Accounting Policies of Aashka Hospitals Ltd. Company

Mar 31, 2025

26. SIGNIFICANT ACCOUNTING POLICY

26.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS: -

The accounting principles and policies, recognized as appropriate for measurement and
reporting of the financial performance and financial position on accrual basis except as
otherwise disclosed, using historical costs (i.e., not taking in to account changing money
values impact of inflation) are applied in the preparation of the financial statements and
those which are considered materials to the affairs are suitably disclosed. The Financial
Statements are in accordance with the requirements of the Companies Act, 2013.

26.2 USE OF ESTIMATES: -

The preparation of Financial Statements requires estimates and assumption to be made that
affect the reported amount of assets and liabilities on the date of the financial statements
and the reported amount of revenues & expenses during the reporting period. Difference
between actual results and estimates are recognized in the period in which the results are
known /materialized.

26.3 INVENTORIES: -

Inventory comprises of Pharmacy Stock and Consumables. Pharmacy Stock is valued at the
lower of Cost and net realizable value. Consumable are valued at Cost. Cost comprises
purchase price and all incidental expenses incurred in bringing the inventory to its present
location and condition. The Company follows the FIFO method for determining the Cost of
Inventories.

26.4 EMPLOYEE BENEFITS: -

All employee benefits falling due within twelve months of the end of the period in which the
employees render the related services are classified as short-term employee benefits, which
include benefits like salaries, wages, short term compensated absences, performance
incentives, etc. and are recognized as expenses in the period in which the employee renders
the related service and measured accordingly. Short term employee benefits are measured
on an undiscounted basis.

The Company has an obligation towards gratuity, a defined benefit retirement plan covering
eligible employees. The plan provides for a lump sum payment to vested employees at

retirement, death while in employment or on termination of employment of an amount based
on the respective employee''s salary and the tenure of employment. The liability in respect of
gratuity is recognized in the books of account based on actuarial valuation by an independent
actuary.

The Company makes contribution to the recognized provident fund of its employees and the
Company''s contribution to the provident fund is charged to statement of profit and loss.

As per the Company''s policy, eligible leaves can be accumulated by the employees and
carried forward to future periods to either be recognized during the service, or encashed

26.5 CASH & CASH EQUIVALENTS: -

Cash comprises Cash on hand and Demand Deposits with Banks. Cash equivalents are short¬
term balances (with an original maturity of three months or less from the date of
acquisition), highly liquid investments that are readily convertible into known amounts of
cash and which are subject to insignificant risk of changes in value.

26.6 CASH FLOW: -

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.

26.7 CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET: -

Material events occurring after the balance sheet are considered up to the date of approval of
the accounts by the board of directors. There are no substantial events having an impact on
the results of the current year Balance Sheet.

26.8 PROPERTY, PLANT AND EQUIPMENT: -

Property, Plant and Equipment are recorded at cost of acquisition with construction cost if
any. They are stated at historical cost less accumulated depreciation, amortization and
impairment loss, if any. Cost includes expenditures that is directly attributable to the
acquisition of the items.

26.9 DEPRECIATION ON PROPERTY, PLANT AND EQUIPMENT: -

The Company depreciates Property, Plant and Equipment over the estimated useful life on a
straight-line basis from the date the assets are available for use. Freehold land is not
depreciated. The estimated useful life of assets are reviewed and where appropriate are
adjusted, annually.

26.10 REVENUE RECOGNITION: -

Rendering of Services: -

Revenue primarily comprises of fees charged for inpatient and outpatient hospital services.
Services include charges for accommodation, theatre, medical professional services,
equipment, radiology, laboratory and pharmaceutical goods used in the treatment given to
patients. Revenue is recorded and recognized during the period in which the hospital services
is provided, based upon the estimated amounts due from patients and/or medical funding
entities. Unbilled revenue is recorded for the services where the patients are not discharged
and invoice is not raised for the service.

Revenue from hospital services to patients is recognized as revenue when the related
services are rendered unless significant future uncertainties exist relating to the ultimate
collection. Revenue is also recognized in relation to the services rendered to the patients
who are undergoing treatment/observation on the balance sheet date to the extent of
services rendered. Revenue is recognized net of discounts and concessions given to the
patients.

Revenue from outpatient hospital services is recognised at a point in time when patient has
actually received the service. Revenue from sale of pharmacy and other such products is
recognized at the point in time upon transfer of control of products to customers at the time
of delivery of goods to the customers.

''Unbilled revenue'' represents value of medical and healthcare services rendered in excess of
amounts billed to the patients as the balance sheet date.

Interest income is recognized using the time-proportion method, based on underlying
interest rates.

Canteen Income: -

Add-on service of providing food and refreshment to inpatient are recognized on accrual
basis and to their relatives are recognized on cash basis.

