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Notes to Accounts of Dr. Agarwal's Eye Hospital Ltd.

Mar 31, 2015

1) Corporate Information:

Dr. Agarwal's Eye Hospital Limited ('the Company') was incorporated on April 22, 1994 under the provisions of Companies Act, 1956. The Company is primarily engaged in running, owning and managing eye care hospitals, Opticals, Pharmacy along with various other objectives like rendering hospital services in all branches of medical sciences both in India, carrying out medical research activities, etc. As at March 31, 2015, the Company is operating with 21 branches and one main hospital in India.

As on March 31, 2015, Dr.Agarwal's Health Care Limited is holding 71.75% of the Company's Equity share capital and has the ability to control its operating and financial policies.

2. Earnings in Foreign currency towards Consultancy Services during the year amounts to Rs.140.82 Lacs (P.Y. Rs.23.36 Lacs)

3. The information required to be disclosed under the Micro, Small and Medium Enterprises Development (MSMED) Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There has been no overdues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

4. Deferred Tax Asset has been recognized for the current year for Rs.48.59 Lacs and pertaining to prior years for Rs. 215.28 Lacs as there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. .

5. Impairment of Assets

As per the assessment conducted by the Company as at March 31,2015, there are no indications that the relevant assets have suffered an impairment loss. (P.Y. Rs.1.94 Lacs)

6. The CIF value of Import of Equipment during the year is Rs.299.00 Lacs. (P.Y. Rs.Nil)

7. Disclosure in respect of Leases pursuant to Accounting Standard (AS 19) "Leases":

The Company has taken various commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry. The Lease rental expense incurred in respect of operating leases is Rs.1,459.33 lacs. (P.Y. Rs.1,378.82 lacs)

8. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances is Rs.211.00 Lacs. (P.Y. Rs.57.88 Lacs)

9. The Company has incurred Rs.160.00 Lacs as contribution towards Scientific Research of Eye Research Centre during the year (P.Y. Rs.240.08 Lacs)

10. Employee Benefits

a) The Company makes Provident Fund and Pension Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.90.41 Lacs (Previous Year - Rs.88.18 Lacs) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

Notes:

1) The expected return on plan assets is as furnished by Life Insurance Corporation of India (LIC).

2) The entire Plan Assets are managed by LIC, the Insurer. The details with respect to the composition of investments in the fair value of Plan Assets have not been disclosed in the absence of the necessary information.

3) The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors.

4) Discount rate is based on the prevailing market yields of Indian Government Bonds as at the Balance Sheet date for the estimated term of the obligation.

11. Related Party Disclosures

A) Related parties and their relationship

1. Holding Company

- Dr.Agarwal's Health Care Limited.

2. Enterprises in which Individuals referred below in 3 have significant influence

- Orbit International

- Orbit Health Care Services Limited, Mauritius

- Dr.Agarwal's Eye Institute

3. Key Management Personnel

- Dr.Amar Agarwal - Chairman and Managing Director

- Dr.Athiya Agarwal - Director

- Dr.Adil Agarwal - Director

- Dr.Anosh Agarwal - Director

- Mr. S. Ramanujam - Company Secretary

- Mr. R. Sabesan - Chief Financial Officer

- Related Party relationships are as identified by the Management and relied upon by the Auditors.

12. Un-Hedged Foreign Currency Exposure as at the Balance Sheet date

The Company does not use any derivative instruments to hedge its foreign currency exposures. Further, the Company has unhedged foreign currency receivable exposure of Rs.77.31 Lacs as at March 31, 2015. (Rs.53.98 Lacs as at March 31,2014)

13. Previous year figures have been recast / restated to conform to the classification of the current year.


Mar 31, 2014

1) Corporate Information:

Dr. Agarwal''s Eye Hospital Limited (''the Company'') was incorporated on April 22, 1994 under the provisions of Companies Act, 1956. The Company is primarily engaged in running, owning and managing eye care hospitals, Opticals, Pharmacy along with various other objectives like rendering hospitality services in all branches of medical sciences both in India and abroad, carrying out medical research activities, etc. As at March 31,2014, the Company is operating with 22 branches and one main hospital in Tamilnadu.

