the ends- the result sought to be secured and methods used to achieve them. The company has always maintained its financial principles of Corporate Governance which are, integrity, transparency and fairness.

The company believes in effective policy of Corporate Governance which provides appropriate empowerment to the executive management. It creates a mechanism of internal controls to ensure

18

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that the powers vested in the executive management are properly used with appropriate consideration and responsibility to fulfill the objectives of the company. The Board fully support and endorse corporate governance practices as per the provisions of the listing agreement as applicable from time to time.

The Corporate Governance structure in the company is based on an effective supervisory role of Board and the constitution of committees, comprising of Independent Directors and chaired mostly by an Independent Director to overcome critical areas. The company is aiming at efficient conduct of the business in meeting its obligation to the shareholders.

2. BOARD OF DIRECTORS

(a) Composition of the Board of Directors

The composition of Board is in accordance with the requirements set forth by clause 49 in this regard. The Directors possess experience in various fields that encompass Medical and Health, Law, Banking, Accounting and Finance. During the year Mr. Ashok Kumar Agarwal, being an Independent Director has resigned from the Directorship as on 29th May, 2014, now the composition of Board of Directors consists of 6 Directors which is a perfect combination of Executive and Non Executive directors. The Chairman is Non Executive Director and the Managing Director is Executive Director and the Board consists of 3 Independent Directors.

Category Name of Director No. of Directors

Chairman Mr. Ganpat Rai Sharma 1Non-Executive

Non-Executive Dr. Karan Sharma 1

Others Mr. Subhash Chand Jain 3Non-Executive, Independent Mr. Madhur Krishna Khaitan

Mrs. Avani Kanoi

Managing Director Dr. Shailendra Kumar Sharma 1Executive

Total 6

Independent Directors as defined in Clause 49 of the Listing Agreement is one, who apart from receiving remuneration does not have any other material pecuniary relationship or transaction with the company, its promoters, management or its subsidiaries which in judgment of the Board may affect independence of the judgment of the directors and has not been an executive of the Company in the immediately preceding three financial years. The company has not any pecuniary relationship or transaction with any of the Non-Executive Directors during the year under review.

(b) Board Meeting

The board met four times during the financial year 2013-14. The interval between any two successive meetings did not exceed four months. Board meetings were held on 30th May, 2013, 13th August, 2013, 14th November, 2013 and 13th February, 2014.

The information as required under Annexure 1A to clause 49 of the Listing Agreement is being regularly placed before the Board. The Board also reviews the declaration made by the Managing Director and Executives of the Company regarding compliance with all laws applicable to the Company on a quarterly basis.

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Attendance of each Director at the Board of Directors Meeting during the year and at last Annual General Meeting, the number of Directorships and Committee memberships held by them in domestic public companies as at March 31, 2014 are as follows :

(c) Information supplied to the Board among others

The Board has complete access to all information with the company, interalia, the following information provided to the Board as a part of the agenda papers well in advance of Board Meeting and are tabled in the course of the Board Meeting:

1. Review of annual operating plans of business, capital budget, updates.

2. Quarterly results of the Company.

3. Any issue which involves possible public liability claims of a substantial nature.

4. Significant development in the human resource and industrial relation fronts.

5. Sale of material nature of investments and assets which is not in the normal course of the business.

6. Non-compliance of any such regulatory or statutory provision or listing requirements as well as shareholders services, such as delay in share transfer and other grievances.

The Board has established procedures to enable the Board to periodically review compliances reports of all laws applicable to the company prepared by the company as well as steps taken by the company to rectify instances of non-compliances

3. AUDIT COMMITTEE-

The constitution of audit committee is in confirmation with the requirements of Section 292A of the Companies Act, 1956 and also as per the requirements of Clause 49(II) (A) of the listing agreement. During the year, due to resignation of Shri Ashok Agarwal, the composition of the Audit Committee has been changed. Now the Audit Committee of the Company consists of 4 Directors: Shri Ganpat Rai Sharma, Shri Subhash Chand Jain, Shri Madhur Krishna Khaitan and Mrs. Avani Kanoi all being Non-Executive. The Committee is chaired by Shri Madhur Krishna Khaitan an Independent Director. All the members of the audit committee are financially literate

20

Name of Directors

Board Meeting

Whether attended AGM

held on 27 th September,2013

No. of Directorships in Domestic Public

Companies(including the

Company)

No. of Committee Memberships in Domestic Public

Companies (including this Company)

Held Attended As

Chairman

As Director

As Chairman

As Member

Sh. Ganpat Rai Sharma 4 4 YES 1 0 1 2

Dr. Shailendra Kr. Sharma 4 4 YES - 1 - 1

Dr. Ashok Agarwal(Resignation from Directorship on 29TH May, 2014)

4 1 NO - 4 - 2

Sh. Subhash Chand Jain 4 2 NO - 1 - 3

Mrs. Avani Kanoi 4 1 NO - 1 - 2

Mr. Madhur Krishna Khaitan

Dr. Karan Sharma

4

4

4

1

NO

YES

-

-

1

1

-

-

2

-

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and majority of them are having accounting or related financial management expertise.

The Audit Committee functions with following objectives:

1. To provide directors and oversee comprehensively the operation of internal and external audit functions and provides financial reporting.

2. To review the internal control systems with special emphasis on the accounting system, its quality and its effectiveness in the terms of follow up.

3. To recommend appointment, removal and remuneration of Statutory Auditors.

4. To discuss with the Statutory Auditors, Internal Auditor and finalization of Annual Accounts.

5. To review the Company's quarterly working results, annual working results, other financial and risk management policies.

Terms of reference and powers of committee include the areas/powers prescribed by clause 49 of the listing agreement of the Stock Exchange.

The Audit Committee met four times during the financial year 2013-14 on 30th May, 2013, 13th August, 2013, 14th November,2013, and 13th February, 2014. No member was absent from the Committee Meeting without taking leave of absence.

Dr.Shailendra Kumar Sharma, Managing Director was present at the meetings of the Audit Committee. Statutory Auditors are invited to the meetings. The Company Secretary acts as the Secretary of the Audit Committee.

4. SHAREHOLDER/ INVESTORS GRIEVANCE COMMITTEE-

At present the committee consists of Shri Subhash Chand Jain and Mrs. Avani Kanoi. The Committee is chaired by Shri Subhash Chand Jain an Independent and Non-Executive Director. During the Financial Year 2013-14, the committee met two times on 1st May, 2013 & 01st October, 2013.

5. REMUNERATION COMMITTEE -

The remuneration committee has been constituted to recommend/review the remuneration package of the Managing Director and Directors based on industry benchmarks, the company's performance and responsibility shouldered, performance track record of the Managing/Executive Directors, macroeconomic review on remuneration. During the year Mr. Ashok Kumar Agarwal, being an Independent Director has resigned from the Committee membership as on 29th May, 2014.

Now the Composition of the Remuneration Committee is as follows:

1. Shri Subhash Chand Jain

2. Shri Ganpat Rai Sharma

3. Mr. Madhur Krishna Khaitan

No Meeting was held during the year.

6. SHARE TRANSFER COMMITTEE:

The Share Transfer Committee has been constituted to avoid delays in Share Transfer Process. The Composition of the Committee is as follows:

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1. Shri Ganpat Rai Sharma

2. Shri Subhash Chand Jain

3. Dr. Shailendra Kumar Sharma

During the financial year 2013-14, the committee met 3 times, i.e. 8th July, 2013, 14th August, 2013 and 14th September, 2013.

