(ix) Contingent liabilities and provisions
a) Provisions
Provisions are recognised when the Company has a legal / constructive obligation as a
result of a past event, for which it is probable that a cash outflow may be required and a
reliable estimate can be made of the amount of the obligation.
When a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).
b) Contingencies
Contingent liabilities are disclosed after evaluation of the facts and legal aspects of the
matter involved, in line with the provisions of Ind AS 37.
The company records a liability for any claims where a potential loss probable and
capable of being estimated and discloses such matters in its financial statements, if
material. For potential losses that are considered possible, but not probable, the
Company provides disclosures in the financial statements but does not record a liability
in its financial statements unless the loss becomes probable.
Contingent assets are not recognised in the books of the accounts but are disclosed in
the notes. However, when the realisation of income is virtually certain, then the related
asset is no longer a contingent asset, but it is recognised as an asset and the
corresponding income is booked in the Statement of Profit and Loss.
(x) Income taxes
The income tax expense or credit for the period is the tax payable on the current
period's taxable income based on the applicable income tax rate adjusted by changes in
deferred tax assets and liabilities attributable to temporary differences and to unused
tax losses.
Deferred income tax is provided in full, using the liability method on temporary
differences arising between the tax bases of assets and liabilities and their carrying
amount in the financial statement. Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantially enacted by the end of the reporting
period and are excepted to apply when the related deferred income tax assets is realised
or the deferred income tax liability is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused
tax losses, only if, it is probable that future taxable amounts will be available to utilise
those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to
offset current tax assets and liabilities and when the deferred tax balances relate to the
same taxation authority. Current tax assets and tax liabilities are off set where the
Company has a legally forceable right to offset and intends either to settle on a net
basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognised in the Statement of Profit and Loss, except to the
extent that it relates to items recognised in other comprehensive income or directly in
equity. In this case, the tax is also recognised in other comprehensive income or directly
in equity, respectively.
(xi)
Cash and Cash Equivalents
Cash and cash equivalents include cash in hand and at bank, deposits held at call with
banks. For the purpose of the Statement of Cash Flows, cash and cash equivalents
consists of cash and short term deposits, having maturity less than 12 months.
(xii) Financial Instruments
A. Initial recognition
Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of financial asset or
financial liabilities, as appropriate, on initial recognition.
B. Subsequent measurement
(i) Financial assets carried at Amortised cost: A financial asset is subsequently
measured at Amortised cost if it is held in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
(ii) Financial assets carried at fair value through other comprehensive income
(FVTOCI): A financial asset is subsequently measured at FVTOCI if it is held not only
for collection of cash flows arising from payments of principal and interest but also
from the sale of such assets. Such assets are subsequently measured at fair value, with
unrealised gains and losses arising from changes in the fair value being recognised in
other comprehensive income.
(iii) Financial assets carried at fair value through profit or loss (FVTPL): A financial
asset which is not classified in any of the above categories are subsequently measured at
fair value through profit or loss.
(iv) Financial liabilities: Financial liabilities are subsequently measured at amortized
cost using the effective interest method. For trade and other payables maturing within
one year from the Balance Sheet date, the carrying amounts approximate fair value due
to the short maturity of these instruments.
De-recognition of financial Asset
A financial asset is primarily derecognised (i.e. removed from the balance sheet) when:
• The rights to receive cash flows from the asset have expired, or
• The Company has transferred its rights to receive cash flows from the asset or has
assumed an obligation to pay the received cash flows in full without material delay to a
third party under a 'pass-through' arrangement; and either (a) the Company has
transferred substantially all the risks and rewards of the asset, or (b) the Company has
neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset. When the Company has transferred its rights to
receive cash flows from an asset or has entered into a pass-through arrangement, it
evaluates if and to what extent it has retained the risks and rewards of ownership.
De-recognition of financial liability
A financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires. The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another party and the
consideration paid is recognised in profit or loss as "Other Income" or "Finance
Expense".
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, to realise the assets and settle
the liabilities simultaneously.
C. Impairment
(i) . Financial assets
The Company recognizes loss allowances using the expected credit loss for the financial
assets which are not measured at fair value through profit or loss.
The Company do not recognise expected credit loss on Trade receivables.
Individual trade receivables are written off when management deems them not to be
collectible.
(ii) . Non - financial assets
Tangible and intangible assets
Property, plant and equipment and intangible assets are evaluated for recoverability
whenever there is any indication that their carrying amounts may not be recoverable.
