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Moneycontrol.com India | Notes to Account > Hospitals & Medical Services > Notes to Account from Lotus Eye Care Hospital - BSE: 532998, NSE: LOTUSEYE
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Lotus Eye Care Hospital

BSE: 532998|NSE: LOTUSEYE|ISIN: INE947I01017|SECTOR: Hospitals & Medical Services
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Notes to Accounts Year End : Mar '18

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.

Source : Dion Global Solutions Limited
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