Accounting Policies of Soni Medicare Ltd. Company

Mar 31, 2024

Significant Accounting Policies, Assumptions and Notes
Note 1.2 - Basis of preparation and presentation

(i) Compliance with Ind AS

Ministry of corporate affairs has notified roadmap to implement IND AS notified under
Companies (Indian Accounting Standard) Rules 2015 as amended by the Companies
(Indian Accounting Standard) Rules 2016. And according to the said roadmap the
company is required to apply IND AS in preparation of financial statement from the
financial year beginning from 1st April 2017.

The Company has prepared its financial statements as per the IND AS for the financial
year beginning on April 1, 2016 as the date of transition. These are the Company''s first
annual financial statements prepared complying in all material respects with the IND
AS notified by Ministry of Company Affairs ("MCA"). For all previous periods
including the year ended 31st March, 2017, the Company had prepared its financial
statements in accordance with the accounting standards notified under companies
(Accounting Standard) Rule, 2006 (as amended) and other relevant provisions of the
Act (hereinafter referred to as ''Previous GAAP'') used for its statutory reporting
requirement in India.

The reconciliation of effects of the transition from Indian GAAP on the equity as at
April 1, 2016 and March 31, 2017 and on the total comprehensive income for the year
ended March 31, 2017 is disclosed in Notes to these financial statements. The financial
statements have been prepared considering all IND AS as notified by MCA till the
reporting date i.e. March 31, 2018. The accounting policies are applied consistently to all
the periods presented in the financial statements, including the preparation of the
opening Ind AS Balance Sheet as at 1st April, 2016 being the date of transition to Ind AS.

(ii) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to
"Rupees in Hundreds" upto two decimals points as per the requirement of Schedule III,
unless otherwise stated.

Use of estimates, assumption and judgement

The preparation of the financial statements in conformity with recognition and
measurement principles of Ind AS requires the Management to make estimates and
assumptions considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the year. Estimates
and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognized in the period in which estimates are
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.

The following are the key assumptions concerning the future, and other sources of
estimation uncertainty at the end of the reporting period that may have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities in
future are:

(i) Useful lives and residual value of property, plant and equipment, intangible
assets and investment properties:

Useful life and residual value are determined by the management based on a technical
evaluation considering nature of asset, past experience, estimated usage of the asset,
vendor''s advice etc. and same is reviewed at each financial year end.

(ii) Deferred tax assets:

The Company has reviewed the carrying amount of deferred tax assets including MAT
credit at the end of each reporting period and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset
to be recovered.

(iii) Contingencies:

Management judgement is required for estimating the possible outflow of resources, if
any, in respect of contingencies/claim/litigations against the Company as it is not
possible to predict the outcome of pending matters with accuracy.

(v) Discounting of Security deposit, and other long-term liabilities:

For majority of the security deposits received, the timing of outflow, as mentioned in
the underlying contracts, is not ascertainable or is not substantially long enough to
discount. The treatment would not provide any meaningful information and would
have no material impact on the financial statements.

Note 1.3 - Statement of Compliance

The financial statements comprising of the Balance Sheet, Statement of Profit and Loss,
Statement of changes in equity, Statement of Cash Flow together with notes comprising
a summary of Significant Accounting Policies and Other Explanatory Information for
the year ended 31st March 2023 and comparative information in respect of the
preceding period have been prepared in all material aspects in accordance with IND AS
as notified and duly approved by the Board of Directors, along with proper explanation
for material departures.

Note 1.4 - Accounting Policies

Basis of Measurement:

The financial statements have been prepared on accrual basis and under the historical
cost convention except for the following:

1) Certain financial assets and liabilities that are measured at fair value;

2) Assets held for sale - measured at carrying amount or fair value less cost of disposal,
whichever is less;

3) Defined benefit plans - Plan assets measured at fair value
Current versus non-current classification

The Company presents assets and liabilities in statement of financial position based on
current/non-current classification.

The Company has presented non-current assets and current assets before equity, non¬
current liabilities and current liabilities in accordance with Schedule III, Division II of
Companies Act, 2013 notified by MCA.

An asset is classified as current when it is:

(a) Expected to be realised or intended to be sold or consumed in normal operating
cycle,

(b) Held primarily for the purpose of trading,

(c) Expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

A liability is classified as current when it is:

(a) Expected to be settled in normal operating cycle,

(b) Held primarily for the purpose of trading,

(c) Due to be settled within twelve months after the reporting period, or

(d) There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period. All other liabilities are classified as non¬
current.

The operating cycle is the time between the acquisition of assets for processing and their
realisation in cash or cash equivalents. Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

(i) Inventories

Inventories comprise stock of drugs, Implants & medicines and other consumables and
is carried at the lower of cost and net realizable value, cost includes all expenses
incurred in bringing the goods to their present location and condition and is
determined on first in first out basis. Net realizable value is the estimated selling price
in the ordinary course of business, less estimated costs of completion and to make the
sale.

