Chennai Meenakshi Multispeciality Hospital Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

1. CORPORATE INFORMATION

Chennai Meenakshi Multispeciality Hospital Limited (the Company) was incorporated on 22nd August 1990 as Devaki Hospital Limited and subsequently renamed on 22nd November 2007. The company is a public listed company with registered office situated at Old No.149, New No.70, Luz Church Road, Mylapore, Chennai, Tamil Nadu, India, 600004.

The company is providing a comprehensive health care for the society in various branches of medicine such as General Surgery, General Medicine, Paediatrics, Neurology, Cardiology, ENT, Ophthalmology, Radiology, Pathology, Gastroenterology, Urology, Thoracic Surgery, Plastic Surgery, Orthopaedics and other allied specialties.

la. STATEMENT OF COMPLIANCE

These financial statements are prepared in accordance with Indian Accounting Standards (“Ind AS”) prescribed under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. The accounting policies are applied consistently to all the periods presented in the financial statements.

lb. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared on going concern basis in accordance with accounting principles generally accepted in India. Further, the financial statements have been prepared on historical cost basis except for certain defined benefit plans which are measured at fair values as explained in relevant accounting policies. All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle of 12 months.

The financial statements are authorized for issue by the Company’s Board of Directors on 29th May 2025.

2. MATERIAL ACCOUNITNG POLICIES

(a). Revenue Recognition

The Company earns revenue primarily by providing healthcare services and sale of pharmaceutical products.

Revenue is recognised upon transfer of control of promised products or services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those products or services. When there is uncertainty on ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.

a. Healthcare Service: Revenue primarily comprises fees charged for inpatient and outpatient hospital services. Services include charges for accommodation, theatre, medical professional services, equipment, radiology, laboratory and pharmaceutical goods used. The performance obligations for this stream of revenue include accommodation, surgery, medical/clinical professional services, supply of equipment, and supply of pharmaceutical and related products. The patient is obligated to pay for healthcare services at amounts estimated to be receivable based upon the Company’s standard rates or at rates determined under reimbursement arrangements. The reimbursement arrangements are generally with third party administrators.

Revenue is recognised at the transaction price when each performance obligation is satisfied at a point in time when inpatient/ outpatients has actually received the service except for few specific services where the performance obligation is satisfied over a period of time. Revenue from health care patients, third party payers and other customers are billed at our standard rates net of contractual or discretionary allowances, discounts or rebates to reflect the estimated amounts to be receivable from these payers.

b. Pharmacy Sales: Pharmacy Sales where the performance obligation is satisfied at a point in time, revenue is recognised when the control of goods is transferred to the customer.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition. Revenue is measured based on the transaction price, which is the fixed consideration adjusted for discounts, estimated disallowances, amounts payable to customer in the nature of commissions, principal versus agent considerations, loyalty credits and any other rights and obligations as specified in the contract with the customer. Revenue also excludes taxes collected from customers and deposited back to the respective statutory authorities.

(b). Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. These tangible assets are held for use in production, supply of goods or services or for administrative purposes.

Cost comprises purchase cost (net of tax credits, wherever applicable) freight, duties and other expenses directly incidental to acquisition, bringing the asset to the location and installation including site restoration up to the time when the asset is ready for intended use. Such costs also include borrowing cost if the recognition criteria are met.

Freehold land is not depreciated. Expenditure incurred after the property, plant and equipment have been put into operation are normally charged to the statements of profit and loss in the period in which the costs are incurred. Major

inspection, repairs and overhaul expenditure is capitalized if the recognition criteria are met. 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 recognized net within other income in statement of profit and loss.

Depreciation: Depreciation on Property, Plant and Equipment is provided for on straight-line-basis, over the useful life of the asset as provided by the Schedule II of the Companies Act, 2013 or the rates derived based on the economic useful life of the asset as technically ascertained by the management at the end of each financial year.

The residual values are not more than 5% of the original cost of the asset.

