4.12 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. When the Company expects some or all of a provision to be reimbursed the
reimbursement is recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the statement of profit and loss net of
any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time is recognised as a finance cost.
4.13 Financial instruments
Initial recognition
The company recognise the financial asset and financial liabilities when it becomes a party to the
contractual provisions of the instruments. All the financial assets and financial liabilities are
recognised at fair value on initial recognition, except for trade receivable which are initially
recognised at transaction price. Transaction cost that are directly attributable to the acquisition of
financial asset and financial liabilities, that are not at fair value through profit and loss, are added
to the fair
value on the initial recognition.
Subsequent measurement
(A) Non derivative financial instruments
(i) Financial Assets at amortised cost
A financial assets is measured at the amortised cost if both the following conditions are met :
a) The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments
of principal and interest (SPPI) on the principal amount outstanding.
This category is the most relevant to the Company. All the Loans and other receivables under
financial assets (except Investments) are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Trade receivables do not carry any interest and
are stated at their nominal value as reduced by impairment amount.
(ii) Financial Assets at Fair Value through Profit or Loss/Other comprehensive income
Instruments included within the FVTPL category are measured at fair value with all changes
recognised in the Statement of
Profit and Loss.
If the company decides to classify an instrument as at FVTOCI, then all fair value changes on the
instrument, excluding
dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to P&L, even on
sale of investment. However, the company may transfer the cumulative gain or loss within equity.
(iii) Financial liabilities
The measurement of financial liabilities depends on their classification, as described below:
(a) Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortised cost using the effective interest rate (EIR) method. However, the Company has
borrowings at floating rates. Considering the impact of restatement of Effective interest rate,
transaction cost is being amortised over the tenure of loan and borrowing.
(b) Trade & other payables
After initial recognition, trade and other payables maturing within one year from the Balance sheet
date, the carrying amounts approximate fair value due to the short maturity of these instruments.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit or loss.
4.14 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term
deposits which are
subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short¬
term deposits, as
defined above, as they are considered an integral part of the Company's cash management.
4.15 Earnings per share
Basic earnings per share is computed by dividing the net profit attributable to equity shareholders
for the year, by the weighted average number of equity shares outstanding during the year,
adjusted for bonus element in equity shares issued during the year.
Diluted earnings per share is computed by dividing the net profit attributable to equity shareholders
for the year, by the weighted average number of equity shares outstanding during the year after
giving effect to all dilutive potential equity shares.
5 New Accounting Standard -
Leases (Ind AS 116) -
Ind AS 116 is applicable for financial reporting periods beginning on or after 1 April 2019 and
replaces existing lease accounting guidance, namely Ind AS 17. Ind AS 116 introduces a single, on-
balance sheet lease accounting model for lessees. A lessee recognises a right-of-use ("ROU") asset
representing its right to use the underlying asset and a lease liability representing its obligation to
make lease payments. The nature of expenses related to those leases will change as Ind AS 116
replaces the operating lease expense (i.e., rent) with depreciation charge for ROU assets and
interest expense on lease liabilities. There are recognition exemptions for short-term leases and
leases of low-value items.
Lessor accounting remains similar to the current standard - i.e. lessors continue to classify leases as
finance or operating leases.The Company is in the process of analysing the impact of new lease
standard on its financial statements.
d Terms / Rights attached to each classes of shares Terms / Rights attached to Equity shares
The Company has only one class of equity shares with voting rights having a par value of Re 10 per share. Each holder of equity shares is entitled to one
vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval
of the shareholders at the ensuing Annual General Meeting, except in case of interim dividend.
During the year ended 31 March 2025, the amount of dividend per equity share recognised as distributions to equity shareholders is NIL (previous year
NIL).
In the event of liquidation of the Company, the shareholders of equity shares will be entitled to receive remaining assets of the Company after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(1) Assets that are not financial assets, in the opinion of the management are not included.
(2) Other liabilities that are not financial liabilities, in the opinion of the management are not included.
(3) In the opinion of the management, based on the details available with the company, all the financial assets and liabilities are tested
for valuation, to identify their fair value, as prescribed in Indian Accounting Standards, and are measured at fair value, to the extent
possible. The assets/ liabilities, which are not possible to be measured at fair value, in the opinion of the management, are
presented in the financial statements at their book value, without any adjustment towards fair valuation.
There have been no transfers among Level 1, Level 2 and Level 3 during the period.
The management assessed that cash and cash equivalents, Trade receivable and other financial asset, trade payables and other financial liabilities
approximate their carrying amount largely due to short term maturity of these instruments.
24 Financial risk management objectives and policies
The risk management policies of the Company are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Company's activities.
The Management has overall responsibility for the establishment and oversight of the Company's risk management framework.
In performing its operating, investing and financing activities, the Company is exposed to the Credit risk, Liquidity risk and Market risk.
