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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Kovai Medical Center and Hospital Ltd.

Mar 31, 2025

b) Terms/ rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the Company.

During the year ended March 31, 2025, Board has declared first interim dividend of Rs. 16 per share and second interim dividend of Rs. 17.75 per share, aggregating Rs. 10,830.56 lakhs (Previous year: first interim dividend Rs. 82 per share (before issue of bonus shares) and second interim dividend of Rs. 19 per share (after issue of bonus share), aggregating Rs. 11,360.06 lakhs).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

d) There are no shares reserved for issue under options and contracts/commitments for the sale of shares or disinvestment, including the terms and amounts.

e) Bonus shares issued during the five years preceding the reporting date

a During the year 2023-24, the Company has issued and allotted 256,72,460 fully paid up Bonus Equity shares of Rs. 10 each in the ratio of 4:1 (i.e. 4 Bonus Equity shares for every 1 existing equity share of the Company) to the shareholders who held shares on October 17, 2023 (Record date).

f) Equity Shares Extinguished on Buy-Back

The Board of Directors of the Company, at its meeting held on December 12, 2022 had approved a proposal to buyback upto 34,500 equity shares of the Company being 0.53% of the total number of equity shares in the paid up equity share capital of the Company at a price of Rs. 14,500 per equity share for an aggregate amount not exceeding Rs. 50,02,50,000. A Letter of Offer was made to all eligible shareholders. The Company bought back 34,500 equity shares out of the shares that were tendered by eligible shareholders and extinguished the equity shares bought back on 24 February 2023. The Company has utilised its Retained Earnings (Rs. 4,999.05 Lakhs) and General Reserve (Rs.

3.45 Lakhs) for the buyback of its equity shares and tax of Rs. 1,164.58 Lakhs was offset from retained earnings. In accordance with Section 69 of the Companies Act 2013, the Company has created Capital Redemption Reserve of Rs.

3.45 Lakhs equal to the nominal value of the shares bought back as an appropriation from the General Reserve.

23. Post-Employment Benefit Plans:

The Company sponsors funded defined benefit plans for qualifying employees. The defined benefit plans are administered by separate funds which are legally separate from the Company. These plans are:

Provident fund for certain category of employees administered through a recognised provident fund trust.

(i) These plans typically expose the company to actuarial risks such as investment risk, interest rate risk, longevity risk and salary risk.

Investment Risk

The probability or likelihood of occurrence of losses relative to the expected return on any particular investment. Salary Risk

The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the planâs liability.

Interest Risk

The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk

The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plans liability.

(a) Defined Contribution Plans:

Contributions paid / payable to defined contribution plans comprising of provident fund, pension fund, superannuation fund etc., in accordance with the applicable laws and regulations are recognised as expenses during the period when the contributions to the respective funds are due.

30. Financial Instruments & Risk management

30.1 Capital management

The Company is cash surplus and has issued only equity share capital . The Company is a Core Investment Company (CIC) within the meaning of Core Investment Companies (Reserve Bank) Directions, 2016 and does not require registration with Reserve Bank of India under the said directions.

The cash surpluses are currently invested in equity instruments and inter -corporate loans depending on economic conditions in line with investment policy set by the Management. Safety of capital is of prime importance to ensure availability of capital for operations. Investment objective is to provide safety and adequate return on the surplus funds.

The Company does not have any borrowings.

30.2 Financial Risk Management

The Company being a Core Investment Company as per the Core Investment Companies (RBI) Directions, 2016 is required to invest or lend majority of itâs fund to subsidiaries. The Companyâs principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to support Companyâs operations. The Companyâs principal financial assets include inter corporate deposits, loans, cash and cash equivalents and other receivables.

The Company is exposed to market risk, credit risk, liquidity risk and operational and business risk. The Companyâs management oversees the management of these risks. The Companyâs senior management is supported by a Risk Management Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The major risks are summarised below:

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. In the case of the Company, market risk primarily impacts financial instruments measured at fair value through profit or loss.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company does not have exposure to the risk of changes in market interest rate as it does not have debt obligations.

Credit risk

Credit risk is the risk that the counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Company is exposed to credit risk from its financing activities towards inter corporate deposits to subsidiaries, where no significant impact on credit risk has been identified.

Equity price risk:

The Companyâs investment in subsidiaries are accounted at cost in the financial statement net of impairment. The expected cash flow from these entities are regularly monitored to identify impairment indicators.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. The Company manages its liquidity requirement by analysing the maturity pattern of the Companyâs cash flow of financial assets and financial liabilities . The Companyâs objective is to maintain a balance between continuity of funding and flexibility through issuance of equity shares etc. The Company invests its surplus funds in subsidiary companies.

Mar 31, 2024

b) Provision and contingent liability:

Provisions and liabilities are recognised in the period when it becomes probable that there will be future outflows of funds from past events that can reasonably be estimated. The timing of recognition requires application of judgement to existing facts and circumstances which may be subject to change.

On an ongoing basis, the Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in Financial Statements. Loss contingencies that are considered possible are not provided for but disclosed as contingent liabilities in the Financial Statements. Contingencies, the likelihood of which is remote, are not disclosed in the Financial Statements.

c) Leases:

Significant judgments are required in the assumptions made in order to determine the ROU asset and lease liability. The assumptions and estimates include application of practical expedients, selection of accounting policy choices, assessment of lease term, determination of applicable incremental borrowing rate, among others.

Recent Pronouncements

Ministry of Corporate Affairs (MCA) notified new accounting standards or amendments to the existing standards under Companies (Indian Accounting Standards Rules, 2015) as amended, there was no new standards or amendments notified during the year.

Notes:

1. Capital reserve represents the reserve created on account of amalgamation of Idhayam Hospitals Erode Limited (erstwhile subsidiary) under the pooling of interest method

2. General Reserve is created from time to time by transferring profits from retained earnings and can be utilised for purposes such as dividend payout, bonus issue etc.

3. Retained Earnings represents the surplus / accumulated earnings of the Company and are available for distribution to Shareholders.

Note : Security details for the above loans taken

(i) The above term loans from Bank are primarily secured by first charge on the land and appurtenances therewith located at Kalapatti Village at Coimbatore and the land located at Erode, pari passu first charge on the entire fixed assets (present and future) of the Company.

(ii) The facilities are also collaterally secured by second charge on the entire current assets (present and future) of the Company.

(iii) The term loans from bank are further secured by personal guarantees of the Managing Director - Dr. Nalla G Palaniswami and Joint Managing Director - Dr. Thavamani Devi Palaniswami, of the Company.

(iv) The Company has made registration of charges / Satisfaction with registrar of Companies (ROC) within the Statutory period, wherever applicable.

Note 39 - Employee Benefits

(a) Defined contribution plans :

The Company makes contributions towards provident fund as a defined contribution retirement benefit fund for qualifying employees. The provident fund is operated by the regional provident fund commissioner. Under the scheme, 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 ^ 978.11 lakhs (for the year ended March 31, 2023: ^ 839.10) represents contributions payable to the plan 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 generally 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.

(a) Capital Management

The Company manages its capital with the objective to maximize the return to stakeholders through the optimisation of the debt and equity mix. The Company''s overall strategy remains unchanged from previous year.

The funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company''s policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company monitors capital on the basis of the gearing ratio which is net debt divided by total equity. Net debts are non-current and current debts as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components including other comprehensive income.

The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, loans, other financial assets, borrowings, trade payables and other current financial liabilities are a reasonable approximation of their fair values. Accordingly, the fair values of such financial assets and financial liabilities have not been disclosed separately.

iii) Valuation technique used to determine fair value

The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The investment included in Level 3 hierarchy have been valued at cost approach to arrive at the fair values as there is a wide range of possible fair value measurement and the cost represents estimate of fair value within that range considering the purpose and restriction on the transferability of the instruments

The estimated fair value amounts as at March 31, 2024 have been measured as at that date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at each year-end.

