4.10 Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or
a present obligation that is not recognised because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a
liability that cannot be recognised because it cannot be measured reliably. The contingent liability is not
recognised in books of account but its existence is disclosed in financial statements.
4.11 Impairment of non-financial assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing for an asset is required, the Company estimates the
asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's
(CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual
asset. unless the asset does not generate cash inflows that are largely independent of those from other assets or
Company's assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
4.12 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects
some or all of a provision to be reimbursed the reimbursement is recognised as a separate asset, but only when
the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of
profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
4.13 Financial instruments
Initial recognition
The company recognise the financial asset and financial liabilities when it becomes a party to the contractual
provisions of the instruments. All the financial assets and financial liabilities are recognised at fair value on
initial recognition, except for trade receivable which are initially recognised at transaction price. Transaction cost
that are directly attributable to the acquisition of financial asset and financial liabilities, that are not at fair value
through profit and loss, are added to the fair value on the initial recognition.
Subsequent measurement
(A) Non derivative financial instruments
(i) Financial Assets at amortised cost
A financial assets is measured at the amortised cost if both the following conditions are met :
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.
This category is the most relevant to the Company. All the Loans and other receivables under financial assets
(except Investments) are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. Trade receivables do not carry any interest and are stated at their nominal value as
reduced by impairment amount.
(ii) Financial Assets at Fair Value through Profit or Loss/Other comprehensive income
Instruments included within the FVTPL category are measured at fair value with all changes recognised in the
Statement of Profit and Loss.
If the company decides to classify an instrument as at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognised in the OCI. There is no recycling of the amounts from OCI to P&L, even on
sale of investment. However, the company may transfer the cumulative gain or loss within equity.
(iii) Financial liabilities
The measurement of financial liabilities depends on their classification, as described below:
(a) Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the effective interest rate (EIR) method. However, the Company has borrowings at floating rates.
Considering the impact of restatement of Effective interest rate, transaction cost is being amortised over the
tenure of loan and borrowing.
(b) Trade & other payables
After initial recognition, 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.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
derecognition of the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in the statement of profit or loss.
4.14 Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term
deposits, as defined above, as they are considered an integral part of the Company's cash management.
4.15 Earni ngs per share
Basic earnings per share is computed by dividing the net profit attributable to equity shareholders for the year,
by the weighted average number of equity shares outstanding during the year, adjusted for bonus element in
equity shares issued during the year.
Diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the
year, by the weighted average number of equity shares outstanding during the year after giving effect to all
dilutive potential equity shares.
5 New Accounting Standard -
Leases (Ind AS 116) -
Ind AS 116 is applicable for financial reporting periods beginning on or after 1 April 2019 and replaces existing
lease accounting guidance, namely Ind AS 17. Ind AS 116 introduces a single, on-balance sheet lease accounting
model for lessees. A lessee recognises a right-of-use ("ROU") asset representing its right to use the underlying
asset and a lease liability representing its obligation to make lease payments. The nature of expenses related to
those leases will change as Ind AS 116 replaces the operating lease expense (i.e., rent) with depreciation charge
for ROU assets and interest expense on lease liabilities. There are recognition exemptions for short-term leases
and leases of low-value items.
Lessor accounting remains similar to the current standard - i.e. lessors continue to classify leases as finance or
operating leases.The Company is in the process of analysing the impact of new lease standard on its financial
statements.
Note:
a) There are no other contingent liabilities as at the balance sheet date.
b) The company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions
are required and disclosed as contingent liabilities where applicable, in its financial statements. The Board does not expect
the outcome of these proceedings to have a materially adverse effect on its financial position.
c) Capital commitment for value of contracts yet to be executed Rs. Nil (P.Y. Nil)
26 Employee benefit obligations
Since Company does not have minimum no. of employees required to mandatorily attract Employee Benefit regulations,
Company has not provided for the same.
27 Segmental Information
The Company operates in a single reportable segment i.e. medical services, which has similar risks and returns for the
purpose of IND-AS - 108 on 'Segment Reporting'. The Company operates in single geographical segment, i.e. domestic.
(1) Assets that are not financial assets, in the opinion of the management are not included.
(2) Other liabilities that are not financial liabilities, in the opinion of the management are not included.
(3) In the opinion of the management, based on the details available with the company, all the financial assets and
liabilities are tested for valuation, to identify their fair value, as prescribed in Indian Accounting Standards, and are
measured at fair value, to the extent possible. The assets/ liabilities, which are not possible to be measured at fair value, in
the opinion of the management, are presented in the financial statements at their book value, without any adjustment
towards fair valuation.
29 Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
There have been no transfers among Level 1, Level 2 and Level 3 during the period.
The management assessed that cash and cash equivalents, Trade receivable and other financial asset, trade payables and
other financial liabilities approximate their carrying amount largely due to short term maturity of these instruments.
