Notes to Accounts of Chennai Meenakshi Multispeciality Hospital Ltd.

Mar 31, 2024

(g). Provisions, Contingent Liabilities and Contingent Assets
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 the Company will be required to settle the
obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required
to settle the present obligation at the end of the reporting period, taking into account the
risks and uncertainties surrounding the obligation. When a provision is measured using
the cash flows estimated to settle the present obligation, it carrying amount is the
present value of those cash flows (when the effect of the time value of money is
material).

When some or all of the economic benefits required to settle a provision are expected to
be recovered from a third party, a When some or all of the economic benefits required to
settle a provision are expected to be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.

Contingent Liabilities

Contingent liability is a possible obligation arising from past events and whose existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the entity or a present obligation that arises from
past events but is not recognized because it is not probable that an outflow of resources
embodying economic benefits will be required to settle the obligation or the amount of
theobligation cannot be measured with sufficient reliability.

(h) . Earnings per Share

The Company presents basic and diluted earnings per share ("EPS") data for its equity
shares. Basic EPS is calculated by dividing the profit and loss attributable to equity
shareholders of the Company by the weighted average number of equity shares
outstanding during the period. Diluted EPS is determined by adjusting the profit and loss
attributable to equity shareholders and the weighted average number of equity shares
outstanding for theeffects of all dilutive potential equity shares.

(i) . Cash and Cash Equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, 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.

(j) . Employee Benefits

Short Term Employee Benefits:

The undiscounted amount of short-term employee benefits expected to be paid in
exchange for the services rendered by employees are recognised as an expense during the
period when the employees render the services.

Post Employee Benefits:

Defined Contribution Plans: - Retirement benefit in the form of provident fund is a
defined contribution scheme. The Company has no obligation, other than the contribution
payable to the provident fund. The Company recognises contribution payable to the fund as
an expense, when an employee renders the related service. If the contribution payable to
the scheme for service received before the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme is recognised as a liability after deducting
the contribution already paid.

Defined Benefit Plans: - The Company operates a defined benefit gratuity plan for employees.
The Company contributes to a fund, towards meeting the Gratuity obligation.

Gratuity liability is accounted for on the basis of actuarial valuation as per Ind AS 19
''Employee Benefits''. Liability recognized in the Balance Sheet in respect of gratuity is the
present value of the defined benefit obligation at the end of each reporting period less the
fair value of plan assets. The defined benefit obligation is calculated annually by an
independent actuary using the projected unit credit method. The present value of defined
benefit is determined by discounting the estimated future cash outflows by reference to

market yield at the end of each reporting period on 9 years government bonds that have
terms approximate to the terms of the related obligation. Actuarial gain / loss pertaining to
gratuity is accounted for as OCI. All remaining components of costs are accounted for in
Statement of Profit and Loss.

(k) . Taxation

Income tax expense comprises current tax and the net change in the deferred tax asset
or liability during the year. Tax is recognised in Statement of Profit and Loss, except to
the extent that it relates to items recognised in the Other Comprehensive Income.

a. Current Tax: The tax currently payable is based on taxable profit for the year. The
Company''s current tax is calculated using tax rates that have been enacted or
substantively enacted by the end of the reporting period. Advance taxes and provisions
for current income taxes are presented at net in the Balance Sheet after off-setting advance
tax paid and income tax provision.

b. Deferred Tax: Deferred Tax is recognised on temporary differences between the
carrying amounts of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable profit. Deferred tax assets
are generally recognised for all deductible temporary differences to the extent that it is
probable that taxable profits will be available against which those deductible temporary
differences can be utilized. Such deferred tax assets and liabilities are not recognised if the
temporary difference arises from the initial recognition of assets and liabilities in a
transaction that affects neither the taxable profit nor the accounting profit. In addition,
deferred tax liabilities are not recognised if the temporary difference arises from the
initial recognition of goodwill. Deferred tax assets and liabilities are offset when they
relate to income taxes levied by the same taxation authority and the relevant entity
intends to settle its current tax assets and liabilities on a net basis.