There were no transfers between Level 1, Level 2 and Level 3 during the year.

c) Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Company''s business and operational / financial performance. These include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Board of Directors has overall responsibility for the establishment and oversight of the Group''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(i) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Credit risk management

Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A. Low credit risk

B. Moderate credit risk

C. High credit risk

Note 50 - Disclosure as required under section 186(4) of the Companies Act, 2013

Loans and guarantees furnished by the Company: Nil (Previous year - Nil).

Investments made are given under the respective head.

Note 51 - The New Code on Social Security 2020 (the Code) has been enacted which would impact the contribution by the company towards PF and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in the period in which the said Code becomes effective and the rules framed thereunder are published.

Note 52 - Power and Fuel consumed is net off Solar Power Income ^ 504.40 lakhs (Previous Year ^472.95 lakhs)

Note 53 - The Board of directors recommended a final dividend ^ 10 per Equity share (100% of face value of '' 10/- each) for the financial year 2023-2024. The dividend proposed is subject to approval of the members in the ensuing Annual General Meeting.

Note 55 - In respect of Note nos 7, 8,10,13,14 there is no amount due from a director or other officers of the Company or any of them either severally or Jointly with any other persons or debts due by firms or Private Companies respectively in which any director is a partner or a director or a member, except due from Mrs. Thavamani Devi Palaniswami - Joint Managing Director of the Company of ^ 49 lakhs which is paid as lease advance.

Note 56 - ADDITIONAL DISCLOSURE ON ACCOUNT OF AMENDMENTS TO SCHEDULE III OF COMPANIES ACT 2013:

(i) Details of Benami property:

No proceedings have been initiated or are pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under the Companies Act, 2013.

entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

â¢ Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

â¢ Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall:

â¢ Directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

â¢ Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;"

(iv) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(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 &Equipment, intangible asset and investment property:

The company has not revalued its property, plant and equipment (including Right of Use Assets) or intangible assets or both during the current or previous year.

(vii) Wilful Defaulter:

The company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(viii) Compliance with approved scheme(s) of arrangements:

There is no accounting impact of approved scheme of arrangement during the current or previous year.

(ix) Loans to Related Parties and others:

The company had not granted any loans or advances in the nature of loans to promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that: a) are repayable on demand or b) without specifying any terms or period of repayment.

(x) Struck Off Companies:

The company has no transactions with companies struck off under section 248 of the Companies Act 2013, or section 560 of the Companies Act, 1956

Note 57 - Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current year''s classification including those as required consequent to amendment to Schedule III of the Companies Act, 2013. All figures are in lakhs unless otherwise stated.

Material Accounting Policies and the accompanying notes are an integral part of the Financial Statements

As per our report of even date For and on behalf of the Board of Directors

For VKS Aiyer & Co

Chartered Accountants ^{Sd/- Sd/-}

ICAI Firm Registration No: 000066S Dr. NALLA G PALANISWAMI CA. A.M. PALANISAMY

_Sd/- Managing Director Director

C S SATHYANARAYANAN ^{DIN: 00013536 DIN:}00112303

Partner

Membership No. 028328 Sd/_- Sd/_-

Place: Coimbatore CA. P.K. GOPIKRISHNAN CS. R. PONMANIKANDAN

Date : 29.05.2024 Chief Financial Officer Company Secretary

Mar 31, 2023

a. Terms/ Rights attached to the Equity Shares

The Company has only one class of equity shares having a par value of '' 10/-. Each holder of equity shares is entitled to one vote per share. The dividend Proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of Company, the holders of the Equity shares will be entitled to receive remaining assets of the Company after distribution of all Preferential amount. The distribution will be in proportion to be number of equity shares held by the Shareholders.

1. Capital reserve represents the reserve created on account of amalgamation of Idhayam Hospitals Erode Limited (erstwhile subsidiary) under the pooling of interest method

2. General Reserve is created from time to time by transferring profits from retained earnings and can be utilised for purposes such as dividend payout, bonus issue etc.

3. Retained Earnings represents the surplus / accumulated earnings of the Company and are available for distribution to Shareholders.

Primarily secured by Pari passu first charge on the Land and appurtenances therewith located at Kalapatti Village at Coimbatore and land located at Erode, Pari passu first charge on the entire Fixed assets (Present and Future) of the company. The facilities are also collaterally secured by second charge on the entire current assets (Present and Future) of the Company. The term loans from banks are further guaranteed by the personal guarantees of the Managing Director - Dr.Nalla G Palaniswami and Joint Managing Director - Dr.Thavamani Devi Palaniswami of the company.

(ii) The facilities are also collaterally secured by second charge on the entire current assets (present and future) of the Company

(iv) The Company has made registration of charges / satisfaction with registrar of Companies (ROC) within the Statutory period, wherever applicable.

The Company has availed working capital facility from Indian Bank which is secured by:

a. First Charge on current assets by way of hypothecation of present and future current assets including book debts and receivables.

b. The working capital facility is collaterally secured by all fixed assets mentioned in Note No.17 long term borrowings.

c. The working capital facility carries interest rates which varies from @ 7.30% to @ 8.60%

d. The working capital loans from bank are further secured by personal guarantees of the Managing Director - Dr.Nalla G Palaniswami and Joint Managing Director - Dr. Thavamani Devi Palaniswami, of the Company.

e. As per the terms of sanction letter, the company is not required to file monthly/ quarterly statements of current assets.

Note 38 - Employee Benefits

(a) Defined contribution plans :

The total expenses recognized in the Statement of Profit and Loss of ^ 839.10 lakhs (for the year ended March 31, 2022: ^ 1,031.41) represents contributions payable to the plan by the Company.

(b) Defined benefit plans : i) Gratuity

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

Investment Risk:	The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.
Interest risk:	A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan''s debt investments.
Salary risk:	The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.
Longevity risk:	The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Note 39 - Financial instruments (a) Capital Management

(ii) Fair Value Hierarchy

The Company has classified its financial instruments into three levels in order to provide an indication about the reliability of the inputs used in determining fair values.

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 asset or liability that are not based on observable market data (unobservable inputs)

iii) Valuation technique used to determine fair value

The estimated fair value amounts as at March 31, 2023 have been measured as at that date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at each year-end.

There were no transfers between Level 1, Level 2 and Level 3 during the year.

c) Financial Risk Management

(i) Credit risk

Credit risk management

Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A. Low credit risk

B. Moderate credit risk

C. High credit risk

Expected credit loss for trade receivables

In the case of revenue from Hospital services, the company receives payment for services rendered either before or during the course of the treatment except in respect of Insurance Companies, Corporate customers, Public Sector Undertakings, State/Central Governments which are agreed upon prior to the discharge of the patient. In respect of revenue from Education services, the fee towards course and other services are generally received in advance.

The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of trade and other receivables based on historical credit loss experience and is adjusted for forward looking information considering reasonable and supportable information that is available without undue cost or effort as at the reporting date. The maximum exposure to credit risk as at reporting date is primarily from trade receivables amounting to INR 17 Lakhs (March 31, 2022 : 8 lakhs ). Refer Note 10 (refer the ECL movement Note )

(ii) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring Balance Sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

(iii) Interest rate risk

The Company''s fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, ''Financial Instruments - Disclosures'', since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. However, The Company''s variable rate borrowings are subject to interest rate risk. Below is the overall exposure of the borrowings:

Guarantees given by Managing Director and Joint Managing Director are restricted to the amount of outstanding borrowings (Refer Note No.17).