30 Financial risk management objectives and policies
The risk management policies of the Company are established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company's activities.
The Management has overall responsibility for the establishment and oversight of the Company's risk management
framework.
In performing its operating, investing and financing activities, the Company is exposed to the Credit risk, Liquidity risk and
Market risk.
32 Credit risk on financial assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge their
obligations in full or in a timely manner consist principally of cash balances with banks, cash equivalents and receivables,
and other financial assets. The maximum exposure to credit risk is: the total of the fair value of the financial instruments
and the full amount of any loan payable commitment at the end of the reporting year. Credit risk on cash balances with
banks is limited because the counterparties are entities with acceptable credit ratings. Credit risk on other financial assets
is limited because the other parties are entities with acceptable credit ratings.
Cash and cash equivalents balances generally represent short term deposits with a less than 180-day maturity.
As part of the process of setting customer credit limits, different credit terms are used. The average credit period generally
granted to trade receivable customers is about 90-360 days. But some customers take a longer period to settle the amounts.
33 Exposure to credit risk
Financial asset for which loss allowance is measured using expected credit loss model
With the applicability of Ind AS 109, the recognition and measurement of impairment of financial assets is based on credit
loss assessment by expected credit loss (ECL) model. The ECL assessment involve significant management judgement. The
Company's impairment allowance is derived from estimates including the historical default and loss ratios. Management
exercises judgement in determining the quantum of loss based on a range of factors, like staging criteria, calculation of
probability of default / loss and consideration of probability weighted scenarios and forward looking macroeconomic
factors.
The board acknowledges and understands that these factors, since there is a large increase in the data inputs required by
the ECL model, which increases the risk of completeness and accuracy of the data that has been used to create assumptions
in the model. Based on the internal management analysis, as per Board Opinion, there is no requirement of provision for
expected credit loss in several financial assets including the trade receivables and other receivables of the Company and all
are on fair value, based on the assessment and judgement made by the board of the company.
In the opinion of management, trade receivable, Financial assets, Cash and cash equivalent, Balance with Bank, Loans and
other financial assets have a value on realisation in the ordinary course of business at lease equal to the amount at which
they are stated in the balance sheet.
34 Market risk -
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect
the Company's income or the value of its holdings of financial instruments. Market risk is attributable to all
market risk sensitive financial instruments including foreign currency receivables and payables and long term
debt. We are exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus,
our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The
objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.
35 Foreign currency risk
The Company is not exposed to any currency risk on account of its borrowings, other payables and receivables in
foreign currency. All dealings are done in domestic markets by the company. The functional currency of the
Company is Indian Rupee.
36 Interest rate risk
Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate
risk is the risk of changes in fair values of fixed interest bearing finacial instruments because of fluctuations in the
interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing
financial instruments will fluctuate because of fluctuations in the interest rates.
Company has interest rate risk exposure mainly from changes in rate of interest on borrowing & on deposit with
bank. The interest rate are disclosed in the respective notes to the financial statements of the Company.
37 Fair value sensitivity analysis for fixed-rate instruments
The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit
or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.
38 Cash flow sensitivity analysis for variable-rate instruments -
The company does not have any financial assets or financial liabilities bearing floating interest rates. Therefore, a
change in interest rates at the reporting date would not affect profit or loss.
39 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. The Company's objective is to, at all times maintain optimum
levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity
position and deploys a robust cash management system. It maintains adequate sources of financing including
debt and overdraft from banks at an optimised cost.
The Company maximum exposure to credit risk for the components of the balance sheet at 31 March 2024 and 31
March 2023 is the carrying amounts. The liquidity risk is managed on the basis of expected maturity dates of the
financial liabilities. The average credit period taken to settle trade payables is about 90 days. The other payables
are with short-term durations. The carrying amounts are assumed to be a reasonable approximation of fair value.
The following table analysis financial liabilities by remaining contractual maturities:
At present, the Company does expects to repay all liabilities at their contractual maturity. In orderto meet such
cash commitments, the operating activity is expected to generate sufficient cash inflows.
40 Capital management -
Forthe purpose of the Company's capital management, capital includes issued equity capital, share premium and
all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company's
capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company
monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company's
policy is to keep optimum gearing ratio. The Company includes within net debt, interest bearing loans and
borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to
ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define
capital structure requirements. Breaches in meeting the financial covenants would permit the bank to
immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest¬
bearing loans and borrowing in the current period.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31
March 2024 and 31 March 2023.
The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets
and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the
same tax authority.
Significant management judgement is required in determining provision for income tax, deferred income tax assets
and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is
based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over
which deferred income tax assets will be recovered.