Estimated useful lives of the assets are as follows:
Class of Asset	Useful Life
Building	60 years
Plant & Equipment	or 15 years
Electrical Fittings	10 years
Furniture and Fittings	10 years
Vehicle	8 or 10 years
Ambulance	8 years
Office Equipments	5 years
Computer and Software	3 or 6 years

(c). Intangible Assets

Intangible Assets are initially recognized at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment loss. Research costs are recognized as expense in the period in which it is incurred.

Intangible Assets with finite lives are amortized on a Straight-Line basis over the estimated useful economic life. The amortization expense on intangible assets with finite lives is recognized in the Statement of Profit and Loss. The estimated useful life of intangible assets is 3 years.

The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the intangible asset and is recognized in the Statement of Profit and Loss when the asset is derecognized.

(d) . Capital Work - in- Progress

Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date are recognized as capital advance and the cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work- in-progress.

Commencement of Depreciation related to property, plant and equipment classified as Capital work in progress (CWIP)involves determining when the assets are available for their intended use. The criteria the company uses to determine whether CWIP are available for their intended use involves subjective judgments and assumptions about the conditions necessary for the assets to be capable of operating in the intended manner.

(e) . Leased Assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate.

Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the Company’s expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

(f) . Borrowing Cost

Borrowings and Borrowing costs

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of profit and loss over the period of the borrowings using the effective interest rate method. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.

(g) . Inventories

Inventories of medical consumables, drugs and General stores are valued at cost or lower of net realizable value. Net Realizable Value represents the estimated selling price in the ordinary course of business less estimated costs necessary to make the sale. The cost of inventories shall be assigned by using the first-in, first-out (FIFO) formula.

(h) . Provisions, Contingent Liabilities and Contingent Assets

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 the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, it carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Contingent Liabilities

Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

(i) . Earnings per Share

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

(j) . Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, 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.

(k) . Employee Benefits

Short Term Employee Benefits:

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

Post Employee Benefits:

Defined Contribution Plans: - Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognises contribution payable to the fund as an expense, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid.

Defined Benefit Plans: - The Company operates a defined benefit gratuity plan for employees. The Company contributes to a fund, towards meeting the Gratuity obligation.

Gratuity liability is accounted for on the basis of actuarial valuation as per Ind AS 19 ‘Employee Benefits’. Liability recognized in the Balance Sheet in respect of gratuity is the present value of the defined benefit obligation at the end of each reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method. The present value of defined benefit is determined by discounting the estimated future cash outflows by reference to market yield at the end of each reporting period on 9 years government bonds that have terms approximate to the terms of the related obligation. Actuarial gain / loss pertaining to gratuity is accounted for as OCI. All remaining components of costs are accounted for in Statement of Profit and Loss.

(l). Taxation

Income tax expense comprises current tax and the net change in the deferred tax asset or liability during the year. Tax is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income.

a. Current Tax: The tax currently payable is based on taxable profit for the year. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Advance taxes and provisions for current income taxes are presented at net in the Balance Sheet after off-setting advance tax paid and income tax provision.

b. Deferred Tax: Deferred Tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Temporary differences arising as a result of changes in tax legislation. Accordingly, when additional temporary differences arise as a result of the introduction of a new tax, and not when an asset or a liability is first recognised, the deferred tax effect of the additional temporary differences should be recognised.

Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit and loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and loss are recognised immediately in statement of profit and loss.

i) . Financial Assets

Excluded are trade accounts receivables. At initial recognition trade accounts receivables (in accordance with Ind AS 115) are measured at their transaction price and subsequently measured at carrying value as of initial recognition less impairment allowance (if any).The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset, and financial guarantees not designated as at FVTPL. The expected credit loss approach requires that all impacted financial assets will carry a loss allowance based on their expected credit losses. Expected credit losses are a probability weighted estimate of credit losses over the contractual life of the financial assets.

For trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of Ind AS 115, the Company measures the loss allowance at an amount equal to lifetime expected credit losses. The impairment provisions for trade receivables is based on reasonable and supportable information including historic loss rates, present developments such as liquidity issues and information about future economic conditions, to ensure foreseeable changes in the customer-specific or macroeconomic environment are considered.

ii) . Financial Liabilities

All Financial Liabilities are recognised at fair value and in case of borrowings, net of directly attributable cost. Financial liabilities are subsequently measured at amortised cost using the effective interest method. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the ‘Finance costs’ line item.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts)

through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognised in the statement of profit and loss.