The remuneration to key management personnel does not include the provision made for Gratuity as they are determined on an actuarial basis for the company as a whole.

The Company has entered into various lease arrangements with related parties against which Right-of-use Assets and Lease Liabilities has been recognised as required by IND AS 116. The lease liability at the year end is R 1272.30 lakhs (Previous year was R 1339.48 lakhs)

C. Disclosure requirements under Part-A Schedule V read with Regulation 34(3) & Regulation 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 :

Disclosure of transactions of the listed entity with any person or entity belonging to the Promoter / Promoter group which holds 10% or more shareholding in the listed entity - Dr.Thavamani Devi Palaniswami.

The Company has disclosed the suppliers who have registered themselves under "Micro, Small and Medium Enterprises Development Act, 2006" to the extent they have identified on the basis of information available with the Company.

Note 49 - Disclosure as required under section 186(4) of the Companies Act, 2013

Loans and guarantees furnished by the Company: Nil (Previous year - Nil).

Investments made are given under the respective head.

Note 50 - The New Code on Social Security 2020 (the Code) has been enacted which would impact the contribution by the company towards PF and Gratuity. The effective date from which the changes are applicable is yet to be notified and the rules are yet to be framed. Impact, if any, of the change will be assessed and accounted in the period in which the said Code becomes effective and the rules framed thereunder are published.

Note 51 - Power and Fuel consumed is net off Solar Power Income ^ 472.95 lakhs (Previous Year ^494.98 lakhs)

Note 52 - The Board of directors recommended a final dividend ^ 5 per Equity share (financial year 2021-2022 - '' 3 per Equity share) and a special dividend ^ 5 per Equity share (financial year 2021-2022 - '' 3 per Equity share) (100% of face value of '' 10/- each) for the financial year 2022-2023. The dividend proposed is subject to approval of the members in the ensuing Annual General Meeting.

Note 54 - In respect of Note nos 7, 8 ,10,13,14 there is no amount due from a director or other officers of the Company or any of them either severally or Jointly with any other persons or debts due by firms or Private Companies respectively in which any director is a partner or a director or a member, except due from Mrs. Thavamani Devi Palaniswami - Joint Managing Director of the Company of '' 49 lakhs (March 31, 2022 - '' 49 lakhs) which is paid as lease deposit.

Note 55 Inpatients and outpatients revenue is net of discount/ concessional treatment/ claims amounting to '' 2031.79 lakhs (PY '' 930.72 lakhs)

Note 56 - ADDITIONAL DISCLOSURE ON ACCOUNT OF AMENDMENTS TO SCHEDULE III OF COMPANIES ACT 2013:

(i) Details of Benami property:

No proceedings have been initiated or are pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) Compliance with number of layers of companies:

The company has complied with the number of layers prescribed under the Companies Act, 2013.

(iii) No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall:

â¢ Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or

â¢ Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

â¢ Directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Party or

â¢ Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;"

(iv) Undisclosed income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(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 &Equipment, intangible asset and investment property:

The company has not revalued its property, plant and equipment (including Right of Use Assets) or intangible assets or both during the current or previous year.

(vii) Wilful Defaulter:

(viii) Compliance with approved scheme(s) of arrangements:

There is no accounting impact of approved scheme of arrangement during the current or previous year.

(ix) Loans to Related Parties and others:

(x) Struck Off Companies:

The company has no transactions with companies struck off under section 248 of the Companies Act 2013, or section 560 of the Companies Act, 1956

Mar 31, 2018

Note No.1 A. CORPORATE INFORMATION

Kovai Medical Center and Hospital Limited (âthe Companyâ) is a Public Company incorporated in the year 1985 and commenced its hospital operation in the year 1990 with the flagship of Multi-Speciality Hospital at Coimbatore and has thereafter set up the satellite centers at Coimbatore (in the name of City center, Sulur Hospital and Kovilpalayam Hospital) and Erode (in the name of Erode Center and Erode Speciality Hospital). The companyâs equity shares are listed in Bombay Stock Exchange (BSE).

The Companyâs financial statements were authorized for issue in accordance with the resolution of the Board of Directors on 29th May, 2018 in accordance with the provisions of Companies Act, 2013 and are subject to the approval of the shareholders at the AGM.

The Companyâs financial statements are reported in Indian Rupees which is also the companyâs functional currency.

Application of new and revised Indian Accounting Standards

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

A) The company has elected to use the exemption available under Ind AS 101 to continue the carrying value for all its Property, Plant and Equipment as recognised in the financial statements as at the date of transition to Ind AS(s), measured as per previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2016) as per the following details:-

Note 3 - Capital work-in-progress

Capital work-in-progress of Rs. 1287.57 Lakhs (Rs. 564.86 Lakhs as at 31st March 2017) comprises amount spent on assets under construction. During the year, the company has capitalized Rs.108.61 Lakhs (Previous year - Nil) as borrowing cost as per provision of Ind AS 23 - Borrowing Cost

The company has elected to use the exemption available under Ind AS 101 to continue the carrying value for all its intangible assets as recognised in the financial statements as at the date of transition to Ind AS(s), measured as per previous GAAP and use that as its deemed cost as at the date of transition (April 1, 2016) as per the following details:-

(i) For method of valuation of inventories, Refer Note No. 1 (B) (XIV).

(ii) There has been no write down of inventories in current and previous years.

(iii) Inventories with the above mentioned carrying amount have been pledged as security against certain bank

b. Terms/ Rights attached to the Equity Shares

The Company has only one class of equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. The dividend Proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of Company, the holders of the Equity shares will be entitled to receive remaining assets of the Company after distribution of all Preferential amount. The distribution will be in proportion to be number of equity shares held by the Shareholders.

c. Shares held by Holding Company or Ultimate Holding Company - NIL

The Company has availed working capital facility from Indian Bank which is secured by:

a.First Charge on current assets by way of hypothecation of present and future current assets including book debts and receivables.

b.The above working capital facility is collaterally secured by all fixed assets mentioned in item No. A & B in Note No.16 long term borrowings.

c.The working capital facility carries interest rates varying from 9.5% to 10.15%.

The information in relation to dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information available with the Company, which has been relied upon by the auditors.

2. First Time adoption of Ind AS

1. Explanation of transition to Ind AS

These are the Companyâs 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 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the Companyâs date of transition). An explanation of how the transition from financial statements prepared in accordance with accounting standards notified under the Section 133 of the Act, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Previous GAAP) to Ind AS has affected the Companyâs financial position, financial performance and cash flows is set-out in the following tables and notes:

2. Ind AS optional exemptions

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

a) Deemed cost for Property, plant and equipment and Intangible assets

Ind AS 101 âFirst-time Adoption of Indian Accounting Standardsâ 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, âIntangible Assetsâ. Accordingly, the Company has elected to measure all of its property, plant and equipment & intangible assets at their previous GAAP carrying value.

b) Designation of previously recognized financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at Fair Value through Other Comprehensive Income (FVOCI) on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity instruments other than investments in subsidiaries, associates and joint ventures

c) Investment in subsidiaries, associates and joint ventures

Ind AS 101, âFirst-time Adoption of Indian Accounting Standardsâ allows a Company to measure investments in subsidiaries, associates and joint ventures at the deemed cost. The Company has considered the carrying amount under previous GAAP as the deemed cost for Investment in Subsidiary.

3. Ind AS mandatory exceptions Estimates

An entityâs estimates in accordance with Ind ASs 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 01 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

Classification and measurement of Financial assets and liabilities

The classification and measurement of financial assets will be made considering whether the conditions as per Ind AS 109, âFinancial Instrumentsâ are met based on facts and circumstances existing at the date of transition.

