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Notes to Accounts of Lotus Eye Hospital and Institute Ltd.
Mar 31, 2025
(b) Claims, Provisions and Contingent Liabilities
The Company has ongoing discussions/litigations with various tax and regulatory authorities and third
parties. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome
of the dispute can be made based on management''s assessment of specific circumstances of each
dispute and relevant external advice, management provides for its best estimate of the liability. Such
accruals are by nature complex and can take number of years to resolve and can involve estimation
uncertainty. Information about such litigations if any, is provided in the Notes to the financial
statements.
(c) Revenue Recognition
Revenue from fees charged for services rendered to insured and corporate patients are subject to
approvals from the insurance companies and corporates. Accordingly, the Company estimates the
amounts likely to be disregarded by such companies based on past trends. Estimations based on past
trends are also required in determining the value of consideration from customers to be allocated to
award credits for customers.
(d) Fair value measurements and valuation processes
Some of the Company''s assets and liabilities are measured at fair value for financial reporting
purposes.
In estimating the fair value of an asset or a liability, the Company uses market-observable data to the
extent it is available. Where Level 1 inputs are not available, the Company engages third party
qualified valuers to perform the valuation.
(e) Expected Credit Loss >
The Company has used a practical expedient by computing the expected credit loss allowance for trade
receivables based on a provision matrix considering the nature of receivables and the risk
characteristics. The provision matrix takes into accounts historical credit loss experience and adjusted
for forward looking information. The expected credit loss allowance is based on the ageing of the day of
the receivables are due and the rates as given in the provision matrix.
1.4 Property, Plant and Equipment (PPE)
Items of Property, plant and equipment acquired or constructed are initially recognized at historical cost
net of recoverable taxes, duties, trade discounts and rebates, less accumulated depreciation and
impairment loss, if any. The historical cost of Property, plant and equipment comprises of its purchase
price, borrowing costs and adjustment arising from exchange rate variations attributable to the assets,
including any cost directly attributable to bringing the assets to their working condition for their
intended use.
Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be measured reliably. The Company identifies and
determines cost of each component/part of the plant and equipment separately, if the component/part
has a cost which is material to the total cost of the plant and equipment and has useful lives that is
materially different from that of the remaining plant and equipment.
The carrying amount of any component accounted for as a separate asset is derecognized when
replaced. All other repairs and maintenance are charged to the Statement of Profit and Loss during the
year in which they are incurred. Gains and losses arising from derecognition of PPE are measured as the
difference between the net disposal proceeds and the carrying amount of the asset and are recognized
in the Statement of Profit and Loss when the asset is derecognized.
Depreciation methods, estimated useful lives and residual values
Depreciation on Property, Plant and Equipment is provided under straight line method (refer Note 2 for
change in method of depreciation effective from 1st April 2024) at the rates determined based on
Useful Lives of the respective assets and the residual values in accordance with Schedule II of the
1.5 Intangible Assets
Intangible assets are recognized only if it is probable that future economic benefits that are attributable
to the asset will flow to the enterprise and the cost of the asset can be measured reliably.Computer
software licenses are capitalized on the basis of costs incurred to acquire and bring to use the specific
software. Operating software is capitalized and amortized along with the related fixed asset. The useful
life of the software is estimated to be 10 years.
1.6 Impairment of Assets
At the Balance Sheet date an assessment is done in accordance with Ind AS 36, to determine whether
there is any indication of impairment in the carrying amount of the company''s assets. An asset is
treated impaired when carrying cost of assets exceeds its recoverable value.
An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if
there has been any change in the estimate of recoverable amount.
1.7 Inventories
Closing stock of pharmacy, canteen, operation theatre items, consumables, optical frames and lens are
valued at lower of cost and net realizable value. Cost is arrived at on first in first out basis except for
opticals and lens. Stores & spares which do not meet the definition of Property, Plant and Equipment
are accounted as inventories. Net realizable value is the estimated selling price in the ordinary course of
business, less estimated cost of completion and estimated costs necessary to make the inventory
saleable.
1.8 Leases
With effect from 1st April 2019, Ind AS 116 - "Leases" supersedes Ind AS 17 - "Leases". The Company
has adopted Ind AS 116 using the prospective approach. The application of Ind AS 116 has resulted into
recognition of ''Right-of-Use'' asset with a corresponding lease liability in the balance sheet.
The company as lessor
Lease income on an operating lease is recognized in the statement of profit and loss on a straight line
basis over the term of the relevant lease except to the extent that the lease payments are structured to
compensate for the expected inflationary cost.
The company as lessee
The company as a lessee, recognizes a right-of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an
identified asset and the Company has substantially all of the economic benefits from use of the asset
and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise
of the amount of the initial measurement of the lease liability adjusted for any lease payments made at
or before the commencement date plus any initial direct costs incurred. The right-of-use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if
any and adjusted for any re-measurement of the lease liability. The right-of-use assets is depreciated
using the written down value method from the commencement date over the shorter of lease term or
useful life of right-of-use asset
The Company measures the lease liability at the present value of the lease payments that are not paid
at the commencement date of the lease. The lease payments are discounted using the interest rate
implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined,
the Company uses incremental borrowing rate. For short-term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the lease.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments
have been classified as financing cash flows.
1.9 Financial Instruments
Financial Assets and financial liabilities are recognized when a Company entity becomes a party to the
contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognized immediately in Profit and Loss.
De-recognition of financial assets
The Company derecognizes a financial asset when the contractual rights to the cash flows from the
asset expire, or when it transfers the financial asset and the transfer qualifies for de-recognition under
Ind AS - 109. If the Company neither transfers nor retains substantially all the risks and rewards of
ownership and continues to control the transferred asset, the Company recognizes its retained interest
in the asset and an associated liability for amounts it may have to pay. If the Company retains
substantially all the risks and rewards of ownership of a transferred financial asset, the Company
continues to recognize the financial asset and also recognizes a collateralized borrowing for the
proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying
amount and the sum of the consideration received and receivable and the cumulative gain or loss that
had been recognized in other comprehensive income and accumulated in equity is recognized in profit
or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that
financial asset.
De-recognition of Financial Liabilities
The Company derecognizes financial liabilities when, and only when, the Company''s obligations are
discharged, cancelled or have expired. An exchange between with a lender of debt instruments with
substantially different terms is accounted for as an extinguishment of the original financial liability and
the recognition of a new financial liability. Similarly, a substantial modification of the terms of an
existing financial liability is accounted for as an extinguishment of the original financial liability and the
recognition of a new financial liability. The difference between the carrying amount of the financial
liability derecognized and the consideration paid and payable is recognized in the Statement of Profit
and Loss.
Cash and Cash Equivalents:
The Company considers all highly liquid financial instruments which are readily convertible into known
amounts of cash that are subject to an insignificant risk of change in value and having original
maturities of three months or less from the date of purchase, to be cash equivalents. Cash and Cash
Equivalents consist of cash on hand, balances with banks which are unrestricted for withdrawal and
usage.
1.10 Revenue recognition
(i) Rendering of Eye care Services
Revenue from eye care services includes consultancy, physical examinations, lab examinations,
surgeries, nursing care, dietary and other allied services. The revenue for these services are recognised
based on the transaction value (net off discounts and waivers) when each separate performance
obligation is satisfied to the extent it is probable that the economic benefit will flow to the entity. The
revenue realisable from insurance claims are recognised at the earlier of settlement or acceptance of
claim by the insurance company.
(ii) Sale of goods
Revenue from sale of goods include optical sales, pharmacy sales and canteen sales. The revenue for
these goods are recognised where the performance obligation is satisfied and the control of these
goods are transferred to the customer. The revenue is stated exclusive of GST and are net of sales
returns, discounts, provision for anticipated returns on expiry, made on the basis of management
expectation taking into account past experience.
(iii) Interest income
For all financial instruments measured at amortized cost, interest income is recorded using the effective
interest rate, which is the rate that exactly discounts the estimated future cash receipts through the
expected life of the financial instrument. Interest income is included in ''Other Income'' in the Statement
of Profit and Loss.
1.11 Employee Benefits
Payments to defined contribution retirement benefit plans are recognized as an expense when
employees have rendered service entitling them to the contributions.
