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Accounting Policies of Lotus Eye Hospital and Institute Ltd. Company

Mar 31, 2015

A. Method of Accounting

The Financial statements have been prepared to comply in all material respects with the accounting standards specified under section 133 of the Companies Act, 2013 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 historical cost convention on an accrual basis. The Accounting policies have been consistently applied by the Company with those used in the previous year.

b. Use of estimates :

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amount of assets, liabilities disclosures relating to contingent liabilities and assets as at the balance sheet date and reported amounts of income and expenses during the year. Difference between the actual amounts and the estimates are recognised prospectively in the year in which the events are materialised.

c. Fixed Assets, Depreciation and Amortization Tangible Fixed Assets:

Fixed Assets are stated at cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

There is a change in the method of depreciation due to the amendments brought in by the Companies Act, 2013 which replaces schedule XIV of the Companies Act, 1956 with schedule II. Depreciation in fixed assets is provided under Written Down Value Method at the rates determined based on Useful Lives of the respective assets and the residual values in accordance with Schedule II of the companies Act, 2013.

On Improved Leased Assets, the value capitalized in the earlier year under the heading Building has been bifurcated as Improved Leased Asset and has been equally written off over the Prime Lease Period of 5 years in Kochi and in Salem Prime Lease period of 3 years and renewable for further period of 3 years has been written off in 5 years from the Financial Year 2011-12 onwards.

d. Inventories

Closing stock of Pharmacy, Canteen, Theatre items, and Consumables are valued at lower of cost and net realizable value and stock of optical and contact lens at Market Price. Cost is arrived at first in first out basis except optical and contact lens.

e. Revenue Recognition

All Income and expenses to the extent they are considered as receivable and payable respectively, unless specifically stated to be otherwise are accounted for on mercantile basis.

In respect of claims from insurance Companies which are accounted as and when the claims are accepted or settled by the insurance company whichever is earlier.

f. Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as a part of such assets. All other borrowing cost is recognized as expense in the period in which they are incurred.

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

g. Lease

The Company's significant Leasing arrangements are in respect of Operating Lease for Medical Equipments which are cancelable in nature. The Lease rentals paid/received under such agreements are charged to Profit and Loss Account.

h. Translation of Foreign Currency Transactions:

1) Foreign currency transactions are recorded at exchange rates prevailing on the date of such transactions.

2) 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 Profit and Loss account.

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

i. Retirement Benefits

Payment to defined contribution schemes are charged as expense as and when incurred.

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"

j. Taxes on Income

Tax on Income for the Current Period is determined on the basis of taxable income and tax credit 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 difference between accounting income and the taxable income for the year 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.

k. Interim Financial Reporting

Quarterly financial results are published in accordance with the guidelines issued by SEBI. The recognition and measurement principles as laid down in the standard are followed with respect to such results. Quarterly financial results are subjected to a limited review by the auditors as required by SEBI.

l. Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company's fixed assets. An asset is treated impaired when carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the Profit and Loss Account in the year in which an asset identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if there has been any change in the estimate of recoverable amount.

m. Contingent Liabilities

Contingent liabilities, which are considered significant and material by the Company, not provided for in the books of accounts are disclosed by way of notes to accounts.






Mar 31, 2014

A) Method 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, notified under the Company (Accounting Standard) rule, 2006 and according to the provisions of the Companies Act, 1956.

b) Uses of Estaimates

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

c) Fixed Assets, Depreciation and Amortization

Tangible Fixed Assets:

Fixed Assets are stated at cost comprises 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 prorata basis on additions On Improved Leased Assets the value capitalized in the earlier year under the heading Building has been bifurcated as Improved Leased Asset and has been equally written off over the Prime Lease Period of 5 years in Kochi and in Salem Prime Lease period of 3 years and renewable for further period of 3 years has been written off in 5 years from the Financial Year 2011-12 onwards.

d) Inventories

Closing stock of Pharmacy, Canteen, Theatre items, and Consumables are valued at lower of cost and estimated net realizable value and stock of optical and contact lens are at Market Price. Cost is arrived at first in first out basis except optical and contact lens.

e) Revenue Recognition

All Income and expenses to the extent they are considered as receivable and payable respectively, unless specifically stated to be otherwise are accounted for on mercantile basis.

