Notes to Accounts of Lotus Eye Hospital and Institute Ltd.

Mar 31, 2018

Note No. 1

A. CORPORATE INFORMATION:

The company was incorporated as “Kalaivani Health Centre Pvt Ltd” on 14.03.1997. The name of the company was changed to “Lotus Eye Care Hospital Pvt Ltd” on 23.01.2001 and later on the company was converted into Public Limited Company on 16.10.2007 and subsequently the name was changed to “Lotus Eye Hospital and Institute Limited” on 12.4.2013 and the Company is mainly in the field of ophthalmology (Eye) and its related operation. The Company has seven centre’s at Peelamedu, R.S. Puram, Mettupalayam, Tirupur, Salem, Cochin and Mulanthurthy. The Company’s Equity shares are Listed on 03.08.2008 with BSE Limited and National Stock Exchange of India Ltd, Mumbai.

Application of new and revised Indian Accounting Standards

The Company has applied all the Indian Accounting Standards (hereinafter referred to as ‘Ind AS’) notified by the Ministry of Corporate Affairs (MCA) to the extent applicable to the Company.

B. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of these financial statements in conformity with recognition and measurement principles of Ind AS requires the Management of the Company to make estimates and assumptions that affect the reported balances of Assets and Liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of income and expenses for the periods presented.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

1. Fair value measurements and valuation processes

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. The business acquisitions made by the company are also accounted at fair values.

In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available.

2. Employee Benefits - Defined Benefit Plans

The cost of defined benefit plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and future pension increases.

3.Litigations

The amount recognised as a provision shall be the best estimate of the expenditure required to settle the present obligation arising at the reporting period.

C. FIRST TIME ADOPTION OF IND AS

i. Explanation of transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies have been applied consistently in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of an opening Ind AS balance sheet at 1st April 2016 (the Company’s date of transition).

ii. Ind AS optional exemptions

Ind-AS 101, ‘First-time Adoption of Indian Accounting Standards’, allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind-AS. The Company has accordingly applied the following exemptions:

Deemed cost for Property, plant and equipment and Intangible assets:

Ind AS 101 ‘First-time Adoption of Indian Accounting Standards’ permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, ‘Intangible Assets’. Accordingly, the Company has elected to measure all of its property, plant and equipment & intangible assets at their previous GAAP carrying value.

iii. Ind AS mandatory exceptions Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were an error.

Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

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 amlgamation 211000 Equity shares of Rs.100 each consists of initial subscription to memorandum and subsequent allotment to the promoters.

c) 4,97,900 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) 3,45,233 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) 2,55,000 equity shares of Rs.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) 1,00,00,000 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.

i) Details of Shareholders holding more than 5% shares in the Company

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.

Note No. : 2 Exceptional Items

1 The Company has disposed off one component of equipment during the year (Last Year : Sold its Furniture, Equipment, Battery & Vehicle)

3. Related Party Disclosures under Ind AS - 24

A. Relationship:

List of Related Parties where control exists and other related parties with whom the Company had transactions and their relationships:

a) Key Management Personnel :

1. Dr. S.K. Sundaramoorthy

2. Ms. Sangeetha Sundaramoorthy

b) Relatives of Key Managerial Personnel : 1. Dr. Kavetha Sundaramoorthy

2. Dr. Rajkumar Sundaramoorthy

c) Other Related Party : 1. Lotus Vision Research Trust

2. Asean Optics Private Limited

B. Related Party Transactions:

The company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with the related parties:

4. Employee benefits

a) Defined contribution plan:

The Company makes contributions towards provident fund and employees state insurance as a defined contribution retirement benefit fund for qualifying employees. The provident fund is operated by the regional provident fund commissioner. The Employees state insurance is operated by the Employees State Insurance Corporation. Under these schemes, the Company is required to contribute a specific percentage of the payroll cost as per the statue.

The total expenses recognized in the Statement of Profit and Loss of Rs. 72.97 Lakhs (for the year ended March 31, 2017: Rs. 63.87 Lakhs) represents contributions payable to these plans by the Company.

b) Defined benefit plans: i. Gratuity

The company operates a defined benefit plan for payment of post-employment benefits in the form of Gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service, as provided for in the Payment of Gratuity Act, 1972. The terms of benefits are common for all the employees of the company.

