Accounting Policies of Looks Health Services Ltd. Company

Mar 31, 2024

1 Basis of preparation of financial statements

The financial statements are prepared in accordance with Ind AS notified under section 133 of the Companies
Act 2013, read with relevant rules issued thereunder.

The financial statement of the Company for year ended March 31, 2024 were authorised for issue in accordance
with a resolution of the Board of Directors.

Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following -

- Certain financial assets and liabilities (Shares, Derivative instruments etc) that are measured at fair value

- Share based payments

2 Functional and presentation currency

Items included in the financial statements of Company are measured using the currency of the primary economic
environment in which the Company operates ("the functional currency"). Indian rupee is the functional currency
of the Company.

3 Use of estimates

The preparation of financial statements in conformity of Ind AS requires management to make judgments,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, the disclosures of contingent assets and contingent liabilities at the date of financial statements,
income and expenses during the period. Actual results may differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and in future periods which are affected.

Application of accounting policies that require critical accounting estimates and assumption having the most
significant effect on the amounts recognised in the financial statements are:

Valuation of financial instruments
Valuation of derivative financial instruments
Useful life of property, plant and equipment
Useful life of investment property
Provisions

Recoverability of trade receivables

Summary of significant accounting policies -

4 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

An asset is treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents. The Company has identified twelve months as its operating cycle.

4.01 Fair value measurement

All assets and liabilities forwhich fairvalue is measured or disclosed in the financial statements are categorised
within the fairvalue hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for specific or identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable.

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

The Company''s Management determines the policies and procedures for both recurring fair value measurement,
such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring
measurement, such as assets held for distribution in discontinued operations.

At each reporting date, the Management analyses the movements in the values of assets and liabilities which
are required to be remeasured or re-assessed as per the Company''s accounting policies. For this analysis, the
Management verifies the major inputs applied in the latest valuation by agreeing the information in the
valuation computation to contracts and other relevant documents.

The Management also compares the change in the fair value of each asset and liability with relevant external
sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

This note summarises accounting policy for fair value. Other fairvalue related disclosures are given in the
relevant notes.

Disclosures for valuation methods, significant estimates and assumptions.

Financial instruments (including those carried at amortised cost).

4.02 Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at
the fair value of the consideration received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duties collected on behalf of the government.

Interest and dividend income -

The interest and dividends are recognised only when no uncertainty as to measurability or collectability exists.
Interest on fixed deposits is recognised on time proportion basis taking into account the amount outstanding and
the rate applicable.

4.03 Inventories

Inventory comprise of Shares and Cost of shares includes cost of purchase & other direct broker costs incurred in
purchasing Shares.

Inventories are valued at the lower of cost and the fair market value.

4.04 Foreign currency transactions and translation

i) Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction.
Monetary assets and liabilities denominated in foreign currencies are translated in functional currency at closing
rates of exchange at the reporting date.

ii) Exchange differences arising on settlement or translation of monetary items recognised in statement of profit
and loss.

4.05 Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities. The Company determines the tax as per the provisions of Income Tax Act 1961 and other
rules specified thereunder.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either
in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.

4.06 Deferred tax

Deferred tax is provided in full using the liability method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised, except when the deferred tax asset relating to the
deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the
extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in
other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity .

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.

4.07 a) Property, plant and equipment

Property, plant and equipment is stated at cost less accumulated depreciation and where applicable
accumulated impairment losses. Property, plant and equipment and capital work in progress cost include
expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets
includes the cost of materials, direct labour and any other costs directly attributable to bringing the asset to a
working condition for its intended use and the costs of dismantling and removing the items and restoring the
site on which they are located. Purchased software that is integral to the functionality of the related equipment
is capitalized as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.

Subsequent Cost

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits embodied within the part will flow to the Company
and its cost can be measured reliably. The carrying amount of the replaced part is de-recognised and charged to
the statement of Profit and Loss. The costs of the day-to-day servicing of property, plant and equipment are
recognised in the Statement of Profit and Loss.

b) Intangible assets

Intangible assets are stated at cost less accumulated amortisation and impairment loss. The system software
which is expected to provide future enduring benefits is capitalised. The capitalised cost includes license fees
and cost of implementation/system integration.

Depreciation and amortisation

The depreciation on tangible assets is provided at the rates and in manner prescribed under Part C of Schedule II
to the Companies Act 2013.

The company Follow SLM Method of Depreciation
Computer software is amortised over a period of 5 years.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at
each financial year end and adjusted prospectively, if appropriate.

Derecognition of assets

An item of property plant & equipment and any significant part initially recognised is derecognised upon
disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset is included in the income statement when the asset is derecognised.

