and expenses during the reported period. The estimates and assumptions used in the accompanying financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of financial statements. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.
2.04 Property, plant and equipment :
Tangible Fixed Assets :
Tangible fixed assets are carried at the cost of acquisition or construction, less accumulated depreciation/accumulated impairment. The cost of fixed assets comprises of its purchase price, including import duties and other nonrefundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use.
Intangible Fixed Assets :
Intangible fixed assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization.
Gains/losses arising from retirement or disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.
Capital Work in Progress:
The Company is not having any Capital Work in Progress, hence accordingly no ageing schedule has been disclosed separately.
2.05 Depreciation & Amortization:
Depreciation on tangible fixed assets is provided using the Written Down Value Method based on the useful lives of the assets as estimated by the management and is charged to the Statement of Profit and Loss as per the requirement of Schedule ll of the Companies Act, 2013. Intangible Assets are to be amortized on a Written Down Value Method based on the estimated useful economic life.
The Company has used following useful lives of the Property, Plant & Equipment to provide Depreciation.
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No.
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Nature of Assets
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Estimated Useful life of the Assets
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1
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Building
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60 Years
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|
2
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Furnitures & Fixtures
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10 Years
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|
3
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Electrical Equipment
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3 Years
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|
4
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Computer
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3 Years
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|
5
|
Office Equipment
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5 Years
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|
6
|
Vehicle
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6 Years
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1 Corporate Information
The company was originally incorporated on 26/02/2010 as a Private Limited Company under the name “Unihealth Consultancy Private Limited” having CIN U85100MH2010PTC200491 issued by the Registrar of Companies, Maharashtra, Mumbai. The status of the company changed to public limited and the name was changed to “Unihealth Consultancy Limited” having CIN U85100MH2010PLC200491. The Company is predominantly engaged in business of Medical Tour Operator and Health Consultancy Service & Trader in Medical Equipments.
2. Significant Accounting Policies
2.01 Basis of preparation of financial statements:
The financial statements have been prepared on a going concern basis under the historical cost convention, the applicable Accounting Standards as notified under the Companies (Accounting Standards) Rules, 2006 (“AS”) and the relevant provisions of the Companies Act, 1956 (“the Act”) (which continue to be applicable in respect of section 133 of the Companies Act, 2013 in term of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs), as adopted consistently by the Company.
The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.
2.02 Classification of Assets and Liabilities as Current and Non-Current:
All assets and liabilities have been classified as current or non-current as per the Company’s operating cycle and other criteria set out in the Schedule Ill of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.
2.03 Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenue
Amortisation is recognised on a written down value over their estimate useful life.
Intangible Assets and their useful lives are as under:
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No.
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Nature of Assets
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Estimated Useful life of the Assets (in Years)
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1
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Software License
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6 Years
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2.06 Impairment of Assets :
Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company’s fixed assets. If any indication exists, an asset’s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.
Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exists or has decreased. However, the increase in carrying amount of an asset due to reversal of an impairment loss is recognized to the extent it does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognized for the asset in prior years.
2.07 Borrowing Cost :
Borrowing costs that are attributable to acquisition or construction of qualifying assets are capitalized as a part of cost of such assets upto the commencement of commercial operations. A qualifying assets is the one that necessarily takes substantial period of time to get ready for intended use. Other borrowing costs are recorded as an expense in the year in which they are incurred.
The amount of exchange difference not exceeding the difference between interest on local currency borrowings and interest on foreign currency borrowings is considered as borrowing costs.
2.08 Investment:
All long term investments are to be stated at cost. Provision for diminution, if any, in the value of investments is to be made to recognize a decline, other than temporary, in the opinion of the management.
Current investments are to be carried at the lower of cost and fair value, determined on a category-wise basis.
2.09 Inventories:
Finished goods:
Finished goods are valued at lower of cost and net realizable value.
2.10 Revenue Recognition:
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Revenue from sale of product:
Sale of goods is recognized as revenue when the significant risks and rewards of ownership of the goods have passed to the buyer.