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, salary risk and longevity risk.

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Mar 31, 2017

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 entitled 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 amalgamation of Dr. S.K.S. Eye Care Centre Private Limited with Lotus Eye Care Hospital Private Limited.

d) 345233 Equity shares of Rs.100/- each were allotted 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 Rs.10/- each were allotted 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 allotted on 03.07.2008 through Initial Public Offer (IPO) with a premium of Rs.28/- per share.

h) Details of Shareholders holding more than 5% shares in the Company

a. The premium collected on above issue of equity shares amounting to Rs.2800 Lakhs and also of the preferential allotment of Rs.102 Lakhs has been credited to Securities Premium Account during the financial year 2008-09.

b. Utilization of Initial Public Offer (IPO) funds up to 31^st March, 2017

A. Security Particulars of Secured Loans

1. The term loans availed of Rs.85 Lakhs from HDFC Bank are primarily Secured by Equipment namely Zeiss Ophthalmic Fem to Sound Visumax Surgical Laser System.

Current Liabilities Note No. 6 Trade Payable

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) Other liabilities includes caution deposit collected from employees who are in service amounting Rs. 6.61 Lakhs (Previous year : Rs.5.95 Lakhs).

Note No. 2 Short Term Provisions

a) Inventories are valued at Lower of cost and net realizable value. Cost is arrived at on first out basis.

b) During the year the method of valuation of optical and lens was changed from market price to cost price ( Please refer Note No. 1(B)(d) )

c) 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 requirement of schedule III to the Companies Act, 2013.

3. The Company has disposed off one component from laser equipment during the year (Last year : Sold its Furniture, Equipment, Battery & Vehicle)

4. The Income & Loss from Sales / disposal is reflected as Exceptional Item.

Note No.: 5 Contingent Liabilities and Commitments as on the closing date

6. The financial statements are presented in Rs. Lakhs (rounded off to two decimal places) and previous year''s figures have been regrouped and reclassified, wherever necessary.

7. Related party disclosure :

List of related parties as identified by the management as under

I. Name of related parties and description of relationship

a) Key Management Personnel : 1. Dr. S.K.Sundaramoorthy

2. Ms. Sangeetha Sundaramoorthy

b) Relatives of Key Managerial Personnel : 1. Dr. Kavetha Sundaramoorthy

2. Mr. Rajkumar Sundaramoorthy

c) Other related parties : 1. Lotus Vision Research Trust

2. Asean Optics Private Limited

II. Related party transactions

The company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with the related parties

8. Board recommended a dividend of 5% (Re. 0.50 per share) on the paid up equity shares for the financial year 2016-17.

9. Amount of contribution to employee''s provident fund during the year is Rs. 43.74 Lakhs (Previous year Rs.31.63 lakhs).

10. The company has not entered into any derivative transactions during the year under report. (Previous Year: Nil)

11. Confirmations of balance are yet to be obtained from few parties.

12. Segment Reporting :

Based on the guiding principles given in accounting standard on the Segment Reporting (AS 17) issued by the ICAI, there is only one Reportable segment namely Eye care and related activities. As the company''s business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.

13. During the year there is no impairment of assets as certified by the management. (previous Year: Nil)

14. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary except compensated leave salary.

15. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity)

Description of the company''s defined benefit plan : The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefit’s are common for all the employees of the Company.

Note: The salary escalation considered in actuarial valuation takes on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

16. Disclosure on Specified Bank Notes

During the year ended 31^st March, 2017, the company had Specified Bank Notes (SBN''s) or other denomination notes as defined in the MCA notification, G.S.R. 308 (E), dated 30th March, 2017.

# For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs Number S.0.3407(E), dated November 8, 2016.

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Mar 31, 2016

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 entitled 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 amalgamation 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 allotted as bonus shares on 28.08.2007 by Capitalization 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 Rs, 10/- each were allotted 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 allotted 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.

i) Details of Shareholders holding more than 5% shares in the Company

A. Security Particulars of Secured Loans

1. The term loans availed of Rs, 85 Lakhs from HDFC Bank are primarily Secured by Equipment namely Zeiss Ophthalmic Fem to Sound Visumax Surgical Laser System.

