Significant Accounting Policies
Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as
given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant
and other than those given elsewhere in any other notes to the Financial Statements.
31.01 Basis of preparation of financial statement:
These financial statements have been prepared in accordance with the generally accepted accounting principles in
India under the historical cost convention on an accrual basis. Pursuant to section 133 of the Companies Act, 2013
read with Rule 7 of the Companies (accounts) Rule, 2014, till the Standards of Accounting or any addendum thereto
are prescribed by Central Government in consultation and recommendation of the National Financial Reporting
Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.
Consequently, these financial statements have been prepared to comply in all material aspect with the accounting
standards notified under section 211(3C) Companies (Accounting Standards), 2006 as amended and other relevant
provisions of the Companies Act, 2013.
31.02 Revenue/incomes and costs/expenditures are generally accounted on accrual, as they are earned and incurred. Sales
of Pharmacy accounted as and when delivery has been completed. Income of IPD has been accounted for at the time
of discharge of patient.
31.03 Property, Plant and Equipment (AS-10):
Tangible Fixed assets are comprises of Building on rented land are stated at cost of construction less accumulated
depreciation (except land). Cost comprises of the purchase price and attributed cost of bringing the asset to working
condition for its intended use. Company has invested in Hospital Building on the rented land, there are no other
investment in properties. There are no Capital Work in Progress and Intangible assets under development.
An item of Property, Plant and Equipment (PPE) is recognized as an asset when it is probable that future economic
benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The
carrying amount of PPE will be depreciated over the remaining useful lives on written down value method as
prescribed in the Schedule II of the Companies Act, 2013. Assets which are added during the year will be amortized
over useful lives on written down value method prescribed in Schedule II of the Companies Act. Depreciation on
assets added / disposed off during the year has been provided on prorate basis from the date of additions. The
carrying amount of an item of PPE is derecognized upon disposal or when no future economic benefit is expected to
arise from its continued use. Any gain or loss arising on the de recognition of an item of PPE is determined as the
difference between the net disposal proceeds and the carrying amount of the item and is recognized in Statement of
Profit and Loss. However during the year there is addition in Furniture and Fixture which are not put to use and
therefore no depreciation has been provided during the year.
The Company has not revalued its Property, Plant and Equipment and intangible assets during the year.
31.04 Depreciation:
The depreciation on fixed asset is provided on S.L.M in the books of accounts at the rates based on the on useful life
prescribed as per Sch. II to the companies act, 2013.
31.05 Investments:
Investments that are readily realizable and are intended to be not held for more than one year from the date, on
which such investments are made, are classified as current investments. All the other investments are classified as
Long Term Investment. Long Term Investments are carried at cost.
31.06 Inventories (AS-2):
Inventories are valued at cost or Net Realizable Value whichever is lower.
31.07 Employee Benefits (AS-15):
Short Term Employee Benefits
All the employee benefits payable wholly within twelve months of rendering the services are classified as short -
term employee benefits and they are recognized in the period in which the employee renders the related services.
The benefit in the form of Leave Encashment is a non-accumulating short term compensated absences. It is
accounted in the year when absences occur and charged to Statement of Profit & Loss of the year.
Post-Employment Benefits
Defined Contribution Plans
Defined contribution plans are employee and Government administrated provident fund scheme and ESI scheme for
all the applicable employees. The Company makes specified monthly contribution towards Employee Provident Fund
scheme as per the norms prescribed by the Central Government. The Company's contribution to defined
contribution plans are recognized in the Statement of Profit and Loss accounts in the reporting period to which they
relate.
Defined Benefits Plans
Gratuity Scheme
The Company operates a defined benefit gratuity plan for employees with Life Insurance Corporation, and
accordingly, the Company pays the gratuity to the employee whoever has completed five year of service with the
Company at the time of resignation or superannuation. The Gratuity is calculated as required under payment of
Gratuity Act, 1972.
Contributions are made to Group Gratuity Fund scheme, administered by Life Insurance Corporation of India (LIC), in
respect of gratuity based upon demand as raised by the LIC. Provision for liability as at the year end is based on
actuarial valuation done by an independent actuary using the 'Projected Unit Credit' method. Major drivers in
actuarial assumptions, typically, are years of service and employee compensation. Gains and losses on changes in
actuarial assumptions are accounted for in the Statement of Profit and Loss. The Company has considered Actuarial
Valuation performed by LIC for Policy -1 & Policy - 2. However, for Policy - 3, LIC didn't provided the actuarial
valuation report and hence, the company has considered actuarial valuation conducted by an Independent Actuary
as per AS-15.
Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan
and the amounts recognised in the Company's financial statements as at the balance sheet date.
|