7. GENERAL BODY MEETINGS

i) Details of location of last three Annual General Meetings of the Company are given below:

ii) No resolution through postal ballots was put through during last three years and as of now there is no proposal pending for passing any resolution through Postal Ballot at the ensuing Annual General Meeting.

iii) No Extra Ordinary General Meeting was held during the financial year.

8. DISCLOSURES:

(a) Related Party Transaction : During the year under review, besides the transaction reported as specified in Accounting Standard-18 issued by the Institute of Chartered Accountants of India in the Notes to the Accounts, there are no other material related party transaction of the Company with its Promoters, Directors or the management and their relatives. These transactions do not have any potential conflict with the interest of the Company at large. The material related party transactions are placed before the audit committee and Board of Directors periodically. Further there are no material individual transactions that are not in normal course of business or not on an arm's length business.

(b) Disclosure of Accounting Treatment: The Company follows Accounting Standards issued by the Institute of Chartered Accountants of India and in the preparation of financial statements, the Company has not adopted a treatment different from that prescribed in any accounting standard.

(c) Risk Management :The Risk Management of the Company is overseen by the Senior Management and the Directors at various levels :

Business Risk: The Board oversees the Risks which are inherent in the business pursued by the Company. The intervention is through business plans and projects and policies.

Operational Risk: These are being mitigated by internal policies and procedures

22

Nature of Meeting

Date

Annual General 29.09.2011 Sharma Agriculture Farm,Meeting Takia Ki Chowki, Kalwad No

Road JaipurAnnual General 27.09.2012 Sharma Agriculture Farm,Meeting Takia Ki Chowki, Kalwad No

Road JaipurAnnual General 27.09.2013 Sharma Agriculture Farm,Meeting Takia Ki Chowki, Kalwad No

Road Jaipur

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Financial Risk: These risks are addressed on an ongoing basis by internal control systems and Accounts department. The ERP implementation has helped in automation of controls and exceptional reporting. Internal Controls are being continuously reviewed for effectiveness by internal and statutory auditors.

(d) Disclosure by Senior Management: Senior Management has made disclosure to the Board relating to all material financial and commercial transaction stating that they did not have personal interest, that could result in a conflict with the interest of the Company at large.

(e) CEO/CFO Certification: The Managing Director has certified to the Board in accordance with the Clause 49(V) of the Listing Agreement pertaining to CEO/CFO certification for the Financial Year ended March 31st, 2014 which is annexed hereto.

(f) Details of Non-Compliance: There have been no instances of non-compliance on any matter with the rules and regulations prescribed by the Stock Exchanges, Securities and Exchange Board of India or any other Statutory Authority.

(g) Secretarial Audit: Pursuant to SEBI (Depositories and Participants) Regulations, 1996, a qualified Chartered Accountant carried out the secretarial Audit to reconcile the total admitted capital with the National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL) and the total issued and listed capital. The Audit confirms the total issued/paid up capital is in agreement with the total number of shares in physical form and total number of dematerialized shares held with NSDL & CDSL.

Pursuant to clause 47(c) of the Listing Agreement with the Stock Exchange, certificate on half yearly basis, have been issued by a Company Secretary in practice for due compliance of share transfer formalities by the Company.

9. MEANS OF COMMUNICATION :

Quarterly/ Half Yearly results : The quarterly unaudited financial results are published in the News papers, as required under listing agreement.

Website, where results are posted : www.jaipurhospital.co.in

Website for investor complaints : Pursuant to the amended listingAgreement with the StockExchange, Clause 47(f) has beeninserted for an exclusive e-mail ID for redressal of InvestorGrievances.Accordingly, the Company hascreated an exclusive [email protected] for thisPurpose.

Newspapers in which results are : Nafa Nuksan and Normally published Financial Express

Whether Management Discussion andAnalysis is a part of the Annual Report : Yes

Quarterly/Half yearly/Annual results are communicated through newspaper circulating at national & regional level. The Company has also uploaded the same on its website.

23

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10. GENERAL SHAREHOLDER INFORMATIONS:

by the Board to its Share Transfer Committee to facilitate speedy service to the Shareholders. Shares sent in physical form are registered by the Registrar and Share Transfer Agent (RTA) within one month of the receipt of the documents, if found in order. Shares under objection are returned within two weeks. All requests for dematerialization of shares are processed, if found in order and confirmation is given to the respective depositories i.e. National Securities Depository Ltd (NSDL) and Central Depository Services Limited (CDSL) within 20 days.

Share Transfer System: The authority for transfer of Shares in physical form has been delegated

24

AGM: Date, Time and Venue - Wednesday, September 24th 2014 at 3.00 p.m. At Sharma Agriculture Farm, Takia KiChowki, Kalwad Road, Jhotwara, Jaipur

CIN - L85110RJ1989PLC005206

Financial Year - April 1, 2013 to March 31, 2014.

Directors seeking reappointment - As required under clause 49(IV) (G), particulars of Directors seeking reappointment are given in the Annexure to the Notice of the Annual General Meeting to be held on September 24, 2014.

Book Closure Date - 18th September 2014 to 24th September,2014

Dividend - In view of Marginal profit during the year under review, the Board of Directors decided not to recommend any dividend on the Equity Shares of the Company.

Financial Calendar Period - Board Meeting to approve quarterly financial results

- Quarter ending June 30th,2013 - On 13th August, 2013- Quarter ending September 30th,2013 - On 14th November, 2013- Quarter ending December 31st,2013 - On 13th February, 2014- Quarter ending March 31st,2014 - On 29th May, 2014

Registered Office of the Company - Jaipur Hospital, Near SMS Stadium, Lal Kothi, Jaipur.

Listing of Equity Shares on Stock Exchange - Bombay Stock ExchangePhiroze Jeejeebhoy TowersDalal Street, Fort Mumbai-400001.

Listing Fees - Listing fees as prescribed have been paid to the Stock Exchange upto March,2014

Stock Code - Bombay Stock Exchange Limited-514548

ISIN No. of the Company's Equity Shares - INE465H01012

Share Registrar and Share Transfer Agent - Beetal Financial & Computer Services (P) Ltd.,Beetal House, 3rd Floor, 99 MadangirBehind Local Shopping Centre, Near DadaHarsukhdas MandirNew Delhi-110062

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DISTRIBUTION OF SHARES ACCORDING TO SIZE, CLASS AND CATEGORIES OF SHAREHOLDERS AS ON MARCH 31, 2014