The carrying amount of deferred tax assets is reviewed at the end of each reporting
period and reduced to the extent that it is no longer probable that sufficient taxable
profits will be available to allow all or part of the asset to be recovered. Deferred tax
liabilities and assets are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences
that would follow from the manner in which the Company expects, at the end of the
reporting period, to recover or settle the carrying amount of its assets and liabilities.
Temporary differences arising as a result of changes in tax legislation. Accordingly,
when additional temporary differences arise as a result of the introduction of a new tax,
and not when an asset or a liability is first recognised, the deferred tax effect of the
additional temporary differences should be recognised.

(l) . Financial Instruments

Financial assets and financial liabilities are recognised when a Company becomes a party to
the contractual provisions of the instruments.

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 and
loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit and loss are
recognised immediately in statement of profit and loss.

i) . Financial Assets

Excluded are trade accounts receivables. At initial recognition trade accounts receivables (in
accordance with Ind AS 115) are measured at their transaction price and subsequently
measured at carrying value as of initial recognition less impairment allowance (if any).The
Company applies the expected credit loss model for recognising impairment loss on
financial assets measured at amortised cost, debt instruments at FVTOCI, lease receivables,
trade receivables, other contractual rights to receive cash or other financial asset, and
financial guarantees not designated as at FVTPL. The expected credit loss approach requires
that all impacted financial assets will carry a loss allowance based on their expected
credit losses. Expected credit losses are a probability weighted estimate of credit losses
over thecontractual life of the financial assets.

For trade receivables or any contractual right to receive cash or another financial asset
that result from transactions that are within the scope of Ind AS 115, the Company
measures the loss allowance at an amount equal to lifetime expected credit losses. The
impairment provisions for trade receivables is based on reasonable and supportable
information including historic loss rates, present developments such as liquidity issues
and information about future economic conditions, to ensure foreseeable changes in the
customer-specific or macroeconomic environment are considered.

ii) . Financial Liabilities

All Financial Liabilities are recognised at fair value and in case of borrowings, net of directly
attributable cost. Financial liabilities are subsequently measured at amortised cost using the
effective interest method. The carrying amounts of financial liabilities that are subsequently
measured at amortised cost are determined based on the effective interest method.
Interest expense that is not capitalised as part of costs of an asset is included in the
''Finance costs''line item.

The effective interest method is a method of calculating the amortised cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest rate
is the rate that exactly discounts estimated future cash payments (including all fees and
points paid or received that form an integral part of the effective interest rate,
transaction costs and other premiums or discounts) through the expected life of the
financial liability, or (where appropriate) a shorter period, to the net carrying amount on
initial recognition.

The Company derecognises financial liabilities when, and only when, the Company''s
obligations are discharged, cancelled or have expired. An exchange with a lender of
debt instruments with substantially different terms is accounted for as an extinguishment
of the original financial liability and the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing financial liability is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial
liability. The difference between the carrying amount of the financial liability derecognized
and the consideration paid and payable is recognised in the statement of profit and loss.

Financial Risk Management Objectives and Policies

The Company''s financial liabilities comprise mainly of borrowings, trade payables.

The Company''s financial assets comprise mainly trade receivables, cash and cash
equivalents, other balances with banks.

The Company''s financial risk management is an integral part of how to plan and
execute its business strategies.

The Company''s activities expose it to market risk, credit risk and liquidity risk.

Market Risk

Market risk is the risk that the fair value of future cash flows of financial assets will fluctuate
because of changes in market prices. Market risk comprises three types of risk: interest
raterisk, currency risk and other price risk.

Credit Risk Management

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 exposed to
a credit risk from its operating activities (primarily trade receivables and advances to
suppliers) and from its financing activities, including deposits with banks and financial
institutions, and other financial instruments.

Liquidity Risk Management

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs
arising due to shortage of liquid funds in a situation where business conditions unexpectedly
deteriorate and requiring financing. The Company requires funds both for short term
operational needs as well as for long term capital expenditure growth projects. The
Company generates sufficient cash flow for operations, which together with the
available cash and cash equivalents and short term investments provide liquidity in the short¬
term and long-term.