25 Carrying amount of financial assets and liabilities:
The following table summaries the carrying amount of financial assets and liabilities recorded at the end of the period by categories:
26 Credit risk on financial assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge their obligations in full or in a
timely manner consist principally of cash balances with banks, cash equivalents and receivables, and other financial assets. The maximum exposure to
credit risk is: the total of the fair value of the financial instruments and the full amount of any loan payable commitment at the end of the reporting
year. Credit risk on cash balances with banks is limited because the counterparties are entities with acceptable credit ratings. Credit risk on other
financial assets is limited because the other parties are entities with acceptable credit ratings.
Cash and cash equivalents balances generally represent short term deposits with a less than 180-day maturity.
As part of the process of setting customer credit limits, different credit terms are used. The average credit period generally granted to trade receivable
customers is about 90-360 days. But some customers take a longer period to settle the amounts.
With the applicability of Ind AS 109, the recognition and measurement of impairment of financial assets is based on credit loss assessment by expected
credit loss (ECL) model. The ECL assessment involve significant management judgement. The Company's impairment allowance is derived from
estimates including the historical default and loss ratios. Management exercises judgement in determining the quantum of loss based on a range of
factors, like staging criteria, calculation of probability of default / loss and consideration of probability weighted scenarios and forward looking
macroeconomic factors.
The board acknowledges and understands that these factors, since there is a large increase in the data inputs required by the ECL model, which
increases the risk of completeness and accuracy of the data that has been used to create assumptions in the model. Based on the internal
management analysis, as per Board Opinion, there is no requirement of provision for expected credit loss in several financial assets including the trade
receivables and other receivables of the Company and all are on fair value, based on the assessment and judgement made by the board of the
company.
In the opinion of management, trade receivable, Financial assets, Cash and cash equivalent, Balance with Bank, Loans and other financial assets have a
value on realisation in the ordinary course of business at lease equal to the amount at which they are stated in the balance sheet.
28 Market risk -
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect
the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market
risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are
exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, our exposure to
market risk is a function of revenue generating and operating activities in foreign currency. The objective of market
risk management is to avoid excessive exposure in our foreign currency revenues and costs.
29 Foreign currency risk
As of the reporting date, the Company had minimal exposure to foreign currency risk.
During the financial year ended 31/03/2025, the Company entered into a single foreign currency transaction, invoice
denominated in USD, which was recorded on March 31, 2025, the last day of the financial year.
As the transaction was recognized at the prevailing exchange rate on the reporting date, no foreign exchange gain or
loss was recorded in the financial statements for the year ended 31/03/2025. The foreign currency-denominated
receivable/payable will be subject to exchange rate fluctuations in the subsequent reporting period until it is settled.
The Company continues to monitor its foreign currency exposures and will assess the need for hedging strategies
should exposure levels increase in the futureThe functional currency of the Company is Indian Rupee.
30 Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is
the risk of changes in fair values of fixed interest bearing finacial instruments because of fluctuations in the interest
rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial
instruments will fluctuate because of fluctuations in the interest rates.
Company has interest rate risk exposure mainly from changes in rate of interest on borrowing & on deposit with
bank. The interest rate are disclosed in the respective notes to the financial statements of the Company.
The following table analyse the breakdown of the financial assets and liabilities by type of interest rate:
31 Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or
loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
32 Cash flow sensitivity analysis for variable-rate instruments -
The company does not have any financial assets or financial liabilities bearing floating interest rates. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.
33 Liquidity risk -
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral
obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position
and deploys a robust cash management system. It maintains adequate sources of financing including debt and
overdraft from banks at an optimised cost.
The Company maximum exposure to credit risk for the components of the balance sheet at 31 March 2024 and
31 March 2023 is the carrying amounts. The liquidity risk is managed on the basis of expected maturity dates of
the financial liabilities. The average credit period taken to settle trade payables is about 90 days. The other
payables are with short-term durations. The carrying amounts are assumed to be a reasonable approximation of
fair value. The following table analysis financial liabilities by remaining contractual maturities:
At present, the Company does expects to repay all liabilities at their contractual maturity. In order to meet such cash commitments, the operating
activity is expected to generate sufficient cash inflows.
34 Capital management -
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other equity reserves attributable
to the equity holders of the parent. The primary objective of the Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial
covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders
or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's policy
is to keep optimum gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash
and cash equivalents, excluding discontinued operations.
Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of
deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the
relevant entity operates and the period over which deferred income tax assets will be recovered.
36 Estimates
The estimates at 1 April 2025 and at 31 March 2024 are consistent with those made for the same dates in accordance with Indian AS (after
adjustments to reflect any differences in accounting policies).