•SHAREHOLDING PATTERN AS ON MARCH 31, 2014

Note : No. of Shares pledged - NIL

25

No of Equity Shares Held No. of Shareholders Percentage No. of Shares Percentage

1-5000

5001-10000

10001-20000

20001-30000

30001-40000

40001-50000

50001-100000

100000 & above

Grand Total 3713 100 32,83,800 100

Category No. of Shares Percentage of Holding

A1 Promoters Holding

-Indian Promoters

-Foreign Promoters

2 Person Acting in Concert

17,61,200

-

-

53.63

-

-

Sub Total (1) 17,61,200 53.63

B Non Promoters Holding

3 Institutional Investor

a. Mutual Funds & UTI

b. Banks, Financial Institutions, Insurance Companies

(Central/ State Govt./Non Govt. Institutions)

c. FIIs

-

-

-

-

-

-

Sub Total (2) - -

2 Others

4,22,30011,00,300

12.8633.51

Sub Total (3) 15,22,600 46.37

GRAND TOTAL 32,83,800 100.00

3,534

113

29

3

-

5

4

25

95.18

3.04

0.78

0.08

-

0.13

0.11

0.67

5,47,900

1,08,500

44,600

7,400

-

25,000

24,800

25,25,600

16.68

3.30

1.36

0.22

-

0.76

0.76

76.92

- -

- -

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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•TOP TEN SHAREHOLDERS OF THE COMPANY

DEMATERIALIZATION OF EQUITY SHARES AND LIQUIDITY

The Company's shares are traded only in Bombay Stock Exchange Ltd. To facilitate trading in dematerialized form the company has tied up arrangements with both the present depositories, National Securities Depositories Limited and Central Depository Services Limited (CDSL). Shareholders can open account with any of the depository participants registered with any of these depositories.

ADDRESS FOR CORRESPONDANCE:Sharma East India Hospitals & Medical Research LimitedJaipur HospitalLal Kothi, Near S.M.S.StadiumTonk Road, Jaipur-302015Tel: 91-141-2742266/2742619/2741465 Fax No.91-141-2742472Email: [email protected]

11. NON MANDATORY REQUIREMENTS:

The status of compliance of Non-Mandatory requirements under clause 49:

1. The Board: No separate office is maintained for Non-Executive Chairman. Further, all expenses incurred in the performance of duties by the Non-Executive Chairman are reimbursed.

2. Remuneration Committee: The Board has constituted Remuneration Committee to recommend appointment/re-appointments of Managing Director and Whole-Time Directors and to recommend/review remuneration of Managing Director, Whole-Time Directors and other key officers.

Remuneration Committee comprises of three Non-Executive Directors.

3. Shareholders Communication: The Company at present has not adopted the non mandatory requirements in regard to sending half yearly financial results to the shareholders at the residence. Besides this, the financial results are published in newspaper having wide

26

S.No. Name of the Shareholders Total No. of Shares

Percentage of Shareholding

1

2

3

4

5

6

7

8

9

10

DR.SHAILENDRA KR.SHARMA 412200 12.55

MRS.MAYA SHARMA 160800 4.89

MR.BRIJ MOHAN SHARMA 62000 1.88

SHARMA NURSING HOME &BONE HOSPITAL (P) LTD 183900 5.60

SHARMA HOSPITALS (P) LTD 670400 20.41

KSHITIJ ENTERPRISES (P) LTD 150700 4.58

GANPATI PLAST FAB (P) LTD. 290900 8.86

T.C.I.BHORUKA PROJECT LTD 100000 3.05

MRS.MADHULIKA SHARMA 83800 2.55

MRS.MANISHA AGARWAL 60000 1.83

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circular in Rajasthan.

4. Whistle Blower Policy: The Company does not have any Whistler Blower Policy.

5. Audit Qualifications: During the year under review, there was no observation made by the Auditors in their Report on financial statements. The Company continues to adopt best practices to ensure a regime of un-qualified financial statements.

6. Training of Board Members: The Board of Directors of Company is mainly comprised of professionals with expertise in their respective fields and industry. They endeavor to keep themselves updated with the changes in the national and global economy and legislation.

7. Mechanism for Evaluating Non-Executive Board Members: Company has not adopted a policy for evaluation of Non-Executive Board Members.

27

BY THE ORDER OF THE BOARD

Place : JaipurDate : 14.08.2014

(Dr. SHAILENDRA KR SHARMA )MANAGING DIRECTOR

DIN: 00432070

(GANPAT RAI SHARMA)CHAIRMAN

DIN: 00458217

Sd/- Sd/-

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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CEO/CFO Certification

To

The Board of DirectorsSharma East India Hospitals & Medical Research Limited

I, Dr.Shailendra Kumar Sharma, Managing Director certify that:

(A) I have reviewed the financial statements and the cash flow statement for the year ended March 31, 2014 and that to the best of my knowledge and belief

(I) These statements do not contain any material untrue statement or omit any material fact or contain statements that might be misleading;

(II) These statements together present a true and fair view of the Company's affairs and are in compliance with existing Accounting Standards, applicable laws and regulations.

(B) There are, to the best of my knowledge and "belief, no transactions entered into by the Company during the year which are fraudulent, illegal or violation of the Company's Code of Conduct.

(C) I accept responsibility for establishing and maintaining internal controls for financial reporting and have evaluated the effectiveness of internal control system of the Company pertaining to financial reporting and I have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which I am aware and the steps I have taken or propose to take to rectify these deficiencies.

(D) I have indicated to the Auditors and the Audit Committee that:

(I) There has not been any significant change in internal control over financial reporting during the year under reference;

(II) There has not been any significant change in accounting policies during the year requiring disclosure in the notes to the financial statements; and

(III) There has not been any instance during the year of significant fraud of which I had become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company's internal control system over financial reporting.

Sd/-Place: Jaipur Dr. SHAILENDRA KUMAR SHARMADate: 14.08.2014 (MANAGING DIRECTOR)

(DIN : 00432070)

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Auditor's Certificate on Corporate Governance

To,The Members of Sharma East India'Hospitals & Medical Research Limited

We have examined the compliance of conditions of Corporate Governance by Sharma East India Hospitals & Medical Research Limited, for the year ended on 31st March, 2014 as stipulated in clause 49 of the Listing Agreement of the said Company with the Bombay Stock Exchange.

The compliances of the conditions of Corporate Governance are the responsibility of the Company's management. Our examination was carried out in accordance with the Guidance Note on Certificate of Corporate Governance (as stipulated in Clause 49 of the Listing Agreement), issued by the Institute of Chartered Accountants of India and was limited to procedure and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us and the representations made by the directors and management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement.

We stated that no investor grievance is pending for a period exceeding one month against the Company as at March 31, 2014 as per the records maintained by the Shareholders/Investors Grievance Committee.

We further state that such compliance is neither an assurance to the further visibility of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company.

For GOPAL SHARMA AND COMPNAY CHARTERED ACCOUNTANTS

Sd/-

(VIRENDRA BHURAT)PARTNER

Place: Jaipur Membership No. 071964

Date: 14.08.2014 Firm Registration No. 002803C

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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30

INDEPENDENT AUDITOR'S REPORT

To the Members of

Sharma East India Hospitals & Medical Research Limited

Report on the Financial Statements

1. We have audited the accompanying financial statements of SHARMA EAST INDIA HOSPITALS

& MEDICAL RESEARCH LTD ("the Company"),which comprise the Balance Sheet as at 31st

March, 2014, and the Statement of Profit & Loss and the Cash Flow Statement for the year then

ended, and a summary of the significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Management is responsible for the preparation of these Financial Statements

that give a true and fair view of the financial position, financial performance and cash flow of the

Company in accordance with the Accounting Standards referred to in sub-section (3C) of the

section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design,

implementation and maintenance of internal control 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.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with the Standards on Auditing issued by the Institute of

Chartered Accountants of India. 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 misstatements.