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Mar 31, 2015

1.1 Terms / Rights Attached to equity Shares

The Company has only one class of equity shares having par value of Rs.107 each. Each holder of the equity share is entitled to one vote per share. In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2014

1 SHARE CAPITAL

1.1 Terms / Rights Attached to equity Shares

The Company has only one class of equity shares having par value of Rs.10/ each. Each holder of the equity share is entitled to one vote per share. In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 RESERVES & SURPLUS

2.1 The Net worth of the company is fully eroded and as the Balance sheet date, Net worth is negative Rs.4,50,16,941/-. The current liabilities as at the year end has exceeded the Current Assets by Rs.7,75,69,79E/-. However, the management is of the opinion that considering the estimated future cash flows, the company will be able to continue as a going concern.

3 LONG TERM BORROWINGS

a. Loan from Director is secured by registered equitable mortgage of title deed of Building bearing Door No: 149, Luz Church Road, Mylapore, Chennai - 600 004.

4 LONG TERM PROVISIONS

4.1 Disclosures required under Accounting Standard 15 - "Employee Benefits"

* The assumption of future salary increases takes into account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.

Long Term Employee Benefits

* The assumption of future salary increases takes into account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.

5 SHORT TERM BORROWINGS:

5.1 Details of Securities

a. The Overdraft from Indian Bank, balance outstanding Rs.6,724,819/-(PY Rs.5,137,545/-) is secured by the first charge on Company''s property at #147,Luz Church Road Chennai-4, company''s Current Assets covering book debts, stocks and consumable stores.

6 TRADE PAYABLES

6.1 The identification of Micro and Small Enterprises suppliers as defined under The Micro Small and Medium Industries Development Act, 2006, is based on the representations received by the Management from the Vendors. As certified by the management, no dues to such parties are outstanding for a period more than 30 days as at year end. Rs. Rs.

7 OTHER CURRENT LIABILITIES:

7.1 The terms of payment of interest on loan from Director and related concern is not stipulated and hence, in the opinion of the management, the said interest is considered as accrued but not due.

8 CASH AND BANK BALANCES

8.1 Represents deposits with Bank with original maturity of less than 3 months.

9 REVENUE FROM OPERATIONS:

Hospital collection are shown net of discounts and payments to Consultant (visiting Doctors).

10 In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

11 Balances of Sundry Debtors & Creditors, Loans and Advances are subject to confirmation / reconciliation.

12 The company''s operation comprises of only one segment - Hospital Activities. There is no other business or geographical segments required under Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India.

13. Taxes

a) Current Tax

No provision for current tax is required to be made in the books of accounts for the year as per the managements Computation due to the loses incurred by the company in the prior years.

b) Deferred Tax

The company has not recognized Deferred Tax Asset (net) in the accounts as a matter of prudence.

14. Estimated amount of contracts remaining to be executed on capital account is Rs.8,65,284/- (PY Rs. 15,63,796/-)

15. Figures in brackets unless otherwise stated, represent figures of the previous year. Previous year''s figures have been regrouped/ recast wherever necessary to confirm to the current year''s lay out.

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Mar 31, 2013

1 In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

2 Balances of Sundry Debtors 8t Creditors, Loans and Advances are subject to confirmation / reconciliation.

3 Related Party Disclosures

(a) The particulars that is required to be disclosed in terms of Accounting Standard 18 issued by the Institute of Chartered Accountants of India are furnished below:

b) Finance Lease: Nil

4. The company''s operation comprises of only one segment- Hospital Activities. There is no other business or geographical segments required under Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India.

5. Taxes

a) Current Tax

No provision for current tax is required to be made in the books of accounts for the year as per the managements Computation due to the losses incurred by the company in the prior years.

b) Deferred Tax

The company has not recognized Deferred Tax Asset (net) in the accounts as a matter of prudence.

6. Figures in brackets unless otherwise stated, represent figures of the previous year. Previous year''s figures have been regrouped/ recast wherever necessary to confirm to the current year''s lay out.

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Mar 31, 2012

1 PRESENTATION OF ACCOUNTS

During the year ended March 31, 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 adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.1 Terms/ Rights Attached to equity Shares

The Company has only one class of equity shares having par value of Rs.10/ each. Each holder of the equity share is entitled to one vote per share. In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.1 Though the Company has earned profits during this year, the Company has continuously incurred cash losses during the last 3 years. The Net worth of the company is fully eroded and as the Balance sheet date, Net worth is negative Rs.5,63,50,736/-. The current liabilities as at the year end has exceeded the Current Assets by Rs.4,96,36,252/-. However, the management is of the opinion that considering the estimated future cash flows, the company will be able to continue as a going concern.