4.08 Investment property

Property that is held for long term rental yield or for capital appreciation or both, and that is not occupied by the
Company, is classified as Investment property. Investment properties measured initially at cost including related
transitions cost and where applicable borrowing cost. Subsequent expenditure is capitalised to the assets
carrying amount only when it is probable that future economic benefits associated with the expenditure will
flow to the entity and the cost of the item can be measured reliably. All other repairs and maintainance costs are
expensed when incurred. When part of an investment property is incurred the carrying amount of replaced part
is derecognised.

Investment properties other than land are depreciated using SLM method over the estimated useful life of
assets prescribed by the Schedule II to the Companies Act 2013 i.e. 60 years for office premises. Investment
properties include:

(i)Office premises.

4.09 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily
takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of
the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of
interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also
includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

---

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared un- der Historical Cost conventions and on accrual ba- sis in accordance with the Generally Accepted Ac- counting Principles (''GAAP'') applicable in India, Companies (Accounting Standard) Rules, 2006 no- tified by Ministry of Company Affairs and Account- ing Standards issued by the Institute of Chartered Accountants of India as applicable and relevant pro- visions of the Companies Act, 1956, as adopted con- sistently by the Company.

2. Use of Estimates

The preparation of Financial Statements in confor- mity with Indian GAAP requires estimates and as- sumptions to be made, that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and esti- mates are recognized in the period in which the re- sults are known / materialized.

3. Fixed Assets

Fixed Assets are capitalized at cost less accumu- lated depreciation inclusive of purchase price, du- ties and other non refundable taxes, direct attribut- able cost of bringing asset to its working condition and financing cost till commercial production, if any.

Projects, if any, under which assets are not ready for their intended use are shown as Capital Work- in-Progress. However no project was undertaken during the year under review.

4. Depreciation / Amortization

Depreciation on fixed assets is provided on Written Down Value (WDV) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Inventories

The inventories are stated at lower of cost and net realizable value, after providing for obsolescence, if any. Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing inventory to the present location and con- dition and valuation is inclusive of taxes and duties incurred on same.

6. Revenue Recognition

Revenue from sales transactions is recognized on transfer of significant risk and rewards of ownership, which generally is on the dispatch of goods. Rev- enue from services are recognized upon rendering of services & in case of sittings on the basis of completion of each sitting. Interest Income is recog- nized on accrual basis.

7. Investment

Investments are classified as Current & Non Cur- rent Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Non-Current in- vestments are valued at cost. However no Invest- ment was made by the Company during the year.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisi- tion or construction of qualifying assets are capital- ized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial pe- riod of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss A/c.

9. Taxation

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured as amount of tax payable in respect of taxable income for cur- rent year as per Income Tax Act 1961 after consid- ering tax allowances and exemptions, if any. De- ferred Tax assets or liabilities are recognized for fur- ther tax consequence attributable to timing differ- ence between taxable income and accounting in- come that originate in one year and are capable of reversal in one or more subsequent year.

In view of higher depreciation benefit under Income Tax Act no taxable income arise and hence no pro- vision is made for Current Years Income Tax. Deffered Tax liability is created on account of timing difference on Depreciation as per Companies Act and Income Tax Act.

10. Leases Operating Lease

Lease where the lesser effectively retains substan- tially all risks and benefits of the asset are classified as Operating lease. Operating lease payments are recognized as an expense in the Profit & Loss ac- count.

11. Impairment of Assets

An asset is impaired when the carrying cost of as- sets exceeds its recoverable value. An impairment loss is charged to Profit & Loss in the year in which an asset is identified as Impaired. As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets have suffered "Impairment Loss".

12. Foreign Exchange Transactions

i) Transactions in Foreign currency are recorded at the rate of exchange prevailing on the date of the respective transactions or that approximates the actual rate at the date of the transaction.

ii) Monetary items denominated in foreign curren- cies at the yearend are restated at year end rates. In case of items which are covered by forward ex- change contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference and the pre- mium paid on forward contracts is recognized over the life of the contract.

iii) Non-monetary foreign currency items are car- ried at cost.

iv) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss, ex- cept in case of long term liabilities, where they re- late to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets

13. Earnings per Share

In determining the Earnings Per share, the com- pany considers the net profit after tax which includes any post tax effect of any extraordinary / exceptional item. The number of shares used in computing ba- sic earnings per share is the weighted average num- ber of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted aver- age number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been is- sued on conversion of all potentially dilutive shares.

14. Retirement Benefits

No provision is made for gratuity as according to management, no employees have crossed the minimum length of service in the organization required for making gratuity payments.

15. Contingent Liabilities & Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.

Contingent Liability is disclosed for by way of note for -

a) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or

b) Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

c) Contingent Assets are not recognized in the fi- nancial statements since this may result in the rec- ognition of income that may never be realized.