(ii) Statement of cash flows

Cash flows are reported using the method as prescribed in IND AS 7 ''Statement of Cash
flows'', where by net profit before tax is adjusted for the effects of transactions of a non¬
cash nature, any deferrals or accruals of past or future operating cash receipts or
payments and item of income or expense associated with investing or financial cash
flows. The cash flows from operating, investing and financing activities of the Company
are segregated.

(iii) Revenue recognition

Effective April 1, 2018, the Company has applied Ind AS 115 which establishes a
comprehensive framework for determining whether, how much and when revenue is to
be recognised. Ind AS 115 replaces Ind AS 18 Revenue and Ind AS 11 Construction
Contracts. The Company has adopted Ind AS 115 using the cumulative effect method.
The effect of initially applying this standard is recognised at the date of initial
application (i.e. April 1, 2018). The impact of the adoption of the standard on the
financial statements of the Company is insignificant. Revenue is recognised upon
transfer of control of promised products or services to customers in an amount that
reflects the consideration which the Company expects to receive in exchange for those
products or services. Revenue is measured based on the transaction price, which is the
consideration, adjusted for volume discounts, service level credits, performance
bonuses, price concessions and incentives, if any, as specified in the contract with the
customer. Revenue also excludes taxes collected from customers.

Operating income (IPD / OPD): - Operating income in relation to services is recognised
as and when the services are rendered. Consulting fee from hospitals and income from
training services is recognised as and when the contractual obligations arising out of the
contractual arrangements with respective hospitals are fulfilled.

Other income - Interest income from a financial asset is recognised when it is probable
that the economic benefits will flow to the company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding at the effective interest rate applicable, which is the rate that
exactly discounts estimated future cash receipts through the expected life of the
financial asset to that asset''s net carrying amount on initial recognition. Rent income is
recognised when it is probable that the economic benefit will flow to the Company and
the amount of income can be measured reliably. Rent income is accrued as per terms of
contracts.

(iv) Property, Plant and Equipment

a) The Company has applied for the one-time transition exemption of considering the
carrying cost on the transition date i.e. April 1, 2016 as the deemed cost under IND AS.
Hence, regarded thereafter as historical cost.

b) Property, plant and equipment are stated at cost of acquisition or construction less
accumulated depreciation and impairment, if any. For this purpose, cost includes
deemed cost which represents the carrying value of property, plant and equipment
recognised as at 1st April, 2016 measured as per the previous GAAP. Cost is inclusive of
inward freight, non-refundable duties and taxes and incidental expenses related to
acquisition or construction.

c) Subsequent costs are included in the asset''s carrying amount or recognised 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.

All upgradation / enhancements are charged off as revenue expenditure unless they
bring similar significant additional benefits.

d) An item of property, plant and equipment is derecognized upon disposal or when no
future economic benefits are expected to arise from the continued use of asset. Any gain
or loss arising on the disposal or retirement of an item of property, plant and equipment
is determined as the difference between the sales proceeds and the carrying amount of
the asset and is recognised in the Statement of Profit and Loss.

Depreciation of these assets commences when the assets are ready for their intended
use which is generally on commissioning.

e) Depreciation / amortisation: Property, Plant and Equipments has been depreciated
on Straight Line method, over the useful life in the manner prescribed in Schedule II of
the Companies Act, 2013.

Depreciation on Intangible Assets being tenancy, lease hold and other contract Right
has been amortized over the useful life in the manner prescribed in Schedule II of the
Companies Act, 2013.

(v) Leases

Lease payments under operating leases are recognised as an expense in the statement of
profit and loss on a straight-line basis over the lease term unless another systematic
basis is more representative of the time pattern of the Company''s benefit. Where the
rentals are structured solely to increase in line with expected general inflation to
compensate for the lessor''s expected inflationary cost increases, such increases are
recognised in the year in which such benefits accrue. Contingent rentals arising under
operating leases are recognised as an expense in the period in which they are incurred.

(vi) Employee Benefits

The Company has various schemes of employee benefits such as provident fund,
employee state insurance scheme, gratuity and Compensated Absences, which are dealt
with as under:

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to
be settled wholly within 12 months after the end of the period in which the employees
render the related service are recognised in respect of employees'' services up to the end
of the reporting period and are measured at the amounts expected to be paid when the
liabilities are settled.

(ii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund and Family pension funds.

Gratuity obligations

The Company has recognised a provision for Defined Benefit Obligations, i.e., gratuity
amounting to Rs. 64,90,717.00 Due to the unavailability of actuarial valuation no
adjustment is made as per Ind -AS to recognise fair value.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund etc., are charged to the Statement of
Profit and Loss as incurred.

Liability on account of short-term employee benefits, comprising largely of
compensated absences and bonus, is recognised on an undiscounted accrual basis
during the period when the employee renders service.

(vii) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to
get ready for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are
incurred.

(viii) Earnings Per Share
Basic earnings per share

Basic earnings per share Basic earnings per share is calculated by dividing the profit
attributable to owners of the Company by the weighted average number of equity
shares outstanding during the financial year, adjusted for bonus elements in equity
shares issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic
earnings per share to take into account the after income tax effect of interest and other
financing costs associated with dilutive potential equity shares, and the weighted
average number of additional equity shares that would have been outstanding
assuming the conversion of all dilutive potential equity shares.

