Kovai Medical Center and Hospital Limited 's Board of Directors has approved the re-appointment of two Independent Directors for their second terms, marking a significant governance development for the NABH-accredited healthcare institution. The decision was taken during the Board meeting held on March 6, 2026, following recommendations from the Nomination and Remuneration Committee.

Board Meeting Outcomes

The Board meeting, which commenced at 11:00 a.m. and concluded at 11:45 a.m., addressed key governance matters related to the company's leadership structure. The directors approved the re-appointment of both Independent Directors for second terms of five years each, subject to shareholder approval through postal ballot.

Independent Directors Re-appointment Details

The Board approved the re-appointment of two key Independent Directors with specific effective dates and terms:

Regulatory Compliance and Disclosure

The company has submitted the requisite disclosure pursuant to SEBI LODR read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The formal communication was sent to BSE Limited's Corporate Relationship Department, ensuring full regulatory compliance for the re-appointment process.

Director Profiles and Expertise

Both directors bring distinct professional backgrounds to the Board. Mr. A.P. Ammaisaikutti is a businessman with interests in the textile industry and holds an Economics Graduate qualification. He manages and leads a group of textile mills, handling overall operations and administrative functions while representing various industry and trade bodies. Additionally, he is involved in philanthropic activities.

Dr. K. Kolandaswamy brings extensive public health expertise with a Post Graduate degree in Applied Epidemiology and professional education in Public Health and Family Welfare management. With 30 years of experience in the Government of Tamil Nadu as a Public Health Service Expert, he has multiple published papers and presentations. His major projects include Helpline for Epidemics Control, and he is currently involved in epidemic control activities including COVID-19 pandemic management.

Shareholding and Independence

Both directors maintain their independence with no shareholding in the company and no disclosed relationships between directors, ensuring compliance with corporate governance requirements.

Shareholder Approval Process

The Board also approved the postal ballot notice to seek shareholder approval for the re-appointments. This process ensures that shareholders have the opportunity to vote on these important governance decisions, maintaining transparency in the company's decision-making process.

Kovai Medical Center and Hospital Limited has received a show cause notice from tax authorities demanding Rs 1,74,960 for alleged GST violations related to UK visa medical services. The NABH-accredited healthcare provider disclosed this development to BSE Limited on January 27, 2026, under Regulation 30 of SEBI's listing obligations.

GST Audit Findings and Demand Details

The Office of the Assistant Commissioner, GST and Central Excise, Coimbatore issued the show cause notice following a comprehensive GST audit covering the period from 2019-20 to 2023-24. The primary contravention relates to non-payment of GST on charges collected for UK visa medical packages during FY 2023-24.

UK Visa Medical Package Service Issue

The tax authorities determined that Kovai Medical Center's UK visa medical package services do not qualify as exempt healthcare services under GST regulations. The company, empanelled by the UK Foreign Office for issuing medical certificates to UK visa applicants, collected charges for these services without discharging applicable GST.

The month-wise breakdown of taxable services during FY 2023-24 shows:

Comprehensive Audit Observations

The GST audit identified seven areas of non-compliance, though the company has already addressed six issues by paying the required tax and interest. The outstanding matter specifically concerns the UK visa medical package charges, which authorities argue fall outside the definition of exempt healthcare services under Notification No. 12/2017-Central Tax (Rate).

Legal Implications and Response Timeline

The show cause notice demands payment under Section 73(1) of the CGST Act, 2017, along with applicable interest under Section 50 and penalties under Section 73(9) read with Section 122(2)(a). The company has been directed to respond within 30 days to the Superintendent of GST & Central Tax, Coimbatore II-C Range.

Kovai Medical Center has committed to filing an appropriate response within the prescribed timeline. The company noted that if the demanded amount is paid within 30 days along with applicable interest, no penalty will be imposed, and all proceedings will be deemed concluded under Section 73(8) of the CGST Act, 2017.