Krishna Institute of Medical Sciences Limited has informed stock exchanges about a significant GST demand order received by its subsidiary company. The healthcare major disclosed this development under regulatory compliance requirements.

GST Demand Details

Spanv Medisearch Lifesciences Private Limited, a subsidiary of Krishna Institute of Medical Sciences Limited, received a demand order from the Office of the Deputy Commissioner of State Tax (GST) Nagpur. The order was issued under section 73 read with rule 100(1), 100(2), 100(3) & 142(5).

Nature of Alleged Violation

The GST demand order is based on alleged non-payment of GST on medicines consumed for inpatients during the specified financial year. The tax authorities have raised concerns about the company's GST compliance specifically related to pharmaceutical supplies used in inpatient care services.

Company's Response Strategy

Krishna Institute of Medical Sciences Limited stated that the company is currently examining the matter in consultation with its legal and tax advisors. The management has indicated that appropriate steps will be taken as per applicable laws to address the demand order.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as required under Para A of Part-A of Schedule III, ensuring full transparency with stakeholders regarding this material development.

The company has assured that it will explore all available legal options, including filing an appeal before the relevant appellant authority. The subsidiary will work through appropriate legal channels to resolve this tax matter.

Krishna Institute of Medical Sciences Limited has announced a strategic expansion into Tamil Nadu through a leave and license agreement with Andhra Mahila Sabha for establishing a new super specialty hospital in Chennai. The healthcare provider disclosed this development in a regulatory filing under SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Land Acquisition Details

The company has secured land measuring approximately 1.168 acres, equivalent to 21.19 grounds, located at Dr. Durgabai Deshmukh Road, Raja Annamalai Puram, Chennai, Tamil Nadu. The long-term lease arrangement will facilitate the establishment of a super specialty hospital, marking the company's first foray into the Tamil Nadu healthcare market.

Project Investment and Capacity

The Chennai facility represents a substantial investment commitment for the healthcare chain. The project specifications demonstrate the company's commitment to expanding its footprint in South India's healthcare sector.

Current Operational Metrics

Krishna Institute of Medical Sciences and its subsidiaries operate with significant scale across their existing network. The company's current operational performance provides context for this expansion initiative.

Strategic Rationale

The company has positioned this expansion as a significant strategic milestone that will establish its maiden presence in Tamil Nadu. Management expects the project to drive improved operational performance and generate sustainable long-term financial returns. The Chennai location strategically positions the company to serve the healthcare needs of Tamil Nadu's population while expanding its geographic diversification.

Financing Structure

The ₹300.00 crore investment will be funded through a combination of bank loans and internal accruals. This financing approach covers multiple components of the project including lease rental payments, hospital construction, and medical equipment procurement. The diversified funding structure reflects the company's balanced approach to managing capital requirements for this expansion.

The project timeline of 36 months indicates a comprehensive development approach, allowing for proper planning, construction, and equipment installation to ensure the facility meets the company's super specialty hospital standards upon completion.