26.11 BORROWING COST: -

Borrowing costs that are directly attributable to the acquisition, construction or production of
fixed assets are considered as part of the cost of that asset till the date of the acquisition.
Other borrowing costs are recognized as an expense in the period in which they are incurred.

26.12 EARNING 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. Diluted earnings per share is computed by dividing the
profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted
for dividend, interest and other charges to expense or income relating to the dilutive
potential equity shares, by the weighted average number of equity shares considered for
deriving basic earnings per share and the weighted average number of equity shares which

could have been issued on the conversion of all dilutive potential equity shares. Potential
equity shares are deemed to be dilutive only if their conversion to equity shares would
decrease the net profit per share from continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as the beginning of the period, unless they have
been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e. average market value of the
outstanding shares). Dilutive potentially equity shares are determined independently for each
period presented. The number of equity shares and potentially dilutive equity shares are
adjusted for share splits/reverse share splits and bonus shares, as appropriate.

26.13 TAXES ON INCOME: -

Tax Expenses for the year, i.e. Current Tax is included in determining the net profit for the
year. A provision is made for the current tax liability computed in accordance with relevant
tax rates and tax laws.

Minimum Alternative tax (MAT) paid in accordance with the tax laws, which gives rise to
future economic benefits in the form of adjustment of future income tax liability, is
considered as an asset if there is convincing evidence that the Group will pay normal tax
after the tax holiday period. Accordingly, MAT is recognized as an asset in the balance sheet
when it is probable that the future economic benefit associated with it will flow to the Group
and the asset can be measured reliably.

26.14 INTANGIBLE ASSETS : -

Intangible assets acquired separately are measured on initial recognition at cost. After initial
recognition, intangible assets, are measured at cost less accumulated amortisation and any
accumulated impairment loss.

26.15 DEFERRED TAX-ASSET /LIABILITY :-

Deferred Taxes reflect the impact of current year timing differences between taxable income
and accounting income for the year and reversal of timing differences of earlier year.
Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively
enacted at the balance sheet date.

As per the Prudence concept, Deferred Tax Assets are recognized and carried forward only to
the extent that there is reasonable certainty of their realization.

However, considering past record of the Company and by making realistic estimates of profit
for the future, its prudence we are not recognizing Deferred Assets as on date.

However, the same will be recognized as and when there is realistic estimates of the Profit.

26.16 IMPAIRMENT OF ASSETS: -

The Management periodically assesses, using external and internal sources whether there is
an indication that an asset may be impaired. If an asset is impaired, the Company recognizes
impairment loss as the excess of carrying amount of the assets over recoverable amount.

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Mar 31, 2024

COMPANY OVERVIEW

AASHKA HOSPITALS LIMITED Company was incorporated on 9^th November, 2012 under chapter IX of Companies Act, 1956. The Address of its registered office and principal place of business are disclosed in the introduction of the Annual Report. The Principal Activities of the Company include Operation of Multi-Disciplinary Private Hospital, Clinics, and Pharmacies. The Main Business of the Company is to enhance the quality of life of Patient by providing Comprehensive, High Quality Hospital Services on a cost-effective basis.

26. SIGNIFICANT ACCOUNTING POLICY

26.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS: -

The accounting principles and policies, recognized as appropriate for measurement and reporting of the financial performance and financial position on accrual basis except as otherwise disclosed, using historical costs (i.e., not taking in to account changing money values impact of inflation) are applied in the preparation of the financial statements and those which are considered materials to the affaires are suitably disclosed. The Financial Statements are in accordance with the requirements of the Companies Act, 2013.

26.2 USE OF ESTIMATES: -

The preparation of Financial Statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues & expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known /materialized.

26.3 INVENTORIES: -

Inventory comprises of Pharmacy Stock and Consumable. Pharmacy Stock is valued at the lower of Cost and net realizable value. Consumable are valued at Cost. Cost comprises purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The Company follows the FIFO method for determining the Cost of Inventories.

26.4 CASH & CASH EQUIVALENTS: -

Cash comprises Cash on hand and Demand Deposits with Banks. Cash equivalents are shortterm balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

26.5 CASH FLOW: -

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.

26.6 EVENTS OCCURRING AFTER THE BALANCE SHEET: -

Material events occurring after the balance sheet are considered up to the date of approval of the accounts by the board of directors. There are no substantial events having an impact on the results of the current year Balance Sheet.

26.7 PROPERTY, PLANT AND EQUIPMENT: -

Property, Plant and Equipment are recorded at cost of acquisition with construction cost if any. They are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Cost includes expenditures that is directly attributable to the acquisition of the items.