Financial Risk Management Objectives and Policies

The Company’s financial liabilities comprise mainly of borrowings, trade payables.

The Company’s financial assets comprise mainly trade receivables, cash and cash equivalents, other balances with banks.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies.

The Company’s activities expose it to market risk, credit risk and liquidity risk.

Market Risk

Market risk is the risk that the fair value of future cash flows of financial assets will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.

Credit Risk Management

Credit Risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to a credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits with banks and financial institutions, and other financial instruments.

Liquidity Risk Management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term investments provide liquidity in the short-term and long-term.

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Mar 31, 2024

2. MATERIAL ACCOUNITNG POLICIES

(a). Revenue Recognition

The Company earns revenue primarily by providing healthcare services and sale of
pharmaceutical products.

Revenue is recognised upon transfer of control of promised products or services to
customers in an amount that reflects the consideration which the Company expects
to receive in exchange for those products or services. When there is uncertainty on
ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.

a. Healthcare Service: Revenue primarily comprises fees charged for inpatient and
outpatient hospital services. Services include charges for accommodation, theatre, medical
professional services, equipment, radiology, laboratory and pharmaceutical goods used.The
performance obligations for this stream of revenue include accommodation, surgery,
medical/clinical professional services, supply of equipment, and supply of pharmaceutical
and related products. The patient is obligated to pay for healthcare services at
amounts estimated to be receivable based upon the Company''s standard rates or at rates
determined under reimbursement arrangements. The reimbursement arrangements are
generally withthird party administrators.

Revenue is recognised at the transaction price when each performance obligation is
satisfied at a point in time when inpatient/ outpatients has actually received the
service except for few specific services where the performance obligation is satisfied over a
period of time. Revenue from health care patients, third party payers and other
customers are billed at our standard rates net of contractual or discretionary
allowances, discounts or rebates to reflect the estimated amounts to be receivable
from these payers.

b. Pharmacy Sales: Pharmacy Sales where the performance obligation is satisfied at a
point in time, revenue is recognised when the control of goods is transferred to the
customer.

Interest income from a financial asset is recognised when it is probable that the
economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset''s net carrying amount on initial recognition. Revenue is
measured based on the transaction price, which is the fixed consideration adjusted for
discounts, estimated disallowances, amounts payable to customer in the nature of
commissions, principal versus agent considerations, loyalty credits and any other rights
and obligations as specified in the contract with the customer. Revenue al so excludes
taxes collected from customers and deposited back to the respective statutory
authorities.

(b). Property, Plant and Equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. These tangible assets are held for use in
production,supply of goods or services or for administrative purposes.

Cost comprises purchase cost (net of tax credits, wherever applicable) freight, duties
and other expenses directly incidental to acquisition, bringing the asset to the location
and installation including site restoration up to the time when the asset is ready for intended
use. Such costs also include borrowing cost if the recognition criteria are met.

Freehold land is not depreciated. Expenditure incurred after the property, plant and
equipment have been put into operation are normally charged to the statements of
profit and loss in the period in which the costs are incurred. Major inspection, repairs and
overhaul expenditure is capitalized if the recognition criteria are met. 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 recognized
netwithin other income in statement of profit and loss.

Depreciation: Depreciation on Property, Plant and Equipment is provided for on straight-
line-basis, over the useful life of the asset as provided by the Schedule II of the
Companies Act, 2013 or the rates derived based on the economic useful life of the asset
as technically ascertained by the management at the end of each financial year.

(c) . Capital Work - in- Progress

Amounts paid towards the acquisition of property, plant and equipment outstanding as
of each reporting date are recognized as capital advance and the cost of property, plant
and equipment not ready for intended use before such date are disclosed under capital
work- in-progress.

