Home  »  Company  »  Kovai Medical  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Kovai Medical Center and Hospital Ltd. Company

Mar 31, 2016

A. Nature of Operations

Kovai Medical Center and Hospital Limited was incorporated in the year 1985 and commenced its hospital operation in the year 1990 with the flagship of Multi-Specialty Hospital at Coimbatore and has thereafter set up the City Center, Erode Center, Erode Specialty and Sulur Hospital. The company''s equity shares are listed on Bombay Stock Exchange.

B. SIGNIFICANTACCOUNTING POLICIES:

(i) BASISOFPREPARATION

The financial Statements have been prepared to comply in all material respects with the accounting standards specified under section 133 of the Companies Act read with rule 7 of the companies (Accounting Standards) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The Financial Statements have been prepared under the historical cost convention on an accrual basis. This accounting policy has been consistently applied by the company with those used in the previous year.

(ii) USEOFESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(iii) FIXEDASSETS

Fixed Assets are stated at original cost net of tax / duty credits availed, if any, less accumulated depreciation, amortization and impairment. Cost includes preoperative expenses and all expenses related to acquisition and installation of the concerned assets.

(iv) BORROWINGCOSTS

Borrowing costs include interest and other costs incurred in connection with borrowing of funds. Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All the other borrowing costs are charged to revenue. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

(v) IMPAIRMENTOFASSETS

The carrying amounts of assets are reviewed, as at each balance sheet date, to determine if there is any indication of impairment based on internal / external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. The recoverable amount is greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows as a cash generating unit are discounted to the present value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss for an asset is reversed if, and only if, the reversal can be related objectively to an event occurring after the impairment loss was recognized.

The carrying amount of an asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

(vi) INVESTMENTS

Current Investments are carried at lower of cost and market value. Long Term Investments are stated at cost. Provisions for diminution in value of long-term investments are made, if the diminution is other than temporary.

(vii) DEPRECIATION ANDAMORTIZATION

Depreciation is provided on Straight Line Method in the manner and at the useful life as specified in Schedule II to the Companies Act, 2013. Where the cost of part of the asset is significant to the total cost of the asset and if the part of the asset has a different useful life than the main asset, useful life of that part is determined separately for depreciation. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the assets are available to the company for its use.

(viii) LEASES

Where the company is the lessee;

Leases where the lesser effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

Where the company is the lesser;

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Asset subject to operating leases are included in fixed assets. Lease income on an operating lease is recognized in the statement of Profit and Loss on a straight-line basis over the lease term. Costs, including depreciation, are recognized as an expense in the statement of profit and loss.

(ix) INVENTORIES

a) Inventories are valued at lower of cost and estimated net realizable value.

b) Cost is arrived at on First-in-First Out (FIFO) basis.

(x) FOREIGNCURRENCYTRANSACTIONS

a) Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction.

b) Foreign currency monetary items are reported using closing foreign exchange rate. Nonmonetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of transaction.

c) Exchange differences arising on the settlement of monetary items or on reporting companys monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

d) Premium or discount on forward exchange contracts arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.

(xi) REVENUERECOGNITION

Revenue is recognized to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured.

Operating Income

a) The income by way of Doctors'' Consultancy Fees and the consequent liability towards Doctor''s consultation charges are considered as accrued as and when the amounts are finalized and certainty of recovery from Patients is established.

b) The insurance claims are accounted as and when the claims are settled or accepted by the insurance company whichever is earlier.

c) Revenue from sale of dietary items / pharmacy items are recognized as and when the services are rendered /goods sold.

Income from Sponsorships

Revenue is recognized as and when the services are rendered at the centre.

Income from Academic services

Revenue is recognized on pro-rata basis on the completion of such services over the duration of the program.

Income from Interest/dividend

a) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

b) Dividend income is recognized as and when the right to receive payment is established.

(xii) TAXESONINCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on the expected outcome of assessments/appeals.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal income tax during the specified period

(xiii) RETIREMENTBENEFITS

a) Payments to defined contribution schemes are charged as expense as and when incurred.

b) Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance sheet date using the projected unit credit method.

c) Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the Statement of Profit and Loss in the period in which they arise.

d) Post employment and other long term benefits which are defined benefit plans are recognized based on the present value of the obligation determined in accordance with Accounting Standard (AS) -15 on "Employee Benefits".

(xiv) PROVISIONS

A provision is recognized when an enterprise has a present obligation as a result of past event 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 best estimate required to settle the obligation at the balance sheet date. These are reviewed at each Balance sheet date and adjusted to reflect the current best estimates.

(xv) CONTINGENTLIABILITIES

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

(xvi) EARNINGSPERSHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes if any) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares (if any) are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to existing shareholders; share split; and consolidation of shares if any. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(xvii) CASHANDCASH EQUIVALENTS

Cash flow is reported using indirect method, whereby net profit before tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flow comprises regular revenue generating, investing and financing activities of the company. Cash and cash equivalents in the balance sheet comprise of cash at bank and in hand and short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. The company considers all highly liquid investments with a initial maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.


Mar 31, 2015

A. Nature of Operations

Kovai Medical Center and Hospital Limited was incorporated in the year 1985 and commenced its hospital operation in the year 1990 with the flagship of Multi-Speciality Hospital at Coimbatore and has thereafter set up the City Center, Erode Center and Erode speciality hospitals. The company's equity shares are listed on both Bombay Stock Exchange and Madras Stock Exchange.

(I) USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Althought these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

(ii) ACCOUNTING CONVENTION

The Financial statements have been prepared to comply in all material respects with the accounting standards specified under section 133 of the Companies Act read with rule 7 of the companies (Accounting Standards) Rules, 2014 and the relevant provisions of the companies Act, 2013. The Financial Statements have been prepared under the historical cost convention on an accrual basis. This accounting policy has been consistently applied by the company with those used in the previous year.

(iii) FIXED ASSETS

Fixed Assets are stated at original cost net of tax / duty credits availed, if any, less accumulated depreciation, amortization and impairment. Cost includes preoperative expenses and all expenses related to acquisition and installation of the concerned assets.

(iv) BORROWING COSTS

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All the other borrowing costs are charged to revenue. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

(v) IMPAIRMENT OF ASSETS

As at each Balance Sheet date, the carrying amount of fixed assets is tested for impairment so as to determine;

(a) the provision for impairment loss, if any, required or

(b) the renewal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

(vi) INVESTMENTS

Current Investments are carried at lower of cost and market value. Long Term Investments are stated at cost. Provisions for diminution in value of long-term investments are made, if the diminution is other than temporary.

(vii) DEPRECIATION AND AMORTIZATION

Depreciation is provided on Straight Line Method in the manner and at the useful life specified in Schedule II to the Companies Act, 2013. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the assets are available to the Company for its use.

(viii) LEASES

Where the company is the lessee:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.

Where the company is the lessor:

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Asset subject to operating leases are included in fixed assets. Lease income on an operating lease is recognised in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognised as an expense in the statement of profit and loss.

(ix) INVENTORIES

(a) Inventories are valued at lower of cost and estimated net realizable value.

(b) Cost is arrived at on First-in-First Out (FIFO) basis. (x) FOREIGN CURRENCY TRANSACTIONS

(a) Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

(b) Foreign Currency monetary assets and liabilities at the year end are realigned to the exchange rate prevailing at the year end and the difference on realignment is recognized in the Statement of Profit and Loss.

(c) Non-monetary foreign currency items are carried at cost.

(xi) REVENUE RECOGNITION

Income and Expenditure are generally accounted on accrual basis except those with significant uncertainties.

Operating Income

(a) The income by way of Doctors' Consultancy Fees and the consequent liability towards Doctors' consultation charges are considered as accrued as and when the amounts are finalized and certainty of recovery from Patients is ascertained.

(b) The insurance claims are accounted as and when the claims are settled or accepted by the insurance company whichever is earlier.

(c) Revenue from sale of dietary items / pharmacy items are recognised as and when the services are rendered/goods sold.

Income from Sponsorships

Revenue is recognised as and when the services are rendered.

Income from Academic services

Revenue is recognised on pro-rata basis on the completion of such services over the duration of the program.

Income from Interest/dividend

(a) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

(b) Dividend income is recognised as and when the owners' right to receive payment is established.

(xii) TAXES ON INCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on the expected outcome of assessments/appeals.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable / Virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal income tax during the specified period

(xiii) RETIREMENT BENEFITS

a) Payments to defined contribution schemes are charged as expense as and when incurred.

b) Post employment and other long term benefits which are defined benefit plans are recognized based on the present value of the obligation determined in accordance with Accounting Standard (AS) -15 on "Employee Benefits".

(xiv) PROVISIONS

A provision is recognised when an enterprise has a present obligation as a result of past event 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 best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(xv) CONTINGENT LIABILITIES

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements.


Mar 31, 2014

A. NATUREOFOPERATIONS

Kovai Medical Center and Hospital Limited was incorporatedinthe year 1985 and commenced its hospital operation in the year 1990 with the flagship of Multi-Speciality Hospital at Coimbatore and has thereafter set up the City Center, Erode Center and Erode speciality hospitals. The company''s equity shares are listed on both Bombay Stock Exchange and Madras Stock Exchange.

(i) USEOFESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets orliabilities infuture periods.

(ii) ACCOUNTINGCONVENTION

The Financial statements have been prepared under the Historical Cost Convention, under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the Mandatory Accounting Standards as notified under the Companies (Accounting Standards) Rules, 2006 and according to the provisions of the Companies Act, 1956.

(iii) FIXED ASSETS

Fixed Assets are stated at original cost net of tax / duty credits availed, if any, less accumulated depreciation, amortization and impairment. Cost includes preoperative expenses and all expenses related toacquisition and installation of the concerned assets.

(iv) BORROWINGCOSTS

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All the other borrowing costs are charged to revenue. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended useor sale.

(v) IMPAIRMENTOFASSETS

As at each Balance Sheet date, the carrying amount of fixed assets is tested for impairment soastodetermine.

a) the provision for impairment loss, ifany, required or

b) the renewal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

(vi) INVESTMENTS

Current Investments are carried at lower of cost and market value. Long Term Investments are stated at cost. Provisions for diminution in value of long-term investments are made, if the diminution isother than temporary.

(vii) DEPRECIATIONANDAMORTIZATION

Depreciation is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the assets are available to the company for its use.

(viii) LEASES

Wherethe companyisthelessee

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight- line basis over the lease term.

Wherethe companyisthelessor

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Asset subject to operating leases are included in fixed assets. Lease income on an operating lease is recognised in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation, are recognised as anexpensein the statement of profit and loss.

(ix) INVENTORIES

a) Inventories are valued at lower of cost and estimated net realizable value.

b) Costis arrived at onFirst-in-First Out (FIFO) basis.

(x) FOREIGNCURRENCYTRANSACTIONS

a) Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

b) Foreign Currency monetary assets and liabilities at the year end are realigned to the exchange rate prevailing at the year end and the difference on realignment is adjusted in the cost of the respective assets.

c) Non-monetary foreign currency items are carried atcost.

(xi) REVENUERECOGNITION

Income and Expenditure are generally accounted on accrual basis except those with significant uncertainities.

Operating Income

a) The income by way of Doctors'' Consultancy Fees and the consequent liability towards Doctor''s consultation charges are consideredas accruedas and when the amounts are finalized and certainity of recovery from Patients is ascertained.

b) The insurance claims are accounted as and when the claims are settled or accepted bythe insurance company whichever isearlier.

c) Revenue from sale of dietary items / pharmacy items are recognised as and when the services are rendered/goods sold.

Income fromSponsorships

Revenueisrecognisedas and when the services are rendered atthe center.

Income fromAcademic services

Revenue is recognised on pro-rata basis on the completion of such services over the durationofthe program.

Income fromRent

Revenue is recognised in accordance with the terms of lease agreements entered into with the respective lessees on straight line basis.

Income from Interest/dividend

a) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

b) Dividend income is recognised as and when the right to receive Dividend is established.

(xii) TAXESONINCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and basedonthe expectedoutcomeofassessments/appeals.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as onthe Balance Sheet date.

Deferred tax asset on carry forward of losses are recognized only when there is virtual certainity that future taxable income will be available against which such deferred tax asset canberecognized.

(xiii) RETIREMENTBENEFITS

a) Payments to defined contribution schemes are charged as expense as and when incurred.

b) Post employment and other long term benefits which are defined benefit plans are recognized based on the present value of the obligation determined in accordance with Accounting Standard (AS) - 15 on "Employee Benefits".

(xiv) PROVISIONS

A provision is recognised when an enterprise has a present obligation as a result of past event 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 best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted toreflect the current best estimates.

(xv) CONTINGENTLIABILITIES

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements.

A. Security Particulars of Secured Loans

i. The term loans availed from Indian Bank and Indian Overseas Bank are primarily Secured by:

a) Pari passu first charges on the Land and appurtenances therewith located at Kalapatti Village at Coimbatore and land locatedatErode.

b) Pari passu chargeonthe entire Fixed Assets (Present&Future)ofthe Company.

c) Charge on the leasehold rights of the building at Erode in the name of M/s. Idhayam Hospitals Erode Limited, Erode.

d) Charge on the leasehold rights of the medical equipments in the name of M/s. Idhayam Hospitals Erode Limited, Erode.

The above facilities are also collaterally secured by a pari passu second charge on the entire current assets of theCompany.

ii. In addition to the above, the subsidiary Company has given corporate guarantee to the limits availed by the Company.

iii. The term loans and working capital facilities are further guaranteed by the personal guarantees of the Chairman and Managing Director and Vice Chairman and Joint Managing Director of the Company. The term loans carries interest rates varying from 12.45% to 12.50% per annum.

iv. Secured Loans from others represent Hire Purchase loans from SREI Equipments Finance Pvt Ltd secured by hypothecationofassetspurchased anditcarries interest rates varying from 6.80% to 8.70% per annum.

B. Repayment Details :

i. Secured Loans from Indian Bank

(a) Term Loan (Revolving Limit )- The loan is repayable in 8 monthly instalments aggregating to Rs. 72.73 Lacs (Previous Year : Rs.181.82 Lacs).

(b) Term Loan(Subordinate Loan) -The loan is repayable in 72 monthly instalments aggregating to Rs. 326.10 Lacs (Previous Year : Rs.380.70Lacs).

(c) Term Loan (I Phase) - The loan is repayable in 72 monthly instalments aggregating to Rs. 2,254.48 Lacs (Previous Year : Rs.2,576.56 Lacs ).

(d) Term Loan (II Phase) - The loan is repayable in 72 monthly instalments aggregating to Rs. 2,062.50 Lacs (Previous Year : Rs.2,271.50 Lacs ).

(e) Term Loan (III Phase) - The loan is repayable in 72 monthly instalments aggregating to Rs. 1,554.00 Lacs (Previous Year : Rs.1,739.00 Lacs ).

(f) Term Loan (Additional Loan) - The loan is repayable in 68 monthly instalments aggregating to Rs. 2,600.00 Lacs (Previous Year : Rs.2,900.00 Lacs ).

ii. Secured Loans from Indian Overseas bank

(a) Term Loan (Subordinate Loan) - The loan is repayable in 72 monthly instalments aggregating to Rs. 327.60 Lacs (Previous Year : Rs.382.08Lacs).

(b) Term Loan (I Phase) - The loan is repayable in 72 monthly instalments aggregating to Rs. 2,254.60 Lacs

(Previous Year : Rs. 2,576.56 Lacs ).

(c) Term Loan (II Phase) - The loan is repayable in 72 monthly instalments aggregating to Rs. 2,063.48 Lacs

(Previous Year : Rs.2,272.52 Lacs ).

(d) Term Loan (III Phase) - The loan is repayable in 72 monthly instalments aggregating to Rs. 1,552.96 Lacs

(Previous Year : Rs.1,738.00 Lacs ).

(e) Term Loan (Additional Loan) - The loan is repayable in 68 monthly instalments aggregating to Rs. 2,600.00 Lacs (Previous Year : Rs.2,900.00 Lacs ).


Mar 31, 2013

(i) ACCOUNTING CONVENTION

The Financial statements have been prepared under the Historical Cost Convention, under accrual method of accounting and as a going concern, in accordance with the Generally Accepted Accounting Principles (GAAP) prevalent in India and the Mandatory Accounting Standards as notified under the Companies (Accounting Standards) Rules, 2006 and according to the provisions of the Companies Act, 1956.

(ii) FIXED ASSETS

Fixed Assets are stated at original cost net of tax / duty credits availed, if any, less accumulated depreciation, amortization and impairment. Cost includes preoperative expenses and all expenses related to acquisition and installation of the concerned assets.

(iii) BORROWING COSTS

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All the other borrowing costs are charged to revenue. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

(iv) IMPAIRMENT OF ASSETS

As at each Balance Sheet date, the carrying amount of fixed assets is tested for impairment so as to determine.

a) the provision for impairment loss, if any, required or

b) the renewal, if any, required of impairment loss recognized in previous periods. Impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

(v) INVESTMENTS

Current Investments are carried at lower of cost and market value. Long Term Investments are stated at cost. Provisions for diminution in value of long-term investments are made, if the diminution is other than temporary.

(vi) DEPRECIATION AND AMORTIZATION

Depreciation is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the assets are available to the company for its use.

(vii) INVENTORIES

a) Inventories are valued at lower of cost and estimated net realizable value.

b) Cost is arrived at on First-in-First Out (FIFO) basis.

(viii) FOREIGN CURRENCYTRANSACTIONS

a) Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

b) Foreign Currency monetary assets and liabilities at the year end are realigned to the exchange rate prevailing at the year end and the difference on realignment is adjusted in the cost of the respective assets.

c) Non-monetary foreign currency items are carried at cost.

(ix) REVENUE RECOGNITION

a) Income and Expenditure are generally accounted on accrual basis except those with significant uncertainities.

b) The income by way of Doctors'' Consultancy Fees is considered as accrued as and when the amounts are finalized and certainty of recovery from Patients is ascertained. The liability towards Consultant Charges is considered as accrued as and when the claim is accepted and the liability is crystalised.

c) The insurance claims are accounted as and when the claims are settled or accepted by the insurance company whichever is earlier.

d) Interest income is recognised on an accrual basis taking into account the principal amount outstanding and the rate applicable.

e) Dividend income is recognised as and when the owners'' right to receive payment is established.

(x) TAXES ON INCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on the expected outcome of assessments/appeals.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(xi) RETIREMENT BENEFITS

a) Payments to defined contribution schemes are charged as expense as and when incurred.

b) Post employment and other long term benefits which are defined benefit plans are recognized based on the present value of the obligation determined in accordance with Accounting Standard (AS) -15 on "Employee Benefits".


Mar 31, 2012

(i) ACCOUNTING CONVENTION

The Financial statements have been prepared under the Historical Cost Convention on the basis of a going concern and in accordance with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956, wherever applicable

(ii) FIXED ASSETS

Fixed Assets are stated at original cost net of tax / duty credits availed, if any, less accumulated depreciation, amortization and impairment. Cost includes preoperative expenses and all expenses related to acquisition and installation of the concerned assets.

(iii) BORROWING COSTS

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All the other borrowing costs are charged to revenue A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

(iv) IMPAIRMENT OF ASSETS

As at each Balance Sheet date, the carrying amount of fixed assets is tested for impairment so as to determine.

a) the provision for impairment loss, if any, required or

b) the renewal, if any, required of impairment loss recognized in previous periods. Impairment of loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

(v) INVESTMENTS

Current Investments are carried at lower of cost and market value. Long Term Investments are stated at cost. Provisions for diminution in value of long-term investments are made, if the diminution is other than temporary.

(vi) DEPRECIATIONANDAMORTIZATION

Depreciation is provided on Straight Line Method in the maimer and at the rates specified in Schedule XIV to the Companies Act, 1956. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the assets are available to the company for its use.

(vii) INVENTORIES

(a) Inventories are valued at lower of cost and estimated net realizable value.

(b) Cost is arrived at on First-in-First Out basis.

(viii) FOREIGN CURRENCY TRANSACTIONS

(a) Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

(b) Foreign Currency monetary assets and liabilities at the year end are realigned to the exchange rate prevailing at the year end and the difference on realignment is adjusted in the cost of the respective assets.

(c) Non-monetary foreign currency items are carried at cost.

(ix) REVENUE RECOGNITION

(a) Income and Expenditure are generally accounted on accrual basis except those with significant uncertainties.

(b) The income by way of Doctors' Consultancy Fees is considered as accrued as and when the amounts are finalized and certainity of recovery from Patients is ascertained. The liability towards Consultant Charges is considered as accrued as and when the claim is accepted and the liability is crystalised.

(c) The insurance claims are accounted as and when the claims are settled or accepted by the insurance company whichever is earlier.

(x) TAXES ON INCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on the expected outcome of assessments/appeals.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(xi) RETIREMENT BENEFITS

(a) Payments to defined contribution schemes are charged as expense as and when incurred.

(b) Post employment and other long term benefits which are defined benefit plans are recognized based on the present value of the obligation determined in accordance with Accounting Standard 15 on Employee Benefits

(xii) ACCOUNTING STANDARDS

Accounting Standards prescribed by the Department of Corporate Affairs (Formerly Known as Department of Company Affairs) and referred to in Companies Act, 1956 have been followed wherever applicable.


Mar 31, 2011

(i) ACCOUNTING CONVENTION

The Financial statements have been prepared under the Historical Cost Convention on the basis of a going concern and in accordance with the accounting standards referred to in Section 211(3C) of the Companies Act, 1956, wherever applicable.

(ii) FIXED ASSETS

Fixed Assets are stated at original cost net of tax / duty credits availed, if any, less accumulated depreciation, amortization and impairment. Cost includes preoperative expenses and all expenses related to acquisition and installation of the concerned assets.

(iii) BORROWING COSTS

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All the other borrowing costs are charged to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

(iv) IMPAIRMENT OF ASSETS

As at each Balance Sheet date, the carrying amount of fixed assets is tested for impairment so as to determine.

a) the provision for impairment loss, if any, required or

b) the renewal, if any, required of impairment loss recognized in previous periods.

Impairment of loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

(v) INVESTMENTS

Current Investments are carried at lower of cost and market value. Long Term Investments are stated at cost. Provisions for diminution in value of long-term investments are made, if the diminution is other than temporary.

(vi) DEPRECIATION

Depreciation is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.

(vii) INVENTORIES

a) Inventories are valued at lower of cost and estimated net realizable value.

b) Cost is arrived at on First-in-First Out basis.

( viii)FOREIGN CURRENCY TRANSACTIONS

a) Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

b) Foreign Currency monetary assets and liabilities at the year end are realigned to the exchange rate prevailing at the year end and the difference on realignment is adjusted in the cost of the respective assets.

c) Non-monetary foreign currency items are carried at cost.