Financial assets can be measured using effective interest method by assessing its contractual cash flow characteristics only on the basis of facts and circumstances existing at the date of transition and if it is impracticable to assess elements of modified time value of money i.e. the use of effective interest method, fair value of financial asset at the date of transition shall be the new carrying amount of that asset. Measurement of Financial assets at amortised cost using effective interest rate method, wherever applicable, has been made retrospectively.

The measurement exemption applies for financial liabilities as well.

De-recognition of Financial assets and liabilities

Ind AS 101, âFirst-time Adoption of Indian Accounting Standardsâ requires a first-time adopter to apply the derecognition provisions of Ind AS 109,âFinancial Instrumentsâ prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101, âFirst-time Adoption of Indian Accounting Standardsâ allows a first-time adopter to apply the de-recognition requirements in Ind AS 109,âFinancial Instrumentsâ retrospectively from a date of the entityâs choosing, provided that the information needed to apply Ind AS 109,âFinancial Instrumentsâ to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind As 109,âFinancial Instrumentsâ prospectively from the date of transition to Ind AS.

Reconciliations between previous GAAP and Ind AS

Ind AS 101, âFirst-time Adoption of Indian Accounting Standardsâ requires an entity to reconcile equity, total comprehensive income and cash flows for prior years/periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

Notes to the reconciliation

I. Financial Assets at Amortised cost

Under previous GAAP, the security deposits were carried at nominal value. Ind AS requires these assets to be measured at fair value and subsequently these assets are measured at amortized cost. At the initial recognition, the company has recognised the difference between deposit fair value and nominal value as prepaid rental expenses and same is being recognised as rental expenses on straight line basis over the lease period. Further, Company recognises notional interest income on these deposit over the lease term.

II. Fair valuation of Investment

Certain equity instruments (other than investments in subsidiaries) have been measured at fair value through other comprehensive income. The difference between the fair value and previous GAAP carrying value as on the date of transition has been recognised as an adjustment to the opening retained earnings/ seperate component of other equity

III. Dividend

Prior to 1.4.2016, dividend proposed by the Board of Directors, but before the approval of the financial statements were considered as adjusting events, under previous GAAP. However under IND AS, such dividend are recognised when the same is approved by the shareholders at Annual General Meeting (AGM). Accordingly, the liability for proposed dividend recognised as on transition date has been reversed with corresponding adjustment to opening retained earnings and recognised in the year of approval in the AGM.

IV. Defined Benefit liabilities

Under IND AS, actuarial gain/ losses and the return on plan assets are recognised in the Other Comprehensive Income (OCI) instead of profit and loss

V. Deferred Tax

Under previous GAAP, deferred tax was accounted using the income statement approach on timing difference between taxable profit and accounting profit. Under IND AS, deferred tax is recognised following Balance sheet approach on temporary differences between the carrying amount of asset or liability and its tax base.

VI. Other comprehensive income

Under previous GAAP, there was no concept of âOther Comprehensive incomeâ (OCI). Under Ind AS, certain items of incomes and expenses needs to be recognised under the Other Comprehensive Income, such as remeasurement gains/losses of defined employee benefits, fair valuation gains /losses of financial assets designated through OCI etc. A reconciliation of the profit/loss as per previous GAAP to profit/loss as per Ind AS has been presented.

VII. Tax impact on adjustments

Retained earnings and statement of profit and loss has been adjusted consequent to the Ind AS transition adjustments with corresponding impact to deferred tax, wherever applicable.

VIII. Reclassifications under Ind AS

Assets and Liabilities have been regrouped/ reclassified where ever required to conform to the requirements of Ind ASs.

IX. Depreciation on Leased Building

Under previous GAAP, depreciation on lease hold improvements were provided for based on the useful lives estimated by the management. This is now depreciated over the primary period of lease, with appropriate adjustments to retained earnings as at the transition date.

3.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. 629.87 Lakhs (for the year ended March 31, 2017: Rs. 595.55 Lakhs) represents contributions payable to these plans by the Company.

b) Defined benefit plans:

i) Gratuity

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

g) Sensitivity Analysis

Below is the sensitivity analysis determined for significant actuarial assumptions for the determination of defined benefit obligations and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated

ii) Leave Encashment Benefits

Under the compensated absences plan, leave encashment is payable to all eligible employees on separation from the Company due to death, retirement, superannuation or resignation, at the rate of per day basic salary, as per current accumulation of leave days.

4. Financial instruments

a) Capital Management

The Company manages its capital with the objective to maximize the return to stakeholders through the optimisation of the debt and equity mix. The Companyâs overall strategy remains unchanged from previous year.

The funding requirements are met through a mixture of equity, internal fund generation and other noncurrent borrowings. The Companyâs policy is to use current and non-current borrowings to meet anticipated funding requirements.

The Company monitors capital on the basis of the gearing ratio which is net debt divided by total capital (equity plus net debt). Net debts are non-current and current debts as reduced by cash and cash equivalents, other bank balances and current investments. Equity comprises all components including other comprehensive income.

Note: i) Equity includes all ca nital and reserves of the company that are managed as cap tal.

ii) Debt is defined as long term and short term borrowings (excluding derivatives and financial guarantee contracts) as described in Note No 16 and Note No 21.

b) Fair Value Measurements

i. Financial instruments by category

The carrying values of financial instruments by categories as at March 31, 2018 were as follows:

ii. Fair Value Hierarchy

The Company has classified its financial instruments into three levels in order to provide an indication about the reliability of the inputs used in determining fair values.

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 asset or liability that are not based on observable market data (unobservable inputs)

The carrying amounts of tr de receivables, cash and cas i equiva 3nts, other bank balances, loans, other financial assets, current bo rowings, trade payables and other cur ent financial I iabilities are a reaso nable approximation of their fair values. Accordingly, the fair values of such financial assets and financial liabilities have not been disclosed separately.

iii. Valuation technique used to determine fair value

The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, loans, other financial assets, current borrowings, trade payables and other current financial liabilities are a reasonable approximation of their fair values.

The estimated fair value amounts as at March 31, 2018 have been measured as at that date. As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at each year-end.

There were no transfers between Level 1, Level 2 and Level 3 during the year.

c) Financial Risk Management

In course of its business, the Company is exposed to certain financial risks that could have significant influence on the Companyâs business and operational / financial performance. These include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Board of Directors has overall responsibility for the establishment and oversight of the Groupâs risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

i) Credit risk

Credit risk management Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk B: Moderate credit risk C: High credit risk

* Based on ast experience and historical t end, there have not been ny write off of trade receive bles and hence no allowance is made for expected credit on trade receivables.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Any subsequent recoveries made are recognized in statement of profit and loss.

Expected credit loss for trade receivables

The Companyâs trade receivables does not have any expected credit loss as healthcare services are generally provided once the Company receives the entire payment either before or during the course of treatment except in case of insurance claims. Moreover, company has almost recovered all the insurance claims in the past. During the periods presented, the Company made no write-offs of trade receivables and no recoveries from receivables previously written off.

ii) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Companyâs liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Companyâs liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

iii) Interest rate risk

The Companyâs fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, âFinancial Instruments - Disclosuresâ, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. However, The companyâs variable rate borrowings are subject to interest rate risk. Below is the overall exposure of the borrowings

Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change (100 basis points) in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax and carrying amount of project work in progress (which will have subsequent impact on the profit or loss of future period depending upon the revenue which would recognised based on the percentage of completion as indicated in âSignificant Accounting Policiesâ for revenue recognition) is affected through the impact on variable rate borrowings, as follows:

5. Operating lease arrangements Disclosure for company as lessee

The company has entered into operating lease, having a lease period ranging from 1- 28 years, with an option to renew the lease.