In respect of claims from insurance Companies are accounted as and when the claims are accepted or settled by the insurance company whichever is earlier.

f) Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as a part of such assets. All other borrowing cost is recognized as expense in the period in which they are incurred.

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

g) Leases

The Company''s significant Leasing arrangements are in respect of Operating Leases for Medical Equipments which are cancelable in nature. The Lease rentals paid / received under such agreements are charged to Profit and Loss Account over the lease term.

h) Translation of Foreign Currency Transactions

a. Foreign currency transactions are recorded at exchange rates prevailing on the date of such transactions.

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 Profit and Loss account.

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

a. Payment 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"

j) Taxes on Income

Tax on Income for the Current Period is determined on the basis of taxable income and tax credit 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 difference between accounting income and the taxable income for the year 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.

k) Interim Financial Reporting

Quarterly financial results are published in accordance with the guidelines issued by SEBI. The recognition and measurement principles as laid down in the standard are followed with respect to such results. Quarterly financial results are subjected to a limited review by the auditors as required by SEBI.

l) Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company''s fixed assets. An asset is treated impaired when carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the Profit and Loss Account in the year in which an asset identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if there has been any change in the estimate of recoverable amount.

m) Miscellaneous

Miscellaneous expenditure in connection with merger, increase in share capital, hospital / equipments inauguration expenses, hospital renovation expenses and other preliminary expenses are being written off over the period of five years.

a. The Company has only one class of shares referred to as equity shares having par value of Rs.10/-. Each holder of equity shares is entilted to one vote per share.

b. Before amalgamation 211000 Equity shares of Rs. 100/- each consists of initial subscription to memorandum and subsequent allotment to the promoters.

c. 497900 Equity shares of Rs. 100/- each issued on 03.08.2007 pursuant to High Court Order dated 09.07.2007 approving the scheme of amalgamtion of Dr. S.K.S. Eye Care Centre Private limited with Lotus Eye Care Hospital Limited.

d. 345233 Equity shares of Rs. 100/- each were alloted as bonus shares on 28.08.2007 by Capitalisation of general reserve.

e. The face value of equity shares was split from Rs.100/- per share to Rs. 10/- per share on 03.09.2007. Due to this the total number of shares consist of 10541330 shares of Rs.10 each.

f. 255000 equity shares of f. 10/- each were alloted to M/s. Bennett and coleman company ltd on 22.01.2008 on preferential allotment with a premium of Rs. 40/- per share.

g. 10000000 equity shares of Rs. 10/- each alloted on 03.07.2008 through Initial Public Offer (IPO) with a premium of Rs. 28/- per share.

h. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in Proportion to the number of equity shares held by the shareholders.

a. The company has initiated the process of obtaining confirmation from suppliers who have registered under the "Micro, Small and Medium Enterprises Act,2006". Since relevant information is not readily available, no disclosures have been made in the financial statements. Based on the information available with the company and in the considered view of the management and relied upon by the auditors, impact of interest, if that may be payable under the provisions of the act is not expected to be material.

a. The closing stock of Pharmacy,Canteen,Theatre items, and Consumables are valued at Lower of cost and net realizable value and stock of Optical and contact lens are valued at Market price. Cost is arrived at first in first out basis except for optical and contact lens.

b. Due to certain practical difficulties relating to this specific industry and items are largely small value, quantitative particulars in respect of operations and inventories have not been furnished as per the requiremnet of schedule VI to the Companies Act,1956.