4. An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the Financial Statements. The procedures selected depend on the auditor's

judgment, including assessment of the risks of material misstatement of the financial statements,

whether due to fraud or error. In making those risk assessment, the auditor considers internal

control relevant to the company's preparation and fair presentation of the financial statements in

order to design audit procedures that are appropriate in the circumstances. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of the

accounting estimates made by management, as well as evaluating the overall presentation of the

financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanations given to us, the

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 Balance Sheet, of the State of affairs of the company as at March 31, 2014;

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31

b) In the case of Profit and Loss Account, of the profit for the year ended on that date; and

c) In the case of the Cash Flow Statement, of the cash flows of the Company for the year

ended on that date.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor's Report) Order, 2003 (" the Order") issued by the

Central Government of India in terms of sub-section (4A) of the Section 227 of the Act, we give

in the Annexure a statement on the matters specifies in paragraph 4 and 5 of the order.

8. As required by Section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge

and belief were necessary for the purpose of our audit;

b) In our opinion, proper books of accounts 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, Statement of Profit & Loss, and Cash Flow Statement dealt with by

this report are in agreement with the books of account;

d) In our opinion, the Balance Sheet, Statement of Profit & Loss, and Cash Flow Statement

comply with the Accounting Standards referred in sub-section (3C) of Section 211 of the

Companies Act, 1956;

e) On the basis of the written representations received from the directors, as on 31st March,

2014, and taken on record by the Board of Directors, none of the directors is disqualified

as on 31st March, 2014 from being appointed as director in terms of clause (g) of sub-

section (1) Section 274 of the Companies Act,1956.

GOPAL SHARMA AND COMPANY

CHARTERED ACCOUNTS

Sd/-

(VIRENDRA BHURAT)

PARTNER

Membership No. 071964

Firm Registration No. 002803C

Place: JaipurDate: 29-05-2014

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 7 under 'Report on Other Legal and Regulatory Requirements' section of our Report of even date)

1.

(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, the fixed assets have been physically verified by the Management during the year in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and the nature of its fixed assets. No Material discrepancies were noticed on such physical verification.

(c) In our opinion, the Company has not disposed of substantial part of fixed assets during the year and the going concern status of the Company is not affected.

2.

(a) The management has conducted physical verification of inventory at reasonable intervals.

(b) The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company is maintaining proper records of the inventory and no material discrepancies were noticed on physical verification.

3. As informed to us, the Company has neither granted nor taken any loans, secured or unsecured, to/from the Companies, firms or other related parties covered in the register maintained under section 301 of the Companies Act, 1956 and as such clause (iii) (a) to (iii) (g) are not applicable.

4. In our opinion and according to the information and explanation given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and sale of services. During the course of our audit, no major weakness has been noticed in the internal controls.

5. In respect of transactions covered under section 301 of the Companies Act, 1956:

(a) In our opinion and according to the information and explanation given to us, the transactions made in pursuance of contracts or arrangements that needed to be entered into the register under section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and according to the information and explanation given to us, there are no transactions in pursuance of contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the year to Rs 500000/- or more in respect of any party.

32

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6. In our opinion and according to the information and explanation given to us, the Company has not accepted any deposits from the public and therefore provisions of section 58A and 58AA of the Companies Act, 1956 and rules there under are not applicable on the Company.

7. In our opinion, the internal audit system of the Company is commensurate with its size and nature of its business.

8. We are informed that the Central Government has not prescribed the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956.

9. According to the information and explanation given to us in respect statutory dues:

(a) The Company has been regular in depositing undisputed dues, including Provident Fund, Investor education Protection Fund, Employees State Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty, Cess and other statutory dues applicable to it with the appropriate authorities.

(b) There are no undisputed amounts payable in respect of Provident Fund, Investor education Protection Fund, Employees State Insurance Act, Income Tax, Wealth Tax, Sales Tax, Customs Duty and Excise Duty, Cess and other material statutory dues in arrears as on 31st March,2014 for a period exceeding six months from the date they become payable.

10. The Company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit or in immediately preceding financial year.

11. As per books and records maintained by the Company and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to the financial institutions and banks.

12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other security.

13. In our opinion the Company is not a Chit Fund or a Nidhi or Mutual Fund/Societies. Therefore the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

14. The Company has maintained proper records of transactions and contracts in respect of trading in securities and other investments and timely entries have been made therein. All Shares and other investments have been held by the company in its own name.

15. According to the information and explanation given to us, the Company has not given any guarantees for loans taken by others from Banks and Financial Institutions.

16. To the best of our knowledge and belief and according to the information and explanations given to us, term loans availed by the Company were, prima facie, applied by the Company during the year for the purpose for which loans were obtained.

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SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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34

17. According to the Cash Flow Statements and records examined by us and according to the information and explanations given to us, on overall basis, funds raised on short term basis have , prima facie, not be used during the year for long term purpose and vice versa.

18. The Company has not made any preferential allotment of shares to parties or companied covered in the register maintained under section 301 of the Companies Act, 1956.

19. The Company did not issued debentures during the year.

20. The Company has not raised any money through a public issue during the year.

21. In our opinion and according to the information and explanation given to us, no fraud on or by the Company has been noticed or reported during the year.

GOPAL SHARMA AND COMPANYCHARTERED ACCOUNTS

Sd/-

(VIRENDRA BHURAT) PARTNER

Membership No. 071964Firm Registration No. 002803CPlace: Jaipur

Date: 29-05-2014

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stBALANCE SHEET AS AT 31 MARCH, 2014

35

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

PARTICULARS NOTE NO. 31.03.2014 31.03.2013

I.EQUITY AND LIABILITIES

(1) Shareholders' Funds(a) Share Capital 3 41,574,750 41,574,750 (b) Reserves & Surplus 4 24,261,285 17,101,708

(2) Non Current Liabilities(a) Long-term borrowings 5 58,992,614 61,177,685 (b) Deferred-tax liabilities (Net) 6 2,958,492 2,723,265 (c) Other long term liabilites 7 2,889,882 8,115,277

(3) Current Liabilities(a) Trade payables 8 2,270,971 2,694,619 (b) Other Current Liabilities 9 30,819,126 30,650,486

TOTAL 163,767,120 164,037,790

II. ASSETS

(1) Non-current assets(a) Fixed assets(i) Tangible assets 10 76,462,249 76,790,153 (b) Non-current Investments 11 7,929,047 7,929,047 ( c) Long-Term Loans & Advances 12 32,225,309 5,114,836 (d) Other non-current assets 13 18,063,328 18,790,582

(2) Current assets (a) Inventories 14 1,166,300 1,481,211 (b) Trade receivables 15 7,233,446 3,475,968 (c) Cash and cash equivalents 16 11,355,026 11,074,501 (d) Short-term loans and advances 17 - 35,295,066 (e) Other current assets 18 9,332,415 4,086,426

TOTAL 163,767,120 164,037,790

Significant Accounting Policies 1Notes to Accounts 2The accompanying Notes 1 to 23 are an integral part of the financial statements

Amt. in Rupees Amt. in Rupees

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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PARTICULARS NOTE Amt. in Rupees Amt. in Rupees