Disclosure for company as lessor

The company has entered into operating lease, having a lease period ranging from 1- 10 years, with an option to renew the lease.

6. Events after th reporting period

The Board of Directors of the company have recommended dividend of Rs. 3/- per fully paid up equity shares of Rs. 10/- each, aggregating to Rs. 395.74 Lakhs, including Rs. 67.47 Lakhs dividend distribution tax for the FY 2017-18, which is based on the share capital as on March 31, 2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date/ book closure

Guarantees given by Managing Director and Joint Managing Director are restricted to the amount of outstanding borrowings (Refer Note No.16).The remuneration to key management personnel does not include the provision made for Gratuity as they are determined on an actuarial basis for the company as a whole. Disclosure requirements under regulation 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Nil (Previous Year: Nil)

7. Segment Reporting

The company is engaged in the business of Healthcare activities. Hence, there is only one reportable segment.

8. Corporate Social Responsibility (CSR) Activities:

a. Gross amount required to be spent by the company during the year : Rs. 142.42 Lakhs

b. Amount spent during the year : Rs. 157.35 Lakhs

9. Income tax assessments have been completed upto the Assessment year 2015-16

10. Disclosure of change in accounting estimates - Useful life of Property, Plant and Equipment

During the year the management has re-estimated the useful lives of medical equipments and buildings based on the assessment of technical life of the assets and the economic life of the assets.

Impact for,

a) Financial Year 2017-18 : Rs. 703.91 Lakhs

b) Future Periods : Rs. 8,848.21 Lakhs

11. Scheme of Amalgamation with Idhayam Hospitals Erode Limited

The Board at its meeting held on 03rd February 2017 approved the scheme of amalgamation of Idhayam Hospitals Erode Limited (Wholly Owned Subsidiary) with Kovai Medical Center and Hospital Limited effective 1st April 2016. Pursuant to an Order dated 21st November, 2017 passed by the National Company Law Tribunal, Chennai Bench, separate meetings of Unsecured Creditors and Equity Share holders of Kovai Medical Center and Hospital Limited was convened and held at the Registered Office of the Company, on 04th January, 2018, approving with or without modification(s), the proposed Scheme of Amalgamation and Arrangement between Idhayam Hospitals Erode Limited and Kovai Medical Center and Hospital Limited under Sections 230 to 232 of the Companies Act, 2013 and other applicable provisions of the Companies Act, 2013.The Company has already obtained no objections to the scheme from its secured creditors. The Company had filed the scheme with Bombay Stock Exchange Limited as per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Clearances from Regional Director, Company Law Board, Department of Income Tax, Government of India are awaited before the Tribunal issues the Final Order confirming the Scheme of Amalgamation.

12. The Government of Tamil Nadu wide G.O.(2D) No.24 dated 02-03-2018 has revised the minimum rates of wages for the employees working in the hospital. The Indian Medical Association (IMA), Tamilnadu branch, an apex body representing the medical institutions in the country and Tamilnadu, has represented to the government of Tamilnadu to review theG.O. The IMA, Tamilnadu branch has in turn informed all the medical institutions to keep the matter in abeyance pending such review from Government of Tamilnadu. Consequently the anticipated liability as per G.O. has not been provided for in the financial statement but has been disclosed as contingent liability.

13. Disclosure as required under section 186(4) of the Companies Act, 2013 : Loans and guarantees furnished by the Company: Nil (Previous year - Nil) Investments made are given under the respective head.

14. Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current yearâs classification.

15. Figures have been rounded off to the nearest thousands. Figures are in Rs. in Lakhs, except otherwise stated.

Mar 31, 2017

1. Security Particulars of Secured Loans :

2. The term loans availed from Indian Bank and Indian Overseas Bank are primarily Secured by:

3 Pari pasu first charge on the Land and appurtenances therewith located at Kalapatti Village at Coimbatore and land located at Erode.

4. Pari pasu first charge on the entire Fixed Assets (Present and Future) of the Company.

5. Charge on the leasehold rights of the building at Erode in the name of Idhayam Hospitals Erode Limited, Erode.

6. Charge on the leasehold rights of the Plant & Machinery and Medical equipments in the name of Idhayam Hospitals Erode Limited, Erode.

The above facilities are also collaterally secured by a paripasu second charge on the entire current assets (Present and Future) of the Company.

7. The term loans from banks are further guaranteed by the personal guarantees of the Managing Director - Dr.Nalla G Palaniswami and Joint Managing Director- Dr. Thavamani Devi Palaniswami of the Company. The term loans carry interest rates varying from 9.50 % to 10.55%.

8. Secured Loans from others represent Hire Purchase loans from SREI Equipments Finance Pvt. Ltd, HDFC Bank Ltd & Kotak Mahindra Prime Ltd secured by hypothecation of assets purchased out of the loans and it carries interest rates varying from 8.20% to 11%.

9. Repayment Details :

10. Secured Loans from Indian Bank

11. Term Loan (Subordinate Loan) - The loan is repayable in 36 monthly installments aggregating to Rs. 162.30 Lakhs (Previous Year - Rs. 216.90 Lakhs)

12. Term Loan (I Phase) - The loan is repayable in 36 monthly installments aggregating to Rs. 1,127.48 Lakhs (Previous Year - Rs. 1,513.98 Lakhs )

13. Term Loan (II Phase) - The loan is repayable in 36 monthly installments aggregating to Rs. 1,122.50 Lakhs (Previous Year - Rs. 1,462.00 Lakhs)

14. Term Loan (III Phase) - The loan is repayable in 36 monthly installments aggregating to Rs. 832.50 Lakhs (Previous Year - Rs. 1,110.00 Lakhs)

15. Term Loan (IV Phase) - The loan is repayable in 32 monthly installments aggregating to Rs. 1,460.00 Lakhs (Previous Year - Rs. 1,900.00 Lakhs )

16. Term Loan (Solar Power) - The loan is repayable in 105 monthly installments aggregating to Rs. 1,227.40 Lakhs commencing from January 2017 (Previous Year - Rs. 1262.50 Lakhs)

17. Secured Loans from Indian Overseas bank

18. Term Loan (Subordinate Loan) - The loan is repayable in 36 monthly installments aggregating to Rs. 164.16 Lakhs (Previous Year - Rs. 218.64 Lakhs)

19. Term Loan (I Phase) - The loan is repayable in 36 monthly installments aggregating to Rs. 1,127.56 Lakhs (Previous Year - Rs. 1,514.08 Lakhs )

20. Term Loan (II Phase) - The loan is repayable in 36 monthly installments aggregating to Rs. 1,123.52 Lakhs (Previous Year - Rs. 1,463.00 Lakhs )

21. Term Loan (III Phase) - The loan is repayable in 36 monthly installments aggregating to _Rs. 831.76 Lakhs (Previous Year - Rs. 1,108.96 Lakhs )_

22. Term Loan (IV Phase) - The loan is repayable in 32 monthly installments aggregating to Rs. 1,460.00 Lakhs (Previous Year - Rs. 1,900.00 Lakhs )

23. Term Loan (Solar Power) - The loan is repayable in 108 monthly installments aggregating to Rs. 1,263.00 Lakhs commencing from January 2017 (Previous Year - Rs. 1263.00 lakhs)

24. Secured Loans from others - SREI Equipments Finance Private Limited

25. Hire Purchase Loan is repayable in 3 equated monthly installments aggregating to Rs. 12.05 Lakhs (Previous Year - Rs. 57.73 Lakhs )

26. Secured Loans from others - HDFC Bank Ltd

27. Hire Purchase Loan is repayable in 28 equated monthly installments aggregating to Rs. 168.46 Lakhs (Previous Year - Rs. 228.48 Lakhs )

28. Hire Purchase Loan is repayable in 14 equated monthly installments aggregating to Rs. 4.10 Lakhs (Previous Year - Rs. 8.47 Lakhs)

29. Hire Purchase Loan is repayable in 17 equated monthly installments aggregating to Rs. 4.07 Lakhs (Previous Year - Rs. 7.72 Lakhs)

30. Secured Loans from others - Kotak Mahindra Prime Ltd

31. Hire Purchase Loan is repayable in 14 equated monthly installments aggregating to Rs. 23.31 Lakhs (Previous Year - Rs. 43.10 Lakhs )

Guarantees given by Managing Director and Joint Managing director are restricted to the amount of outstanding borrowings. ( Refer Note No 4.A.ii )

The remuneration to key management personnel does not include the provision made for Gratuity as they are determined on an actuarial basis for the company as a whole.