---

Mar 31, 2013

1. Basis of accounting:

The financial statements are prepared on the historical cost convention basis and on accrual concept as a going concern in accordance with the applicable Accounting Standards referred to in Sub section 3C of Section 211 of the Companies Act, 1956 and normally accepted accounting principles.

2. Accounting Standards:

Accounting standards as prescribed by the Department of Corporate Affairs (Formerly known as Department of Company Affairs) and referred to in the Companies Act, 1956 have been followed wherever applicable.

3. Fixed Assets and its Depreciation:

Fixed assets are stated at cost price comprising of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Depreciation is calculated under WDV method at the rates prescribed under amended schedule XIV of the Companies Act, 1956 and on pro-rata basis.

4. Investments:

Company has not made any investments during the year under review.

5. Inventories:

Stock of Medicines are valued at Cost or realizable value whichever is less.

6. Contingent Liabilities:

No litigations are filed or pending against the Company & Company does not have any present obligation arising out of any past event. Hence no provision arises or is made for contingent liabilities.

7. Revenue Recognition:

Company is rendering professional services of cosmetic & other surgeries & skin and hair care services & most of these services run into no. of sittings. Hence revenue generation is recognized sitting-wise after completion of client sitting. In case of sale of medicines revenue is recognized on transfer of goods to the buyer. All expenses to the extent considered payable respectively unless specifically stated to be otherwise are accounted for on mercantile basis.

8. Retirement Benefits:

Company has not applied under Provident Fund & Miscellaneous Provisions Act & hence no provision is made towards retirement benefits of Employees.

9. Operating Lease -

The company has obtained all premises for its business operations (including furniture and fittings at Bandra) under operating lease or leave and license agreements. These are generally not non-cancellable and range between 11 months to 5 years under leave and license, or longer for other lease and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable interest free security deposits in accordance with the agreed terms.

Total Lease payments of Rs.58,26,001/- are recognized in the Profit and Loss Account under the head "Rent Paid".

10. Foreign Currency Transactions:

Foreign currency transactions made for purchase of imported medical equipments are recorded at the prevailing exchange rates or rates that closely approximate the prevailing exchange rates at the time of initial recognition (date of transaction). Exchange differences arising on final settlement is adjusted to the cost of Medical Equip- ments. Further as on year end there is no outstanding balances of monetary items denominated in foreign currency. Foreign exchange Outgo - Company has made payment of US$ 1670/- to suppliers from whom Company has procured medical equipments.

11. Borrowing Cost:

Company has taken loans, temporary, if any, from its members but according to management & from records it appears same are temporary loans and hence according to management interest is not payable to them and hence is not provided for.

12. Taxation :

In view of carried forward loss of earlier year, no provision for current tax is made under the provisions of the Income Tax act, 1961. Deferred tax Liability of Rs. 67577''/- resulting from timing differences between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable / Virtual certainty that the asset will be realized in future.

13. Segmental Reporting: .

The Company is operating only in one segment i.e. Cosmetic Surgeries & Skin, Hair, Dental & other Health Care Services.

14. Related Party Transactions:

As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Stan- dards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 are given below;

1. Key Managerial Personnel:

a) Dr. Prashant Vikram

b) Dr. Nishita Sheth

c) Mr. Pritesh Doshi

Further following Related Party Transactions were noticed during the year:

a) Bandra Clinic premises owned by Dr. Nishita Sheth - M.D. has been taken on Leave and Licence basis by the Company w.e.f26/12/2011. Monthly rent is Rs. 100000/-. (Advance deposit of Rs. 10 lacs made by the Company to her).

b) Furniture at Bandra Clinic owned by Dr. Prashant Vikram - Chairman has been taken on Leave and Licence basis by the Company w.e.f.26/12/2011 on monthly rent of Rs.75,000/-.(Advance deposit of Rs.5 lacs made by the Company to him).

c) Company has advanced a total sum of Rs.10,35,407/- to various parties for Furniture (Bandra Office) on behalf of Dr. Prashant Vikram to be recovered from him & as on 31/03/2013 at sumofRs.485407/- is due from him.

15. Earnings (Loss) Per Share:

Basic EPS - (0.07) = 438258 (Net Profit attributable to Shareholders) / 6000000 (Weighted Avg. No of Equity Shares)

Diluted EPS - (0.07) = 438258 (Net Profit attributable to Shareholders) / 6000000 (Weighted Avg. No of Equity Shares) -

Diluted EPS is similar to Basic EPS as there are no potential equity share as on date.

16. Miscellaneous Expenditure

Preliminary Expenses incurred by Company is written off during the year in view of AS26 (Para 56). Further management has decided not to write off Public Issue Expenses during the year of Issue and to write off the same over a period of 5 years.