NO. 31.03.2014 31.03.2013

I. Revenue from operations 19 125,025,837 118,143,072

II. Other income 20 10,424,944 10,528,350

III. Total revenue (I+II) 135,450,781 128,671,422

IV. Expenses :

Cost of materials consumed 16,475,048 12,966,250

Employee benefits expense 21 65,338,892 59,790,108

Finance costs 22 5,861,730 9,049,869

Depreciation 5,988,016 5,966,601

Other expenses 23 31,424,930 32,818,472

Total Expenses(IV) 125,088,616 120,591,300

V. Profit before tax (III-IV) 10,362,165 8,080,122

VI. Tax expense:

(1) Current Tax (2,967,361) (2,377,097)

(2) Deferred Tax (235,227) (165,295)

VII. Profit (Loss) for the year 7,159,577 5,537,730

VIII. Earnings per equity share:

(1) Basic 2.18 1.68

(2) Diluted 2.18 1.68

Significant Accounting Policies 1

Notes to Accounts 2

The accompanying Notes 1 to 23 are an integral part of the financial statements

stSTATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31 MARCH, 2014

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

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STCASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2014Amt. in Rupees

As at As at 31.03.2014 31.03.2013

(A) CASH FLOW FROM OPERATING ACTIVITIES

NET PROFIT BEFORE TAX & EXTRA- 10,362,165 8,080,122

ORDINARY ITEMS

Adjustment for:

Depreciation 5,988,016 5,966,601

Interest Paid 5,861,730 9,049,869

Profit on Sale of Fixed Assets - (5,139)

Interest received (1,696) (305,227)

OPERATING PROFIT BEFORE

WORKING CAPITAL CHANGES 22,210,215 22,786,226

Adjustment For:(Increase)/Decrease

Increase in Trade And Other Receivables (91,620) 18,490,444

Decrease in Inventories 314,911 (626,816)

Decrease in Current liabilities (5,480,403) (12,248,108)

CASH GENERATION FROM OPERATIONS 16,953,103 28,401,746

Taxes Paid (Net) (2,967,361) (2,377,097)

CASH FLOW BEFORE EXTRA ORDINARY ITEMS 13,985,742 26,024,649

Extra Ordinary items - -

NET CASH FROM OPERATING ACTIVITIES (A) 13,985,742 26,024,649

(B) CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (5,660,112) (5,614,853)

Sale of Investment - 10,901,443

Interest received 1,696 305,227

Sale of Fixed Assets (Net) - 2,121,515

NET CASH USED FOR INVESTING ACTIVITIES (B) (5,658,416) 7,713,332

(C) CASH FLOW FROM FINANCING ACTIVITIES

Repayment of Long term Borrowing (2,185,071) (28,483,206)

Interest paid (5,861,730) (9,049,869)

NET CASH USED IN FINANCING ACTIVITIES (C) (8,046,801) (37,533,075)

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Amt. in Rupees

As at As at31.03.2014 31.03.2013

NET DECREASE/INCREASE IN CASH & CASH

EQUIVALENT (A+B+C) 280,525 (3,795,094)

Cash & Cash Equivalent Opening Balance 11,074,501 14,869,595

Cash & Cash Equivalent Closing Balance 11,355,026 11,074,501

Increase/Decrease 280,525 (3,795,094)

38

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

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NOTE 1

SIGNIFICANT ACCOUNTING POLICIES

AS-1 Accounting Conventions:

(a) The accounts are prepared on Mercantile Basis under the historical cost convention in accordance with the provisions of the Companies Act, 1956 and materially comply with mandatory accounting standards issued by the Institute of Chartered Accountants of India. Except where otherwise stated, the accounting principles have been consistently applied.

(b) Use of Estimates:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on date of the financial statement and the reported amount of revenues and expenses during the reporting period. Difference between the actual result, estimates and recognized in the period in which the results are known/materialized.

AS-2 Valuation of Inventories:As the Company has no manufacturing activities hence, inventories consists only consumables, stores etc, which are valued at cost, as certified by the Management.

AS-3 Cash Flow StatementThe Cash Flow Statement is prepared under "Indirect Method" and the same is annexed.

AS-4 Contingencies and events occurring after the Balance Sheet DateNo provision for Contingencies and events occurring after the Balance Sheet date was made, since no significant event occurred during the period.

AS-5 Net profit or loss for the period, prior period items and changes in the Accounting policiesThere is prior period income of Rs.68969 credited to Profit & Loss Account.

AS-6 Depreciation Accounting Depreciation on fixed assets has been provided on written down value (WDV) method in accordance with the provisions of Section 205(2) of the Companies Act, 1956 at the rates and in manner specified in Schedule XIV of the Companies Act, 1956.In respect of the assets added during the year, pro-rata depreciation has been provided at the rates prescribed under Schedule XIV.

AS-7 Construction ContractsThis Accounting Standard is not applicable.

AS-8 Research and DevelopmentThis Accounting Standard is not applicable.

AS-9 Revenue Recognisation The income of the Company is derived from fees from patients. For IPD Patients revenue income is recognized at the time of discharge of patient.The revenue and expenditure are accounted on going concern basis.

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AS-10 Accounting for Fixed AssetsAll Fixed Assets are stated at historical cost less Depreciation.

AS-11 Accounting for effects of changes in foreign exchange ratesThis Accounting Standard is not applicable.

AS-12 Accounting for Government GrantsThe Company has not received any grants.

AS-13 Accounting for InvestmentsInvestments are valued at cost.

AS-14 Accounting for amalgamationsDuring the year there was no amalgamation.

AS-15 Accounting for Employees BenefitsLiability in respect of retirement benefit are provided on the basis of monthly payment to ESI, pension and provident fund under the Employees Provident Fund (and miscellaneous provisions) Act, 1952 which are charged against revenue.

Liability in respect of future retirement gratuity is provided by annual contribution to Life Insurance Corporation under the Group Gratuity Scheme which has been charged against revenue.

Leave encashment benefit is provided on cash basis.

AS-16 Borrowing CostBorrowing Cost is recognized as expenses in the period in which they are incurred. No borrowing cost has been capitalized during the period since there were no qualifying assets of Accounting Standard-16 issued by the Institute of Chartered Accountants of India.

AS-17 Segment ReportingAs the Company's business activity falls within a single business segment the disclosure requirements of Accounting Standard (AS) 17-Segment reporting issued by the Institute of Chartered Accountants of India is not applicable.

AS-18 Related Party DisclosureThe following may be deemed to be considered as related parties in terms of Accounting Standard 18 issued by ICAI :-

i) Sharma Hospital P. Ltd.ii) Sharma Nursing Home & Bone Hospital P .Ltd.iii) Maya Sharmaiv) Dr. Pradeep Kr. Sharma

There is no related party transaction during the year except related key management personnel and relatives of such personnel.

Key Management Personnel - (Rs. In Lakhs)Dr. Shailendra Kr. Sharma (Managing Director) Remuneration Rs 24.00Professional Fees paid Rs. 8.38

2013-2014Annual Report25

th

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Salary paid to relative of Key Management Personnel:1. Maya Sharma (Wife) Salary Rs. 1.862. Pradeep Kr. Sharma (Brother) Salary Rs. 1.893. Monika Sharma (Brother's Wife) Rs. 1.684. Madhulika Sharma (Brother's Wife) Rs. 1.865. Rajesh Sharma (Brother in Law) Rs. 0.906. Karan Sharma (Son) (Professional fees) Rs. 6.157. Dr. Shivani Khanna (Daughter in Law) Rs. 3.85

AS-19 Accounting for LeasesThe Company has not entered into any lease agreement during the year.