Liabilities with regard to the Gratuity plan are determined by actuarial valuation, performed by an
independent actuary, at each Balance sheet date using the projected unit credit method. Re¬
measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if
applicable) and the return on plan assets (excluding interest), is reflected immediately in the statement
of financial position with a charge or credit recognized in other comprehensive income in the period in
which they occur. Re-measurement recognized in other comprehensive income is reflected immediately
in retained earnings and will not be reclassified to profit or loss. Past service cost is recognized in profit
or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the
beginning of the period to the net defined benefit liability or asset.
1.12 Provisions
A provision is recognised when the Company has a present obligation (legal or constructive) as a result
of past event and it is probable that an outflow of resources embedded and that the company will be
required to settle the obligation, in respect of which a reliable estimate can be made of the amount of
obligation.
1.13 Taxes on Income
i. Current Tax:
Tax on Income for the current period is determined on the basis of taxable income and tax credit
computed in accordance with the provisions of the Income Tax Act 1961, and based on the expected
outcome of assessments/ appeals.
ii. Deferred Tax:
Deferred Tax is recognized on timing difference between accounting income and the taxable income for
the year quantified using the tax rates and laws enacted or substantively enacted as on the balance
sheet date. Deferred Tax assets are recognized and carried forward to the extent that there is a
reasonable certainty that sufficient future taxable income will be available against which such deferred
tax assets can be realized.
Minimum Alternate Tax ("MAT") credit is recognized as an asset only when and to the extent there is
convincing evidence that the company will pay normal income tax during the specified period. In the
year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the
recommendations contained in the Guidance note issued by Institute of Chartered Accountants of India
("ICAI"), the said asset is created by way of credit to Statement of Profit and Loss. The company reviews
the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement
to the extent there is no longer convincing evidence to the effect that company will pay normal income
tax during the specified period.
1.14 Earnings Per Share
Basic Earnings Per Share are computed by dividing profit or loss attributable to equity shareholders of
the Company by the weighted average number of equity shares outstanding during the year. The
Company did not have any potentially dilutive securities in any of the years presented.
1.15 Contingent Liabilities
Disclosure of contingent liability is made when there is a possible obligation arising from past
events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources embodying
economic benefits will be required to settle or a reliable estimate of amount cannot be made.
Contingent liabilities, which are considered significant and material by the Company, but not
provided for in the books of accounts, are disclosed by way of notes to accounts.
The Company has ongoing disputes with tax authorities and forum mainly relating to treatment of
characterization and classification of certain items. The Company has demands amounting to Rs.
82.17 Lakhs and Rs. 84.20 Lakhs as at March 31, 2025 and 2024, respectively from various tax
authorities and forum which are being contested by the Company based on the management
evaluation and on the advice of tax consultants.
1.16 Segment reporting
The company is engaged in the business of healthcare activities. Hence, there is only one reportable
segment.
1.17 Statement of Cash flows
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for
the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating, investing and financing activities of the
Company are based on classification made in a manner considered most appropriate to Company''s
business.
Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual
terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration risks.
Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as fair
value through profit and loss, trade receivables, loans and advances and derivative financial instruments. The Company
strives to promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and
others of its main counterparties by regularly monitoring their situation based on their financial condition. None of the
financial instruments of the Company result in material concentrations of credit risks.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is
Rs. 786.16 Lakhs as at March 31,2025 and Rs. 1064.98 Lakhs as at March 31, 2024, respectively, being the total of trade
receivables, cash & cash equivalents, other bank balances and non-current financial assets.
Financial assets that are neither past due nor impaired
None of the Company''s cash equivalents or other bank balances are past due or impaired. Regarding trade receivables that
are neither impaired nor past due, there were no indications as at March 31, 2025 and March 31, 2024, that defaults in
payment obligations will occur.
Credit quality of financial assets and impairment loss
The quality of financial assets can be assessed by way of ageing analysis of trade receivables discussed in "Note : 7 Trade
Receivables".
Liquidity risk
Liquidity risk refers to the risk that the Company will encounter difficulty to meet its financial obligations. The objective of
liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
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 during the year in the statement of profit and loss was Rs. 77.74 lakhs (previous
year: Rs. 69.32 lakhs), and it represents contributions payable to these plans by the Company.
B. Defined benefit plans
Gratuity
The Company operates post-employment defined benefit plan that provide gratuity. The gratuity plan entitles an
employee, who has rendered at least five years of continuous service, to receive one-half month''s salary for each
year of completed service at the time of retirement/exit. The Company''s obligation in respect of the gratuity
plan, which is a defined benefit plan, is provided for based on actuarial valuation carried out by an independent
actuary using the projected unit credit method. The Company recognizes actuarial gains and losses immediately
in the statement of profit and loss. The Company accrues gratuity as per the provisions of the Payment of
Gratuity Act, 1972 as applicable as at the balance sheet date.
The company contributes all ascertained liabilities towards gratuity to the Fund. The plan assets have been
invested 100% in insurer managed funds. The company provides for gratuity , a defined benefit retiring plan
covering eligible employees. The Gratuity plan provides a lump sum payment to the vested employees at
retirement, death, incapacitation or termination of employment based on the respective employees salary and
tenure of the employment with the company.
Note 43: Other Statutory Information
(i) Benami property:
The company does not have any Benami property where any proceedings have been initiated or pending under the Benami
Transactions (Prohibition) Act, 1988 during the year.
(ii) Borrowings :
The company has no borrowings from Banks or Financial Institutions on the basis of security of current assets during the
year. Hence, there is no requirement of submission of stock statements to Banks.
(iii) Wilful Defaulter :
The company has not been declared as a wilful defaulter by any Bank or Financial Institution during the year.
(iv) Relationship with Struck off Companies :
The company did not have any transaction with the companies struck off under Section 248 of the Companies Act, 2013 or
Section 560 of the Companies Act, 1956.
(v) Registration of Charges :
Since the company is debt free, no charges or satisfaction are yet to be registered with the Registrar of Companies.
(vi) Layers of Companies :
The company does not hold any subsidiaries. Hence, compliance with the number of layers prescribed under Section 2(87)
of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
(vii) Scheme of arrangements :
No scheme of arrangements has been approved by the Competent Authority in terms of Section 230 to 237 of the
Companies Act, 2013.
(viii) Utilisation of Borrowed funds and share premium :
(A) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall: (a) Directly or indirectly lend or invest in other
persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b)
Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest
in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) Undisclosed Income :
The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.)
Notes:
(i) An order has been received from the Income-tax department for FY 2009-10 and FY 2016-17 for an amount of Rs. 0.13
Lakhs and Rs. 55.27 Lakhs. The demand of Rs. 0.13 Lakhs has been disagreed by the company. The demand of Rs. 55.27
Lakhs was for depositing specified bank notes during the demonetisation period. The company has filed an appeal against
the said demand before Commissioner of Income-tax (Appeals), Coimbatore. The liability has been considered contingent
until the conclusion of the appeal.
(ii) An order has been received from Kerala Sales Tax Department for an amount of Rs. 26.77 Lakhs. The company has filed
an appeal against the said demand before Kerala Value Added Tax Appellate Tribunal and High Court of Kerala for an
amount of Rs. 5.16 Lakhs and Rs. 21.61 Lakhs respectively. The liability has been considered contingent until the conclusion
of the appeal.
(iii) A customer has filed a complaint against the company under section 35 of the Consumer Protection Act, 2023 before
the District Consumer Disputes Redressal Forum, Coimbatore for an amount of Rs.2.03 Lakhs. The liability has been
considered contingent during the FY 2023-24. The court has dismissed the petition and ordered in our favour on 16-05¬
2024.
(iv) The Company believes that none of the above matters, either individually or in aggregate, are expected to have any
material adverse effect on its financial statements. The cash flows in respect of above matters are determinable only on
receipt of judgements/decisions pending at various stages/forums.
(v) There are no bank and corporate guarantee given by the company.
Note 45: Corresponding figures for the previous year presented have been regrouped / rearranged wherever necessary to
conform to the current year presentation.
For Anbarasu and Jalapathi For and on behalf of the Board of Directors of
Chartered Accountants Lotus Eye Hospital and Institute Limited
Firm Registration No.: 010795S
(sd.) CA. K. Jalapathi (sd.) Ms. S.Sangeetha Sundaramoorthy (sd.) CA Perumalsamy Mahendran
Partner Managing Director Director
Membership no: 214823 DIN: 01859252 DIN:06680557
(sd.) Mr. Senagounder Natesan (sd.) Dr. K S Ramalingam
Director Chief Executive Officer,
DIN: 09012904 Executive director
DIN:01016571
Coimbatore, (sd.) CA Reghunathan Ramanujam (sd.) CS Achuth Menon
May 29,2025. Chief Financial Officer Company Secretary
Mar 31, 2024
(a) Terms/ rights attached to equity shares
The Company has only one class of shares referred to as equity shares having par value of Rs.10/-. Each holder of equity shares is entilted to one vote per share.
