1 Corporate Information:
Gian Life Care Limited was incorporated on 6th November 2018 under the provisions of the Companies Act 2013 and commenced Pathology
advisory and consultation service from March 2019. The Company runs laboratories for carrying out pathological investigations.
2 Goods And Service Tax
'Health Care Services by a clinical establishment, an authorised medical practitioner or para-medic is exempted under GST. Hence no GST is
charged on Pathological Testing Fees. Also if any, GST on purchase of goods or services, it is directly added to respective expense incurred.
3 Basis of preparation of financial statements and significant accounting policies:
3.1 Basis of Preparation
These standalone financial statements have been prepared in accordance with Indian Accounting Standards find AS’) as per the Companies
(Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the 'Act') and other relevant provisions of the Act.
The Company’s standalone financial statements up to and for the year ended March 31, 2021 were prepared in accordance with the Companies
(Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act.
As these are the Company’s first standalone financial statements prepared in accordance with Ind AS, Ind AS 101, First-time Adoption of Indian
Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected he previously reported financial position,
financial performance and cash flows of the Company is provided in Note 43.
3.2 Basis of Measurement
These financial statements have been prepared in Indian Rupee which is the functional currency of the Company These financial statements
have been prepared on historical cost basis, except for certain financial instruments which are measured at fair value or amortised cost at the end
of each reporting period, as explained in the accounting policies below.
3.3 Use of judgments, estimates and assumptions
In preparing these standalone financial statements, management has made judgments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
3.4 Property, plant and equipment
Recognition and measurement
Freehold land is carried at historical cost. All other items of property, plant and equipment are measured at cost of acquisition or construction less
accumulated depreciation and accumulated impairment loss, if any.
The cost of an item of property, plant and equipment comprises its purchase price, including import duties and other non-refundable taxes or levies
and any directly attributable cost of bringing the asset to its working conditbn for its intended use; any discounts and rebates are deducted in
arriving at the purchase price.
Borrowing costs directly attributable to the construction or acquisition of a qualifying asset up to completion or acquisition are capitalized as part of
the cost. The present value of the expected cost for the decommissioning of an asset after its use is included in the cost of the respective asset if
the recognition criteria for a provision are met.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components)
of property, plant and equipment.
Property, plant and equipment under construction are disclosed as capital work-in-progress Advances paid towards the acquisition of property,
plant and equipment outstanding at each reporting date are disclosed under "Other non-current assets”.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment recognised as of
April 1,2021 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date
Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the
future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the
replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the statement of profit and
loss as incurred.
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no future benefits are expected from its use or disposal. Gains
and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying
amount of property, plant and equipment, and are recognised net within other income/expenses in the statement of profit and loss
Depreciation
Depreciation is calculated over the depreciable amount which is the cost of an asset, or other amount substituted for cost, less its residual value.
Depreciation is recognised in the statement of profit and loss on a straight-line basis over the estimated useful lives of each part of an item of
property, plant and equipment as prescribed in Schedule II of the Companies Act 2013 except in the cases mentioned below where the
management based on the technical evaluation have estimated the life to be lower than the life prescribed in schedule II.
Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is ready for its intended
use.Depreciation is also not recorded for Land.
3.5 Intangible assets
Recognition and measurement
Intangible assets are recognised when the asset is identifiable, is within the control of the Company, it is probable that the future economic
benefits that are attributable to the asset will flow to the Company and cost of the asset can be reliably measured.
Intangible assets acquired by the Company that have finite useful lives are measured at cost less accumulated amortisation and accumulated
impairment losses (if any).
Subsequent measurement
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates.
Amortisation
Amortisation is calculated over the cost of the asset, or other amount substituted for cost, less its residual value. Amortisation is recognised in
statement of profit and loss on a straight-line basis over the estimated useful lives of intangible assets from the date that they are available for use,
since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset.
Amortisation is not recorded on intangible assets under development until development is complete and the asset is ready for its intended use.