Revenue from rendering of Service :
Revenue from rendering of service is recognised as the service is performed,either by the proportionate completion method or the by the completed service contract method.
Other Income:
The company has entered into lease agreement with its subsidiaries for space allocation to develop their business area by charging amount by way of Rent. The difference amount not realized in course of payments received from abroad customers are taken as foreign exchange gain/loss on particular date. The long dues which are likely to be not recoverable in future have been decided by management for providing for write back/write off wherever necessary. Interest income is recognized on a time proportionate basis taking into account the amounts invested.
2.11 Foreign Currency Transactions:
Initial recognition:
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Non Monetary Items are recorded at the exchange rate prevailing as on the date of transaction.
Subsequent recognition:
Monetary assets and liabilities such as foreign currency receivables, payables, borrowings outstanding at the year-end are translated at the year-end rate. Resultant exchange difference arising on realisation / payment or translation at year end is recognized as income or expense in the year in which they arise.
Exchange differences arising on the settlement of monetary items or on reporting Company’s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
2.12 Taxation:
Income tax expense comprises current tax expense and deferred tax.
Current Taxes :- Provision for current income-tax is recognized in accordance with the provisions of the Income-tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowance and exemptions.
Deferred Taxes :- The deferred tax charge or credit and the corresponding deferred tax liabilities or assets is recognized for the future tax consequence attributable to the timing differences between the profits/ losses offered for income taxes and profits/ losses as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized.
2.13 Provisions and Contingencies :
The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources would be required to settle the obligation, the provision is reversed. Provision is not discounted to its present value.
A disclosure for a contingent liability is made when there is a possible obligation arising from the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company or a present obligation that arises from the past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.
2.14 Cash and cash equivalents :
Cash&cash equivalentsforthepurposeofcashflowstatement comprises cash at bank and in hand, demand deposits deposits with banks, othershortterm higly liquidinvestments
with original maturities of three months or less
2.15 Earnings per share :
Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the impact is anti dilutive.
2.16 Related party transactions :
Transactions with related parties in the ordinary course of the Company’s business are detailed in Note No. 26 to the financial statements.
2.17 Events Occurring after Balance Sheet Date :
Events that occur between balance sheet date and date on which these are approved, might suggest the requirement for an adjustment(s) to the assets and the liabilities as at balance sheet date or might need disclosure.
(a) Adjusting Events: Adjustments are required to be made in the Financial Statements for events which occur after balance sheet date which offer added information substantially affecting the determination of the amounts which relates to the conditions that existed at balance sheet date.
(b) Non-Adjusting Events: Adjustments aren’t required to the Financial Statements for events which occur after balance sheet date, in case such events don’t relate to the conditions which existed at balance sheet date. There’re events which, though occurring after balance sheet date, are sometimes presented in financial statements because of their special nature or due to statutory requirements.
2.18 Employee Benefit :
Short term Employee Benefits
Employee benefit payable wholly within twelve months of receiving employee services are classified as shortterm employee benefits. These benefits include salaries, wages and bonus. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the related service is rendered by employees.
Provident Fund
As per the Employees Provident Funds and Miscellaneous Provision Act, 1952 employees of the Company are entitled
to receive benefits under the provident fund which is a defined contribution plan. These contributions are made to the fund administered and managed by Government of India. The Company’s contribution to the schemes is recognized as expense in the profit and loss account during the period in which the employee renders the related services. The Company has no other obligation to the plans beyond its monthly compensations.
Defined benefits plan
The company’s gratuity benefit scheme is a unfunded defined benefit plan. The Company’s net obligation in respect of a defined benefit plan is calculated by estimating 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.
The calculation of company’s obligation is performed annually by qualified actuary using the projected unit credit method.
The company recognises all actuarial gains and losses in the Statement of Profit and Loss.
The company recognises all the actuarial gains and losses immediately in the Statement of Profit and Loss. All expenses related to defined benefit plans are recognized in employee benefits expense in the Statement of Profit and Loss.
2.19 AS 17- Segment Reporting
AS-17 Segment Reporing is not applicable to the company since the company has only single line of business segment.
2.20 Cash Flow Statement
Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.
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