As on March 31, 2014, Dr.Agarwal''s Health Care Limited owned 71.75% of the Company''s Equity share capital and has the ability to control its operating and financial policies.

2. Expenditure incurred in foreign currency during the year is Rs. Nil (P.Y. Rs.14.10 Lacs).

3. Earnings in Foreign currency towards Consultancy Services and other Surgeries during the year amounts to Rs.23.36 Lacs (P.Y. Rs.178.46 Lacs)

4. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. There has been no overdues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

5. Deferred Tax Asset has not been recognized as there is no reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

6. Impairment of Assets

On a review as required by AS 28, the amount of Impairment loss charged to Profit & Loss A/c during the F.Y.2013-14 is Rs. 1.94 Lacs (P.Y. Rs. 2.38 Lacs)

7. Intangible Assets

As per AS 26, 1/10th of Goodwill amounting to Rs.23.61 Lacs has been amortized during the year. (P.Y.Rs.22.86 Lacs)

8. The CIF value of Imports during the year is Rs. Nil. (P.Y. Nil)

9. Disclosure in respect of Leases pursuant to Accounting Standard (AS 19) "Leases":

The Company has taken various commercial premises under cancellable operating leases. These lease agreements are normally renewed on expiry. The Lease rental expense incurred in respect of operating leases is Rs. 1378.82 lacs. (P.Y. Rs. 1323.60 lacs)

10. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances is Rs.57.88 Lacs. (P.Y. Rs.20.57 Lacs)

11. The Company has incurred Rs.239.68 Lacs as contribution towards Scientific Research of Eye Research Centre during the year (P.Y. Rs. 200.41Lacs)

12. The overdue Trade Receivables and Advance Recoverable from others as on 31/03/2014 amounts to Rs. 1.84 Crore and Rs.80.34 Lakhs respectively. The Company is in the process of obtaining confirmation of these dues and also taking steps for recovering the same.

13. Segment reporting made in accordance with Accounting Standard AS 17 with business as the primary segment

14. Related Party Disclosures

A) Related parties and their relationship

1. Holding Company

Dr.Agarwal''s Health Care Limited.

2. Group Companies with whom the company has transactions

Orbit International

Orbit Health Care Services Limited, Mauritius

Dr.Agarwal''s Eye Institute

Dr.Agarwal''s Opticals Limited

3. Key Management Personnel

Dr.Amar Agarwal

Dr.Athiya Agarwal

Dr.Adil Agarwal

Dr.Anosh Agarwal

* Related Party relationships are as identified by the Management and relied upon by the Auditors.

15. Contingent Liabilities (Rs. in Lacs)

Particulars As at March 31, 2014 As at March 31, 2013

Claims against the Company not acknowledged as debt Nil Nil

Income Tax demands 83.46 67.34

Indirect Tax demands 30.59 Nil

16. Un-Hedged Foreign Currency Exposure as at the Balance Sheet date

The Company does not use any derivative instruments to hedge its foreign currency exposures. Further, the Company does not have unhedged foreign currency balances as at March 31, 2014 and March 31, 2013.

17. Previous year figures have been recasted/restated to conform to the classification of the current year.


Mar 31, 2013

1. Expenditure incurred in foreign currency towards Foreign travel, Subscription for magazines, Membership fees during the year amounts to Rs.14,09,719/- (P.Y. Rs. 4,16,735/-).