Commencement of Depreciation related to property, plant and equipment classified as
Capital work in progress (CWIP) involves determining when the assets are available for their
intended use. The criteria the company uses to determine whether CWIP are available
for their intended use involves subjective judgments and assumptions about the
conditions necessary for the assets to be capable of operating in the intended manner.

(d) . Leased Assets

Leases are classified as finance leases whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee. All other leases are
classified as operating leases.

The lease liability is initially measured at the present value of the lease payments that are
not paid at the commencement date, discounted by using the rate implicit in the lease.
If this rate cannot be readily determined, the Company uses its incremental borrowing
rate.

Rental income from operating leases is generally recognised on a straight-line basis over the
term of the relevant lease. Where the rentals are structured solely to increase in line
with expected general inflation to compensate for the Company''s expected inflationary
cost increases, such increases are recognised in the year in which such benefits accrue.

Initial direct costs incurred in negotiating and arranging an operating lease are added to
the carrying amount of the leased asset and recognised on a straight-line basis over the
lease term.

(e) . Borrowing Cost

Borrowings and Borrowing costs

Borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings are subsequently stated at amortised cost. Any difference between the proceeds
(net of transaction costs) and the redemption value is recognised in the statement of
profit and loss over the period of the borrowings using the effective interest rate
method. Borrowings are classified as current liabilities unless the Company has an
unconditional right to defer settlement of the liability for at least 12 months after the
reporting date.

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to
get ready for their intended use, are added to the cost of those assets, until such time
as the assets are substantially ready for their intended use.

Interest income earned on the temporary investment of specific borrowings pending
their expenditure on qualifying assets is deducted from the borrowing costs eligible for
capitalisation.

All other borrowing costs are recognised in statement of profit and loss in the period in
which they are incurred.

(f) . Inventories

Inventories of medical consumables, drugs and General stores are valued at cost or lower
of net realizable value. Net Realizable Value represents the estimated selling price in the
ordinary course of business less estimated costs necessary to make the sale. The cost of
inventories shall be assigned by using the first-in, first-out (FIFO) formula.

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Mar 31, 2015

A) Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, in accordance with the provisions of the Companies Act 2013 and the Companies {Accounting Standard) Rules 2006 (Indian GAAP) as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B) Use of Estimates

The preparations of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that effect the reported amounts of assets and liabilities of the financial statements and the reported amounts of revenues and expenses during the reporting period . Differences between actual results and estimates where ever recognized in the financial statements for period in which such results are known and being material.

C) Revenue Recognition

Income from Hospital collections including the Pharmacy sales are accounted for on accrual basis on raising the invoices and is exclusive of tax. The charges recoverable in respect of services rendered by the company to in-patients till the year end, and not due for billing has been treated as IP collections Accrued (pending bill) under "other Current assets".

D) Inventories

inventories are valued at cost or net realizable value whichever is lower under FIFO method. Inventories include Medicines, Lab Chemicals, Consumables stores and spares.

E) Fixed Assets

a) Owned Assets

Fixed assets are stated at cost less Accumulated depreciation. Costs incurred till the asset is ready for use are Capitalized/Allocated to various items of Fixed assets. The cost of improvement to Leased Assets are capitalized.

b) Leased Assets

Fixed assets acquired under Hire-Purchase agreements are capitalized to the extent of Principal value, while finance charges are charged to revenue on accrual basis.

c) Impairment of Assets

The carrying amount of assets are reviewed at each Balance sheet date to ascertain if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of such assets exceeds its recoverable value as contained in AS 28 (Impairment of Assets) issued by the Companies (Accounting Standard Rules), 2006. An impairment loss is charged to Profit & Loss Account in the year in which asset is identified as impaired. The impairment loss recognized during a prior period is reversed if there has been a change in the estimate of the recoverable amount.

d) Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such assets. All other borrowing costs are charged to revenue, during the period in which they are incurred.

F) Depreciation

Depreciation on fixed assets is provided for on straight-line basis, at the higher of the rates as specified in Schedule 11 to the Act or the rates derived based on the economic useful life of the asset as technically ascertained by the management. Cost of improvement to leased assets are amortized over the period of lease.