2. Loan Obtained from Canara Bank is secured by Vehicle purchased of Rs, 6.80 Lakhs.

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 requirement of schedule III to the Companies Act, 2013.

Note No.: 26 Exceptional Items

1. The Company has sold its Furniture, Equipment, Battery & Vehicle during the Year.

2. The Income from Sales is reflected as Exceptional Item in Consolidated Statement of Profit and Loss.

2. Figures have been rounded off to the nearest thousands and previous year s figures have been regrouped, reclassified wherever necessary to confirm to current years classification.

3. Related party disclosure :

List of related parties as per Accounting Standard - 18 identified by the management are as under

I) Name of related parties and description of relationship

a) Key Management Personnel : 1. Dr. S.K.Sundaramoorthy

2. Ms. Sangeetha Sundaramoorthy

b) Relatives of Key Managerial Personnel : 1. Dr. Kavetha Sundaramoorthy

2. Mr. Rajkumar Sundaramoorthy

c) Other related parties : 1. Lotus Vision Research Trust

2. Asean Optics Private Limited (from 03/11/2015)

II) Related party transaction in 2015-16

The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with the related parties. ( Rs, in Lakhs )

Remuneration paid to Managing / Whole-time Director during the year 2015-16 Remuneration Rs, 44.80 Lakhs

4. Disclosure regarding lease transactions :

a) Lease rent paid to Dr. S.K. Sundaramoorthy for leasing medical equipments to the company Rs, 19.92 Lakhs.

b) Lease rent paid to Lotus Vision Research Trust for leasing medical equipments to the company Rs, 9.60 Lakhs.

c) Lease rent received from Lotus Vision Research Trust of Rs, 1.14 lakhs

5. No dividend is recommended for the financial year 2015-16.

6. Amount of contribution to employees provident fund during the year is Rs, 31.63 Lakhs (previous year Rs, 25.47 Lakhs)

7. The company has not entered into any derivative transactions during the year under report.

8. Confirmations of balance are yet to be obtained from few parties.

9. Segment Reporting :

Based on the guiding principles given in accounting standard on the Segment Reporting (AS-17) issued by the ICAI, there is only one Reportable segment namely Eye Care and related activities. As the Company s business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.

10. During the year there is no impairment of assets as certified by the management.

11. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary except compensated leave salary.

12. Expenditure on Foreign exchange During the year is Rs, 48.18 Lakhs.

i) CIF value of imports

a) Capital goods

b) Consumable and spares Rs, 48.18 Lakhs

ii) Earnings in foreign currency NIL

iii) Expenditure in foreign currency - Travel & others NIL

iv) Dividend paid in foreign currency NIL

13. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity)

Description of the company s defined benefit plan : The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefit’s are common for all the employees of the Company.

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Mar 31, 2015

1. Nature of Operations :

The company was incorporated as "Kalavani Health Centre Pvt Ltd" on 14.03.1997. The name of the company was changed to " Lotus Eye Care Hospital Pvt Ltd on 23.01.2001 and later on the company was converted into Public Limited Company on 16.10.2007 and subsequently the name was changed to "Lotus Eye Hospital and Institute Limited" on 12.4.2013 and the Company is mainly in the field of ophthalmology (Eye) and its related operation. The Company has seven centre's at Peelamedu, R.S. Puram, Mettupalayam, Tirupur, Salem, Cochin and Mulanthurthy. The Company's Equity shares are Listed on 03.08.2008 with Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd, Mumbai .

2. Trades Payable

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.

