Huge Debt Mars Avowed Mission of ‘CARe KERALAM’
Thrissur: CARe KERALAM (Confederation for Ayurvedic Renaissance-Keralam), which was established as a cluster of Ayurveda industries in Kerala to standardise Ayurveda treatment modalities in the State, was expected to help the Ayurveda sector tap the full potential of the ancient medical practice. However, data from an official report show the initiative supported by AYUSH Department of Government of India and Kerala State Industrial Infrastructure Development Corporation (KINFRA) under Government of Kerala is reeling under the burden of debt and lack of funding.
According to the report presented at the AGM of Directors of the company, the total debt stood at Rs. 11.2 crore as on March, 2018
According to the 14th annual report of CARe KERALAM, which was presented at the Annual General Meeting of Directors held in September 2018, the total loss incurred by the institution in 2017-18 was Rs. 16.33 lakh while the loss incurred in the financial year before that stood at Rs. 28.64 lakh. Besides research and development of Ayurveda medicine, it caters to the infrastructure requirements of Ayurvedic product manufacturers and service providers for standardization of Ayurvedic medicines.
While the major objectives of CARe KERALAM included implementation of large-scale projects like Ayurveda-related service deliveries and commercial manufacturing of Ayurvedic products, the report observes that the total debt stood at Rs. 11.2 crore as on March 2018 and full commercial production was yet to commence. “The company is yet to commence full-scale commercial operations,” said the annual report.
While P R Krishnakumar, Chairman, Board of Directors, remained unavailable for comments on the current status of funding to CARe KERALAM and initiatives to clear the debts, members of director board either remained unavailable or refused to comment.
Additionally, an addendum to the directors’ report also noted that Non-Performing Assets (NPA) of the company stood at Rs. 2.15 crore. The company was not able to pay interest to the debtors during the period, the report said.
“The management along with KINFRA officials are having discussions with bankers for a one-time settlement and hoping for waiver of interest and hence, interest is not recognised in the book of account,” said the Directors, P K Krishnakumar and K Anil Kumar, in the report.
The principal activities of the company during 2017-18, according to the annual report, were wholesale distribution of pharmaceutical and medical goods, R&D on natural sciences and engineering and manufacturing of Ayurvedic pharmaceuticals. Development and standardization of Ayurvedic formulations by Pharmacognostical, Physicochemical, Phytochemical, Microbiological and Toxicological analysis were the chief R&D activities undertaken by CARe KERALAM during the period.
Meanwhile CARe KERALAM was able to prepare a dossier on ‘Punarnavadi Gritham’ funded by the Directorate of Ayurveda Medical Education. The R&D activities were able to generate revenue from the fee collected for conducting sample analysis. The company plans to extend research support to small, middle and large-scale Ayurvedic industries in the areas of new drug development and standardisation.