Disclosure requirements under regulation 53(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Nil (Previous Year - Nil)

32. SEGMENT REPORTING

The company operates in a single segment.

33. SCHEME OF AMALGAMATION

The Board at its meeting held on 3^rd February 2017 approved the draft scheme of amalgamation of Kovai Medical Center And Hospital Limited with the wholly owned subsidiary Idhayam Hospitals Erode Limited effective 1^st April 2016 subject to all necessary consent and approvals.

The company has filed application seeking the direction of the National Company Law Tribunal inter alia for holding meeting of shareholders for their approval to the scheme of amalgamation. The Company has already obtained no objections to the scheme from its secured creditors.

34. The Board of Directors of the Company have recommended a final dividend of Rs. 2.50 per share, (15% on the face value of Rs. 10/-) aggregating to Rs. 273.55 Lakhs on the equity shares of the company, for the year ended 31st March, 2017, which is subject to the approval of the shareholders at the Annual General Meeting. The Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, dated March 30, 2016, has amended Accounting Standard (AS)-4 "Contingencies and Events occurring after Balance sheet dateâ. Consequently, the Company has not accounted for proposed dividend as liability as at 31st March, 2017. However, the proposed dividend of the previous year amounting to Rs. 273.55 Lakhs was accounted as liability as at 31st March, 2016 in accordance with the then existing Accounting Standard.

35. In-patients and out patients revenues are net of discount/free/concessional treatment/claims.

36. Income tax assessments have been completed up to the assessment year 2015-16.

37. DISCLOSURE AS REQUIRED UNDER SECTION 186(4) OF THE COMPANIES ACT, 2013

Loans given and Guarantees furnished by the Company : Nil (Previous year : Nil)

Investments made are given under the respective head.

38. Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current year''s classification.

39. Figures have been rounded off to the nearest thousands. Figures are in Rs. lakhs, except otherwise stated.

Mar 31, 2016

A. Security Particulars of Secured Loans :

I. The term loans availed from Indian Bank and Indian Overseas Bank are primarily Secured by:

a) Pari pasu first charge on the Land and appurtenances therewith located at Kalapatti Village at Coimbatore and land located at Erode.

b) Pari pasu first charge on the entire Fixed Assets (Present and Future) of the Company.

c) Charge on the leasehold rights of the building at Erode in the name of Idhayam Hospitals Erode Limited, Erode.

d) Charge on the leasehold rights of the Plant & Machinery and Medical equipments in the name of Idhayam Hospitals Erode Limited, Erode.

The above facilities are also collaterally secured by a paripasu second charge on the entire current assets (Present and Future) ofthe Company.

ii. The term loans and working capital facilities are further guaranteed by the personal guarantees of the Managing Director- Dr.Nalla G Palaniswami and Joint Managing Director- Dr. Thavamani Devi Palaniswami ofthe Company.The term loans carries interest rate varying from 10.55 % to 11.75%.

iii. Secured Loans from others represent Hire Purchase loans from SREI Equipments Finance Pvt. Ltd, HDFC Bank Ltd & Kotak Mahindra Prime Ltd secured by hypothecation of assets purchased out of the loans and it carries interest rates varying from 8.20% to 11%.

B. Repayment Details :

I. Secured Loans from Indian Bank

(a) Term Loan(Subordinate Loan) -The loan is repayable in 48 monthly installments aggregating to Rs. 216.90 Lacs (Previous Year-Rs. 271.50 Lacs)

(b) Term Loan (I Phase) - The loan is repayable in 48 monthly installments aggregating to Rs. 1513.98 Lacs (Previous Year-Rs. 1900.48 Lacs)

(c) Term Loan (II Phase) - The loan is repayable in 48 monthly installments aggregating to Rs. 1,462.00 Lacs (Previous Year-Rs. 1801.50 Lacs)

(d) Term Loan (III Phase) - The loan is repayable in 48 monthly installments aggregating to Rs. 1,110.00 Lacs (Previous Year-Rs. 1369.00 Lacs)

(e) Term Loan (IV Phase) - The loan is repayable in 44 monthly installments aggregating to Rs. 1,900.00 Lacs (Previous Year-Rs. 2280.00 Lacs)

(f) Term Loan (Solar Power) - The loan is repayable in 108 monthly installments aggregating to Rs. 1,262.50 Lacs commencing from January 2017 (Previous Year- Nil)

ii. Secured Loans from Indian Overseas bank

(a) Term Loan (Subordinate Loan) - The loan is repayable in 48 monthly installments aggregating to Rs. 218.64 Lacs (Previous Year-Rs.273.12 Lacs)

(b) Term Loan (I Phase) - The loan is repayable in 48 monthly installments aggregating to Rs. 1,514.08 Lacs (Previous Year-Rs. 1900.60 Lacs)

(c) Term Loan (II Phase) - The loan is repayable in 48 monthly installments aggregating to Rs. 1,463.00 Lacs (Previous Year-Rs. 1802.48 Lacs)

(d) Term Loan (III Phase) - The loan is repayable in 48 monthly installments aggregating to Rs. 1,108.96 Lacs (Previous Year-Rs. 1367.92 Lacs)

(e) Term Loan (IV Phase) - The loan is repayable in 44 monthly installments aggregating to Rs. 1,900.00 Lacs (Previous Year-Rs. 2280.00 Lacs)

(f) Term Loan (Solar Power) - The loan is repayable in 108 monthly installments aggregating to Rs. 1,263.00 Lacs commencing from January 2017 (Previous Year- Nil)

iii. Secured Loans from others - SREI Equipments Finance Private Limited

(a) Hire Purchase Loan is repayable in asingle installment of Rs. 5.50 Lacs (Previous Year-Rs. 68.23 Lacs)

(b) Hire Purchase Loan is repayable in 15 equated monthly installments aggregating to Rs. 57.73 Lacs (Previous Year-Rs. 99.62Lacs)

iv. Secured Loans from others - HDFC Bank Ltd

(a) Hire Purchase Loan is repayable in 40 equated monthly installments aggregating to Rs. 228.48 Lacs (Previous Year-Rs. 282.27 Lacs)

(b) Hire Purchase Loan is repayable in 26 equated monthly installments aggregating to Rs. 8.47 Lacs (Previous Year-Rs. 13.22 Lacs)

(c) Hire Purchase Loan is repayable in 29 equated monthly installments aggregating to Rs. 7.72 Lacs (Previous Year-Rs. 11.58 Lacs)

v. Secured Loans from others - Kotak Mahindra Prime Ltd

(a) Hire Purchase Loan is repayable in 26 equated monthly installments aggregating to Rs. 43.10 Lacs (Previous Year-Rs. 62.78 Lacs)

1. Operating Lease

Disclosure for company as lessee :

The Company has entered into operating lease, having a lease period ranging from 1-28 years, with an option to renew the lease.