3.1 Details of Security

a. Loan from a Director, balance outstanding Rs.2,45,00,000 (PY Rs.2,45,00,000) is secured by registered equitable mortgage of title deed of Building bearing Door No:149, Luz Church Road, Mylapore, Chennai - 600 004.

- The assumption of future salary increases takes into account of inflation, seniority, promotions and other relevant factors such as supply and demand in the employment market.

The above disclosures and segregation of liability into long term and Short term are based on information furnished by the independent actuary and relied upon by the auditors.

4.1 Details of Securities

a. The Overdraft from Indian Bank, balance outstanding Rs.79,03,577/- (PY Rs.49,79,938/-) is secured by the first charge on Company's property at #147,Luz Church Road Chennai-4, company's Current Assets covering book debts, stocks and consumable stores.

b. The Temporary Overdraft from Indian Bank, balance outstanding Rs. 18,34,000 (PY Rs. Nil) is secured by marking lien against Fixed Deposit made by the Company with the Bank.

5.1 The identification of Micro and Small Enterprises suppliers as defined under The Micro Small and Medium Industries Development Act, 2006, is based on the representations received by the Management from the Vendors. As certified by the management, no dues to such parties

6.1 The terms of payment of interest on loan from Director and related concern is not stipulated and hence, in the opinion of the management, the said interest is considered as accrued but not due.

7.1 Represents deposits with Bank with original maturity of less than 3 months.

8.1 Hospital collection is shown net of discounts and payments to Consultant (visiting) Doctors.

9 In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

10 Balances of Sundry Debtors & Creditors, Loans and Advances are subject to confirmation / reconciliation.

11 Related Party Disclosures

(a) The particulars that is required to be disclosed in terms of Accounting Standard 18 issued by the Institute of Chartered Accountants of India are furnished below:

b) Finance Lease: Nil

12. The company's operation comprises of only one segment - Hospital Activities. There is no other business or geographical segments required under Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India.

13. Taxes

a) Current Tax

No provision for current tax is required to be made in the books of accounts for the year as per the managements Computation due to the loses incurred by the company in the prior years.

b) Deferred Tax

The company has not recognized Deferred Tax Asset (net) in the accounts as a matter of prudence.

14. Estimated amount of contracts remaining to be executed on capital account Rs.21,97,556/- (PY Rs.4,30,434)

15. Additional Information:

Value of imports calculated on CIF basis NIL

Expenditure in Foreign Currency NIL

Details of Consumption of imported and indigenous items NA

Earnings in Foreign Exchange NIL

16. Figures in brackets unless otherwise stated, represent figures of the previous year. Previous year's figures have been regrouped/ recast wherever necessary to confirm to the current year's lay out.

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Mar 31, 2010

1 a) In the opinion of the Directors, Current Assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

b) Balances of Sundry Debtors & Creditors, Loans and Advances and some of the Bank balances and Term Deposits are subject to confirmation / reconciliation.

2 The company has been continuously incurring cash losses for the last three years. The Net Worth of the company has been fully eroded and as at the balance sheet date, the Net worth is negative (Rs.4.90 crores). The Current Liabilities as at the year end has exceeded the Current Assets by Rs.3.41 crores. However, the management is of the opinion that in view of the present and expected future cash flow, the company will be able to continue as a going concern.

3 In the opinion of the management, taking in to consideration the future cash flow including estimated market values of the Assets especially Land and Building, no further adjustment for impairment in the carrying cost of Assets is considered necessary in the Accounts as at the year end.

4 The Company is in the process of collecting information regarding the creditors who need to be classified as micro, small or medium enterprises within the meaning of Micro, Small or Medium Enterprises Development Act 2006. Since the aforesaid information is not available as on the Balance Sheet Date, the Company is not able to comment whether the Liabilities appearing in the Balance Sheet as on 31 -03-2010, includes any enterprises as stated above.