In the eventof liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
Note 30 : Leases (A) Finance leases
The company had adopted Ind AS 116 ''Leases'' on all lease contracts with effect from April 01, 2019
The company has taken certain medical equipments under finance lease. The leases typically run for a term ranging from 3-5 years. The company has option to purchase the equipment for a nominal amount at the end of the lease term. The company''s obligations under finance leases are secured by the lessors'' title to the leased assets.
Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as
concentration risks
Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as fair value through profit and loss, trade receivables, loans and advances and derivative financial instruments. The Company strives to promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and others of its main counterparties by regularly monitoring their situation based on their financial condition. None of the financial instruments of the Company result in material
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is Rs. 829.82 Lakhs as at March 31, 2024 and Rs. 1053.61 Lakhs as at March 31,2023, respectively, being the total of trade receivables, cash & cash equivalents, other bank balances and non-current financial assets.
Financial assets that are neither past due nor impaired
None of the Company''s cash equivalents or other bank balances are past due or impaired. Regarding trade receivables that are neither impaired nor past due, there were no indications as at March 31, 2024, and March 31, 2023, that defaults in payment obligations will
Credit quality of financial assets and impairment loss
The quality of financial assets can be assessed by way of ageing analysis of trade receivables discussed in "Note : 7 Trade Receivables". Liquidity risk
Liquidity risk refers to the risk that the Company will encounter difficulty to meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
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 during the year in the statement of profit and loss was Rs. 69.32 lakhs (previous year : Rs. 67.86 lakhs), and it represents contributions payable to these plans by the Company.
B. Defined benefit plans Gratuity
The Company operates post-employment defined benefit plan that provide gratuity. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half monthâs salary for each year of completed service at the time of retirement/exit. The Companyâs obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation carried out by an independent actuary using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in the statement of profit and loss. The Company accrues gratuity as per the provisions of the Payment of Gratuity Act, 1972 as applicable as at the balance sheet date. The company contributes all ascertained liabilities towards gratuity to the Fund. The plan assets have been invested 100% in insurer managed funds. The company provides for gratuity , a defined benefit retiring plan covering eligible employees. The Gratuity plan provides a lump sum payment to the vested employees at retirement, death, incapacitation or termination of employment based on the respective employees salary and tenure of the employment with the company.
Disclosures of Defined Benefit Plans based on actuarial valuation
The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to Investment risk market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, and other debt instruments.
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
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan Longevity risk participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
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.
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 during the year in the statement of profit and loss was Rs. 69.32 lakhs (previous year : Rs.
67.86 lakhs), and it represents contributions payable to these plans by the Company.
B. Defined benefit plans Gratuity
The Company operates post-employment defined benefit plan that provide gratuity. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half month''s salary for each year of completed service at the time of retirement/exit. The Company''s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation carried out by an independent actuary using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in the statement of profit and loss. The Company accrues gratuity as per the provisions of the Payment of Gratuity Act, 1972 as applicable as at the balance sheet date.
The company contributes all ascertained liabilities towards gratuity to the Fund. The plan assets have been invested 100% in insurer managed funds. The company provides for gratuity , a defined benefit retiring plan covering eligible employees. The Gratuity plan provides a lump sum payment to the vested employees at retirement, death, incapacitation or termination of employment based on the respective employees salary and tenure of the employment with the company.
Disclosures of Defined Benefit Plans based on actuarial valuation
The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined Investment risk by reference to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, and other debt instruments.
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
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the Longevity risk 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.
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.
Lotus Eye Hospital and Institute Limited
Notes to the financial statements for the period ended March 31, 2024
(All amounts are in Rupees Lakhs unless otherwise stated)
Note 37 : Other Statutory Information
(i) Benami property:
The company does not have any Benami property where any proceedings have been initiated or pending under the Benami Transactions (Prohibition) Act, 1988 during the year.
(ii) Borrowings :
The company has no borrowings from Banks or Financial Institutions on the basis of security of current assets during the year. Hence, there is no requirement of submission of stock statements to Banks.
(iii) Wilful Defaulter :
The company has not been declared as a wilful defaulter by any Bank or Financial Institution during the year.
(iv) Relationship with Struck off Companies :
The company did not have any transaction with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
(v) Registration of Charges :
Since the company is debt free, no charges or satisfaction are yet to be registered with the Registrar of Companies.
(vi) Layers of Companies :
The company does not hold any subsidiaries. Hence, compliance with the number of layers prescribed under Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
(vii) Scheme of arrangements :
No scheme of arrangements has been approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013.
(viii) Utilisation of Borrowed funds and share premium :
(A) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) Undisclosed Income :
The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)
(x) Crypto / Virtual Currency :
The company has not traded or invested in Crypto/Virtual Currency during the year.
(i) An order has been received from the Income-tax department for FY 2009-10 and FY 2016-17 for an amounting to Rs. 0.13 Lakhs and Rs. 55.27 Lakhs. The demand of Rs. 0.13 Lakhs has been disagreed by the company. The demand of Rs. 55.27, Lakhs was for depositing specified bank notes during the demonetisation period. The company has filed an appeal against the said demand before Commissioner of Income-tax (appeal), Coimbatore. The liability has been considered contingent until the conclusion of the appeal.
(ii) An order has been received from Kerala sales tax department for an amounting to Rs. 26.77 Lakhs. The company has filed an appeal against the said demand before Kerala Value Added Tax Appellate Tribunal and High Court of Kerala for an amount of Rs. 5.16 Lakhs and Rs. 21.61 Lakhs . The liability has been considered contingent until the conclusion of the appeal.
(iii) A customer has filed a complaint against the company under section 35 of the Consumer Protection Act, 2023 before the District Consumer Disputes Redressal Forum, Coimbatore for an amount of Rs.2.03Lakhs. The liability has been considered contingent until the conclusion of the compliant.
(iv) The Company believes that none of the above matters, either individually or in aggregate, are expected to have any material adverse effect on its financial statements. The cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending at various stages/forums.
(v) There are no bank and corporate guarantee given by the company.
Note 39 : Corresponding figures for the previous year presented have been regrouped, where necessary, to conform to the current year''s classification.
Mar 31, 2023
15. Provisions
A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value unless otherwise required by the standard and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
16. Earnings Per Share
Basic Earnings Per Share are computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year. The Company did not have any potentially dilutive securities in any of the years presented.
17. Financial Instruments
Financial Assets and financial liabilities are recognized when a Company entity becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in Profit and Loss.
De-recognition of financial assets
The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS - 109. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds received.
On de-recognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or loss if such gain or loss would have otherwise been recognized in profit or loss on disposal of that financial asset.
De-recognition of Financial Liabilities
The Company derecognizes financial liabilities when, and only when, the Company''s obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in the Statement of Profit and Loss.
Cash and Cash Equivalents:
The Company considers all highly liquid financial instruments which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and Cash Equivalents consist of cash on hand, balances with banks which are unrestricted for withdrawal and usage.
18. Impairment of Assets
At the Balance Sheet date an assessment is done in accordance with IND AS 36, to determine whether there is any indication of impairment in the carrying amount of the company''s assets. An asset is treated impaired when carrying cost of assets exceeds its recoverable value.
An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss, if any, recognized in prior accounting period is reversed if there has been any change in the estimate of recoverable amount.
19. Contingent Liabilities
Disclosure of contingent liability is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources embodying economic benefits will be required to settle or a reliable estimate of amount cannot be made.
Contingent liabilities, which are considered significant and material by the Company, but not provided for in the books of accounts, are disclosed by way of notes to accounts.
The Company has ongoing disputes with tax authorities and forum mainly relating to treatment of characterization and classification of certain items. The Company has demands amounting to Rs. 89.56 Lakhs and Rs. 89.56 Lakhs as at March 31, 2021 and 2020, respectively from various tax authorities and forum which are being contested by the Company based on the management evaluation and on the advice of tax consultants.