Mar 31, 2013

A) Method 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.

b) Accounting Standards

Accounting standards 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.

c) Fixed Assets, Depreciation and Amortization

Tangible Fixed Assets :

Fixed Assets are stated at cost comprises 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 prorata basis on additions.

On Improved Leased Assets, the value capitalized in the earlier year under the heading Building has been bifurcated as Improved Leased Asset and has been equally written off over the Prime Lease Period of 5 years in Kochi and in Salem Prime Lease period of 3 years and renewable for further period of 3 years has been written off in 5 years from the Financial Year 2011-12 onwards. Depreciation charged on the Improved Leased Asset earlier has been written back.

d) Inventories

Closing stock of Pharmacy, Canteen, Theatre items, and Consumables are valued at lower of cost and net realizable value and stock of optical and contact lens at Market Price. Cost is arrived at first in first out basis except optical and contact lens.

e) Revenue Recognition

All Income and expenses to the extent they are considered as receivable and payable respectively, unless specifically stated to be otherwise are accounted for on mercantile basis.

In respect of claims from insurance companies are accounted as and when the claims are accepted or settled by the insurance company whichever is earlier.

f) Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as a part of such assets. All other borrowing cost is recognized as expense in the period in which they are incurred.

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

g) Lease

The Company''s significant leasing arrangements are in respect of Operating Lease for Medical Equipments which are cancelable in nature. The Lease rentals paid/received under such agreements are charged to Profit and Loss Account

h) Translation of Foreign Currency Transactions

a. Foreign currency transactions are recorded at exchange rates prevailing on the date of such transactions.

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 Profit and Loss account.

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

i) Retirement Benefits

a. Payment 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".

j) Taxes on Income

Tax on Income for the Current Period is determined on the basis of taxable income and tax credit 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 difference between accounting income and the taxable income for the year 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.

k) Interim Financial Reporting

Quarterly financial results are published in accordance with the guidelines issued by SEBI. The recognition and measurement principles as laid down in the standard are followed with respect to such results. Quarterly financial results are subjected to a limited review by the auditors as required by SEBI.

l) Impairment of Assets At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company''s fixed assets. An asset is treated impaired when carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if there has been any change in the estimate of recoverable amount.

m) Miscellaneous Miscellaneous expenditure in connection with merger, increase in share capital, hospital/equipments inauguration expenses, hospital renovation expenses and other preliminary expenses are being written off over the period of five years.


Mar 31, 2012

A) Method 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.

b) Accounting Standards

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

c) Fixed Assets and its Depreciation:

Tangible Fixed Assets :

Fixed Assets are stated at cost comprises 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 prorata basis on additions

On Improved Leased Assets the value capitalized in the earlier year under the heading Building has been bifurcated as Improved Leased Asset and has been equally written off over the Prime Lease Period of 5 years in Kochi and in Salem Prime Lease period of 3 years and renewable for further period of 3 years and written off in 5 years from the Financial Year 2011-12 onwards. Depreciation charged on the Improved Leased Asset earlier has been written back.

Intangible Fixed Assets:

The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. Subsequent expenditure on an intangible asset after its purchase / completion is recognized as an expense when incurred unless it is probable that such expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standards of perfor mance and such expenditure can be measured and attributed to the asset reliably, in which case such expenditure is added to the cost of the asset.

d) Inventories

Closing stock of Pharmacy, Canteen, Theatre items, and Consumables are valued at lower of cost or net realizable value and stock of optical and contact lens at Market Price. Cost is arrived at first in first out basis except optical and contact lens.

e) Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit / (Loss) before extraordinary items and 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 flows from operating, investing and financing activities of the company are segregated based on the available information.

f) Cash and Cash equivalents (for purpose of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with bank. Cash equivalents are short-term balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

g) Revenue Recognition

All Income and expenses to the extent they are considered as receivable and payable respectively, unless specifically stated to be otherwise are accounted for on mercantile basis. In respect of claims from insurance companies are accounted as and when the claims are accepted or settled by the in surance company whichever is earlier.

h) Borrowing Cost

Borrowing cost attributable to the acquisition or construction of qualifying assets is capitalized as a part of such assets. All other borrowing cost is recognized as expense in the period in which they are incurred.