42 Estimates
The estimates at 31 March 2024 and at 31 March 2023 are consistent with those made for the same dates in
accordance with Indian AS (after adjustments to reflect any differences in accounting policies).
43 Balance of Receivables and Payables, including loans , deposits & trade advances given, payable to vendors, etc, are
subject to confirmation and consequent reconciliation and adjustments, if any. Further the impairment provision for
trade advances given are subject to documentation of the informal updation in terms of advances. Hence, the effect
thereof, on Profit/ Loss, Assets and Liabilities, if any, is not ascertainable, which may be considerable. As per the
opinion of the Board, there will be no substantial impact on their reconciliation with their balance confirmations as on
the reporting date.
44 There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance
with Indian Accounting Standard (Ind AS)-36 "Impairment of Assets"
45 Lease disclosure
The company has not entered into any agreement for obtaining any premises on rent (which is in nature of operating
leases). However if entered amount paid/payable in respect of such leases will be charged to profit and loss on
accrual basis over the peirod of lease.
46 Earnings per share
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted
average number of equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average
number of equity shares outstanding during the year plus the weighted average number of equity shares that would
be issued on conversion of all the dilutive potential equity shares into equity shares.
47 The Company has not entered into any transactions which are termed "Specified Domestic Transaction" as perSection
92BA of the Income Tax-Act, 1961. Accordingly, it is not required to comply with certain transfer pricing regulations
under Section 92 to Section 92F of the Act. ".
48 The Company has an informal process of obtaining confirmations from the vendors to record whether they are
covered under Micro, Small and Medium Enterprise Development Act 2006 as well as they have filed required
memorandum with prescribed authority. Based on and to the extent of the information received by the Company
from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006
(MSMED Act) and relied upon by the auditors, the relevant particulars as at the year end are furnished below:
49 The Company has carried out Impairment test on its Fixed Assets as on the date of Balance Sheet and the
management is of the opinion that there is no asset for which provision of impairment is required to be made as per
applicable Indian Accounting Standard.
50 Revaluation/ Fair valuation of PPE / Intangible assets/ Investment property
There was no revaluation of Property, Plant and Equipment (including Right-of-Use Assets) and intangible assets held
by the company during the year. The company also does not have any Investment property during the current year as
well as previous year.
51 Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder
The Company do not have any benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property.
52 Wilful Defaulter
The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.
53 Misutilisation of Bank Borrowing
The company has not taken any borrowings from banks and financial institutions during the current year as well as
previous year.
54 Disclosure of transactions with struck off companies
The Company did not have any material transactions with companies struck off under Section 248 of the Companies
Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.
55 Compliance with approved Scheme(s) of Arrangements
No Scheme of Arrangements has been approved by/ pending with the Competent Authority in terms of sections 230
to 237 of the Companies Act, 2013 during the year as well as previous year
56 Undisclosed Income
The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961).
57 Compliance with number of layers of companies
The compliance of number of layers of companies, prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017, are not applicable to the company
58 Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year and
any of the previous financial years.
59 Security of current assets against borrowings
The Company has no borrowings from banks or financial institutions on the basis of security of current assets.
60 Utilisation of Borrowed funds and share premium:
(A) During the year, the company has not advanced or loaned or invested funds to any other person(s) or entity(ies),
including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries)
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(B) During the year, the Company has not received any fund from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party(Ultimate Beneficiaries)
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
61 Registration of charges or satisfaction of charges with Registrar of Companies (ROC)
The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
Notes :
1 The related party relationship have been determined on the basis of the requirement of the
Indian Accounting Standard (Ind AS) - 24 ' Related Party Discloures and the same have been
relied upon by the auditors.
2 The relationships as mentioned above pertain to those related parties with whom transactions
have taken place during the current year/previous year, except where control exists, in which
case the relationships have been mentioned irrespective of transactions with the related party.
67 These financial statements are presented in Indian Rupees (INR), which is also its functional
currency and all values are rounded to the nearest Lakhs, except when otherwise indicated. The
amounts which are less than Rs. 0.01 Lakhs are shown as Rs 0.00 Lakhs.
68 Previous year's figures have been regrouped or reclassifed wherever necessary.
For and on behalf of the Board of Director
For Parekh Shah & Lodha Looks Health Services Limited
Chartered Accountants
( Firm Reg. No. 107487W)
sd/- sd/- sd/-
CA Pranay Bhutra Pritesh Doshi Sejal Jain
(Partner) (Managing Director) (Director)
M.No. 623927 DIN:05155318 DIN:09092276
UDIN: 24623927BKEWYS6724 sd/- sd/-
Kanchan Kaku Milinath Gavas
Place : Mumbai (Company Secretary) (CFO)
Date : 30.05.2024 ICSI Member No: A58681
Place : Mumbai
Date : 30.05.2024
|