C Significant Accounting Judgements, Estimates And Assumptions
The preparation of these financial statements in conformity with recognition and measurement principles of Ind AS requires the Management of the Company to make estimates and assumptions that affect the reported balances of Assets and Liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of income and expenses for the periods presented.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
1. Fair value measurements and valuation processes
Some of the Company''s assets and liabilities are measured at fair value for financial reporting purposes. The business acquisitions made by the company are also accounted at fair values.
In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available.
2. Employee Benefits
Defined Benefit Plans
The cost of defined benefit plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and future pension increases.
3. Litigations
The amount recognized as a provision shall be the best estimate of the expenditure required to settle the present obligation arising at the reporting period.
4. Revenue Recognition
Revenue from fees charged for services rendered to insured and corporate patients are subject to approvals from the insurance companies and corporates. Accordingly, the Company estimates the amounts likely to be disregarded by such companies based on past trends. Estimations based on past trends are also required in determining the value of consideration from customers to be allocated to award credits for customers.
5. Expected Credit Loss
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix considering the nature of receivables and the risk characteristics. The provision matrix takes into accounts historical credit loss experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the day of the receivables are due and the rates as given in the provision matrix.
Note 31: Disclosures on financial instruments (Continued)
Credit risk
Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks.
Financial instruments that are subject to concentrations of credit risk, principally consist of investments classified as fair value through profit and loss, trade receivables, loans and advances and derivative financial instruments. The Company strives to promptly identify and reduce concerns about collection due to a deterioration in the financial conditions and others of its main counterparties by regularly monitoring their situation based on their financial condition. None of the financial instruments of the Company result in material concentrations of credit risks.
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk is Rs. 1053.61 Lakhs as at March 31, 2023 and Rs. 947.19 Lakhs as at March 31,2022, respectively, being the total of trade receivables, cash & cash equivalents, other bank balances and non-current financial assets.
Financial assets that are neither past due nor impaired
None of the Company''s cash equivalents or other bank balances are past due or impaired. Regarding trade receivables that are neither impaired nor past due, there were no indications as at March 31, 2023, and March 31,2022, that defaults in payment obligations will occur.
Credit quality of financial assets and impairment loss
The quality of financial assets can be assessed by way of ageing analysis of trade receivables discussed in "Note : 7 Trade Receivables".
Liquidity risk
Liquidity risk refers to the risk that the Company will encounter difficulty to meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
Note 34 : 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
The total expenses recognized during the year in the statement of profit and loss was Rs. 65.75 lakhs (previous year: Rs. 50.27 lakhs), and it represents contributions payable to these plans by the Company.
B. Defined benefit plans Gratuity
The Company operates post-employment defined benefit plan that provide gratuity. The gratuity plan entitles an employee, who has rendered at least five years of continuous service, to receive one-half month''s salary for each year of completed service at the time of retirement/exit. The Company''s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation carried out by an independent actuary using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in the statement of profit and loss. The Company accrues gratuity as per the provisions of the Payment of Gratuity Act, 1972 as applicable as at the balance sheet date.
The company contributes all ascertained liabilities towards gratuity to the Fund. The plan assets have been invested 100% in insurer managed funds. The company provides for gratuity, a defined benefit retiring plan covering eligible employees. The Gratuity plan provides a lump sum payment to the vested employees at retirement, death, incapacitation or termination of employment based on the respective employees salary and tenure of the employment with the company.
Disclosures of Defined Benefit Plans based on actuarial valuation
The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to Investment risk market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, and other debt instruments.
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
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan Longevity risk participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.
Salary risk The present va|ue 0f 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.
Note 36 : Other Statutory Information
(i) Benami property:
The company does not have any Benami property where any proceedings have been initiated or pending under the Benami Transactions (Prohibition) Act, 1988 during the year.
(ii) Borrowings:
The company has no borrowings from Banks or Financial Institutions on the basis of security of current assets during the year. Hence, there is no requirement of submission of stock statements to Banks.
(iii) Wilful Defaulter:
The company has not been declared as a wilful defaulter by any Bank or Financial Institution during the year.
(iv) Relationship with Struck off Companies :
The company did not have any transaction with the companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
(v) Registration of Charges :
Since the company is debt free, no charges or satisfaction are yet to be registered with the Registrar of Companies.
(vi) Layers of Companies :
The company does not hold any subsidiaries. Hence, compliance with the number of layers prescribed under Section 2(87) of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.
(vii) Scheme of arrangements :
No scheme of arrangements has been approved by the Competent Authority in terms of Section 230 to 237 of the Companies Act, 2013.
(viii) Utilisation of Borrowed funds and share premium :
(A) The company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(ix) Undisclosed Income :
The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)
(x) Corporate Social Responsibility :
The Company has not exceeded the threshold limits prescribed under Section 135 of the Companies Act, 2013.
(xi) Crypto / Virtual Currency :
The company has not traded or invested in Crypto/Virtual Currency during the year.
Notes:
(i) An order has been received from the Income-tax department for FY 2009-10 and FY 2016-17 for an amounting to Rs. 0.13 Lakhs and Rs. 55.27 Lakhs. The demand of Rs. 0.13 Lakhs has been disagreed by the company. The demand of Rs. 55.27, Lakhs was for depositing specified bank notes during the demonetisation period. The company has filed an appeal against the said demand before Commissioner of Income-tax (appeal), Coimbatore. The liability has been considered contingent until the conclusion of the appeal.
(ii) An order has been received from Kerala sales tax department for an amounting to Rs. 26.77 Lakhs. The company has filed an appeal against the said demand before Kerala Value Added Tax Appellate Tribunal and High Court of Kerala for an amount of Rs. 5.16 Lakhs and Rs. 21.61 Lakhs . The liability has been considered contingent until the conclusion of the appeal.
(iii) A customer has filed a complaint against the company under section 12 of the Consumer Protection Act, 1986 before the District Consumer Disputes Redressal Forum, Coimbatore. The process is ongoing. The liability has been considered contingent until the conclusion of the compliant.
(iv) The Company believes that none of the above matters, either individually or in aggregate, are expected to have any material adverse effect on its financial statements. The cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending at various stages/forums.
(v) There are no bank and corporate guarantee given by the company.
Note 38 : Corresponding figures for the previous year presented have been regrouped, where necessary, to conform to the current year''s classification.
For Anbarasu and Jalapathi For and on behalf of the Board of Directors of
Chartered Accountants Lotus Eye Hospital and Institute Limited
Firm Registration No.: 010795S
(sd.) Ms. S.Sangeetha (sd.) Mr. D.R.Kaarthikeyan
(sd.) CA. S.Anbarasu Managing Director Director
Partner DIN: 01859252 DIN: 00327907
Membership No.: 212299 UDIN: 23212299BGVZTW9235
(sd.) CA M.AIagiriswamy (sd.) Dr. K S Ramalingam
Director Chief Executive Officer
DIN: 02112350 Executive director,
DIN:01016571
Coimbatore, (sd.) CA Reghunathan Ramanujam (sd.) CS Achuth Menon
May 24,2023. Chief Financial Officer Company Secretary
Mar 31, 2018
Note No. 1
A. CORPORATE INFORMATION:
The company was incorporated as âKalaivani Health Centre Pvt Ltdâ on 14.03.1997. The name of the company was changed to âLotus Eye Care Hospital Pvt Ltdâ on 23.01.2001 and later on the company was converted into Public Limited Company on 16.10.2007 and subsequently the name was changed to âLotus Eye Hospital and Institute Limitedâ on 12.4.2013 and the Company is mainly in the field of ophthalmology (Eye) and its related operation. The Company has seven centreâs at Peelamedu, R.S. Puram, Mettupalayam, Tirupur, Salem, Cochin and Mulanthurthy. The Companyâs Equity shares are Listed on 03.08.2008 with BSE Limited and National Stock Exchange of India Ltd, Mumbai.
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.
B. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of these financial statements in conformity with recognition and measurement principles of Ind AS requires the Management of the Company to make estimates and assumptions that affect the reported balances of Assets and Liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of income and expenses for the periods presented.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
1. Fair value measurements and valuation processes
Some of the Companyâs assets and liabilities are measured at fair value for financial reporting purposes. The business acquisitions made by the company are also accounted at fair values.
In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available.
2. Employee Benefits - Defined Benefit Plans
The cost of defined benefit plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return on assets, future salary increases, mortality rates and future pension increases.
3.Litigations
The amount recognised as a provision shall be the best estimate of the expenditure required to settle the present obligation arising at the reporting period.