An impairment loss is recognised for the amount by which the asset's carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair
value less costs of disposal and value in use. For the purpose of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash
inflows which are largely independent of the cash inflows from other assets or group of
assets (cash-generating units). The Company review/ assess at each reporting date if
there is any indication that an asset may be impaired.
(xiii) Segment Reporting
Operating Segment are reported in a manner consistent with the Internal Reporting
provided to the Chief Operating Decision Maker.
The Company is engaged providing Superspeciality and general hospital services
which constitutes a single business segment, so there are no other Reportable Segments.
(xiv) Operating Cycle
Based on the nature of products / activities of the Company and the normal time
between acquisition of assets and their realisation in cash or cash equivalents, the
Company determined its operating cycle as 12 months for the purpose of classification
of its assets and liabilities as current and non-current.
(xv) Investments in Equity Instruments
Investments in Equity Instruments have been valued at their fair values through Profit
and Loss, as on the closing date. The fair value has been valued as per the intrinsic
value of shares of the company in which our company has invested.
Note 1.5 - Critical Accounting Assumptions
The estimates and judgements used in the preparation of the financial statements are
continuously evaluated by the Company and are based on historical experience and
various other assumptions and factors (including expectation of future events) that the
Company believes to be reasonable under the existing circumstances. Differences
between actual results and estimates are recognised in the period in which the results
are known/ materialised.
The said estimates are based on the facts and events that existed as at the reporting date,
or that which occurred after the date but provide additional evidence about the
conditions existing at the reporting date.
a) Property, plant and equipment
Management assesses the remaining useful lives and residual value of property, plant
and equipment. Management believes that the assigned useful lives and residual value
are reasonable.
b) Income taxes
Management judgment is required for the calculation of provision for income taxes and
deferred tax assets and liabilities.
The Company reviews at each balance sheet date the carrying amount of deferred tax
assets and liabilities. The factors used in estimates may differ from actual outcome
which could lead to significant adjustment to the amounts reported in the standalone
financial statements.
c) Contingencies
Management judgement is required for estimating the possible outflow of resources, if
any, in respect of contingencies/claim/litigations against the Company as it is not
possible to predict the outcome of pending matters with accuracy.
d) Impairment of accounts receivable and advances
Trade receivables carry interest and are stated at their fair value as reduced by
appropriate allowances for expected credit losses. Individual trade receivables are
written off when management deems them not to be collectible. Impairment is
recognised for the expected credit losses.
e) Discounting of Security deposit, and other long-term liabilities
For majority of the security deposits received, the timing of outflow, as mentioned in
the underlying contracts, is not substantially long enough to discount. The treatment
would not provide any meaningful information and would have no material impact on
the financial statements.
27 Fair Value Measurement
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in
a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values:
1. Fair value of cash and short-term deposits, trade and other short term receivables, trade
payables, other current liabilities, short term loans from banks and other financial institutions
approximate their carrying amounts largely due to short term maturities of these
instruments.
2. Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the
counterparty. Based on this evaluation, allowances are taken to account for expected losses of
these receivables. Accordingly, fair value of such instruments is not materially different from
their carrying amounts.
3. IND AS 101 allows Company to fair value its property, plant and machinery on transition
to IND AS, the Company has fair valued property, plant and equipment, and the fair
valuation is based on deemed cost approach where the existing carrying amounts are treated
as fair values.
4. The Transaction cost on the borrwings are amortised over the tenure of loan and fair values
are arrived accordingly.
5. For other financial assets and liabilities that are measured at amortised cost, the carrying
amounts are equal to the fair values.
The Company uses the following hierarchy for determining and disclosing the fair value
of financial instruments by valuation technique:
Level 1: Quoted prices / published NVA (unadjusted) in active markets for identical assets or
liabilities. It includes fair value of financial instruments traded in active markets and are
based on quoted market prices at the balance sheet date and financial instruments like mutual
funds for which net assets value (NAV) is published mutual fund operators at the balance
sheet date.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the
asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). It
includes fair value of the financial instruments that are not traded in an active market (for
example, over-the-counter derivatives) is determined by using valuation techniques. These
valuation techniques maximise the use of observable market data where it is available and
rely as little as possible on the company specific estimates. If all significant inputs required to
fair value an instrument are observable then instrument is included in level 2.
Level 3: Inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs). If one or more of the significant inputs is not based on observable
market data, the instrument is included in level 3.