Disclosure for company as lessor

The Company has entered into operating lease, having a lease period ranging from 1-10 years, with an option to renew the lease.

2. The Company has provided for employee benefits as per Accounting Standard (AS) - 15 in respect of defined benefit plan (Gratuity and Long Term compensated absence).

a) 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 and Long Term compensated absence. 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 the benefits are common for all the employees of the company.

3. Related parties'' disclosure under Accounting standard (AS) - 18.

The 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 / : Dr. Nalla G Palaniswami Promoters Dr. Thavamani Devi Palaniswami

Dr. Mohan S Gounder Dr. Arun N Palaniswami

(Appointed as Whole Time Director from 25th September 2015)

b. Subsidiary Company : Idhayam Hospitals Erode Limited

c. Other Related Parties : Purani Hospital Supplies Limited Ondudes entities in ^which ^the ; Aosta Software Technologies (India) Limited ? redors are rnterestecQ : _ABt Industries Limited

: Sakthi Sugars Limited

: Biomed Hitech Industries Limited

: K Pharmacy

: Tava Drugs Mart

: NGP Estate Motors Agencies

: Dr. Purani P Palaniswami

(ii) Related Party Transactions:

The Company has identified related parties as per Accounting Standard 18 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.

4. Segment Reporting

The company operates in a single segment.

5. Power and fuel consumed is net of solar power ofRs. 79.70 Lakhs (Previous year: Nil) representing the value of units supplied to the grid against which equivalent consumption was made in-house.

6. In-patients and outpatients revenues are net of discount/free/concessional treatment/claims.

7. Income tax assessments have been completed up to the assessment year 2013-14.

8. Disclosure as required under section 186(4) of the Companies Act, 2013

Loans given and Guarantees furnished by the company: Nil (Previous year: Nil)

Investments made are given under the respective head.

9. Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current year''s classification.

10. Figures have been rounded off to the nearest thousands.

Mar 31, 2015

1. In-patients and out patients revenue is net of discount/free/concessional treatment/claims.

2. Contingent Liabilities and Commitments as on closing date

Rs,in lacs)

Particulars 31.03.2015 31.03.2014

Contingent Liabilities:

a) Letters of Credit for capital equipment's 152.38 315.00

b) Demand of Customs Duty (excluding interest) raised by 189.46 189.46 the authorities disputed and not acknowledged

c) Claims of various nature made against the Company not 709.20 119.20 acknowledged as debt

Commitments: Estimated amount of contracts remaining to be executed on capital account 929.83 5,014.18

3. Segment Reporting

Running of Hospitals is the only operating segment for the company. The entire financials and profit given are related only to this segment.

4. Depreciation is provided on Straight Line Method based on the useful life as specified in Schedule II of the Companies Act, 2013. In respect of assets whose remaining useful life is already exhausted as at April 1, 2014, depreciation of Rs. 55.78 lacs (net of deferred tax) has been adjusted against the opening balance of Retained Earnings as on that date. Consequent to the above, depreciation for the year is higher by Rs. 506.17 lacs.

5. Income tax assessments have been completed upto the assessment year 2012-13.

6. Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current year's classification.

7. Figures have been rounded off to the nearest thousands.

Mar 31, 2014

Not Available

Mar 31, 2013

1. Operating Lease

The Company has entered into operating lease, having a lease period ranging from 1-5 years, with an option to renew the lease.

2. The Company has provided for employee benefits as per Accounting Standard (AS) -15 in respect of defined benefit plan (Gratuity and Long Term compensated absence).

a) 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 and Long Term compensated absence. 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 the benefits are common for all the employees of the company.

3. In-patients and out patients revenue is net of discount/free/concessional treatment/claims.

4. Contingent Liabilities (Rs.in lacs)

Particulars 31.03.2013 31.03.2012

a. Estimated amount of contracts remaining to 270.05 141.43 be executed on capital account

b. Letters of Credit for capital equipments Nil 67.14

c. Demand of Customs Duty raised by the authorities disputed and not acknowledged 189.46 189.46 as due

d. Claims of various nature made against the Company not acknowledged as debt 117.58 87.86

5. Related parties'' disclosure under Accounting Standard (AS) -18.

The 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 Dr. Nalla G Palaniswami

- Promoters Dr. Thavamani Devi Palaniswami

b. Subsidiary Company Idhayam Hospitals Erode Ltd

c. Other Related Parties Entities in which the Directors are interested

Purani Hospital Supplies Limited

Aosta Software Technologies India Ltd

ABT Industries Limited

Sakthi Sugars Limited

K Pharmacy

NGP Estate Motors Agencies

Dr. K.S.K. Murugaiyan

Mrs.P. Vikashini

(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.

6. Segment Reporting

Running of Hospitals is the only operating segment for the company. The entire financials and profit given are related only to this segment.

7. Provision for taxation includes provision for Wealth Tax. Income tax assessments have been provisionally completed upto the assessment year 2011-12.

8. Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current year''s classification.

9. Figures have been rounded off to the nearest thousands.

Mar 31, 2012

1. Security Particulars of Secured Loans

i. The term loans availed from Indian Bank and Indian Overseas Bank are primarily secured by:

(a) Paripasu Charge on the Land and appurtenances therewith located at Kalapatti Village at Coimbatore and land located at Erode.

(b) Paripasu Charge on the entire fixed assets (Present & Future) of the company.

(c) Charge on the leasehold rights of the building at Erode in the name of M/s Idhayam Hospitals Erode Limited, Erode.

(d) Charge on the leasehold rights of the medical equipments in the name of M/s Idhayam Hospitals Erode Limited, Erode.

The above facilities are also collaterally secured by stock and book debts of the Company.

ii. In addition to the above, the subsidiary company has given corporate guarantee to the limits availed by the company.

iii. The term loans and working capital facilities are further guaranteed by the personal guarantees of the Chairman and Managing Director and Vice Chairman and Joint Managing Director of the Company.

iv. Secured loans from others represents Hire Purchase loans from BMW India Financial Services Private Ltd & SREI Equipments Finance Pvt Ltd secured by hypothecation of assets purchased.

1. The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity and Long Term compensated absence).

(a) 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 and Long Term compensated absence. 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 the benefits are common for all the employees of the company.

2. In-patients and out patients revenue is net of discount/free/concessional Treatment/claims.

3. Contingent Liabilities: (Rs in lacs)

As at As at 31.3.2012 31.3.2011

(a) Estimated amount of contracts remaining to 141.43 772.12 be executed on capital account

(b) Letters of Credit for capital equipment's 67.14 163.88

(c) Demand of Customs Duty raised by the authorities disputed and not acknowledged 189.46 189.46 as due

(d) Claims of various nature made against the Company not acknowledged as debt 87.86 93.71

4. Segment Reporting

Running of Hospitals is the only operating segment for the company. The entire financials and profit given are related only to this segment.

5. Provision for taxation includes provision for Wealth Tax. Income tax assessments have been provisionally completed upto the assessment year 2010-11.

6. Previous As notified by ministry of corporate affairs, revised schedule VI under the companies act, 1956 is applicable to the financial statement for the financial year commencing on or after 1st April 2011 .Accordingly, the financial statement for the year ended 31st March 2012 is prepared in accordance with the revised schedule VI. The amount and disclosures included in the financial statement of the previous year have been reclassified to conform to the requirement of revised schedule VI.

7. Figures have been rounded off to the nearest thousands.

Mar 31, 2011

1. Security Particulars of Secured Loans

I. The term loans availed from Indian Bank and Indian Overseas Bank are primarily secured by:

a. Paripasu Charge on the Land and appurtenances therewith located at Kalapatti Village at Coimbatore and land located at Erode.

b. Paripasu Charge on the entire fixed assets ( Present & Future ) of the company.

c. Charge on the leasehold rights of the building at Erode in the name of M/s Idhayam Hospitals Erode Limited, Erode.

d. Charge on the leasehold rights of the medical equipments in the name of M/s Idhayam Hospitals Erode Limited, Erode.