C. FIRST TIME ADOPTION OF IND AS
i. 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 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of an opening Ind AS balance sheet at 1st April 2016 (the Companyâs date of transition).
ii. 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:
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.
iii. Ind AS mandatory exceptions Estimates
An entityâs estimates in accordance with Ind AS 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 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.
a) The Company has only one class of shares referred to as equity shares having par value of Rs.10/-. Each holder of equity shares is entilted to one vote per share.
b) Before amlgamation 211000 Equity shares of Rs.100 each consists of initial subscription to memorandum and subsequent allotment to the promoters.
c) 4,97,900 Equity shares of Rs.100 each issued on 03.08.2007 pursuant to High Court Order dated 09.07.2007 approving the scheme of amalgamtion of Dr.S.K.S.Eye Care Centre Private limited with Lotus Eye Care Hospital Limited.
d) 3,45,233 Equity shares of Rs.100 each were alloted as bonus shares on 28.08.2007 by Capitalisation of general reserve.
e) The face value of equity shares was split from Rs.100 per share to Rs.10 per share on 03.09.2007.Due to this the total number of shares consist of 10541330 shares of Rs.10 each.
f) 2,55,000 equity shares of Rs.10 each were alloted to M/s.Bennett and Coleman Company ltd on 22.01.2008 on preferential allotment with a premium of Rs.40 per share.
g) 1,00,00,000 equity shares of Rs.10 each alloted on 03.07.2008 through Initial Public Offer (IPO) with a premium of Rs.28 per share.
h) In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However,no such preferential amounts exist currently. The distribution will be in Proportion to the number of equity shares held by the shareholders.
i) Details of Shareholders holding more than 5% shares in the Company
a. The company has initiated the process of obtaining confirmation from suppliers who have registered under the âMicro,Small and Medium Enterprises Act/2006.Since relevant information is not readily available, no disclosures have been made in the financial statements.Based on the information available with the company and in the considered view of the management and relied upon by the auditors,impact of interest, if that may be payable under the provisions of the act is not expected to be material.
Note No. : 2 Exceptional Items
1 The Company has disposed off one component of equipment during the year (Last Year : Sold its Furniture, Equipment, Battery & Vehicle)
3. Related Party Disclosures under Ind AS - 24
A. Relationship:
List of Related Parties where control exists and other related parties with whom the Company had transactions and their relationships:
a) Key Management Personnel :
1. Dr. S.K. Sundaramoorthy
2. Ms. Sangeetha Sundaramoorthy
b) Relatives of Key Managerial Personnel : 1. Dr. Kavetha Sundaramoorthy
2. Dr. Rajkumar Sundaramoorthy
c) Other Related Party : 1. Lotus Vision Research Trust
2. Asean Optics Private Limited
B. 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:
4. 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. 72.97 Lakhs (for the year ended March 31, 2017: Rs. 63.87 Lakhs) represents contributions payable to these plans 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 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.
Mar 31, 2017
a) The Company has only one class of shares referred to as equity shares having par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.
b) Before amalgamation 211000 Equity shares of Rs.100/- each consists of initial subscription to memorandum and subsequent allotment to the promoters.
c) 497900 Equity shares of Rs.100/- each issued on 03.08.2007 pursuant to High Court Order dated 09.07.2007 approving the scheme of amalgamation of Dr. S.K.S. Eye Care Centre Private Limited with Lotus Eye Care Hospital Private Limited.
d) 345233 Equity shares of Rs.100/- each were allotted as bonus shares on 28.08.2007 by Capitalisation of general reserve.
e) The face value of equity shares was split from Rs.100/- per share to Rs.10/- per share on 03.09.2007. Due to this the total number of shares consist of 10541330 shares of Rs.10 each.
f) 255000 equity shares of Rs.10/- each were allotted to M/s. Bennett and Coleman Company Ltd on 22.01.2008 on preferential allotment with a premium of Rs.40/- per share.
g) 10000000 equity shares of Rs.10/- each allotted on 03.07.2008 through Initial Public Offer (IPO) with a premium of Rs.28/- per share.
h) Details of Shareholders holding more than 5% shares in the Company
a. The premium collected on above issue of equity shares amounting to Rs.2800 Lakhs and also of the preferential allotment of Rs.102 Lakhs has been credited to Securities Premium Account during the financial year 2008-09.
b. Utilization of Initial Public Offer (IPO) funds up to 31st March, 2017
A. Security Particulars of Secured Loans
1. The term loans availed of Rs.85 Lakhs from HDFC Bank are primarily Secured by Equipment namely Zeiss Ophthalmic Fem to Sound Visumax Surgical Laser System.
Current Liabilities Note No. 6 Trade Payable
a) The company has initiated the process of obtaining confirmation from suppliers who have registered under the "Micro, Small and Medium Enterprises Act, 2006â. Since relevant information is not readily available, no disclosures have been made in the financial statements. Based on the information available with the company and in the considered view of the management and relied upon by the auditors, impact of interest, if that may be payable under the provisions of the act is not expected to be material.
a) Other liabilities includes caution deposit collected from employees who are in service amounting Rs. 6.61 Lakhs (Previous year : Rs.5.95 Lakhs).
Note No. 2 Short Term Provisions
a) Inventories are valued at Lower of cost and net realizable value. Cost is arrived at on first out basis.
b) During the year the method of valuation of optical and lens was changed from market price to cost price ( Please refer Note No. 1(B)(d) )
c) Due to certain practical difficulties relating to this specific industry and items are largely small value, quantitative particulars in respect of operations and inventories have not been furnished as per the requirement of schedule III to the Companies Act, 2013.
3. The Company has disposed off one component from laser equipment during the year (Last year : Sold its Furniture, Equipment, Battery & Vehicle)
4. The Income & Loss from Sales / disposal is reflected as Exceptional Item.
Note No.: 5 Contingent Liabilities and Commitments as on the closing date
6. The financial statements are presented in Rs. Lakhs (rounded off to two decimal places) and previous year''s figures have been regrouped and reclassified, wherever necessary.
7. Related party disclosure :
List of related parties as identified by the management as under
I. Name of related parties and description of relationship
a) Key Management Personnel : 1. Dr. S.K.Sundaramoorthy
2. Ms. Sangeetha Sundaramoorthy
b) Relatives of Key Managerial Personnel : 1. Dr. Kavetha Sundaramoorthy
2. Mr. Rajkumar Sundaramoorthy
c) Other related parties : 1. Lotus Vision Research Trust
2. Asean Optics Private Limited
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
8. Board recommended a dividend of 5% (Re. 0.50 per share) on the paid up equity shares for the financial year 2016-17.
9. Amount of contribution to employee''s provident fund during the year is Rs. 43.74 Lakhs (Previous year Rs.31.63 lakhs).
10. The company has not entered into any derivative transactions during the year under report. (Previous Year: Nil)
11. Confirmations of balance are yet to be obtained from few parties.
12. Segment Reporting :
Based on the guiding principles given in accounting standard on the Segment Reporting (AS 17) issued by the ICAI, there is only one Reportable segment namely Eye care and related activities. As the company''s business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.
13. During the year there is no impairment of assets as certified by the management. (previous Year: Nil)
14. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary except compensated leave salary.
15. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity)
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. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefitâs are common for all the employees of the Company.
Note: The salary escalation considered in actuarial valuation takes on account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.
16. Disclosure on Specified Bank Notes
During the year ended 31st March, 2017, the company had Specified Bank Notes (SBN''s) or other denomination notes as defined in the MCA notification, G.S.R. 308 (E), dated 30th March, 2017.
# For the purposes of this clause, the term ''Specified Bank Notes'' shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs Number S.0.3407(E), dated November 8, 2016.
Mar 31, 2016
a) The Company has only one class of shares referred to as equity shares having par value of Rs, 10/-. Each holder of equity shares is entitled to one vote per share.
b) Before amalgamation 211000 Equity shares of Rs, 100/- each consists of initial subscription to memorandum and subsequent allotment to the promoters.
c) 497900 Equity shares of Rs, 100/- each issued on 03.08.2007 pursuant to High Court Order dated 09.07.2007 approving the scheme of amalgamation of Dr. S.K.S. Eye Care Centre Private Limited with Lotus Eye Care Hospital Limited.
d) 345233 Equity shares of Rs, 100/- each were allotted as bonus shares on 28.08.2007 by Capitalization of general reserve.
e) The face value of equity shares was split from Rs, 100/- per share to Rs, 10/- per share on 03.09.2007. Due to this the total number of shares consist of 10541330 shares of Rs, 10 each.
f) 255000 equity shares of Rs, 10/- each were allotted to M/s. Bennett and Coleman Company Ltd on 22.01.2008 on preferential allotment with a premium of Rs, 40/- per share.
g) 10000000 equity shares of Rs, 10/- each allotted on 03.07.2008 through Initial Public Offer (IPO) with a premium of Rs, 28/- per share.
h) In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in Proportion to the number of equity shares held by the shareholders.
i) Details of Shareholders holding more than 5% shares in the Company
A. Security Particulars of Secured Loans
1. The term loans availed of Rs, 85 Lakhs from HDFC Bank are primarily Secured by Equipment namely Zeiss Ophthalmic Fem to Sound Visumax Surgical Laser System.