37 Balance of Receivables and Payables, including loans , deposits & trade advances given, payable to vendors, etc, are subject to
confirmation and consequent reconciliation and adjustments, if any. Further the impairment provision for trade advances given are
subject to documentation of the informal updation in terms of advances. Hence, the effect thereof, on Profit/ Loss, Assets and
Liabilities, if any, is not ascertainable, which may be considerable. As per the opinion of the Board, there will be no substantial impact on
their reconciliation with their balance confirmations as on the reporting date.
41 The Company has not entered into any transactions which are termed "Specified Domestic Transaction” as per Section 92BA of the
Income Tax-Act, 1961. Accordingly, it is not required to comply with certain transfer pricing regulations under Section 92 to Section 92F
of the Act. ”.
42 The Company has an informal process of obtaining confirmations from the vendors to record whether they are covered under Micro,
Small and Medium Enterprise Development Act 2006 as well as they have filed required memorandum with prescribed authority. Based
on and to the extent of the information received by the Company from the suppliers regarding their status under the Micro, Small and
Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, the relevant particulars as at the year end
are furnished below:
43 The Company has carried out Impairment test on its Fixed Assets as on the date of Balance Sheet and the management is of
the opinion that there is no asset for which provision of impairment is required to be made as per applicable Indian
Accounting Standard.
44 Revaluation/ Fair valuation of PPE / Intangible assets/ Investment property
There was no revaluation of Property, Plant and Equipment (including Right-of-Use Assets) and intangible assets held by the
company during the year. The company also does not have any Investment property during the current year as well as previous
year.
45 Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
The Company do not have any benami property, where any proceeding has been initiated or pending against the company for
holding any Benami property.
46 Wilful Defaulter
The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.
47 Misutilisation of Bank Borrowing
The company has not taken any borrowings from banks and financial institutions during the current year as well as previous year.
48 Disclosure of transactions with struck off companies
The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of Companies Act, 1956 during the financial year.
49 Compliance with approved Scheme(s) of Arrangements
No Scheme of Arrangements has been approved by/ pending with the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the year as well as previous year
50 Undisclosed Income
The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).
51 Compliance with number of layers of companies
The compliance of number of layers of companies, prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017, are not applicable to the company
52 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year and any of the
previous financial years.
53 Security of current assets against borrowings
The Company has no borrowings from banks or financial institutions on the basis of security of current assets.
54 Utilisation of Borrowed funds and share premium:
(A) During the year, the company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries)
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(B) During the year, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party(Ultimate Beneficiaries)
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
55 Registration of charges or satisfaction of charges with Registrar of Companies (ROC)
The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
LOOKS HEALTH SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
Notes :
1 The related party relationship have been determined on the basis of the requirement of the Indian Accounting Standard (Ind AS) - 24 '
Related Party Discloures and the same have been relied upon by the auditors.
2 The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the current
year/previous year, except where control exists, in which case the relationships have been mentioned irrespective of transactions
with the related party.
Terms and conditions of transactions with related parties
i. All Related Party Transactions entered during the year were in ordinary course of the business and on arm's length basis.
ii. Outstanding balances at the year-end are unsecured and settlement occurs in cash.
iii. There have been no guarantees provided or received for any related party receivables or payables.
iv. For the current year, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (Previous
Year: Rs. Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market
in which the related party operates.
5. Average Inventory = Average of Opening Inventory and Closing Inventory
6. Average Trade Receivable = Average of Opening Trade Receivables and Closing Trade Receivables
7. Average Trade Payables = Average of Opening Trade Payables and Closing Trade Payables
8. Working capital shall be calculated as current assets minus current liabilities
9. EBIT = Earning before interest and taxes
10. Capital Employed = Tangible Net Worth (excluding revaluation reserve) Total Debt Deferred Tax Liability
11. Average Total Assets = Average of Opening Total Assets and Closing Total Assets excluding revaluation impact
61 These financial statements are presented in Indian Rupees (INR), which is also its functional currency and all
values are rounded to the nearest Lakhs, except when otherwise indicated. The amounts which are less than Rs.
0.01 Lakhs are shown as Rs 0.00 Lakhs.
62 Previous year's figures have been regrouped or reclassifed wherever necessary.
As per our Report of even date
For KPSJ & Associates LLP For and on behalf of the Board
Chartered Accountants Looks Health Services Limited
( Firm Reg. No. 124845W/W100209)
Prakashchandra Parakh Pritesh Champalal Doshi Monika Joshi
(Partner) (Managing Director) (WTD)
M.No.039946 DIN: 05155318 DIN: 10652494
UDIN: 25039946BMIFAO6391
Place : Ahmedabad
Date : 26/05/2025
Vandanaben Ajeshkumar Sheladiya Milinath Gavas
(Company Secretary) (CFO)
ICSI Member No: A45323
Place : Ahmedabad
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