H) Employee Benefits

i) Defined Contribution Plan:

Provident Fund / Employee State Insurance Scheme

Contributions to Provident Fund and Employee State Insurance Schemes are made on monthly basis, at the rate prescribed by the Employees Provident Fund and Miscellaneous Provisions Act, 1971 and are charged to Profit and Loss Account in the year of contribution.

ii) Defined Benefit Plan: Gratuity

The accrued liability towards Gratuity due to the employees on their retirement is ascertained on Actuarial basis using projected unit credit method and balance in excess of fair value of plan assets as at the year end is duly provided for.

iii) Compensated absences Accrued Leave Accrued value of compensated absences is provided for based on actuarial valuations as at the year end and duly provided for.

I) Earnings Per Share

The number of shares used in computing basic earnings per share is the Weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises of Weighted average shares considered for deriving basic earnings per share and also the Weighted average number of shares, if any, which would have been issued on the conversion of all dilutive potential equity share.

J) Taxation

Provision for current tax is made in accordance with the Provisions of the Income tax Act, 1961. Timing differences between accounting income and taxable income capable of being reversed in subsequent years are recognized as Deferred Tax.

K) Provisions & Contingent Liabilities

Provisions are recognized when the company has a present obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are not recognized but are disclosed at their estimate value in the notes to the Accounts. Contingent Assets are neither recognized nor disclosed in the accounts.

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Mar 31, 2014

A) Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention, in accordance with the provisions of the Companies Act 1956 and the Companies (Accounting Standard) Rules 2006 (Indian GAAP) as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B) Use of Estimates

The preparations of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that effect the reported amounts of assets and liabilities of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates where ever recognized in the financial statements for period in which such results are known and being material.

C) Revenue Recognition

Income from Hospital collections including the Pharmacy sales are accounted for on accrual basis on raising the invoices and is exclusive of tax. The charges recoverable in respect of services rendered by the company to in-patients till the year end, and not due for billing has been treated as IP collections Accrued (pending bill) under "other Current assets".

D) Inventories

Inventories are valued at cost or net realizable value whichever is lower under FIFO method. Inventories include Medicines, Lab Chemicals, Consumables stores and spares.

E) Fixed Assets

a) Owned Assets

Fixed assets are stated at cost less Accumulated depreciation. Costs incurred till the asset is ready for use are Capitalized/Allocated to various items of Fixed assets. The cost of improvement to Leased Assets are capitalized.

b) Leased Assets

Fixed assets acquired under Hire-Purchase agreements are capitalized to the extent of Principal value, while finance charges are charged to revenue on accrual basis.

c) Impairment of Assets

The carrying amount of assets are reviewed at each Balance sheet date to ascertain if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of such assets exceeds its recoverable value as contained in AS 28 (Impairment of Assets) issued by the Companies (Accounting Standard Rules), 2006. An impairment loss is charged to Profit 6t Loss Account in the year in which asset is identified as impaired. The impairment loss recognized during a prior period is reversed if there has been a change in the estimate of the recoverable amount.

d) Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such assets. All other borrowing costs are charged to revenue, during the period in which they are incurred.

e) Depreciation

Depreciation on Fixed asset is provided on straight line method in accordance with the Schedule XIV of the Companies Act, 1956. Cost of improvement to leased assets are amortized over the period of lease.

F) Foreign Currency Transactions

Foreign Currency Transactions are recorded at the Exchange rates prevailing on the date of transaction. Monetary items appearing in the Balance sheet as at the year-end are converted at the exchange rate prevalent as on that date and the difference, if any, is charged/credited to Profit Et Loss A/c, as the case may be.

G) Employee Benefits

i) Defined Contribution Plan:

Provident Fund / Employee State Insurance Scheme

Contributions to Provident Fund and Employee State Insurance Schemes are made on monthly basis, at the rate prescribed by the Employees Provident Fund and Miscellaneous Provisions Act, 1971 and are charged to Profit and Loss Account in the year of contribution.

ii) Defined Benefit Plan:

Gratuity

The accrued liability towards Gratuity due to the employees on their retirement is ascertained on Actuarial basis using projected unit credit method and balance in excess of fair value of plan assets as at the year end is duly provided for.

iii) Compensated Absences Accrued Leave

Accrued value of compensated absences is provided for based on actuarial valuations as at the year end and duly provided for.