2. Loan Obtained from Canara Bank is secured by Vehicle purchased of Rs, 6.80 Lakhs.
a) The company has initiated the process of obtaining confirmation from suppliers who have registered under the "Micro, Small and Medium Enterprises Act, 2006". Since relevant information is not readily available, no disclosures have been made in the financial statements. Based on the information available with the company and in the considered view of the management and relied upon by the auditors, impact of interest, if that may be payable under the provisions of the act is not expected to be material.
a) The closing stock of Pharmacy, Canteen, Theatre items and Consumables are valued at Lower of cost and net realizable value and stock of Optical and contact lens are valued at Market price. Cost is arrived at first in first out basis except for optical and contact lens.
b) Due to certain practical difficulties relating to this specific industry and items are largely small value, quantitative particulars in respect of operations and inventories have not been furnished as per the requirement of schedule III to the Companies Act, 2013.
Note No.: 26 Exceptional Items
1. The Company has sold its Furniture, Equipment, Battery & Vehicle during the Year.
2. The Income from Sales is reflected as Exceptional Item in Consolidated Statement of Profit and Loss.
2. Figures have been rounded off to the nearest thousands and previous year s figures have been regrouped, reclassified wherever necessary to confirm to current years classification.
3. Related party disclosure :
List of related parties as per Accounting Standard - 18 identified by the management are as under
I) Name of related parties and description of relationship
a) Key Management Personnel : 1. Dr. S.K.Sundaramoorthy
2. Ms. Sangeetha Sundaramoorthy
b) Relatives of Key Managerial Personnel : 1. Dr. Kavetha Sundaramoorthy
2. Mr. Rajkumar Sundaramoorthy
c) Other related parties : 1. Lotus Vision Research Trust
2. Asean Optics Private Limited (from 03/11/2015)
II) Related party transaction in 2015-16
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. ( Rs, in Lakhs )
Remuneration paid to Managing / Whole-time Director during the year 2015-16 Remuneration Rs, 44.80 Lakhs
4. Disclosure regarding lease transactions :
a) Lease rent paid to Dr. S.K. Sundaramoorthy for leasing medical equipments to the company Rs, 19.92 Lakhs.
b) Lease rent paid to Lotus Vision Research Trust for leasing medical equipments to the company Rs, 9.60 Lakhs.
c) Lease rent received from Lotus Vision Research Trust of Rs, 1.14 lakhs
5. No dividend is recommended for the financial year 2015-16.
6. Amount of contribution to employees provident fund during the year is Rs, 31.63 Lakhs (previous year Rs, 25.47 Lakhs)
7. The company has not entered into any derivative transactions during the year under report.
8. Confirmations of balance are yet to be obtained from few parties.
9. Segment Reporting :
Based on the guiding principles given in accounting standard on the Segment Reporting (AS-17) issued by the ICAI, there is only one Reportable segment namely Eye Care and related activities. As the Company s business activity is interrelated, the disclosure requirement of AS-17 in this regard does not arise.
10. During the year there is no impairment of assets as certified by the management.
11. Provision for all known liabilities including depreciation is neither inadequate nor more than what is necessary except compensated leave salary.
12. Expenditure on Foreign exchange During the year is Rs, 48.18 Lakhs.
i) CIF value of imports
a) Capital goods
b) Consumable and spares Rs, 48.18 Lakhs
ii) Earnings in foreign currency NIL
iii) Expenditure in foreign currency - Travel & others NIL
iv) Dividend paid in foreign currency NIL
13. Employees Benefits - The Company has provided for employee benefits as per Accounting Standard 15 in respect of defined benefit plan (Gratuity)
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. Benefits under the plan are based on pay and years of service and are vested on completion of five years of service as provided in the Payment of Gratuity Act, 1972. The terms of the benefitâs are common for all the employees of the Company.
Mar 31, 2015
1. Nature of Operations :
The company was incorporated as "Kalavani Health Centre Pvt Ltd" on
14.03.1997. The name of the company was changed to " Lotus Eye Care
Hospital Pvt Ltd on 23.01.2001 and later on the company was converted
into Public Limited Company on 16.10.2007 and subsequently the name was
changed to "Lotus Eye Hospital and Institute Limited" on 12.4.2013 and
the Company is mainly in the field of ophthalmology (Eye) and its
related operation. The Company has seven centre's at Peelamedu, R.S.
Puram, Mettupalayam, Tirupur, Salem, Cochin and Mulanthurthy. The
Company's Equity shares are Listed on 03.08.2008 with Bombay Stock
Exchange Ltd and National Stock Exchange of India Ltd, Mumbai .
2. Trades Payable
a. The company has initiated the process of obtaining confirmation from
suppliers who have registered under the "Micro, Small and Medium
Enterprises Act, 2006". Since relevant information is not readily
available, no disclosures have been made in the financial statements.
Based on the information available with the company and in the
considered view of the management and relied upon by the auditors,
impact of interest, if that may be payable under the provisions of the
act is not expected to be material.
3. Exceptional Items
1. The Company has sold its Generator & Refregirator during the Year.
2. The Income from Sales is reflected as Exceptional Item in
Consolidated Statement of Profit and Loss.
4. Contingent Liabilities and Commitments as on the closing date
(Rs. in lacs)
Sl. Particulars As at As at
No. 31.03.2015 31.03.2014
1. Contingent Liabilities
a. On account of Pending
Litigations Sales Tax Matters 1.89 -
(along with Interest &
Penalty if any)
Total 1.89 -
4. Related party disclosure :
List of related parties as identified by the management are as under
(I) Name of related parties and description of relationship
a. Key Management Personnel : 1. Dr. S.K.Sundaramoorthy
5. Ms. Sangeetha Sundaramoorthy
b. Other related parties : Lotus Vision Research Trust
(II) Related party transaction in 2014-15
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. (Rs. in lacs)
6. Disclosure regarding lease transactions :
a. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical
equipments to the company 19.92 Lacs.
b. Lease rent paid to Lotus Vision Research Trust for leasing medical
equipments to the company 9.60 Lacs.
7. No dividend is recommended for the financial year 2014-15.
8. Amount of contribution to employees provident fund during the year
is 25.47 Lacs (previous year Rs.17.18 Lacs)
9. The company has not entered into any derivative transactions during
the year under report.
10. Confirmations of balance are yet to be obtained from few parties.
11. Segment Reporting :
Based on the guiding principles given in accounting standard on the
Segment Reporting (AS-17) issued by the ICAI, there is only one
Reportable segment namely Eye Care and related activities. As the
Company's business activity is interrelated, the disclosure requirement
of AS-17 in this regard does not arise.
12. During the year there is no impairment of assets as certified by
the management.
13. Provision for all known liabilities including depreciation is
neither inadequate nor more than what is necessary except compensated
leave salary.
14. Employees Benefits - The Company has provided for employee benefits
as per Accounting Standard 15 in respect of defined benefit plan
(Gratuity)
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. Benefits under the plan are based on pay and
years of service and are vested on completion of five years of service
as provided in the Payment of Gratuity Act, 1972. The terms of the
benefit's are common for all the employees of the Company.
Mar 31, 2014
NOTE NO: 1
A) NATURE OF OPERATIONS
The Company was incorporated as "Kalaivani Health Centre Pvt. Ltd." on
14.03.1997. The name of the Company was changed to "Lotus Eye Care
Hospital Pvt. Ltd. on 23.01.2001 and later on the Company was converted
into Public Limited Company on 16.10.2007 and subsequently the name was
changed to "Lotus Eye Hospital and Institute Limited" on 12.04.2013 and
Hospital operations mainly in the ophthalmology (Eye) field and its
related operation. The Company has seven center''s at Peelamedu,
R.S.Puram, Mettupalayam, Tirupur, Salem-I & II and Cochin. The
Companies Equity Shares are listed on 03.08.2008 with Bombay Stock
Exchange Ltd and National Stock Exchange of India Ltd, Mumbai.