Note :28: FINANCIAL RISK MANAGEMENT
Financial risk factors
The Company's principal financial liabilities comprise of trade payables, borrowings and
other liabilities. The main purpose of these financial liabilities is to manage finances for the
Company's operations and also for purchase of capital assets and for safeguarding its
interests under contracts.
The Company has given loans to its employees, trade and other receivables, investments in
equity shares and cash and cash equivalents that arise directly from its operations as a part of
its financial assets.
The Company's activities expose it to a variety of financial risks:
a. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices.
Financial Instruments affected by Market Price Risk include investments made in equity
instruments by the Company.
There are no currency rate risk on the Company since all the transactions are done in the
functional currency (INR)
b. Credit risk
Credit risk is the risk that a counter party will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss.
The company is engaged in providing medical services under which major amount is
recieved in advanced from patients and settled at the time of payment of billing amount. In
case of insured patients amount is recieved through TPA and government agencies which is
subject to slight credit risk . Financial Instruments like trade receivables and loans forwarded
to employees are subject to slight credit risk against which the Company has booked
Expected Credit Losses.
c. Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future
cash and collateral obligations without incurring unacceptable losses.
Being a cash rich company, it does not have any acute liquidity risk and has no lines of credit
in the forms of loans payable.
Market Risk
Commodity price risk and sensitivity
Being a Professional Company, engaged in medical sector the risk of the Company is bare
minimum.
Credit risk
Credit risk refers to the risk that a counter party will default on its contractual obligations
resulting in financial loss to the Company. The Company takes due care while extending any
credit as per the approval matrix approved by Board of Directors.Company have Rs.
6,02,970.00 as trade recievables outstanding for more than 36 months, as per Board of
Directors, company is not required to book any expected credit losses.
Details and terms and conditions of borrowings are as under:
(i). Vehicle loan from ICICI Bank is secured against hypothication of specified Vehicle,
repayable in 60 Equited monthly installment of Rs. 20,468/- each , bears rate of interest of
9.25%. Vehicle Loan from Mahindra & Mahindra Financial Services Lt. is secured against
hypothecation of specified Vehilce, rapayable in 48 Equited monthly installment of
Rs.17,755/- each, bears rate of interest of10.00%. Equipment Loan for Medical Oxygen Plant
from Yes Bank agaisnt hypothecation of Medcail Oxgen Plant ourchsed from Kamtech,
repayable in 60 Equited monthly installment including 6 months moretorium and 54
installment of Rs. 70879./-, bears rate of interest of 7.50%.. Vehicle Loan from HDFC Bank is
secured against hypothecation of specified vehilce, payable in 84 Euiited installment of Rs.
28,332.00 each, bear rate of interest 8.50%.
2. Unsecured Loan taken from Banks on personal guarntee of Dr. B.R. Soni & Dr. Anju Soni ,
Directors of company as Business Loan for the term of 60 months @11.00% from HDFC Bank
Ltd.
3. In financial year 2020-21 overdfat limit of Rs.700.00 Lakhs from A U Small Finance Bank
@9.00 % p.a. interest rate and secured by way of hypothecation of all present and future
current assets of the company and Land & Building situated at 38, Kanota Bagh, Jawahar Lal
Nehru Marg, Jaipur in the name of Dr. Bimal Roya Soni, Managing Director of the company
and Personal Guarantee of Dr. Bimal Roy Soni, Managing Director of the company and Dr.
Anju Soni, Director of the company . Out of Total Limit Rs.700.00 Lakhs, Rs.300.00 Lakhs was
overdraft limit which was yearly renewed and balance Rs.400.00 Lakhs was droup down
limit for 120 months and limit will reduced Rs.3,33,333.33 per month at the end of month was
taken over by Kotak Mahindra Bank by way of Term Loan of Rs.400.00 Lakhs which is
repayble in 84 months and 300.00 Lakhs of overdfat limit which is yearty renewed. The above
both loans from Kotak Mahindra Bank is on interest rate @6.80% (RPRR 4.00% p.a. and
spread 2.80% p.a., at present the RPPR is 5.40% p.a.) and is secured by way hypothecation of
Present and Future Current assets and movable fixed assets of the company and Equited
Mortgage of Land and Building Situalted at 38, Kanota Bagh, Jawahar Lal Nehru Marg,
Jaipur in the name of Dr. B.R.Soni, Managind Director of the company and Persoanl
Guarantee of Dr. B R Soni, Managing Director and Dr. Anju Soni, Director of the company
4. Bank Overdtat Limit of Rs. 90000/- taken from HDFC Bank Limited for collction account
for Credit Cradt Swap Machine of HDFC Bank against FDR of Rs.1.00 Lakhs, bears interet
rate @ 1.50 % above the FDR interest rate.