AS-20 Earning Per ShareNet Profit for the year after Tax(Rs. In Lakhs) 71.59No. of Equity Shares 3283800Nominal Value of Shares (Rs.) 10Earning Per Share (Rs. In Lakhs) 2.18

AS-21 Consolidated Financial statementsThis Accounting Standard is not applicable as the Company doesn't have any subsidiary or joint venture.

AS-22 Accounting for taxes on IncomeThe provision for tax for the year ended on 31st March. 2014 is made in accordance with the provisions of Income tax Act, 1961, since the provision for tax as per Section 115JB of Income Tax Act is less than the Income Tax Act, 1961.

Deferred TaxThe Deferred Tax for timing difference between the book and tax profit for the year is accounted for using tax rates and tax laws that have been enacted or substantially enacted at the Balance Sheet date.

The Deferred Tax Liability as at March 31, 2014 comprises of the following:

(Rs. In Lakhs) (Rs. In Lakhs)31.03.2014 31.03.2013

(a) Deferred Tax Liability (DTL) 29.58 27.23(On account of Depreciation)

(b) Deferred Tax Assets (DTA) NIL NIL(c) Net Deferred Tax Liability (NDTL) (A-B) 29.58 27.23(d) Decrease/Increase in Net Deferred Tax Liability 2.35 1.65

AS-23 Accounting for investments in AssociatesThis Accounting Standard is not applicable.

AS-24 Discontinuing operationsDuring the year the Company has not discontinued any of its operations.

41

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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AS-25 Interim financial reportingThe Company has adopted to publish its quarterly financial results which are subject to the limited review by the statutory auditor.

AS-26 Accounting for Intangible AssetsThis Accounting Standard is not applicable.

AS-27 Capital Commitments of reporting entity in Joint VentureThis Accounting Standard is not applicable.

AS-28 Impairment of AssetsThe Company has carried comprehensive exercise to assess the impairment loss of Assets, Based on such exercise, there is no impairment of Assets. Accordingly, no adjustment in respect of loss on impairment of Assets is required to be in the Accounts.

AS-29 Provisions, contingent liabilities and contingent assetsNo provision for Contingencies and events occurring after the Balance Sheet Date was made. Since there is no contingent assets & liabilities.

AS-30 Financial Instruments: Recognition and MeasurementThis Accounting Standard is not applicable.

AS-31 Financial Instruments: PresentationThis Accounting Standard is not applicable.

AS-32 Financial Instruments: DisclosuresThis Accounting Standard is not applicable.

42

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

2013-2014Annual Report25

th

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43

Note 2

NOTES FORMING PART OF THE ACCOUNTS

1. Income tax comprises current tax and deferred tax. The Current Income Tax is calculated in accordance with the provisions of Income Tax Act, 1961. Deferred Tax is calculated as per Accounting Standard-22.

2. In the Opinion of the Board of Directors and to the best of their knowledge and belief the value of realization of Current Assets, Loans & Advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

3. Provision of clause 4-C (a), 4-C (b), 4-C(c ) of part-II of the schedule VI of the Companies Act, 1956 regarding the licensed capacity and installed capacity are not applicable to the company.

4. Provisions of clause 4-D of part-II of the schedule VI of the Companies Act, 1956 regarding the value of imports, expenditure incurred in foreign currency, amount of remittance in foreign currency on account of dividends, export earnings etc, are not given as all information required in the clauses are NIL.

5. Confirmation of Balance of Debtors, Creditors, Loans & Advances are subject to confirmation.

6. (a) As per Section 309 of the Companies Act, 1956 , Remuneration paid to Managing Director as per details given below:-

(b) Managerial Remuneration includes Current Year Previous Year

Salary(Rs. In Lakhs) 24.00 24.00

TOTAL 24.00 24.00

7. Auditor's Remuneration includes:

Audit Fees(Rs. In Lakhs) 1.80 2.02

TOTAL 1.80 2.02

8. Cash Flow Statement for the year ended on 31st March, 2014 is enclosed in the statement annexed to these accounts.

9. Figures have been rounded off to Rupees and previous year figures have been regrouped & rearranged whenever it is required.

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

Page 47: 2013-2014€¦ · Registered Office Jaipur Hospital, Lal Kothi, Near S.M.S. Stadium Tonk Road, Jaipur-302015 Phone: 2742557, 2742619, 2742266, 2740936, ... ITC Limited, Parivar Seva

44

Amt. in Rupees

As at As atNOTE 3 31.03.2014 31.03.2013(a) SHARE CAPITAL

AUTHORISED 70,00,000 Equity Shares of Rs.10/- each 70,000,000 70,000,000

(b) ISSUED 51,49,000 Equity Shares of Rs.10/- each 51,490,000 51,490,000

(c) SUBSCRIBED & PAID UP 32,83,800 Equity Shares of Rs.10/- each 32,838,000 32,838,000

(d) FORFEITED SHARES (amount originally paid up) 8,736,750 8,736,750

TOTAL 41,574,750 41,574,750

(e) Reconcilation of the shares outstanding at the beginning and at the end of the reporting year

As at 31st March,2014 As at 31st March,2013

Number of Amount Number of AmountShares (In Rupees) Shares (In Rupees)

Opening and Closing Balances 3283800 32838000 3283800 32838000

(f) Terms/right attached to equity shares:

The Company has only one class of equity shares having a par value of Rs.10 per share fully paid up. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive sale proceeds from remaining assets of thye Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(g) The details of shareholders holding more than 5% shares

As at 31st March,2014 As at 31st March,2013

Number of % of Shares Number of % of Shares Shares Held Shares Held

Sharma Hospital Pvt. Ltd. 670400 20.42 670400 20.42Shailendra Sharma 411700 12.54 411700 12.54Ganpati Plast Fab Ltd. 290900 8.86 290900 8.86Sharma Nursing Home & Bone 183900 5.59 183900 5.59Hospital Private Limited

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

2013-2014Annual Report25

th

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45

Amt. in Rupees

As at As atNOTE - 4

RESERVES & SURPLUS

Profit & Loss Account

Opening Balance as per last Balance Sheet 17,101,708 11,563,978

Add: Profit during the year 10,362,165 8,080,122

TOTAL 27,463,873 19,644,100

Less: Tax Provision (2,967,361) (2,377,097)

TOTAL 24,496,512 17,267,003

Add: Deferred tax (Net) (235,227) (165,295)

TOTAL 24,261,285 17,101,708

Non Current Liabilities

Note 5LONG TERM BORROWINGS(i) SECURED LOANS

From Banks 78,888,614 81,034,317

Less:- Shown under short term 19,896,000 58,992,614 19,896,000 61,138,317

Borrowings (refer Note No 9)

(ii) TERM LOANS

From Banks 51,362 131,144

Less:- Shown under short term

Borrowings (refer Note NO. 9) 51,362 - 91,776 39,368

58,992,614 61,177,685

Note 6

Deferred Tax Liabilities 2,958,492 2,723,265

2,958,492 2,723,265

31.03.2014 31.03.2013

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

Page 49: 2013-2014€¦ · Registered Office Jaipur Hospital, Lal Kothi, Near S.M.S. Stadium Tonk Road, Jaipur-302015 Phone: 2742557, 2742619, 2742266, 2740936, ... ITC Limited, Parivar Seva

46

Amt. in Rupees

As at As atNote 7 31.03.2014 31.03.2013

Other Long Term LiabilitiesAdvance from Patients 793,581 474,120 Sundry Creditors for goods & expenses 750,859 582,425 Other Liabilities 1,345,442 2,889,882 7,058,732 8,115,277

Current Liabilities

Note 8

TRADE PAYABLES

Sundry Creditors for goods & expenses 650,481 1,056,709 Advance from Patients 1,620,490 2,270,971 1,637,910 2,694,619

Note 9Other current Liabilities

Current maturities of long term debtfrom Banks 19,947,362 19,987,776 Outstanding Liabilities 6,985,436 7,337,943 Provision for Taxation 2,967,361 2,377,097 Other Payables 918,967 30,819,126 947,670 30,650,486

Details of Security provided against Loans from Banks.