2. Figures have been rounded off to the nearest thousands and previous
year''s figures have been regrouped, reclassified wherever necessary to
confirm to current years classification.
3. Related party disclosure :
List of related parties as identified by the management are as under
(I) Name of related parties and description of relationship
a. Key Management Personnel : 1. Dr. S.K.Sundaramoorthy
2. Ms. Sangeetha Sundaramoorthy
b. Other related parties : Lotus Vision Research Trust
(II) Related party transaction in 2013-14
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.
4. Disclosure regarding lease transactions :
a. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical
equipments to the company Rs. 19.92 Lakhs
b. Lease rent paid to Lotus Vision Research Trust for leasing medical
equipments to the company Rs. 9.60 Lakhs.
5. No dividend is recommended for the financial year 2013-14.
6. Amount of contribution to employees provident fund during the year
is Rs. 17.18 Lakhs (previous year Rs. 16.35 Lakhs)
7. The company has not entered into any derivative transactions during
the year under report.
8. Confirmations of balance are yet to be obtained from few parties.
9. Segment Reporting :
Based on the guiding principles given in accounting standard on the
Segment Reporting (AS-17) issued by the ICAI, there is only one
Reportable segment namely Eye Care and related activities. As the
Company''s business activity is interrelated, the disclosure requirement
of AS-17 in this regard does not arise.
10. During the year there is no impairment of assets as certified by
the management.
11. There is no contingent liability as on 31.03.2014
12. Provision for all known liabilities including depreciation is
neither inadequate nor more than what is necessary except compensated
leave salary.
13. Expenditure on Foreign exchange During the year 2013-14 - Nil i)
CIF value of imports
a. Capital goods NIL
b. Consumable and spares NIL ii) Earnings in foreign currency NIL iii)
Expenditure in foreign currency - Travel & others NIL iv) Dividend paid
in foreign currency NIL
14. Employees Benefits - The Company has provided for employee
benefits as per Accounting Standard 15 in respect of defined benefit
plan (Gratuity) 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. Benefits under the plan are based on
pay and years of service and are vested on completion of five years of
service as provided in the Payment of Gratuity Act, 1972. The terms of
the benefit''s are common for all the employees of the Company.
Mar 31, 2013
1. Related party disclosure : List of related parties as identified by
the management are as under
(I) Name of related parties and description of relationship
a. Key Management Personnel :
1. Dr. S.K.Sundaramoorthy
2. Ms. Sangeetha Sundaramoorthy
b. Other related parties : Lotus Vision Research Trust
(II).Related party transaction in 2012-13 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.
2. Disclosure regarding lease transactions : a. Lease rent paid to
Dr.S.K.Sundaramoorthy for leasing medical equipments to the company
19.92 Lakhs. b. Lease rent paid to Lotus Vision Research Trust for
leasing medical equipments to the company 9.60 Lakhs.
3. No dividend is recommended for the financial year 2012-13.
4. Amount of contribution to employees provident fund during the year
is 16.35 Lakhs (previous year 14.50 Lakhs).
5. The company has not entered into any derivative transactions during
the year under report.
6. Confirmations of balance are yet to be obtained from few parties.
7. Segment Reporting : Based on the guiding principles given in
accounting standard on the Segment Reporting (AS 17) issued by the
ICAI, there is only one Reportable segment namely Eye Care and related
activities. As the company''s business activity is interrelated, the
disclosure requirement of AS-17 in this regard does not arise.
8. During the year there is no impairment of assets as certified by
the management.
9. There is no contingent liability as on 31.03.2013.
10. Provision for all known liabilities including depreciation is
neither inadequate nor more than what is necessary except compensated
leave salary.
11. Employees Benefits - The Company has provided for employee benefits
as per Accounting Standard 15 in respect of defined benefit plan
(Gratuity) 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. Benefits under the plan
are based on pay and years of service and are vested on completion of
five years of service as provided in the Payment of Gratuity Act, 1972.
The terms of the benefit are common for all the employees of the
company.
a) Defined benefit plan: Note: 01.The salary escalation considered in
actuarial valuation takes on account of inflation, seniority, promotion
and other relevant factors such as supply and demand in the employment
market.
Mar 31, 2012
COMPANY OVERVIEW:
Lotus Eye Care Hospital Limited is providing health care services as a
single speciality hospital catering eye care services which is spread
over Tamil Nadu and Kerala.
1. During the year ended 31.03.2012, the revised schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adop tion
of revised schedule VI does not impact recognition and measurement
principles followed for prepa ration of financial statements. The
company has also reclassified the previous year figure in accordance
with the requirement applicable in the current year.
2. Sundry balance written back during the year amounting to Rs.. 3.70
Lakhs and credited to the profit and loss account.
3. Related party disclosure :
List of related parties as identified by the management as under (I)
Name of related parties and description of relationship
a. Key Management Personnel : 1. Dr.S.K.Sundaramoorthy
2. Ms.Sangeetha Sundaramoorthy
b. Other related parties : Lotus Vision Research Trust
(II).Related party transaction in 2011-12
The company has identified all related parties and details of
transactions are given below. No provision for doubtful debts or
advances 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
related parties.
Advance paid to one of the key management personnel
Dr.S.K.Sundaramoorthy amounting to Rs..68.05 lakhs for purchase of land
at Avinashi road, Coimbatore was returned during the year.
Remuneration paid to Managing / Whole time Director during the year
2011-12
Remuneration Rs..18.00 Lakhs
House Rent Rs.. 2.62 Lakhs
4. Disclosure regarding lease transactions :
a. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical
equipments to the company Rs..19.92 Lakhs
b. Lease rent paid to Lotus vision research trust for leasing medical
equipments to the company Rs..9.60 Lakhs.
5. No dividend is recommended for the financial year 2011-12.
6. Leave encashment benefits have been provided as per the rules of
the company and on actuarial valuation. No separate fund has been
created. Amount charged to profit and loss account during the year is
Rs..4.55 Lakhs.
7. Amount of contribution to employees provident fund during the year
is Rs..14.50 Lakhs (previous year Rs..7.21 Lakhs)-
8. The company has not entered into any derivative transactions during
the year under report.
9. Confirmations of balance are yet to be obtained from few parties.
10. Segment Reporting :
Based on the guiding principle given in accounting standard on the
Segment Reporting (AS 17) issued by the ICAI, there is only one
Reportable segment namely Eye care and related activities. As the
company's business activity is interrelated, the disclosure requirement
of AS-17 in this regard does not arise.
11. During the year there is no impairment of assets as certified by
the management.
12. There is no contingent liability as on 31.03.2012
13. Provision for all known liabilities including depreciation is
neither inadequate nor more than what is necessary.
14. Out of Public issue an amount of Rs..210 Lakhs paid towards advance
for purchase of land at Karur project was returned by the party
amounting to Rs..50 lakhs and the same amount has been deposited in the
form of fixed deposit in Indian Overseas Bank Coimbatore.
15. During the year advance paid amounting to Rs..35 lakhs out of public
issue for purchase of land at Salem project. The same amount was
received back by the company in subsequent months due to non execution
of agreement.
16. Events occurring after balance sheet date :
The company received the notice under section 7 A of the Employees
Provident Fund and Miscellaneous Provisions Act 1952, from the
Assistant Commissioner of Provident Fund, Coimbatore for Rs..8.10 Lakhs
as Provident Fund liability and the same has been provided and paid.
17. Employees Benefits - The Company has provided for employee
benefits as per Accounting Standard 15 in respect of defined benefit
plan (Gratuity)
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. Benefits under the plan are based on pay and
years of service and are vested on completion of five years of service
as provided in the Payment of Gratuity Act, 1972. The terms of the
benefit are common for all the employees of the company.
Note: 01.The salary escalation considered in actuarial valuation takes
on account of inflation, seniority, promotion and other relevant
factors such as supply and demand in the employment market.
1. The opinion of the Board is that the current assets, loans and
advances will fetch the amounts stated if realized in the ordinary
course of business.
a) The company has not given any guarantee on behalf of the directors
or other officers
b) i) a) Amounts due at the end of the year from Private companies in
which one of the directors is a director is Rs..Nil (Previous year Rs..