5 a) The Overdraft from Indian Bank is secured by the first charge on Companys property at #147,Luz Church Road Chennai-4, companys Current Assets covering book debts, stocks and consumable stores.

b) Loan from a Director (formerly share holder) represents loan from Mr. A.N. Radhakrishnan, for an amount of Rs.2,45,00,000 secured by registered equitable mortgage of title deed of Building bearing Door No: 149, Luz Church Road, Mylapore, Chennai - 600 004.

6 a) The Company has availed a Secured loan of Rs. 2,45,00,000 (PY.Rs.2,45,00,000)froma Director bearing Interest @ 12%. The Company has also availed unsecured loan from the same Director bearing Interest @ 9%, the outstanding amount of unsecured loan as at the year end is Rs.9,02,00,518/-(PY Rs.6,52,24,339.) The due dates for payment of Interest and for repayment of the above loan have not been stipulated.

b) The maximum amount outstanding in case of the Secured loan at any time during the year is Rs.2,45,00,000 (PYRs. 2,45,00,000) and in case of unsecured loan is Rs.9,02,00,518 (PY Rs.6,52,24,339.)

The total amount of Interest paid / payable for the year to the said Director on the above loans is Rs.99,66,642/- (PY Rs. 7,261,321).

7 Employee Benefits -

Disclosure required under AS15 - "Employee Benefits" (Revised 2005)

1) Defined Contribution Plan

During the year, the company has recognized in the Profit and Loss Account, an amount of Rs.20,85,182on account of contribution towards Provident Fund.

2) Defined Benefit Plans

8. Exceptional Item

During the year the company has entered into a compromise settlement with a former Director and her relative as per which both the parties to the agreement have agreed to withdraw all the cases/claim including those which were pending before various judicial forums. As per the agreement, the company has agreed to pay sum of Rs.100 lacs to the said parties in full and final settlement of the various claims made by them in the previous years against the company, which has been duly paid/provided for in the Accounts for the year.

Pursuant to the above, the Company has written off a sum of Rs.185.80 lacs due from the above parties in the Accounts of the year.

9. Related Party Disclosures

** Advance Received from a Director for Medical Services.

Rs.

# Includes - Secured loan from a Director - 2,45,00,000

Unsecured loan - 9,02,00,518

Interest Payable on above to - 1,94,74,685



Subsidiaries Nil

Associates: Nil

Key Management Personnel : Mr. A.N. Radhakrishnan (Chairman, Executive Director)

Mr. G.R Navin Rakesh (Managing Director)

Ms. Premalatha Kanikannan (Director)

Dr. S Kameswaran (Director)

Dr. R Venkataswami (Director)

Mr. T.V Venkataraman (Director)

Relatives of Key Management : Mrs. Gomathy (Wife of A.N. Radhakrishnan)

Personnel Mr. Gokulkrishnan (Son of A.N. Radhakrishnan)

*Enterprises over which key : Meenakshi Ammal Trust

management personnel or their Meenakshi College of Engineering relatives are able to exercise Muthukumaran Institute of technology significant influence Arulmigu Meenakshi Amman Higher Secondary School

Meenakshi Medical College and Research Institute

Meenakshi Ammal Arts and Science College

Meenakshi Ammal Dental College Meenakshi College of Physiotherapy Arulmigu

Meenakshi Amman College of Education (One of the Director is the Managing Trustee in the above trusts)

10. Hospital collection is shown net of discounts and payments to Consultant (visiting) Doctors.

11. The companys operation comprises of only one segment - Hospital Activities. There is no other business or geographical segments required under Accounting Standard "Segment Reporting" issued by the Institute of Chartered Accountants of India.

12. Taxes

a) Current Tax

No provision for current tax is required to be made in the books of accounts for the year as per the managements Computation due to the loses incurred by the company in the prior years

b) Deferred Tax

Deferred tax asset of Rs. 1.72 crores has not been recoganised in the accounts as a matter of prudence. The Net Deferred Tax liability of Rs.2,498,539 as on 31-03-2009 is written back to the Profit & Loss A/c during the year.

13. Estimate amount of contracts remaining to be executed on capital account Rs.5,78,000/- (PYRs. 5,78,000)

14. Figures in brackets unless otherwise stated, represent figures of the previous year. Previous years figures have been regrouped/ recast wherever necessary to confirm to the current years lay out.