2. Earnings in Foreign currency towards Consultancy Services and other Surgeries during the year amounts to Rs. 1,78,46,233/- (P.Y. Rs. 1,48,43,470/-)

3. The CIF value of Machinery imported during the year is Rs.Nil /- (RY. Rs. 1,73,47,762/-).

4. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. There has been no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

5. Deferred Tax Asset has not been recognized as there is no reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

6. Impairment of Assets

On a review as required by AS 28, the amount of Impairment loss charged to Profit & Loss A/c during the F.Y.2012 -13 is Rs.2,37,575/- (P.Y Rs. 1,91,380/-)

7. Intangible Assets

As per AS 26, 1/10th of Goodwill amounting to Rs.22,85,992/- has been amortized during the year. (P.YRs.22,83,328/-)

8. Claims against the Company not acknowledged as debt is Rs. Nil.

9. Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Net of Advances is Rs. 20,57,214/- (P.Y Rs. Nil /-)

10. The Company has incurred Rs.2,00,40,946/- as contribution towards Scientific Research of Eye Research Centre during the year (Previous Year : Rs. Nil)

11. Related Party Disclosures

A) Related parties and their relationship

1. Holding Company

- Dr.Agarwal''s Health Care Limited.

2. Group Companies with whom the Company has transactions

- Orbit International

- Dr.Agarwal''s Eye Institute

- Senses Pharmaceuticals Limited

- Dr.Agarwal''s Opticals Limited

3. Key Management Personnel 3> Dr.Amar Agarwal

- Dr. Athiya Agarwal <$> Dr. Adil Agarwal

12. Previous year figures have been recasted/restated to conform to the classification of the current year.


Mar 31, 2012

1) Expenditure incurred in foreign currency towards Foreign travel, Subscription for magazines, Membership fees during the year amounts to Rs.4,16,735/- (P.Y. Rs. 34,81,750/-)

2) Earnings in Foreign currency towards Consultancy Services and other Surgeries during the year amounts to Rs.1,48,43,470/- (P.Y. Rs. 11,87,013/-)

3) The CIF value of Machinery imported during the year is Rs.1,73,47,762/- (P.Y. Rs.34,27,734/-).

4) Total number of Managing and Whole-time Directors is Four. Remuneration drawn for the F.Y.2011 - 12 is Rs.1,14,50,000/- (P.Y Rs.1,21,00,000/-).

5) The information required to be disclosed under the Micro, Small and Medium enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There has been no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

6) Deferred Tax Asset has not been recognized as there is no reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

7) Impairment of Assets

On a review as required by AS 28, the amount of Impairment loss charged to Profit & Loss A/c during the F.Y.2011 -12 is Rs. 1,91,380/- (P.Y Rs.36,02,939/-)

8) Intangible Assets

As per AS 26, 1/10th of Goodwill amounting to Rs.22,83,328/- has been amortized during the year. (P.Y.Rs.22,83,328/-)

9) Claims against the Company not acknowledged as debt is Rs. Nil

10. These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous year figures have been recasted/ restated to confirm to the classification of the current year.


Mar 31, 2010

1. Previous year figures have been regrouped wherever necessary.

2. Expenditure incurred in foreign currency towards foreign travel, subscription for magazines, membership fees, repairs & maintenance, consumables and advertisement during the year amounts to Rs.25,71,653/ - (P.Y. Rs.34,45,200/- ).

3. The CIF value of Machineries imported during the year is Rs.1,34,22,286 /- (P.Y. Rs.1,16,54,691/-).

4. Total number of Managing and Whole-time Directors is Three.

Remuneration drawn Rs. 78,75,000/- (Minimum remuneration)

Since the remuneration is within the limits and in accordance with Schedule XIII, computation of remuneration under sec. 198 and sec 349 of Companies Act, 1956 has not been given.

5. The information required to be disclosed under the Micro, Small and Medium enterprises Development Act 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. There has been no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

6. Deferred Tax Asset has not been recognized as there is no reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

7. Impairment of Assets

During the year on a review as required by AS 28, the amount of Impairment loss charged to Profit & Loss A/c is Rs.30,13,536/- 10. Intangible Assets

As per AS 26, 1/10th of Goodwill amounting to Rs.21,85,412/- has been amortized during the year.

8. Due to change in accounting policy, the improvements made to Leasehold Buildings during the year amounting to Rs.1,91,39,316/- has been capitalized. Till last year, such expenses were charged to Profit & Loss A/c as Interior Decoration Expenses.

9. Claims against the company not acknowledged as debt is Rs. Nil.