Sangani Hospitals Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

i. Basis of Accounting:

a. The financial statements are prepared under the historical cost convention, in accordance
with applicable accounting standards specified under Section 133 of the Companies Act,
2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant
provision of the Companies Act, 2013.

b. The accounts have been prepared on a going concern basis under historical cost
convention.

c. Accounting policies not specifically referred to otherwise are in consonance with
generally accepted accounting principles followed by the Company.

ii. Property, Plant and Equipment:

a. Fixed assets are carried at cost of acquisition less accumulated depreciation.

b. The cost of fixed assets comprises the purchase price (net of rebates and discounts) and
any other directly attributable costs of bringing the assets to their working condition for
their intended use.

iii. Depreciation:

a. Depreciation on fixed assets is being provided on Straight Line Method as per the useful
life prescribed in Schedule II of the Companies Act, 2013.

b. Depreciation in respect of addition to fixed assets is provided on pro-rata basis from
month to month in which such assets acquired/installed.

c. Depreciation on fixed assets sold, discarded or demolished during the year is being
provided at their respective rate upto the month in which such assets are sold, discarded
or demolished.

iv. Taxation:

a. Current tax:

Provision for current tax is made on the estimated taxable income at the rate applicable
to the relevant assessment year.

b. Deferred tax:

Deferred tax charge or benefit reflects the tax effects of timing differences between
accounting income and taxable income, which originate during the year but reverse in
subsequent years.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets
are recognised using the tax rates that have been enacted or substantially enacted by the
balance sheet date.

v. Revenue Recognition:

a. Sales of pharmacy products are exclusive of GST and are stated net of discounts. Sale of
pharmacy products is recognized when risk and rewards of ownership of the products
are passed on to the customers, which is generally on dispatch of goods. Returns against

sales and price difference are recognized as and when ascertained and are netted from
the amount of sales for the year.

b. Revenue from hospital services to patients is recognized as revenue when the related
services are rendered. Revenue is recognized net of discounts and concessions given to
the patients.

vi. Inventories:

Inventories are valued at lower of cost (FIFO) basis or net realizable value

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Mar 31, 2024

1. SIGNIFICATON ACCOUNTING POLICIES:a) Basis of accounting and preparation of consolidated financial statements:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India under the historical cost convention on accrual basis and in accordance with Accounting Standards prescribed under section 133 of the companies Act, 2013.

The consolidated financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year. In the opinion of the Management, based on the analysis of the significant transactions at subsidiary, no material adjustments are required to be made to comply with group accounting policies / Indian GAAP.

Subsidiary Sr. No. Name of the Firm	Percentage of holding
1 Ankur distributers	95.00%

b) Principles of consolidation

1. The Financial statements of the company and its Subsidiary firm combined on a line-by-line basis by adding together the book values of like items of assets, liabilities, incomes and expenses, after eliminating material intragroup balances and intra-group transactions resulting in unrealized profits or losses in accordance with Accounting Standard-21 (AS21) “Consolidated Financial Statements”.

2. As far as possible, the consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and appropriate adjustments are made to the financial statements of the subsidiary firm when they are used in preparing the consolidated financial statements that are presented in the same manner as the Company’s separate financial statements.

3. The difference between the cost of investment in the subsidiary firm over the net assets at the time of acquisition of shares in the joint ventures is recognized in the financial statements as Goodwill or Capital Reserve as the case may be.

c) System of accounting and use of estimates:

I. The Company follows the mercantile system of accounting and recognizes

income & expenditure on an accrual basis except in case of significant uncertainties.

II. Financial statements are prepared under the historical cost convention. These

costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

III. Estimates and assumptions used in the preparation of the financial statements

and disclosures are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.

d) Property, Plant and Equipment:

a. Fixed assets are carried at cost of acquisition less accumulated depreciation.

b. The cost of fixed assets comprises the purchase price (net of rebates and discounts) and any other directly attributable costs of bringing the assets to their working condition for their intended use.

e) Depreciation:

a. Depreciation on fixed assets is being provided on Straight Line Method as per the useful life prescribed in Schedule II of the Companies Act, 2013.

b. Depreciation in respect of addition to fixed assets is provided on pro-rata basis from month to month in which such assets acquired/installed.

c. Depreciation on fixed assets sold, discarded or demolished during the year is being provided at their respective rate upto the month in which such assets are sold, discarded or demolished.

f) Taxation:

a. Current tax:

Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b. Deferred tax:

Deferred tax charge or benefit reflects the tax effects of timing differences between accounting income and taxable income, which originate during the year but reverse in subsequent years.

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantially enacted by the balance sheet date.

g) Revenue Recognition:

- Sales of pharmacy products are exclusive of GST and are stated net of discounts. Sale of pharmacy products is recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. Returns against sales and price difference are recognized as and when ascertained and are netted from the amount of sales for the year.

- Revenue from hospital services to patients is recognized as revenue when the related services are rendered. Revenue is recognized net of discounts and concessions given to the patients.

h) Inventories:

Inventories are valued at lower of cost (FIFO) basis or net realizable value

i) Provisions and contingencies:

a. A provision is recognised when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on management best estimates of the expenditure required to settle the obligation as at the balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate of each such obligation.

b. A contingent liability is disclosed when there is a possible or present obligation that may, but probably will not require an outflow of resources, unless the possibility of such outflow is remote.

c. Contingent Assets are neither recognised nor disclosed.

j) Earnings per Share:

Basic earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the net profit after tax attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, if any.

24. The Company is into the business of Hospitals, pathological laboratory and Pharmacy stores at Keshod and Veraval location in Gujarat. The Company has been incorporated on November 11, 2021.

25. The Company came with an Initial Public Offer of equity shares on 4^th August, 2023 and closed on 8^th August, 2023. The Initial Public Offer was for 37,92,000 equity shares of face value of Rs. 10 each at premium of Rs. 30 per share aggregating to INR 1516.80 lakhs. The shares of the Company were listed on the National Stock Exchange of India Limited, Emerge Platform on 17^th August ,2023.

26. Related party Disclosers as required by AS 18 of the Institute of Chartered Accountants of India is as follows:

? Directors Of The Company

i. Ajaykumar Natwarlal Sangani - Managing Director

ii. Rajeshkumar Natvarlal Sangani - Whole Time Director

iii. Kamalkumar Natvarlal Sangani - Whole time Director

iv. Vaishaliben Rajeshkumar Sangani - Director

? Key Management Personnel:

1. Ajaykumar Natwarlal Sangani - Managing Director

2. Rajeshkumar Natvarlal Sangani - Whole Time Director

3. Kamalkumar Natvarlal Sangani - Whole time Director

4. Vaishaliben Rajeshkumar Sangani - Director

5. Chandniben Ajaykumar Sangani - Chief Financial officer

6. Gaurav Patadia - Company Secretary

? Relatives of the Director/s:

i. Gopiben Kamalkumar Sangani - Wife of Kamalkumar Natvarlal Sangani

ii. Natvarlal Sangani - Father of Ajaykumar Natwarlal Sangani

? Relatives of the Partner’s

i. Premkuvarben Vallabhdas - Mother of Rasilaben Sangani

? Enterprise over which Key Management Personnel exercise significant influence:

Ankur Distributors - Subsidiary firm holding 95% of the Capital Related Party Transactions: