Mar 31, 2014
1. Basis of Preparation of Financial Statements
The Financial Statements have been prepared un- der Historical Cost
conventions and on accrual ba- sis in accordance with the Generally
Accepted Ac- counting Principles (''GAAP'') applicable in India,
Companies (Accounting Standard) Rules, 2006 no- tified by Ministry of
Company Affairs and Account- ing Standards issued by the Institute of
Chartered Accountants of India as applicable and relevant pro- visions
of the Companies Act, 1956, as adopted con- sistently by the Company.
2. Use of Estimates
The preparation of Financial Statements in confor- mity with Indian
GAAP requires estimates and as- sumptions to be made, that affects the
reported amounts of assets and liabilities on the date of the Financial
Statements and the reported amounts of revenue and expenses during the
reporting period. Differences between the actual results and esti-
mates are recognized in the period in which the re- sults are known /
materialized.
3. Fixed Assets
Fixed Assets are capitalized at cost less accumu- lated depreciation
inclusive of purchase price, du- ties and other non refundable taxes,
direct attribut- able cost of bringing asset to its working condition
and financing cost till commercial production, if any.
Projects, if any, under which assets are not ready for their intended
use are shown as Capital Work- in-Progress. However no project was
undertaken during the year under review.
4. Depreciation / Amortization
Depreciation on fixed assets is provided on Written Down Value (WDV) at
the rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956.
5. Inventories
The inventories are stated at lower of cost and net realizable value,
after providing for obsolescence, if any. Cost of Inventories comprises
of all cost of purchase, cost of conversion and other cost incurred in
bringing inventory to the present location and con- dition and
valuation is inclusive of taxes and duties incurred on same.
6. Revenue Recognition
Revenue from sales transactions is recognized on transfer of
significant risk and rewards of ownership, which generally is on the
dispatch of goods. Rev- enue from services are recognized upon
rendering of services & in case of sittings on the basis of completion
of each sitting. Interest Income is recog- nized on accrual basis.
7. Investment
Investments are classified as Current & Non Cur- rent Investments.
Current Investments are carried at lower of cost or Market / Fair Value
determined on an individual investment basis. Non-Current in- vestments
are valued at cost. However no Invest- ment was made by the Company
during the year.
8. Borrowing Costs
Borrowing costs that are attributable to the acquisi- tion or
construction of qualifying assets are capital- ized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial pe- riod of time to get ready for its intended use. All
other borrowing costs are charged to Profit and Loss A/c.
9. Taxation
Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured as amount of tax payable in respect of taxable
income for cur- rent year as per Income Tax Act 1961 after consid-
ering tax allowances and exemptions, if any. De- ferred Tax assets or
liabilities are recognized for fur- ther tax consequence attributable
to timing differ- ence between taxable income and accounting in- come
that originate in one year and are capable of reversal in one or more
subsequent year.
In view of higher depreciation benefit under Income Tax Act no taxable
income arise and hence no pro- vision is made for Current Years Income
Tax. Deffered Tax liability is created on account of timing difference
on Depreciation as per Companies Act and Income Tax Act.
10. Leases Operating Lease
Lease where the lesser effectively retains substan- tially all risks
and benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss ac-
count.
11. Impairment of Assets
An asset is impaired when the carrying cost of as- sets exceeds its
recoverable value. An impairment loss is charged to Profit & Loss in
the year in which an asset is identified as Impaired. As on Balance
Sheet date, the Company reviews the carrying amount of Fixed Assets to
determine whether there are any indications that those assets have
suffered "Impairment Loss".
12. Foreign Exchange Transactions
i) Transactions in Foreign currency are recorded at the rate of
exchange prevailing on the date of the respective transactions or that
approximates the actual rate at the date of the transaction.
ii) Monetary items denominated in foreign curren- cies at the yearend
are restated at year end rates. In case of items which are covered by
forward ex- change contracts, the difference between the yearend rate
and rate on the date of the contract is recognized as exchange
difference and the pre- mium paid on forward contracts is recognized
over the life of the contract.
iii) Non-monetary foreign currency items are car- ried at cost.
iv) Any income or expense on account of exchange difference either on
settlement or on translation is recognized in the Statement of Profit
and Loss, ex- cept in case of long term liabilities, where they re-
late to acquisition of fixed assets, in which case they are adjusted to
the carrying cost of such assets
13. Earnings per Share
In determining the Earnings Per share, the com- pany considers the net
profit after tax which includes any post tax effect of any
extraordinary / exceptional item. The number of shares used in
computing ba- sic earnings per share is the weighted average num- ber
of shares outstanding during the period.
The number of shares used in computing Diluted earnings per share
comprises the weighted aver- age number of shares considered for
computing Basic Earnings per share and also the weighted number of
equity shares that would have been is- sued on conversion of all
potentially dilutive shares.
14. Retirement Benefits
No provision is made for gratuity as according to management, no
employees have crossed the minimum length of service in the
organization required for making gratuity payments.
15. Contingent Liabilities & Provisions
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.
Contingent Liability is disclosed for by way of note for -
a) Possible obligation which will be confirmed only by future events
not wholly within the control of the Company or
b) Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation
cannot be made.
c) Contingent Assets are not recognized in the fi- nancial statements
since this may result in the rec- ognition of income that may never be
realized.
Mar 31, 2013
1. Basis of accounting:
The financial statements are prepared on the historical cost convention
basis and on accrual concept as a going concern in accordance with the
applicable Accounting Standards referred to in Sub section 3C of
Section 211 of the Companies Act, 1956 and normally accepted accounting
principles.
2. Accounting Standards:
Accounting standards as prescribed by the Department of Corporate
Affairs (Formerly known as Department of Company Affairs) and referred
to in the Companies Act, 1956 have been followed wherever applicable.
3. Fixed Assets and its Depreciation:
Fixed assets are stated at cost price comprising of the purchase price
and any attributable cost of bringing the assets to its working
condition for its intended use.
Depreciation is calculated under WDV method at the rates prescribed
under amended schedule XIV of the Companies Act, 1956 and on pro-rata
basis.
4. Investments:
Company has not made any investments during the year under review.
5. Inventories:
Stock of Medicines are valued at Cost or realizable value whichever is
less.
6. Contingent Liabilities:
No litigations are filed or pending against the Company & Company does
not have any present obligation arising out of any past event. Hence no
provision arises or is made for contingent liabilities.
7. Revenue Recognition:
Company is rendering professional services of cosmetic & other
surgeries & skin and hair care services & most of these services run
into no. of sittings. Hence revenue generation is recognized
sitting-wise after completion of client sitting. In case of sale of
medicines revenue is recognized on transfer of goods to the buyer. All
expenses to the extent considered payable respectively unless
specifically stated to be otherwise are accounted for on mercantile
basis.
8. Retirement Benefits:
Company has not applied under Provident Fund & Miscellaneous Provisions
Act & hence no provision is made towards retirement benefits of
Employees.
9. Operating Lease -
The company has obtained all premises for its business operations
(including furniture and fittings at Bandra) under operating lease or
leave and license agreements. These are generally not non-cancellable
and range between 11 months to 5 years under leave and license, or
longer for other lease and are renewable by mutual consent on mutually
agreeable terms. The Company has given refundable interest free
security deposits in accordance with the agreed terms.
Total Lease payments of Rs.58,26,001/- are recognized in the Profit and
Loss Account under the head "Rent Paid".
10. Foreign Currency Transactions:
Foreign currency transactions made for purchase of imported medical
equipments are recorded at the prevailing exchange rates or rates that
closely approximate the prevailing exchange rates at the time of
initial recognition (date of transaction). Exchange differences arising
on final settlement is adjusted to the cost of Medical Equip- ments.
Further as on year end there is no outstanding balances of monetary
items denominated in foreign currency. Foreign exchange Outgo -
Company has made payment of US$ 1670/- to suppliers from whom Company
has procured medical equipments.
11. Borrowing Cost:
Company has taken loans, temporary, if any, from its members but
according to management & from records it appears same are temporary
loans and hence according to management interest is not payable to them
and hence is not provided for.
12. Taxation :
In view of carried forward loss of earlier year, no provision for
current tax is made under the provisions of the Income Tax act, 1961.
Deferred tax Liability of Rs. 67577''/- resulting from timing differences between taxable and accounting income is accounted for using the tax
rates and laws that are enacted or substantively enacted as on the
Balance Sheet date. The deferred tax asset is recognized and carried
forward only to the extent that there is a reasonable / Virtual
certainty that the asset will be realized in future.
13. Segmental Reporting: .
The Company is operating only in one segment i.e. Cosmetic Surgeries &
Skin, Hair, Dental & other Health Care Services.
14. Related Party Transactions:
As per accounting standard 18 (AS-18) Related party disclosures,
notified in the companies (Accounting Stan- dards) Rules 2006, the
disclosure of transactions with the related parties defined in AS-18
are given below;
1. Key Managerial Personnel:
a) Dr. Prashant Vikram
b) Dr. Nishita Sheth
c) Mr. Pritesh Doshi
Further following Related Party Transactions were noticed during the
year:
a) Bandra Clinic premises owned by Dr. Nishita Sheth - M.D. has been
taken on Leave and Licence basis by the Company w.e.f26/12/2011.
Monthly rent is Rs. 100000/-. (Advance deposit of Rs. 10 lacs made by
the Company to her).
b) Furniture at Bandra Clinic owned by Dr. Prashant Vikram - Chairman
has been taken on Leave and Licence basis by the Company
w.e.f.26/12/2011 on monthly rent of Rs.75,000/-.(Advance deposit of
Rs.5 lacs made by the Company to him).
c) Company has advanced a total sum of Rs.10,35,407/- to various
parties for Furniture (Bandra Office) on behalf of Dr. Prashant Vikram
to be recovered from him & as on 31/03/2013 at sumofRs.485407/- is due
from him.
15. Earnings (Loss) Per Share:
Basic EPS - (0.07) = 438258 (Net Profit attributable to Shareholders) /
6000000 (Weighted Avg. No of Equity Shares)
Diluted EPS - (0.07) = 438258 (Net Profit attributable to Shareholders)
/ 6000000 (Weighted Avg. No of Equity Shares) -
Diluted EPS is similar to Basic EPS as there are no potential equity
share as on date.
16. Miscellaneous Expenditure
Preliminary Expenses incurred by Company is written off during the year
in view of AS26 (Para 56). Further management has decided not to write
off Public Issue Expenses during the year of Issue and to write off the
same over a period of 5 years.
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