5. Term loan of Rs.200.00 Lakhs taken from Kotak Mahindra Bank is secured by way
hypothecation of Present and Future Current assets and movable fixed assets of the company
and Equited Mortgage of Land and Building Situalted at 38, Kanota Bagh, Jawahar Lal Nehru
Marg, Jaipur in the name of Dr. B.R.Soni, Managind Director of the company and Persoanl
Guarantee of Dr. B R Soni, Managing Director and Dr. Anju Soni, Director of the company,
bears interest rate as RPRR 2.80%p.a. (RPRR at the time of Sanction was 5.40% p.a. and at
present the same is 5.40% p.a.)
29CAPITAL RISK MANAGEMENT
Objective
The primary objective of the Company's capital management is to maximize the shareholder
value. i.e. to provide maximum returns to the shareholders. The Company's primary
objective when managing capital is to ensure that it maintains an efficient capital structure
and healthy capital ratios and safeguard the Company's ability to continue as a going concern
in order to support its business and provide maximum returns to the shareholders. The
Company also proposes to maintain an optimal capital structure to reduce the cost of capital.
No changes were made in the objectives, policies or processes during the year ended March
31, 2024 and March 31, 2023.
Policy
The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the rules and regulations framed by the Government under whose
control the Company operates.
Process
The Company manage its capital by maintaining sound/optimal capital structure financial
ratios, such as net debt-to-equity ratio on a monthly basis and implements capital structure
improvement plan when necessary. Debt-to-equity ratio as of March 31, 2024, March 31, 2023
is as follows:
III Compliance with Approved Scheme(s) of Arrangements:
No scheme of arrangement has been approved by the Competent Authority in
terms of Sections 230 to 237 of the Companies Act, 2013, hence, this is not
applicable.
IV Undisclosed Income:
There are no transactions not recorded in the books of account that have been
surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961.
V Details of Crypto Currency or Virtual Currency:
The Company has not traded or invested in crypto currency or virtual currency
during the current or previous year.
VI Valuation of Property, Plant and Equipment and Intangible Assets:
As the Company has chosen cost model for its Property, Plant and Equipment
(Including Right-of-Use Assets) and Intangible Assets, the question of revaluation
does not arise
VII Loans or Advances to Specified Persons:
The Company has not granted any loans or advances in the nature of loans to
promoters, directors, KMPs or the related parties (as defined under Companies
Act, 2013,) either severally or jointly with any other person.
VIII Borrowings Secured Against Current Assets:
The Company had sanctioned borrowings limits as disclosed in Note 34. The
returns/ statements of current assets filed by the Company with the bank
whenever bank required for the same.
IX Willful Defaulter:
The Company has not been declared Willful Defaulter by any bank or financial
institution or government or any government authority.
X Registration of Charges or Satisfaction with Registrar of Companies:
The comapany has registered the charges when it takes loan from banks and
financial instituted and satisfied its charged if repay the loan wihin time period as
prescribed by Companies Act, 2013. The company registers all the charges timely,
when it takes loans from banks and FIs and satisfies the charges when it repays the
loan as per companies Act, 2013. However there are some charges which are yet to
be satisfied with ROC, of which the management has given the representation
stating that the satisfaction is under process.
Compliance with Number of Layers of Companies:
The Company complies with the number of layers prescribed under clause (87) of
Section 2 of the Act read with Companies (Restriction on number of Layers) Rules,
2017.
Utilisation of Borrowings Availed from Banks and Financial Institutions:
On Behalf of Board of Directors
For Tambi Ashok & Associates Chartered
Sd/- Accountants
DR. B.R. SONI
(MANAGING DIRECTOR) Sd/-
DIN: 00716246 (PRIYANKA GUPTA)
PARTNER
Sd/- Membership No. 432540
DR. ANJU SONI Firm Registration No.: 005301C
(DIRECTOR)
DIN: 00716193
Sd/- Sd/-
JUHI GURNANI KRISHNA KUMAR SAINI
(COMPANY SECRETARY) (CHIEF FINANCIAL OFFICER)
Date: 30.05.2024
Place: JAIPUR
UDIN No. 24432540BKHGCF1426
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