The above facilities are also collaterally secured by stock and book debts of the Company.

II. The Company has availed working capital facility from Indian Bank which is primarily secured by:

a. Paripasu second charge on current assets by way hypothecation of present & future current assets including book debts & receivables.

b. The above working capital facility is collaterally secured by all fixed assets mentioned in item No.1 (I) (a) to (d) above.

III. In addition to the above, the subsidiary company has given corporate guarantee to the limits availed by the company.

IV. The term loans and working capital facilities are further guaranteed by the personal guarantees of the Chairman and Managing Director and Vice Chairman and Joint Managing Director of the Company.

2. Secured and Unsecured Loans include an amount of Rs. 1276.48 Lacs repayable within a period of one year.

3. Deposit with Banks and others include:

I. Rs. 4,000/- under lien to Sales Tax authorities towards sales tax deposit and

ii. Rs. 2,21,254/-under lien to Indian Bank towards margin for outstanding Letters of Credit. (Previous Year Rs. 41,91,454)

4. Loans & Advances includes Rs. 500 lacs of Lease Advance receivable from the Subsidiary Company (Lessor).

5. Quantitative Particulars in respect of operations and inventories in accordance with the requirements of schedule VI to the Companies Act, 1956 have not been furnished in view of the practical difficulties relating to this specific industry.

6. The company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Act, 2006". Based on the evidence and declarations obtained, there are no dues warranting interest payment under the "Micro, Small and Medium Enterprises Act, 2006".

7. The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity and Long Term compensated absence).

a) 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 and Long Term compensated absence. 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 the benefits are common for all the employees of the company.

8. In-patients and out patients revenue is net of discount / free / concessional treatment / claims.

9. The title of a piece of land belonging to the Company admeasuring 5000 Sq.ft is challenged legally by a third party which the Company is defending

10. Contingent Liabilities: (Rs.in Lacs)

As at 31.3.2011 As at 31.3.2010

a) Estimated amount of contracts remaining to 772.12 3718.20 be executed on capital account

b) Letters of Credit for capital equipments 163.88 1868.92

c) Demand of Customs Duty raised by the authorities disputed and not acknowledged 189.46 189.46 as due

d) Claims of various nature made against the Company not acknowledged as debt 93.71 99.21

11. Related parties disclosure under Accounting standard (AS) - 18. The 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.Nalla G Palaniswami

-Promoters 2. Dr.Thavamani Devi Palaniswami

b. Subsidiary Company Idhayam Hospitals Erode Ltd.

c. Other Related Parties Entities in which the Directors are interested

: Purani Hospitals Supplies Limited.

: Aosta Software Technologies India Limited.

: ABT Industries Limited.

: Sakthi Sugars Limited.

: K Pharmacy

: NGP Estate motors Agencies

: Dr.Murugaiyan.K.S.K.

: Miss.P.Vikashine

(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.

12. Segment Reporting

Running of Hospitals is the only operating segment for the company.The entire financials and profit given are related only to this segment.

13. Provision for taxation includes provision for Wealth Tax . Income tax assessments have been provisionally completed upto the assessment year 2008-09.

14. Borrowing cost capitalized during the year Rs. 4,99,93,930/-

15. Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to conform to current year's classification.

16. Figures have been rounded off to the nearest thousands.

Mar 31, 2010

1. Security Particulars of Secured Loans

I. The term loans availed from Indian Bank and Indian Overseas Bank are primarily secured by:

a. Charge on the immovable properties of the company situated at Kalapatti Village at Coimbatore and Erode.

b. Charge on the movable fixed assets including medical equipments.

c. Charge on the leasehold rights of the building at Erode in the name of M/s Idhayam Hospitals Erode Limited, Erode.

d. Charge on the leasehold rights of the medical equipments in the name of M/s Idhayam Hospitals Erode Limited, Erode.

The above facilities are also collaterally secured by stock and book debts of the Company.

II. The Company has availed working capital facility from Indian Bank which is primarily secured by:

a. Hypothecation of stocks, book debts and other current assets.

b. The above working capital facility is collaterally secured by all fixed assets mentioned in item No.1 I (a) to (d) above.

III. In addition to the above, the subsidiary company has given corporate guarantee to the limits availed by the company.

IV. The term loans and working capital facilities are further guaranteed by the personal guarantees of the Chairman and Managing Director and Vice Chairman and Joint Managing Director of the Company.

2. Deposits with Bank and other include:

a) Rs. 4,000/- under lien to Sales Tax authorities towards sales tax deposit and

b) Rs.41,91,454/- under lien to Indian Bank towards margin for outstanding Letters of Credit and Bank Guarantee. (Previous Year Rs. 35,56,454/-)

c) Rs. 5,43,425/-under lien to Indian Overseas Bank towards margin for Bank Guarantee.

3. Quantitative Particulars in respect of operations and inventories in accordance with the requirements of schedule VI to the Companies Act, 1956 have not been furnished in view of the practical difficulties relating to this specific industry.

4. The company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the "Micro, Small and Medium Enterprises Act, 2006". Based on the evidence and declarations obtained, there are no dues warranting interest payment under the "Micro, Small and Medium Enterprises Act, 2006".

5. The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity and Long Term compensated absence).

a) 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 and Long Term compensated absence. 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 the benefits are common for all the employees of the company.

6. The Ministry of Corporate Affairs through its notification dated 31.03.09 has relaxed the provisions of Accounting Standard 11 "The Effects of changes in Foreign Exchange Rates" for treating the exchange gain / loss arising on restatement of Long Term Foreign currency monetary items. Accordingly, companies are permitted to adjust the carrying cost of depreciable assets by the exchange differences arising out of exchange rate fluctuation. The company has exercised the option provided in the said notification and consequently an amount of Rs. 12,86,558/- representing exchange gain has been adjusted in the cost of the asset during the year. The adjusted cost has been considered for depreciation purposes.

7. In-patients and out patients revenue is net of discount / free / concessional treatment / claims.

8. a) The legality of the title of a land belonging to the Company, admeasuring 6.44 acres, which was challenged legally, has been adjudicated in favour of the Company by the Honourable Madras High Court. Thus the title of the said land is clear and marketable.

b) The title of a piece of land belonging to the Company admeasuring 5000 sq.ft. is challenged legally by a third party which the company is defending.

9. Contingent Liabilities: (Rs.in Lacs)

As at 31.3.2010 As at 31.3.2009

a) Estimated amount of contracts remaining to 3718.20 2976.34 be executed on capital account

b) Letters of Credit for capital equipments 1868.92 25.81

c) Demand of Customs Duty raised by the

authorities disputed and not acknowledged 11.49 11.49

as due

d) Claims of various nature made against the

Company not acknowledged as debt 99.21 150.00

10. Related parties disclosure under Accounting Standard (AS) -18.

The 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. NallaGPalaniswami

2. Dr. Thavamani Devi Palaniswami

b. Subsidiary Company Idhayam Hospitals Erode Ltd.

c. Other Related Parties Purani Hospital Supplies Limited. Entities in which the Aosta Software Technologies India Limited. Directors are interested ABT Industries Limited.

Sakthi Sugars Limited.

K Pharmacy

NGP Estate motors Agencies

Dr. K.S.K. Murugaiyan

(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.

11. Figures of the previous year have been regrouped, reclassified and rearranged wherever necessary to confirm to current years classification.

12. Figures have been rounded off to the nearest thousands.

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