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

i) Earnings per share

Basic earnings per share is computed by dividing the profit / (Loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

j) Lease

The Company's significant Leasing arrangements are in respect of Operating Lease for Medical Equipments which are cancelable in nature. The Lease rentals paid/received under such agreements are charges to Profit and Loss Account

k) Translation of Foreign Currency Transactions:

1) Foreign currency transactions are recorded at exchange rates prevailing on the date of such tranactions.

2) 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 Profit and Loss account.

3) Non-monetary foreign currency items are carried at cost. 1) Retirement Benefits

Payment to defined contribution schemes are charged as expense as when incurred. 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"

m) Taxes on Income

Tax on Income for the Current Period is determined on the basis of taxable income and tax credit 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 difference between accounting income and the taxable income for the year 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.

n) Interim Financial Reporting

Quarterly financial results are published in accordance with the guidelines issued by SEBI. The recognition and measurement principles as laid down in the standard are followed with respect to such results.Quarterly financial results are subjected to a limited review by the auditors as required by SEBI.

o) Impairment of Assets

At the Balance Sheet date an assessment is done to determine whether there is any indication of impairment in the carrying amount of the company's fixed assets. An asset is treated impaired when carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the Profit and Loss Account in the year in which an asset identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if there has been any change in the estimate of recoverable amount.

m) Miscellaneous expenditure in connection with merger, increase in share capital, hospital/equipments inauguration expenses, hospital renovation expenses and other preliminary expenses are being written off over the period of five years.


Mar 31, 2010

A. Method 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.

b. Accounting Standards:

Accounting standards 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.

c. Fixed Assets and its Depreciation:

Fixed assets are stated at cost comprises 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 prorata basis on additions.

d. Inventories:

Closing stock of Pharmacy, Canteen, Theatre items, and Consumables are valued at lower of cost or net realizable value and stock of Optical and contact lens are valued at Market Price. Cost is arrived at first in first out basis except optical and contact lens.

e. Revenue Recognition:

All Income and expenses to the extent they are considered as receivable and payable respectively, unless specifically stated to be otherwise are accounted for on mercantile basis. In respect of claims from insurance are accounted as and when the claims are accepted or settled by the insurance company whichever is earlier.

f. Borrowing cost:

Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as part of such assets. All other borrowing cost is recognized as an expense in the period in which they are incurred.

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

g. Lease:

The Companys significant Leasing arrangements are in respect of Operating lease for Medical Equipments which are cancelable in nature. The Lease rentals paid under such Agreements are charged to Profit and Loss Account.

h. Translation of Foreign Currency Transactions:

a. Foreign currency transactions are recorded at exchange rates prevailing on the date of such transactions.

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 Profit and Loss Account.

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

i. Retirement benefits:

a. Payment 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".

j. Taxes on Income:

Tax on income for the current period is determined on the basis of taxable income and tax credit 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 difference 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.

k. Interim Financial Reporting:

Quarterly financial results are published in accordance with the guidelines issued by SEBJ. The recognition and measurement principles as laid down in the standard are followed with respect to such results. Quarterly financial results are subjected to a limited review by the auditors as required bv SEBI.

l. Impairment of Assets:

At the Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the carrying amount of the companys fixed assets. An asset is treated as impaired when carrying cost of assets exceeds its recoverable value.

An impairment loss is charged to the profit and loss account in the year in which an asset identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

m. Miscellaneous:

Miscellaneous expenditure in connection with merger, increase in share capital, hospital / equipments inauguration expenses, hospital renovation expenses and other preliminary expenses are being written off over a period of five years.

 
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