Lotus Eye Hospital & Institute Ltd Management Discussions

Economy: 2023- 2024

Indian economy is the fifth largest economy in the world and is poised to become the third largest economy in the world by 2027. India is likely to see improved capital flows boosting private investment and a rebound in exports. Inflation concerns remain, however, which may ease only in the latter half of the next fiscal year barring any surprises from rising oil or food prices. The rise of the middle-income class is something which shall be keenly noted as the middle class is the spine of Indian economy when it comes to maintaining demand. The shift in consumption patterns with demand for luxury and high-end products and services growing faster than demand for basic goods is a clear sign of the fact that the middle class has more disposable income at their hands. The challenge of rising household debt and falling savings could impact long-term growth sustainability. Controlling household debt to prevent it from crossing unsustainable levels will be essential to mitigate risks of debt overhang, maintain economic stability, and protect households against financial vulnerability.

The Future for Eye care sector is promising reckoning the dynamic changes brought in by artificial intelligence and its applicability in health care services can create a new dimension to the treatment of eye related ailments. India has surpassed China as the most populous country in the world on last June 2023 such that the demand curve for eye care services are predicted shift rightwards. Adoption of Artificial intelligence for meeting growing demand of the larger population can enable in faster and smoother delivery of world class services.

The outlook for the eye care is on the upward trend and shall witness mammoth growth being in service sector

The global "vision care market size" is expected to reach USD 192.85 billion by 2026, exhibiting a CAGR of 5.6% during the forecast period. Increasing awareness regarding ocular diseases in emerging nations is expected to aid the growth of the market. The increasing adoption of vision care products will boost the vision care market growth in the forthcoming year.

In addition, the growing cases of cataracts will create growth opportunities for the market. For instance, according to the World Health Organization, 51% of the world’s blindness is caused by cataracts. In addition, the increasing risks of cataract incidence predominantly in developing countries will fuel demand for vision care.

Eye care products like lenses might become cheaper. With increase in life expectancy it is likely that population will have more old people. This would make it necessary to carry out more cataract and other eye treatments.

So overall, the eye care demand would grow. The profession and business of organized eye care would have a large need and necessity.

Public participated companies like ours with organized structure, delivering both basic and advanced eye care in many cities with a brand name, would help the patient very significantly and earn money for the investor very ethically.

The most important part is that investors do not carry any risk due to non-existence of debt

Your Company operates in only one segment i.e. Eye Care and Related Activities.

There are large numbers of private practitioners in ophthalmology with their own ophthalmic diagnosis and treatment equipment. There are a few with small hospitals with more advanced equipment’s. Apart from these there are large ophthalmic hospitals both philanthropic and run as commercial business entities.

Your company can counter this challenge by providing focused eye care delivery and by deploying the state of the art equipment’s backed by panel of expert doctors The brand lotus provides a fillip against competitors due to the confidence and faith bestowed by the patients.

2. Profitable and Proficient optimal use of Latest Technologies and Trends.

The biggest task of any organization is to harness the technological advancement taking place at every nanosecond and cultivate the same in such a manner that produces profitability for the organization and maximizes the shareholders wealth simultaneously.

We have time and then invested amount rationally in obtaining advanced equipment’s for providing better eye care services to our patients

The difference between rural and urban indicators of health status and the wide interstate disparity in health status are well known. Clearly the urban rural differentials are substantial and clearly impact the spending power and in turn the variety of high end options made available to them.

We plan to organize our centers with this fact in mind.

Future of ophthalmology health care is very bright

Occurrence of cataract is common

Increase in population

Diabetes is increasing

Hypertension is increasing

Majority of the population wishes to be lens free

Rapid changes in technology

The following will be our future plans a. Implementing innovative modes to generate revenues b. COVID free treatment c. c.Rational Investments keeping in mind the dynamic requirementsInsistence on latest and cutting edge technology at all hospitals.

Our edge lies on our investment in modern equipment’s, and excellent experienced consultants in all our centers, presence in many districts and COVID free, personalized care.

Your company has established internal control systems to ensure optimum use in protecting its resources and ensuring adherence to its policies, procedures and statutes. There is proper and adequate system of internal control for the company and its branches. The company has appointed Internal Auditor to review the adequacy of the internal control systems, procedures and policies. The internal auditor evaluates the adequacy of the internal control systems by testing the control mechanism and gives their recommendations to the management. The Internal Auditor submits his report to the Audit Committee of the Board.

Financial performance with respect to operational performance has been dealt with in the Directors’ Report which should be treated as forming part of this Management Discussion and Analysis Report.

There were 336 numbers of permanent employees on the rolls of the Company as on 31.03.2024. During the year under review your company enjoyed cordial relationship with the employees at all levels.

The Management Discussion and Analysis Report contains forward looking statements based upon the data available with the Company, assumptions with regard to global economic conditions, the government policies etc. Actual results might differ materially from those either expressed or implied.