(a) Equitable mortgage Of Land and Building Of M/S SHARMA EAST INDIA HOSPITALS & MEDICALS RESEARCH LTD..(Hospital building) Situated at Lal Kothi, Jaipur.(Admeasuring 2126.75 SQ. Yards.)

(b) EM Of Plot No.1, Udai Nagar-B Gopalpura Bypass,Jaipur.(Admeasuring 373.33 SQ. Yards.)

(c) EM Of Plot No.2, Udai Nagar-B Gopalpura Bypass,Jaipur.(Admeasuring 404.44 SQ. Yards.)

(d) EM Of Plot No.3, Udai Nagar-B Gopalpura Bypass,Jaipur.(Admeasuring 373.33 SQ. Yards.)

(e) EM Of Plot No.4, Udai Nagar-B Gopalpura Bypass,Jaipur.(Admeasuring 373.33 SQ. Yards.)

(f) EM Of Plot No.23, Udai Nagar-B Gopalpura Bypass,Jaipur.(Admeasuring 576.00 SQ. Yards.)

(g) EM Of Plot No.26, Udai Nagar-B Gopalpura Bypass,Jaipur.(Admeasuring 344.65 SQ. Yards.)

(h) EM Of Residential House situated at Plot No.B-103,Janpath, Shyam Nagar, Jaipur.(Admeasuring 500.00 SQ. Yards.)

(i) First Charge on all Block Assets of the Company (Present And Future),Plant & Machinery and all Current Assets of the Company

(j) Collateral Security : Personal / Corporate Guarantee of Shri Ganpat Rai Sharma, Dr. Shailendra Kumar Sharma Directors of the Company and Smt.Maya Sharma and Smt. Madhulika Sharma.

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

2013-2014Annual Report25

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47

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SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

Page 51: 2013-2014€¦ · Registered Office Jaipur Hospital, Lal Kothi, Near S.M.S. Stadium Tonk Road, Jaipur-302015 Phone: 2742557, 2742619, 2742266, 2740936, ... ITC Limited, Parivar Seva

Amt. in Rupees

As at As atNote 11 31.03.2014 31.03.2013

NON CURRENT INVESTMENTS

(i) IMMOVABLE PROPERTIESLand at Kalwar Road,Jhotwara 4,782,557 4,782,557

LONG TERM INVESTMENTSINVESTMENTS IN EQUITY INSTRUMENTS

(i) UNQUOTED INVESTMENTS

2000 Equity Shares of Kshitij Enterprises (P) Ltd. @ 100/- each fully paid up (Valued at cost) 200,000 200,000

2000 Equity Shares of Sharma Nursing Home & Bone Hospital (P) Ltd. @ 100/- each fully paid up (Valued at cost) 200,000 200,000

4000 Equity Shares of Sharma Hospitals (P) Ltd. @ 100/- each fully paid up (Valued at cost) 400,000 400,000

4000 Equity Shares of Gaurav Sharma Enterprises (P) Ltd. @ 100/- each fully paid up (Valued at cost) 400,000 400,000

TOTAL 1,200,000 1,200,000

(ii) QUOTED INVESTMENTS

2,90,900 Equity Shares @10/- each of Ganpati Plast Fab. Ltd. Fully Paid up (Valued at cost or Market Value Whichever is Lower) 1,946,490 1,946,490

TOTAL 7,929,047 7,929,047

* Aggregate Face Value of Quoted Share of Ganpati Plast Fab.Ltd. Is Rs.29.09 Lacs and are listed but market value is not available.

* Aggregate Face Value of Un-Quoted Shares is Rs.12 Lacs.* Above corporate bodies are not subsdiary, associates or joint ventures of the company.

48

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

2013-2014Annual Report25

th

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Amt. in Rupees

As at As atNote 12 31.03.2014 31.03.2013

Long Term Loans & AdvancesAdvance for Capital Expenditure 30,619,133 3,755,549 Security Deposit ` 1,359,287 1,359,287 Cenvat Credit Receivable 246,889 -

32,225,309 5,114,836

Note 13OTHER NON-CURRENT ASSETSLong Term Trade Receivables 3,962,847 4,613,146 Advance to Staff 2,698,676 2,716,777 Other Advances 10,181,805 11,438,118 Advance to Consultant Doctors 1,220,000 22,541

18,063,328 18,790,582

Note 14INVENTORIES(i) Spare Parts & Stores 1,166,300 1,481,211 (Certified by Management and Valued at cost)

1,166,300 1,481,211

Note 15TRADE RECEIVABLES (i) Sundry Debtors (Un-secured and considered good)a) Outstanding for a period exceeding six months

but not more than 1 year 2,427,583 853,077 b) Others 4,805,863 2,622,891

7,233,446 3,475,968

Note 16CASH & CASH EQUIVALENTS(i) Cash on hand 1,045,289 897,697 (ii) With Schedule Banks in Current Accounts 10,309,737 10,176,804

11,355,026 11,074,501

49

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

Page 53: 2013-2014€¦ · Registered Office Jaipur Hospital, Lal Kothi, Near S.M.S. Stadium Tonk Road, Jaipur-302015 Phone: 2742557, 2742619, 2742266, 2740936, ... ITC Limited, Parivar Seva

50

Amt. in Rupees

As at As atNote 17 31.03.2014 31.03.2013SHORT TERM LOANS & ADVANCES(Un-secured and considered good) - 35,295,066 - 35,295,066

Note 18OTHER CURRENT ASSETSAdvance to Staff 46,077 50,424 Other Advances 9,286,338 2,720,851 Advance to Consultant Doctors - 1,315,151

9,332,415 4,086,426

Note 19REVENUE FROM OPERATIONSPROFESSIONAL RECEIPTS

Accommodation Charges 34,400,212 30,319,809 Admission Registration Charges 1,649,609 1,811,768 Cathlab Charges 7,548,976 7,758,019 Consultation Charges 15,782,805 14,575,884 CT Scan Charges 1,216,062 1,565,379 ECG Charges 204,692 198,974 ECHO Charges 910,634 859,306 Holter Charges 8,100 7,800 Investigation Charges 2,934,000 2,576,000 Lab Charges 12,223,103 11,392,873 Operation Charges 28,539,634 29,360,598 Other Miscellaneous Charges 13,922,754 12,761,993 Sonography Charges 2,012,485 1,473,586 TMT Charges 79,224 48,050 Tee Charges - 4,000 X-Ray Charges 3,593,547 3,429,033