(ix) REVENUE RECOGNITION

a) Income and Expenditure are generally accounted on accrual basis except those with significant uncertainties.

b) The income by way of Doctors' Consultancy Fees is considered as accrued as and when the amounts are finalized and certainty of recovery from Patients is ascertained. The liability towards Consultant Charges is considered as accrued as and when the claim is accepted and the liability is crystalised.

c) The insurance claims are accounted as and when the claims are settled or accepted by the insurance company whichever is earlier.

(x) TAXES ON INCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on the expected outcome of assessments/appeals.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(xi) RETIREMENT BENEFITS

a) Payments to defined contribution schemes are charged as expense as and when incurred.

b) Post employment and other long term benefits which are defined benefit plans are recognized based on the present value of the obligation determined in accordance with Accounting Standard 15 on "Employee Benefits".

(xii) ACCOUNTING STANDARDS

Accounting Standards prescribed by the Department of Corporate Affairs (Formerly Known as Department of Company Affairs) and referred to in Companies Act, 1956 have been followed wherever applicable.


Mar 31, 2010

(i) ACCOUNTING CONVENTION

The Financial statements have been prepared under the Historical Cost Convention on the basis of a going concern and in accordance with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956, wherever applicable.

(ii) FIXED ASSETS

Fixed Assets are stated at original cost net of tax / duty credits availed, if any, less accumulated depreciation and accumulated amortization. Cost includes preoperative expenses and all expenses related to acquisition and installation of the concerned assets.

(iii) BORROWING COSTS

Borrowing Costs attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All the other borrowing costs are charged to revenue.

A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

(iv) IMPAIRMENT OF ASSETS

As at each Balance Sheet date, the carrying amount of fixed assets is tested for impairment so as to determine.

a) The provision for impairment loss, ifany, required or

b) The renewal,ifany,requiredofimpairmentlossrecognizedinpreviousperiods.

Impairment of loss is recognized when the carrying amount of an asset exceeds its recoverable amount.

(v) INVESTMENTS

Current Investments are carried at lower of cost and market value. Long Term Investments are stated at cost. Provisions for diminution in value of long-term investments are made, if the diminution is other than temporary.

(vi) DEPRECIATION

Depreciation is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956.

(vii) INVENTORIES

a) Inventories are valued at lower of cost and estimated net realizable value.

b) Cost is arrived at on First-in-First Out basis.

(viii) FOREIGN CURRENCYTRANSACTIONS

a) Foreign Currency Transactions are recorded at exchange rates prevailing on the date of such transaction.

b) Foreign Currency monetary assets and liabilities at the year end are realigned to the exchange rate prevailing at the year end and the difference on realignment is adjusted in the cost of the respective assets.

c) Non-monetary foreign currency items are carried at cost.

(ix) REVENUE RECOGNITION

a) Income and Expenditure are generally accounted on accrual basis except those with significant uncertainties.

b) The income by way of Doctors Consultancy Fees is considered as accrued as and when the amounts are finalized and certainty of recovery from Patients is ascertained. The liability towards Consultant Charges is considered as accrued as and when the claim is accepted and the liability is crystalised.

c) The insurance claims are accounted as and when the claims are settled or accepted by the insurance company whichever is earlier.

(x) TAXES ON INCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act 1961, and based on the expected outcome of assessments/appeals.Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

(xi) RETIREMENT BENEFITS

a) Payments to defined contribution schemes are charged as expense as and when incurred.

b) Post employment and other long term benefits which .are defined benefit plans are recognized based on the present value of the obligation determined in accordance with Accounting Standard 15 on "Employee Benefits".

(xii) ACCOUNTING STANDARDS

Accounting Standards prescribed by the Department of Corporate Affairs (Formerly Known as Department of Company Affairs) and referred to in Companies Act, 1956 have been followed wherever applicable.