H) Earnings Per Share

The number of shares used in computing basic earnings per share is the Weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises of Weighted average shares considered for deriving basic earnings per share and also the Weighted average number of shares, if any, which would have been issued on the conversion of all dilutive potential equity share.

I) Taxation

Provision for current tax is made in accordance with the Provisions of the Income tax Act, 1961. Timing differences between accounting income and taxable income capable of being reversed in subsequent years are recognized as Deferred Tax.

J) Provisions 8t Contingent Liabilities

Provisions are recognized when the company has a present obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are not recognized but are disclosed at their estimate value in the notes to the Accounts. Contingent Assets are neither recognized nor disclosed in the accounts.

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Mar 31, 2012

A) Basis of Preparation of Financial Statements:

The financial statements are prepared under the historical cost convention, in accordance with the provisions of the Companies Act, 1956 and the Companies (Accounting Standards) Rules 2006, as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

B) Use of Estimates:

The preparation of the financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of income and expenditure for the year. Actual results could differ from these estimates. Any revision in accounting estimates are recognized in the period in which the results are known / materialized.

C) Revenue Recognition:

Income from Hospital collections including the Pharmacy sales are accounted for on accrual basis on raising the invoices and is exclusive of Tax. The charges recoverable in respect of services rendered by the Company to in-patients till the year end, and not due for billing has been treated as IP Collections Accrued (pending bill) under'Other Current Assets'.

D) Inventories:

Inventories are valued at cost or net realizable value whichever is lower under FIFO method. Inventories include Medicines, Lab Chemicals, Consumables stores and spares.

E) Cash Flow statement:

Cash flows from operating activities are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

F) Fixed Assets:

i) Owned Assets:

Fixed Assets are stated at cost less Accumulated Depreciation. Costs incurred till the asset is ready for use are Capitalized / Allocated to various items of Fixed Assets. The costs of improvement to Leased Assets are capitalized.

ii) Leased Assets:

Fixed Assets acquired under Hire- Purchase agreements are capitalized to the extent of principal value, while finance charges are charged to revenue on accrual basis.

iii) Impairment of Assets:

The carrying amounts of Assets are reviewed at each Balance Sheet date to ascertain if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of such asset exceeds its recoverable value as contained in AS 28 (Impairment of Assets) issued by the Companies (Accounting Standard Rules), 2006. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized during a prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

iv) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue, during the period in which they are incurred.

v) Depreciation:

Depreciation on Fixed Asset is provided on straight-line method in accordance with the Schedule XIV of the Companies Act 1956. Costs of Improvement to leased Assets are amortized over the period of the Lease.

G) Foreign Currency Transactions:

Foreign Currency transactions are recorded at the Exchange rates prevailing on the date of transaction. Monetary items appearing in the Balance Sheet as at the year-end are converted at the exchange rate prevalent as on that date and the difference, if any, is charged/credited to Profit and loss A/C, as the case may be.

H) Employee Benefits:

a. Defined Contribution

Contribution to the Provident Fund is made on monthly basis, at the rate prescribed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1971 and is charged to the Revenue. _

b. Defined Benefit

The Accrued liability towards gratuity due to employees on their retirement is ascertained on the basis of actuarial valuation as at the year end and duly provided for.

c. Compensated Absences

Liability towards Long Term Compensated absences is determined on the basis of actuarial valuation as at the year end and duly provided for.

I) Earnings Per Share:

The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of shares, if any, which would have been issued on the conversion of all dilutive potential equity shares.

J) Taxation:

Provision for Current Tax is made in accordance with the Provisions of the Income Tax Act, 1961. Timing differences between accounting income and taxable income capable of being reversed in subsequent years are recognized as Deferred Tax.

K) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an out flow of resources will be required to settle such obligation, in respect of which a reliable estimate can be made. Contingent Liabilities are not recognized but are disclosed at their estimated value in the notes to the Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

A) Basis Of Preparation Of Financial Statements:

The financial statements are prepared under the historical cost convention, in accordance with the provisions of the Companies Act, 1956 and the Companies (Accounting Standards) Rules 2006, as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

b) Use of Estimates:

The preparation of the financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amounts of income and expenditure for the year. Actual results could differ from these estimates. Any revision in accounting estimates are recognized in the period in which the results are known / materialized.

c) Revenue Recognition:

Income from Hospital collections including the Pharmacy sales are accounted for on accrual basis on raising the invoices and is exclusive of Value Added Tax (for pharmacy sales) and net of discounts. The service rendered by the Company to in-patients till the year end, and not due for billing has been treated as IP Collection Accrued (pending bill) underOther Current Assets.

d) Inventories:

Inventories are valued at cost or net realizable value whichever is lower. Inventories include Medicines, Lab Chemicals, Consumables stores and spares.

e) Cash Flow statement:

Cash flows from operating activities are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

f) Prior Period Items and Extraordinary Items:

Prior period items and extraordinary items are separately classified, identified and dealt with as required under Accounting Standard 5 on "Net Profit or Loss for the Period , Prior Period items and Changes in Accounting Policies" specified by the Companies (Accounting Standards) Rules, 2006.

g) Fixed Assets:

a) Fixed Assets:

Fixed Assets are stated at cost less Accumulated Depreciation. All costs including financial costs till the asset is ready for use are Capitalized / Allocated to various items of Fixed Assets. The costs of improvement to Leased Assets are capitalized.

Capital work-in-progress comprises of advances paid to acquire fixed assets and amounts expended on development/acquisition of fixed assets that are not yet ready for their intended use at the Balance sheet date. Expenditure during construction period incurred on projects pending implementation is included under capital work-in- progress.

b) Leased Assets:

Fixed Assets acquired under Hire-Purchase agreements are capitalized to the extent of principal value, while finance charges are charged to revenue on accrual basis.

c) Impairment of Assets:

The carrying amounts of Assets are reviewed at each Balance sheet date to ascertain if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of such asset exceeds its recoverable value as contained in AS 28 (Impairment of Assets) issued by the Companies (Accounting Standard Rules), 2006. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized during a prior accounting period is reversed if there has been a change in the estimate of the recoverable amount.

d) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue, during the period in which they are incurred.

e) Depreciation:

Depreciation on Fixed Asset is provided on straight-line method in accordance with the Schedule XIV of the Companies Act 1956. Costs of Improvement to leased Assets are amortized over the period of the Lease.

h) Foreign Currency Transactions:

Foreign Currency transactions are recorded at the Exchange rates prevailing on the date of transaction. Monetary items appearing in the Balance Sheet as at the year-end are converted at the exchange rate prevalent as on that date and the difference, if any, is charged/credited to Profit and loss A/C, as the case may be.

i) Employee Benefits:

a. Defined Contribution

Contribution to the Provident Fund is made on monthly basis, at the rate prescribed by the Employees Provident Fund and Miscellaneous Provisions Act, 1971 and is charged to the Revenue.

b. Defined Benefit

The Accrued liability towards gratuity due to employees on their retirement is ascertained on the basis of actuarial valuation as at the year end and duly provided for.

c. Compensated Absences

Liability towards Long Term Compensated absences is determined on the basis of actuarial valuation as at the year end and duty provided for.

j) Earnings Per Share

The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of shares, if any, which would have been issued on the conversion of all dilutive potential equity shares.

k) Taxation:

Provision for Current Tax is made in accordance with the Provisions of the Income Tax Act, 1961. Timing differences between accounting income and taxable income capable of being reversed in subsequent years are recognized as Deferred Tax.

l) Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an out flow of resources will be required to settle such obligation, in respect of which a reliable estimate can be made. Contingent Liabilities are not recognized but are disclosed at their estimated value in the notes to the Accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.