125,025,837 118,143,072

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

2013-2014Annual Report25

th

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51

Amt. in Rupees

As at As atNote 20 31.03.2014 31.03.2013OTHER INCOME

Miscellaneous Income 126,954 130,367 Profit on Sale of Fixed Assets - 5,139 Sundry Creditors Written Back 721,579 - Professional Consultancy Charges 6,537,491 7,189,305 Rent Receivable 3,037,224 2,898,312 Interest Receivable 1,696 305,227

10,424,944 10,528,350

Note 21EMPLOYEES BENEFIT EXPENSES

Bonus 206,456 198,618 Employers Contribution to E.S.I 689,664 475,534 Employers Cont. to P.F. 467,161 381,057 Gratuity 758,429 36,110 Mannual Labour Charges 7,356,970 6,134,196 PF Adm Charges 62,684 51,124 Salary 31,392,349 28,641,795 Security Expenses 2,208,646 2,057,663 Staff Welfare Expenses 1,146,626 1,381,036 Share of consultant doctors 21,049,907 20,432,975

65,338,892 59,790,108

Note 22FINANCE COSTINTEREST

Interest on Line of Credit 5,845,475 9,017,385

Other Interest 16,255 32,484

5,861,730 9,049,869

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

SHARMA EAST INDIA HOSPITALS & MEDICAL RESEARCH LIMITED2013-2014

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52

Amt. in Rupees

As at As atNote 23 31.03.2014 31.03.2013OTHER EXPENSES

Conference Expenses (orthopeadic) - 50,000 Consultancy charges - 125,000 D.G.Set Oil, Petrol & Diesel 398,656 459,600 Electricity & Water Charges 5,216,407 5,466,928 Insurance Charges 99,422 120,367 Repair & maintenance (other) 853,938 768,187 Repair & maintenance (P&M) 2,604,827 3,146,449 Repair & maintenance (Building) 772,194 1,377,045 Accomodation & Other Expenses 6,774,366 6,606,248 Advertisment & Publicity Exp. 214,751 220,911 Audit Fees 180,000 202,248 Bad Debts 243,802 164,653 Bank Charges 82,053 56,101 Claim Settlement Expenses 81,600 - Conveyance Expenses 121,508 364,364 C.T. Scane Expenses 1,013,870 1,333,733 Directors Sitting Fees 25,500 33,000 General Utility Items 607,972 613,999 House Tax 13,065 - Legal Expenses 901,456 326,221 Managerial Remuneration 2,400,000 2,400,000 Mattresses Expenses 110,602 - Membership Fees 100,000 125,400 Miscellaneous Expenses 147,031 266,340 Pathological Consumable Items 3,381,569 3,494,146 Pathological Expenses 1,329,456 1,706,395 Printing & Stationary 979,793 900,702 Rent 90,800 129,000 Telephone,Postage&Telegram 523,392 529,836 Urban Development Tax 643,516 282,333 Vehicle Running & Maintanance 156,979 131,509 Washing Charges 576,628 566,493 X- Ray Film Consumed 779,777 851,264

31,424,930 32,818,472

NOTES FORMING PART OF THE FINANCIAL STATEMENTS

As per our report of even date

FOR GOPAL SHARMA & COMPANY

CHARTERED ACCOUNTANTS

Place: Jaipur

Date: 29.05.2014

FOR AND ON BEHALF OF BOARD OF DIRECTORS

(GANPAT RAI SHARMA)

CHAIRMAN

Sd/-

(DR. SHAILENDRA KUMAR SHARMA)

MANAGING DIRECTOR

Sd/- (BHAVYATA SONI)

COMPANY SECRETARY

Sd/-(VIRENDRA BHURAT)

PARTNER

M.NO. 071964

Firm Registration No. 002803C

Sd/-

2013-2014Annual Report25

th

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Affix

1 Rupee

Revenue

Stamp

53

SHARMA EAST INDIA HOSPITALS AND MEDICAL RESEARCH LTDREGISTERED OFFICE: JAIPUR HOSPITAL, NEAR SMS STADIUM,LAL KOTHI

TONK ROAD,JAIPUR-302015CIN: L85110RJ1989PLC005206

(E-Mail: [email protected], Website:www.jaipurhospital.co.in)

Proxy Form

(Pursuant to Section 105(6)of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014)

Name of the member(s): _________________________________________________________

Registered Address: ___________________________________________________________E-mail ID: _____________________________Folio No/Client ID No.______________________DP ID: ______________________________________________________________________

I/We, being the member(s) of Sharma East India Hospitals & Medical Research Limited, holding _______________ no. of shares of the above named company, hereby appoint

1. Name:_____________________________ Address:____________________________E-mail ID:__________________________ Signature___________________________or failing him,

2. Name:____________________________ Address:____________________________E-mail ID:_________________________ Signature___________________________or failing him,

3. Name:____________________________ Address:____________________________E-mail ID:_________________________ Signature___________________________

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Twenty Fifth Annual General Meeting of the company, to be held on Wednesday, September 24,2014 at 3.00PM at Sharma Agriculture Farm, Takia Ki Chowki, Kalwad Road, Jhotwara, Jaipur and at any adjournment thereof in respect of such resolutions as indicated below:

Resolution No.:

1 Adoption of Statement of Profit and Loss, Balance Sheet, Report of Board of Directors and Auditors for the year ended March 31, 2014.

2 Re-appointment of Shri Madhur Krishan Khaitan as Independent Director of the Company.

3 Re-appointment of Mrs. Avani Kanoi as Independent director of the company.

4 Appointment of Auditors.

Signed this__________________________ day of_________________________2014

Signature of shareholder…………….....…………. Signature of Proxy holder (s)……………............

Note: This form of proxy in order to be effective should be duly completed and deposited at the registered office of the Company, not less than 48 hours before the commencement of the Meeting.

SHARMA EAST INDIA HOSPITALS AND MEDICAL RESEARCH LTDREGISTERED OFFICE: JAIPUR HOSPITAL,NEAR SMS STADIUM,LAL KOTHI

TONK ROAD,JAIPUR-302015CIN: L85110RJ1989PLC005206

(E-Mail: [email protected], Website:www.jaipurhospital.co.in)

ATTENDANCE SLIP(To be handed over at the entrance of the Meeting hall)

25th ANNUAL GENERAL MEETING HELD ON WEDNESDAY,SEPTEMBER 24,2014 AT 3.00 P.M.At Sharma Agriculture Farm, Takia Ki Chowki, Kalwad Road, Jhotwara, Jaipur.

Folio No................................ DP ID No............................Client ID No..........................................

Name of the member (In BLOCK LETTERS): ..............................Signature....................................

Name of Proxyholder (InBLOCK LETTERS):...........................Signature.....................................

1. Only Member /Proxy holder can attend the Meeting.

2. Member/Proxy holder should bring his/her copy of the Annual Report for the reference at the Meeting.

Te

ar

Hear

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If undelivered Please Return to :

SHARMA EAST INDIA HOSPITALS ANDMEDICAL RESEARCH LIMITEDJAIPUR HOSPITALLAL KOTHI, NEAR S.M.S. STADIUM, TONK ROAD, JAIPUR - 302 015