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Mar 31, 2014

A. GOING CONCERN CONCEPT

The accounts have been prepared as a going concern under historical cost basis of accounting and the Company adopted the accrual system of accounting. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting policies.

b. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

Other fixed assets include Tenancy, lease hold and other contract rights for which value was paid to Dr. B.R. Soni for purchase of Soni Hospital and no depreciation has been charged on it till date.

c. INVESTMENT

Investments are valued at acquisition cost.

d. DEPRECIATION

Depreciation has been provided on straight line method at rates prescribed under Schedule XIV to the Companies Act, 1956.

e. INVENTORIES

Stock of drugs & medicines and other consumables have been valued at cost or net realizable price, whichever is lower.

f. RETIREMENT BENEFITS

Employees Group Gratuity Scheme of LIC had been opted in May, 2010 and Company is paying the Gratuity contribution to LIC in installments as prescribed by it.

Encashment of Leave is allowed as and when employee leaves the company.

g. PRELIMINARY EXPENDITURE/SHARE ISSUE EXPENSES

Preliminary expenses are being written off over a period of 10 years subsequent to the year in which the same were incurred.

h. SEGMENT ACCOUNTING :

The Company deals in only one Service segment at Jaipur i.e. Hospital Services and hence requirement of AS-17 "Segment Reporting" is not applicable.

i. EARNING PER SHARE :

The earnings considered in ascertaining the Company's EPS comprise the net profit after tax (and include the post tax effect of any extra ordinary items), The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

j. TAXATION :

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision is made for deferred tax for all timing difference arising between taxable income and accounting income at currently prescribed tax rates.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

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Mar 31, 2013

A. GOING CONCERN CONCEPT

The accounts have been prepared as a going concern under historical cost basis of accounting and the Company adopted the accrual system of accounting. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting policies.

b. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

Other fixed assets include Tenancy, lease hold and other contract rights for which value was paid to Dr. B.R. Soni for purchase of Soni Hospital and no depreciation has been charged on it till date.

c. INVESTMENT

Investments are valued at acquisition cost.

d. DEPRECIATION

Depreciation has been provided on straight line method at rates prescribed under Schedule XIV to the Companies Act, 1956.

e. INVENTORIES

Stock of drugs & medicines and other consumables have been valued at cost or net realizable price, whichever is lower.

f. RETIREMENT BENEFITS

Employees Group Gratuity Scheme of LIC had been opted in May, 2010 and Company is paying the Gratuity contribution to LIC in installments as prescribed by it.

Encashment of Leave is allowed as and when employee leaves the company.

g. PRELIMINARY EXPENDITURE/SHARE ISSUE EXPENSES

Preliminary expenses are being written off over a period of 10 years subsequent to the year in which the same were incurred.

h. SEGMENT ACCOUNTING :

The Company deals in only one Service segment at Jaipur i.e. Hospital Services and hence requirement of AS-17 "Segment Reporting" is not applicable.

i. EARNING PER SHARE :

The earnings considered in ascertaining the Company's EPS comprise the net profit after tax (and include the post tax effect of any extra ordinary items), The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

j. TAXATION :

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision is made for deferred tax for all timing difference arising between taxable income and accounting income at currently prescribed tax rates.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

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Mar 31, 2012

A. GOING CONCERN CONCEPT

The accounts have been prepared as a going concern under historical cost basis of accounting and the Company adopted the accrual system of accounting. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting policies.

b. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

Other fixed assets include Tenancy, lease hold and other contract rights for which value was paid to Dr. B.R. Soni for purchase of Soni Hospital and no depreciation has been charged on it till date.

c. INVESTMENT

Investments are valued at acquisition cost.

d. DEPRECIATION

Depreciation has been provided on straight line method at rates prescribed under Schedule XIV to the Companies Act, 1956.

e. INVENTORIES

Stock of drugs & medicines and other consumables have been valued at cost or net realizable price, whichever is lower.

f. RETIREMENT BENEFITS

Employees Group Gratuity Scheme of LIC had been opted in May, 2010 and Company is paying the Gratuity contribution to LIC in installments as prescribed by it.

Encashment of Leave is allowed as and when employee leaves the company.

g. PRELIMINARY EXPENDITURE/SHARE ISSUE EXPENSES

Preliminary expenses are being written off over a period of 10 years subsequent to the year in which the same were incurred.

h. SEGMENT ACCOUNTING :

The Company deals in only one Service segment at Jaipur i.e. Hospital Services and hence requirement of AS-17 "Segment Reporting" is not applicable.

i. EARNING PER SHARE :

The earnings considered in ascertaining the Company's EPS comprise the net profit after tax (and include the post tax effect of any extra ordinary items), The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year.

j. TAXATION :

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A provision is made for the current tax based on tax liability computed in accordance with relevant tax rates and tax laws. A provision is made for deferred tax for all timing difference arising between taxable income and accounting income at currently prescribed tax rates.

Deferred tax assets are recognized only if there is reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.