3. Exceptional Items

1. The Company has sold its Generator & Refregirator during the Year.

2. The Income from Sales is reflected as Exceptional Item in Consolidated Statement of Profit and Loss.

4. Contingent Liabilities and Commitments as on the closing date

(Rs. in lacs)

Sl. Particulars As at As at No. 31.03.2015 31.03.2014

1. Contingent Liabilities

a. On account of Pending Litigations Sales Tax Matters 1.89 - (along with Interest & Penalty if any)

Total 1.89 -

4. Related party disclosure :

List of related parties as identified by the management are as under

(I) Name of related parties and description of relationship

a. Key Management Personnel : 1. Dr. S.K.Sundaramoorthy

5. Ms. Sangeetha Sundaramoorthy

b. Other related parties : Lotus Vision Research Trust

(II) Related party transaction in 2014-15

The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with the related parties. (Rs. in lacs)

6. Disclosure regarding lease transactions :

a. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical equipments to the company 19.92 Lacs.

b. Lease rent paid to Lotus Vision Research Trust for leasing medical equipments to the company 9.60 Lacs.

7. No dividend is recommended for the financial year 2014-15.

8. Amount of contribution to employees provident fund during the year is 25.47 Lacs (previous year Rs.17.18 Lacs)

9. The company has not entered into any derivative transactions during the year under report.

10. Confirmations of balance are yet to be obtained from few parties.

11. Segment Reporting :

Based on the guiding principles given in accounting standard on the Segment Reporting (AS-17) issued by the ICAI, there is only one Reportable segment namely Eye Care and related activities. As the Company's business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.

12. During the year there is no impairment of assets as certified by the management.

13. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary except compensated leave salary.

14. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity)

Description of the company's defined benefit plan : The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefit's are common for all the employees of the Company.

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Mar 31, 2014

NOTE NO: 1

A) NATURE OF OPERATIONS

The Company was incorporated as "Kalaivani Health Centre Pvt. Ltd." on 14.03.1997. The name of the Company was changed to "Lotus Eye Care Hospital Pvt. Ltd. on 23.01.2001 and later on the Company was converted into Public Limited Company on 16.10.2007 and subsequently the name was changed to "Lotus Eye Hospital and Institute Limited" on 12.04.2013 and Hospital operations mainly in the ophthalmology (Eye) field and its related operation. The Company has seven center''s at Peelamedu, R.S.Puram, Mettupalayam, Tirupur, Salem-I & II and Cochin. The Companies Equity Shares are listed on 03.08.2008 with Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd, Mumbai.

2. Figures have been rounded off to the nearest thousands and previous year''s figures have been regrouped, reclassified wherever necessary to confirm to current years classification.

3. Related party disclosure :

List of related parties as identified by the management are as under

(I) Name of related parties and description of relationship

a. Key Management Personnel : 1. Dr. S.K.Sundaramoorthy

2. Ms. Sangeetha Sundaramoorthy

b. Other related parties : Lotus Vision Research Trust

(II) Related party transaction in 2013-14

The Company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with the related parties.

4. Disclosure regarding lease transactions :

a. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical equipments to the company Rs. 19.92 Lakhs

b. Lease rent paid to Lotus Vision Research Trust for leasing medical equipments to the company Rs. 9.60 Lakhs.

5. No dividend is recommended for the financial year 2013-14.

6. Amount of contribution to employees provident fund during the year is Rs. 17.18 Lakhs (previous year Rs. 16.35 Lakhs)

7. The company has not entered into any derivative transactions during the year under report.

8. Confirmations of balance are yet to be obtained from few parties.

9. Segment Reporting :

Based on the guiding principles given in accounting standard on the Segment Reporting (AS-17) issued by the ICAI, there is only one Reportable segment namely Eye Care and related activities. As the Company''s business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.

10. During the year there is no impairment of assets as certified by the management.

11. There is no contingent liability as on 31.03.2014

12. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary except compensated leave salary.

13. Expenditure on Foreign exchange During the year 2013-14 - Nil i) CIF value of imports

a. Capital goods NIL

b. Consumable and spares NIL ii) Earnings in foreign currency NIL iii) Expenditure in foreign currency - Travel & others NIL iv) Dividend paid in foreign currency NIL

14. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity) Description of the company''s defined benefit plan : The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefit''s are common for all the employees of the Company.

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Mar 31, 2013

1. Related party disclosure : List of related parties as identified by the management are as under

(I) Name of related parties and description of relationship

a. Key Management Personnel :

1. Dr. S.K.Sundaramoorthy

2. Ms. Sangeetha Sundaramoorthy

b. Other related parties : Lotus Vision Research Trust

(II).Related party transaction in 2012-13 The company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with the related parties.