The intangible asset are amortised over the estimated useful lives as given below: -
Computer Software : 5 years
Deemed cost on transition to Ind AS
For transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangible assets recognised as of April 1, 2021
(transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
3.6 Inventories
Inventory of Pathology consumables are valued at bwer of cost and net realizable value. Cost is determined on FIFO basis. Cost comprises all
cost of purchase and other costs which are being incurred in bringing the inventories to their present location and condition.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs
necessary to make the sale.
3.7 Borrowing costs
Borrowing costs are interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalized in the cost of that asset.
Qualifying assets are those assets which necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs
are recognised in the year in which they are incurred.
3.8 Current and Non-Current Classification
The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.
All assets and liabilities are classified into current and non-current.
An asset is treated as current when it is:
It is expected to be realised in or is intended for sale or consumption in the Company's normal operating cycle;
Held primarily for the purpose of trading;
It is expected to be realised within 12 months after the reporting date; or
It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
A liability is current when:
It is expected to be settled in the Company’s normal operating cycle;
It is held primarily for the purpose of being traded;
It is due to be settled within 12 months after the reporting date; or
The company does not have an unconditbnal right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a
liability that could, at the optbn of the counterparty, result in its settlement by the issue of equity instruments do not affect its classificatbn.
Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents.
3.9 Investment
Current investments are carried at lower of cost and fair value. Non-current investments are stated at cost Provision for diminution in the value of
long term investment is made only if such a decline is other than temporary.
Investments in subsidiaries and associates
The Company has elected to recognise its investments in subsidiary and associate companies at cost in accordance with the optbn available in
Ind AS 27, Separate Financial Statements.
3.10 Employee benefits
Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid e g., under short-term cash bonus, if the Company has a present legal or constructive obligation to
pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.
Defined Benefit Plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation in respect of defined
benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior
periods, discounting that amount and deducting the fair value of any plan assets.
The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method. When the
calculation results in a potential asset for the Company, the recognised asset is limited to the present value of economic benefits available in the
form of any future refunds from the plan or reductions in future contributions to the plan ('the asset ceiling’). In order to calculate the present value
of economic benefits, consideration is given to any minimum funding requirements.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and
the effect of the asset ceiling (if any, excluding interest), are recognised in OCI. The Company determines the net interest expense (income) on
the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning
of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during
the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are
recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service ('past service cost’
or past service gain’) or the gain or toss on curtailment is recognised immediately in profit or loss. The Company recognises gains and tosses on
the settlement of a defined benefit plan when the settlement occurs
Other long-term employee benefits
The Company’s net obligation in respect of long-term employee benefits other than post-employment benefits is the amount of future benefit that
employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the
fair value of any related assets is deducted. The obligation is measured on the basis of an annual independent actuarial valuation using the
projected unit credit method. Remeasurements gains or tosses are recognised in profit or loss in the period in which they arise.
Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of those benefits and when the Company
recognises costs for a restructuring.
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no
legal or constructive obligation to pay further amounts. The Company makes specified monthly contributions towards government administered
provident fund scheme. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss
in the periods during which the related services are rendered by employees.
Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.
3.11 Lease
The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to
control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has
substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right of use
asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the
commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated
depreciation, accumulated impairment tosses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is
depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease.
The lease payments are discounted using the interest rate implicit in the lease if that rate can be readily determined. If that rate cannot be readily
determined, the Company uses incremental borrowing rate.
For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease
3.12 Income tax
Income tax expense comprises current tax and deferred tax. Income tax expenses are recognised in statement of profit or loss except to the
extent that it relates to items recognized in other comprehensive income (OCI).
Current tax
Current tax is the tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in
respect of the previous year. It is measured using tax rates (and tax laws) enacted or substantially enacted by the reporting date.
Current tax assets/liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the
asset and settle the liability on a net basis.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting
purposes and the corresponding amounts used for taxation purposes.
Deferred tax assets (if any) are recognised only to the extent that it is probable that future taxable profits will be available against which they can
be used. Deferred tax assets/liabilities are reviewed at each balance sheet date and are recognised/ reduced to the extent that it is probable / no
longer probable respectively that the related tax benefit will be realised.
Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the
laws that have been enacted or substantively enacted by the reporting date.
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