26.8 DEPRECIATION ON PROPERTY, PLANT AND EQUIPMENT: -

The Company depreciates Property, Plant and Equipment over the estimated useful life on a straight-line basis from the date the assets are available for use. Freehold land is not depreciated. The estimated useful life of assets are reviewed and where appropriate are adjusted, annually.

26.9 REVENUE RECOGNITION: -

Rendering of Services: -

Revenue primarily comprises of fees charged for inpatient and outpatient hospital services. Services include charges for accommodation, theatre, medical professional services, equipment, radiology, laboratory and pharmaceutical goods used. Revenue is recorded and recognized during the period in which the hospital services is provided, based upon the estimated amounts due from patients and/or medical funding entities. Unbilled revenue is recorded for the services where the patients are not discharged and invoice is not raised for the service.

Revenue from hospital services to patients is recognized as revenue when the related services are rendered unless significant future uncertainties exist relating to the ultimate collection. Revenue is also recognized in relation to the services rendered to the patients who are undergoing treatment/observation on the balance sheet to the extent of services rendered. Revenue is recognized net of discounts and concessions given to the patients.

Revenue from sale of pharmacy products within hospital premises is recognized on sale of medicines and similar products to the buyer. The amount of revenue recognized is net of sales returns and exclusive of sales tax, GST and trade discounts, wherever applicable.

''Unbilled revenue'' represents value of medical and healthcare services rendered in excess of amounts billed to the patients as the balance sheet date.

Interest income is recognized using the time-proportion method, based on underlying interest rates.

Canteen Income: -

Add-on service of providing food and refreshment to inpatient are recognized on accrual basis and to their relatives are recognized on cash basis.

26.10 BORROWING COST: -

Borrowing costs that are directly attributable to the acquisition, construction or production of fixed assets are considered as part of the cost of that asset till the date of the acquisition. Other borrowing costs are recognized as an expense in the period in which they are incurred.

26.11 EARNING 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. Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potentially equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

26.12 TAXES ON INCOME: -

Tax Expenses for the year, i.e. Current Tax is included in determining the net profit for the year. A provision is made for the current tax liability computed in accordance with relevant tax rates and tax laws.

Minimum Alternative tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Group will pay normal tax after the tax holiday period. Accordingly, MAT is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Group and the asset can be measured reliably.

26.13 DEFERRED TAX-ASSET / LIABILITY: -

Deferred Taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier year. Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

As per the Prudence concept, Deferred Tax Assets are recognized and carried forward only to the extent that there is reasonable certainty of their realization.

However, considering past record of the Company and by making realistic estimates of profit for the future, its prudence we are not recognizing Deferred Assets as on date.

However, the same will be recognized as and when there is realistic estimates of the Profit.

26.14 IMPAIRMENT OF ASSETS: -

The Management periodically assesses, using external and internal sources whether there is an indication that an asset may be impaired If an asset is impaired, the Company recognizes impairment loss as the excess of carrying amount of the assets over recoverable amount.

27. The notes referred to in the Balance Sheet and Profit and Loss Account forms an integral part of the accounts.

28. Balances of "Depositors", "Trade Payables", "Trade Receivables", "Unsecured Loans" and "Loans and Advances" are subject to confirmations and reconciliations.

29.In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.

30. Previous year figures have been regrouped / rearranged wherever it founds necessary.

31. MICRO, SMALL AND MEDIUM SCALE BUSINESS ENTITIES:

A sum of Rs 5,899 is payable to MSME payables as at 31^st March, 2024 (PY NIL). There is Micro and Small Enterprises Payable, to whom the Company owes dues, which is outstanding for more than 45 days during the year. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company and provided to us. (? in ''000)

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Mar 31, 2023

COMPANY OVERVIEW

AASHKA HOSPITALS LIMITED Company was incorporated on 9^th November, 2012 under chapter IX of Companies Act, 1956. The Address of its registered office and principal place of business are disclosed in the introduction of the Annual Report. The Principal Activities of the Company include Operation of Multi Disciplinary Private Hospital, Clinics, and Pharmacies. The Main Business of the Company is to enhance the quality of life of Patient by providing Comprehensive, High Quality Hospital Services on a cost-effective basis.

A- SIGNIFICANT ACCOUNTING POLICY

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

The accounting principles and policies, recognized as appropriate for measurement and reporting of the financial performance and financial position on accrual basis except as otherwise disclosed, using historical costs (i.e., not taking in to account changing money values impact of inflation) are applied in the preparation of the financial statements and those which are considered materials to the affaires are suitably disclosed. The Financial Statements are in accordance with the requirements of the Companies Act, 2013.

2. USE OF ESTIMATES:-

The preparation of Financial Statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues & expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known /materialized.