2. Disclosure regarding lease transactions : a. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical equipments to the company 19.92 Lakhs. b. Lease rent paid to Lotus Vision Research Trust for leasing medical equipments to the company 9.60 Lakhs.

3. No dividend is recommended for the financial year 2012-13.

4. Amount of contribution to employees provident fund during the year is 16.35 Lakhs (previous year 14.50 Lakhs).

5. The company has not entered into any derivative transactions during the year under report.

6. Confirmations of balance are yet to be obtained from few parties.

7. Segment Reporting : Based on the guiding principles given in accounting standard on the Segment Reporting (AS 17) issued by the ICAI, there is only one Reportable segment namely Eye Care and related activities. As the company''s business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.

8. During the year there is no impairment of assets as certified by the management.

9. There is no contingent liability as on 31.03.2013.

10. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary except compensated leave salary.

11. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity) Description of the company''s defined benefit plan :

The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefit are common for all the employees of the company.

a) Defined benefit plan: Note: 01.The salary escalation considered in actuarial valuation takes on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

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Mar 31, 2012

COMPANY OVERVIEW:

Lotus Eye Care Hospital Limited is providing health care services as a single speciality hospital catering eye care services which is spread over Tamil Nadu and Kerala.

1. During the year ended 31.03.2012, the revised schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adop tion of revised schedule VI does not impact recognition and measurement principles followed for prepa ration of financial statements. The company has also reclassified the previous year figure in accordance with the requirement applicable in the current year.

2. Sundry balance written back during the year amounting to Rs.. 3.70 Lakhs and credited to the profit and loss account.

3. Related party disclosure :

List of related parties as identified by the management as under (I) Name of related parties and description of relationship

a. Key Management Personnel : 1. Dr.S.K.Sundaramoorthy

2. Ms.Sangeetha Sundaramoorthy

b. Other related parties : Lotus Vision Research Trust

(II).Related party transaction in 2011-12

The company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with related parties.

Advance paid to one of the key management personnel Dr.S.K.Sundaramoorthy amounting to Rs..68.05 lakhs for purchase of land at Avinashi road, Coimbatore was returned during the year.

Remuneration paid to Managing / Whole time Director during the year 2011-12

Remuneration Rs..18.00 Lakhs

House Rent Rs.. 2.62 Lakhs

4. Disclosure regarding lease transactions :

a. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical equipments to the company Rs..19.92 Lakhs

b. Lease rent paid to Lotus vision research trust for leasing medical equipments to the company Rs..9.60 Lakhs.

5. No dividend is recommended for the financial year 2011-12.

6. Leave encashment benefits have been provided as per the rules of the company and on actuarial valuation. No separate fund has been created. Amount charged to profit and loss account during the year is Rs..4.55 Lakhs.

7. Amount of contribution to employees provident fund during the year is Rs..14.50 Lakhs (previous year Rs..7.21 Lakhs)-

8. The company has not entered into any derivative transactions during the year under report.

9. Confirmations of balance are yet to be obtained from few parties.

10. Segment Reporting :

Based on the guiding principle given in accounting standard on the Segment Reporting (AS 17) issued by the ICAI, there is only one Reportable segment namely Eye care and related activities. As the company's business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.

11. During the year there is no impairment of assets as certified by the management.

12. There is no contingent liability as on 31.03.2012

13. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary.

14. Out of Public issue an amount of Rs..210 Lakhs paid towards advance for purchase of land at Karur project was returned by the party amounting to Rs..50 lakhs and the same amount has been deposited in the form of fixed deposit in Indian Overseas Bank Coimbatore.

15. During the year advance paid amounting to Rs..35 lakhs out of public issue for purchase of land at Salem project. The same amount was received back by the company in subsequent months due to non execution of agreement.

16. Events occurring after balance sheet date :

The company received the notice under section 7 A of the Employees Provident Fund and Miscellaneous Provisions Act 1952, from the Assistant Commissioner of Provident Fund, Coimbatore for Rs..8.10 Lakhs as Provident Fund liability and the same has been provided and paid.

17. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity)

Description of the company's defined benefit plan : The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefit are common for all the employees of the company.

Note: 01.The salary escalation considered in actuarial valuation takes on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

1. The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realized in the ordinary course of business.

a) The company has not given any guarantee on behalf of the directors or other officers

b) i) a) Amounts due at the end of the year from Private companies in which one of the directors is a director is Rs..Nil (Previous year Rs.. Nil)

b) Amounts due at the end of the year from the trust in which one of the directors is a trustee is Rs..Nil (Previous year Rs..Nil)

ii) Maximum amount due from Dr.S.K.Sundaramoorthy at any time during the year is Rs..Nil

iii) Maximum amount due from Lotus Vision Research Trust at any time during the year Rs..Nil.

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Mar 31, 2010

1. Share Capital:

I. Share Capital:

a) Before amalgamation 211000 Equity shares of Rs.100 each consists of initial subscription to memorandum and subsequent allotments to the promoters.

b) 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 amalgamation of Dr. S.K.S. Eye Care Centre Private Limited with Lotus Eye Care Hospital Limited

c) 345233 Equity shares of Rs.100 each were allotted as bonus shares on 28.08.2007 by capitalization of general reserve.

d) 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 consists of 10541330 shares of Rs.10 each.

e) 255000 Equity shares of Rs.10 each were allotted to M/s.Bennett and Coleman Company Limited on 22.01.2008 on preferential allotment with a premium of Rs.40 per share.

f) 10000000 equity shares of Rs. 10 each allotted on 03.07.2008 through Initial Public Offer (IPO) with a premium of Rs.28 per share.

II). Securities Premium Account:

The premium collected on above issue of equity shares amounting to Rs. 2800 Lakhs and also of the preferential allotment of Rs. 102 Lakhs has been credited to Securities Premium Account during the financial year 2008-09.

a). Temporary investments of Rs.77.24 lacs in the form of fixed deposit with Indian Overseas Bank, Coimbatore and the balance of Rs. 12.47 lacs current account with the same bank.

b). Out of Public Issue, Refund amounting to Rs.0.26 Lacs has been kept in a separate bank account (Axis Bank Ltd, Coimbatore).

c). Advance paid out of Public issue for purchase of land at Salem project was returned by one of the party amounting to Rs.250 Lacs and the same was utilized for repayment of Term loan availed from Indian Overseas Bank Ganapathy Branch, Coimbatore to the extent of Rs.250 Lacs.

d). Funds deployed includes equipment cost Rs. 187.60 lacs not envisaged in offer document.

2) Figures have been rounded off to the nearest rupee and previous years figures have been regrouped wherever necessary.

3) Provision for all liabilities including depreciation is neither inadequate nor more than what is necessary except Remuneration to whole time director which is not provided in accounts.

4) The opinion of the Board is that the current assets, loans and advances will fetch the amounts stated if realized in the ordinary course of business.

a) The company has not given any guarantee on behalf of the directors or other officers

b) i) a) Amounts due at the end of the year from Private companies in which one of the directors is a director is Rs. Nil (Previous year Rs. Nil)

b) Amounts due at the end of the year from the trust in which one of the directors is a trustee is Rs.Nil (Previous year Rs.10.01 lacs)

ii) Maximum amount due from Dr.S.K.Sundaramoorthy at any time during the year is Rs 11.75 lacs

iii) Maximum amount due from Lotus Vision Research Trust at any time during the year Rs. 10.01 lacs.

5) No dividend is recommended for the financial year 2009-10

6) Remuneration paid to Managing / Whole time Director during the year 2009-10.

Remuneration Rs. 19.73 Lacs

House Rent Rs. 2.12 Lacs

7) The company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Act, 2006. Since the relevant information is not readily available, no disclosures have been made in these 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.

8) 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 requirement of schedule VI to the Companies Act, 1956.