Nil)
b) Amounts due at the end of the year from the trust in which one of
the directors is a trustee is Rs..Nil (Previous year Rs..Nil)
ii) Maximum amount due from Dr.S.K.Sundaramoorthy at any time during
the year is Rs..Nil
iii) Maximum amount due from Lotus Vision Research Trust at any time
during the year Rs..Nil.
Mar 31, 2010
1. Share Capital:
I. Share Capital:
a) Before amalgamation 211000 Equity shares of Rs.100 each consists of
initial subscription to memorandum and subsequent allotments to the
promoters.
b) 497900 Equity shares of Rs.100 each issued on 03.08.2007 pursuant
to High Court Order dated 09.07.2007
approving the scheme of amalgamation of Dr. S.K.S. Eye Care Centre
Private Limited with Lotus Eye Care Hospital Limited
c) 345233 Equity shares of Rs.100 each were allotted as bonus shares on
28.08.2007 by capitalization of general reserve.
d) The face value of equity shares was split from Rs.100 per share to
Rs.10 per share on 03.09.2007. Due to this the total number of shares
consists of 10541330 shares of Rs.10 each.
e) 255000 Equity shares of Rs.10 each were allotted to M/s.Bennett and
Coleman Company Limited on 22.01.2008 on preferential allotment with a
premium of Rs.40 per share.
f) 10000000 equity shares of Rs. 10 each allotted on 03.07.2008 through
Initial Public Offer (IPO) with a premium of Rs.28 per share.
II). Securities Premium Account:
The premium collected on above issue of equity shares amounting to Rs.
2800 Lakhs and also of the preferential allotment of Rs. 102 Lakhs has
been credited to Securities Premium Account during the financial year
2008-09.
a). Temporary investments of Rs.77.24 lacs in the form of fixed deposit
with Indian Overseas Bank, Coimbatore and the balance of Rs. 12.47 lacs
current account with the same bank.
b). Out of Public Issue, Refund amounting to Rs.0.26 Lacs has been kept
in a separate bank account (Axis Bank Ltd, Coimbatore).
c). Advance paid out of Public issue for purchase of land at Salem
project was returned by one of the party amounting to Rs.250 Lacs and
the same was utilized for repayment of Term loan availed from Indian
Overseas Bank Ganapathy Branch, Coimbatore to the extent of Rs.250
Lacs.
d). Funds deployed includes equipment cost Rs. 187.60 lacs not
envisaged in offer document.
2) Figures have been rounded off to the nearest rupee and previous
years figures have been regrouped wherever necessary.
3) Provision for all liabilities including depreciation is neither
inadequate nor more than what is necessary except Remuneration to whole
time director which is not provided in accounts.
4) The opinion of the Board is that the current assets, loans and
advances will fetch the amounts stated if realized in the ordinary
course of business.
a) The company has not given any guarantee on behalf of the directors
or other officers
b) i) a) Amounts due at the end of the year from Private companies in
which one of the directors is a director is Rs. Nil (Previous year
Rs. Nil)
b) Amounts due at the end of the year from the trust in which one of
the directors is a trustee is Rs.Nil (Previous year Rs.10.01 lacs)
ii) Maximum amount due from Dr.S.K.Sundaramoorthy at any time during
the year is Rs 11.75 lacs
iii) Maximum amount due from Lotus Vision Research Trust at any time
during the year Rs. 10.01 lacs.
5) No dividend is recommended for the financial year 2009-10
6) Remuneration paid to Managing / Whole time Director during the year
2009-10.
Remuneration Rs. 19.73 Lacs
House Rent Rs. 2.12 Lacs
7) The company has initiated the process of obtaining confirmation from
suppliers who have registered themselves under the "Micro, Small and
Medium Enterprises Act, 2006. Since the relevant information is not
readily available, no disclosures have been made in these financial
statements. Based on the information available with the company and in
the considered view of the management and relied upon by the auditors,
impact of interest, if that may be payable under the provisions of the
act is not expected to be material.
8) Due to certain practical difficulties relating to this specific
industry and items are largely small value, quantitative particulars in
respect of operations and inventories have not been furnished as per
the requirement of schedule VI to the Companies Act, 1956.
9) Expenditure on Foreign Exchange during the year Rs. 7.28 lacs. i)
CIF value of imports
a. Capital goods Rs 6.32 Lacs
b. Consumable and Spares Rs. 5.59 Lacs
ii) Earnings in Foreign Currency Rs. Nil
iii) Expenditure in Foreign
Currency - Travel & Others Rs 0.37 Lacs
iv) Dividend paid in Foreign
Currency Rs. Nil
10) Security particulars of secured loans:
The term loans availed from the Indian Overseas Bank , ICICI Bank Ltd,
HDFC Bank Ltd, ABN Amro Bank and Citicorp Finance Ltd are primarily
Secured by:
a. Charge on the immovable properties of the company situated at
770/12, Avinashi Road, Civil Aerodrome Post, Coimbatore -14 and 155B,
East Periasamy Road, Near Chinthamani, R.S.Puram, Coimbatore - 641 002.
b. Charge on the movable fixed assets including medical equipments has
been assigned to respective bankers who funded the particular movable
assets.
c. The working capital facility availed from the Indian Overseas Bank
is primarily secured by hypothecation of Stocks and Book debts.
d. The loan availed from the Indian Overseas Bank is collaterally
secured by the land at SF No.89/lA to 89/1F at Pattanam Village
belonging to Dr.S.K.Sundaramoorthy.
e. The Term loans and Working capital facility availed from the Indian
Overseas Bank are further guaranteed by the personal guarantees of the
Chairman and Managing Director and other Promoter directors of the
Company,
11) Contingent liability as on 31.03.2010
During the year a claim against the company by the patient for Rs.0.28
Lacs which is not acknowledged as debt. However based on Information
available with the company and legal advice received, management
believes that this case will not adversely effect the financial
statement.
12) During the year there is no impairment of assets as certified by
the management.
13) Deferred Tax:
i. Deferred tax has been provided in accordance with Accounting
Standard -22 accounting for taxes on income
ii The break-up details of deferred tax assets/liabilities for the
current year is as under:( Rs. In lacs)
14) Disclosure regarding lease transactions:
i. Lease rent paid to Dr.S.K.Sundaramoorthy for leasing medical
equipments to the company Rs.19.92 Lacs ii. Lease rent paid to Lotus
Vision Research Trust for leasing medical equipments to the company
Rs.9.60 Lacs
15) Segment Reporting:
Based on the guiding principles given in accounting standard on the
Segment Reporting (AS 17) issued by the ICAI, there is only one
Reportable segment namely Eye Care and related activities. As the
Companys business activity is interrelated, the disclosure requirement
of AS-17 in this regard does not arise.
16) Specific debts identified as irrecoverable and doubtful are written
off during the year Rs. 15.07 lacs classified as miscellaneous
expenses.
17) Insurance claim receivable accounted during the previous year
2008-2009 amounting to Rs.37.13.lacs has not been admitted by the
insurance company. Hence the said amount has been charged to Profit and
Loss account during the financial year 2009-10.
18) Related party disclosure:
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.S.K.Sundaramoorthy
: 2. Ms.Sangeetha Sundaramoorthy
b. Other related parties : Lotus Vision Research Trust
(II) Related Party Transactions in 2009-10
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.
19) Employees Benefits - The Company has provided for employee benefits
as per Accounting Standard 15 in respect of defined benefit plan
(Gratuity)
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. Benefits under the plan are based on pay and years of
service and are vested on completion of five years of service as
provided in the Payment of Gratuity Act, 1972. The terms of the benefit
are common for all the employees of the company.
20) Leave encashment benefits have been provided as per the rules of
the company and on actuarial Valuation. No separate fund has been
created. Amount charged to Profit and Loss Account during the year is
Rs. 1.47 Lacs.
21) Personnel cost includes Managing / Whole time Director Remuneration
of Rs. 19.73 Lacs.
22) Amount of contribution to Employees Provident Fund during the year
is Rs.1,91 Lacs. (Previous year Rs.1.94 lacs)
23) The company has not entered into any derivative transactions during
the year under report.
24) Confirmation of balance are yet to be obtained from parties.
25) The caution deposit collected from the employees and doctors who
are in service amounting to Rs.15.65 Lakhs is remaining to be deposited
with scheduled bank office as required under section 417 of the Companies
Act, 1956.
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Lotus Eye Hospital and Institute Ltd. Corporate Announcements
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