3. INVENTORIES:-

Inventory comprises of Pharmacy Stock and Consumable. Pharmacy Stock is valued at the lower of Cost and net realizable value. Consumable are valued at Cost. Cost comprises purchase price and all incidental expenses incurred in bringing the inventory to its present location and condition. The Company follows the FIFO method for determining the Cost of Inventories.

4. CASH & CASH EQUIVALENTS:-

Cash comprises Cash on hand and Demand Deposits with Banks. Cash equivalents are shortterm balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

5. CASH FLOW :-

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.

6. EVENTS OCCURRING AFTER THE BALANCE SHEET

Material events occurring after the balance sheet are considered up to the date of approval of the accounts by the board of directors. There are no substantial events having an impact on the results of the current year Balance Sheet.

7. PROPERTY, PLANT AND EQUIPMENT & INTANGIBLE ASSETS:-

Property, Plant and Equipment are recorded at cost of acquisition with construction cost if any. They are stated at historical cost less accumulated depreciation, amortization and impairment loss, if any. Cost includes expenditures that is directly attributable to the acquisition of the items.

8. DEPRECIATION ON PROPERTY, PLANT AND EQUIPMENT:-

The Company depreciates Property, Plant and Equipment over the estimated useful life on a straight-line basis from the date the assets are available for use. Freehold land is not depreciated. The estimated useful life of assets are reviewed and where appropriate are adjusted, annually.

9. REVENUE RECOGNITION :-

Rendering of Services:-

Revenue primarily comprises of fees charged for inpatient and outpatient hospital services. Services include charges for accommodation, theatre, medical professional services, equipment, radiology, laboratory and pharmaceutical goods used. Revenue is recorded and recognized during the period in which the hospital services is provide, based upon the estimated amounts due from patients and/or medical funding entities. Unbilled revenue is recorded for the services where the patients are not discharged and invoice is not raised for the service.

Revenue from hospital services to patients is recognized as revenue when the related services are rendered unless significant future uncertainties exist relating to the ultimate collection. Revenue is also recognized in relation to the services rendered to the patients who are undergoing treatment/observation on the balance sheet to the extent of services rendered. Revenue is recognized net of discounts and concessions given to the patients.

Revenue from sale of pharmacy products within hospital premises is recognized on sale of medicines and similar products to the buyer. The amount of revenue recognized is net of sales returns and exclusive of sales tax, GST and trade discounts, wherever applicable.

‘Unbilled revenue’ represents value of medical and healthcare services rendered in excess of amounts billed to the patients as the balance sheet date.

Interest income is recognized using the time-proportion method, based on underlying interest rates.

Canteen Income:-

Add-on service of providing food and refreshment to inpatient are recognized on accrual basis and to their relatives are recognized on cash basis.

BORROWING COST:-

Borrowing costs that are directly attributable to the acquisition, construction or production of fixed assets are considered as part of the cost of that asset till the date of the acquisition. Other borrowing costs are recognized as an expense in the period in which they are incurred.

10. EARNING PER SHARE:-

Basic earning 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. Diluted earning per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earning per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potentially equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

11. TAXES ON INCOME :-

Tax Expenses for the year, i.e. Current Tax is included in determining the net profit for the year. A provision is made for the current tax liability computed in accordance with relevant tax rates and tax laws.

Minimum Alternative tax ( MAT ) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Group will pay normal tax after the tax holiday period. Accordingly, MAT is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Group and the asset can be measured reliably.

Deferred Taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier year. Deferred Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

12. DEFERRED TAX-ASSET/LIABILITY:-

As per the Prudence concept, Deferred Tax Assets are recognized and carried forward only to the extent that there is reasonable certainty of their realization.

However considering past record of the Company and by making realistic estimates of profit for the future, its prudence we are not recognizing Differed Assets as on date.

However the same will be recognized as an when there is realistic estimates of the Profit.

13. IMPAIRMENT OF ASSETS:-

The Management periodically assesses, using external and internal sources whether there is an indication that an assets may be impaired If an asset is impaired, the Company recognizes impairment loss as the excess of carrying amount of the assets over recoverable amount.

B- NOTES TO ACCOUNTS:-

1. The notes referred to in the Balance Sheet and Profit and Loss Account forms an integral part of the accounts.

2. Balances of “Depositors”, "Trade Payables”, “Trade Receivables”, “Secured Loans”, “Unsecured Loans” and “Loans and Advances” are subject to confirmations and reconciliations.

3. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business.

4. Previous year figures have been regrouped / rearranged wherever it founds necessary.

5. MICRO, SMALL AND MEDIUM SCALE BUSINESS ENTITIES:

A sum of NIL is payable to MSME payables as at 31^st March, 2023 (PY NIL). There is no Micro and Small Enterprises Payable, to whom the Company owes dues, which is not outstanding for more than 45 days during the year. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company and provided to us.