9) Expenditure on Foreign Exchange during the year Rs. 7.28 lacs. i) CIF value of imports

a. Capital goods Rs 6.32 Lacs

b. Consumable and Spares Rs. 5.59 Lacs

ii) Earnings in Foreign Currency Rs. Nil

iii) Expenditure in Foreign Currency - Travel & Others Rs 0.37 Lacs

iv) Dividend paid in Foreign Currency Rs. Nil

10) Security particulars of secured loans:

The term loans availed from the Indian Overseas Bank , ICICI Bank Ltd, HDFC Bank Ltd, ABN Amro Bank and Citicorp Finance Ltd are primarily Secured by:

a. Charge on the immovable properties of the company situated at 770/12, Avinashi Road, Civil Aerodrome Post, Coimbatore -14 and 155B, East Periasamy Road, Near Chinthamani, R.S.Puram, Coimbatore - 641 002.

b. Charge on the movable fixed assets including medical equipments has been assigned to respective bankers who funded the particular movable assets.

c. The working capital facility availed from the Indian Overseas Bank is primarily secured by hypothecation of Stocks and Book debts.

d. The loan availed from the Indian Overseas Bank is collaterally secured by the land at SF No.89/lA to 89/1F at Pattanam Village belonging to Dr.S.K.Sundaramoorthy.

e. The Term loans and Working capital facility availed from the Indian Overseas Bank are further guaranteed by the personal guarantees of the Chairman and Managing Director and other Promoter directors of the Company,

11) Contingent liability as on 31.03.2010

During the year a claim against the company by the patient for Rs.0.28 Lacs which is not acknowledged as debt. However based on Information available with the company and legal advice received, management believes that this case will not adversely effect the financial statement.

12) During the year there is no impairment of assets as certified by the management.

13) Deferred Tax:

i. Deferred tax has been provided in accordance with Accounting Standard -22 accounting for taxes on income

ii The break-up details of deferred tax assets/liabilities for the current year is as under:( Rs. In lacs)

14) Disclosure regarding lease transactions:

i. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical equipments to the company Rs.19.92 Lacs ii. Lease rent paid to Lotus Vision Research Trust for leasing medical equipments to the company Rs.9.60 Lacs

15) Segment Reporting:

Based on the guiding principles given in accounting standard on the Segment Reporting (AS 17) issued by the ICAI, there is only one Reportable segment namely Eye Care and related activities. As the Companys business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.

16) Specific debts identified as irrecoverable and doubtful are written off during the year Rs. 15.07 lacs classified as miscellaneous expenses.

17) Insurance claim receivable accounted during the previous year 2008-2009 amounting to Rs.37.13.lacs has not been admitted by the insurance company. Hence the said amount has been charged to Profit and Loss account during the financial year 2009-10.

18) Related party disclosure:

List of related parties as identified by the management are as under

(I). Names of related parties and description of relationship

a. Key Management Personnel : 1. Dr.S.K.Sundaramoorthy

: 2. Ms.Sangeetha Sundaramoorthy

b. Other related parties : Lotus Vision Research Trust

(II) Related Party Transactions in 2009-10

The company has identified all related parties and details of transactions are given below. No provision for doubtful debts or advances is required to be made and no amounts have been written off or written back during the year in respect of debts due from or to related parties. There are no other related parties where control exists that need to be disclosed. Following transactions were carried out with the related parties.

19) Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity)

Description of the companys defined benefit plan: The Company operates a defined benefit plan for payment of post employment benefits in the form of gratuity. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefit are common for all the employees of the company.

20) Leave encashment benefits have been provided as per the rules of the company and on actuarial Valuation. No separate fund has been created. Amount charged to Profit and Loss Account during the year is Rs. 1.47 Lacs.

21) Personnel cost includes Managing / Whole time Director Remuneration of Rs. 19.73 Lacs.

22) Amount of contribution to Employees Provident Fund during the year is Rs.1,91 Lacs. (Previous year Rs.1.94 lacs)

23) The company has not entered into any derivative transactions during the year under report.

24) Confirmation of balance are yet to be obtained from parties.

25) The caution deposit collected from the employees and doctors who are in service amounting to Rs.15.65 Lakhs is remaining to be deposited with scheduled bank office as required under section 417 of the Companies Act, 1956.