| Disclosure of accounting policies, change in accounting policies and changes in estimates explanatory (a) Basis of brparation of consolidated financial statements (i) The financial statements of the company have been brpared and brsented in accordance with the generally accepted accounting principle under the historical cost convention on an accrual basis. These financial statements comply, in all material respects, with the Accounting Standards as brscribed under section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014. (ii) The accounting policies adopted in the brparation of the financial statements are consistent with those of brvious year. (b) Principles of consolidation The Consolidated financial statements relate to Shalby Limited and its Subsidiaries Shalby Kenya Limited (100%) incorporated outside India, Shalby International Limited [Erstwhile Shalby Pune Limited] (100%), Vrundavan Shalby Hospitals Limited (55%), Yogeshwar Healthcare Limited (94.68%) and Griffin Mediquip LLP [Erstwhile Shalby Orthopaedic LLP] (95%). The Consolidated Financial Statements have been brpared on the following basis: (i) The financial statements of the company and its subsidiary company have been combined on a Line-by-Line basis by adding together the value of like items of assets, liabilities, income and expenses after fully eliminating intra-group balances and intra-group transactions resulting in unrealised profit or loss. (ii) The financial statements have been brpared using uniform accounting policies for like transactions and other events in similar circumstances and are brsented to the extent possible in the same manner as the company’s separate financial statements. (iii) The difference between the cost of investment in the subsidiaries, and the Company’s share of net assets at the time of acquisition of share in the subsidiaries is recognized in the financial statement as Goodwill or Capital Reserve as the case may be. Goodwill so arising is not amortised. However the same is tested for impairment at each Balance Sheet date. (iv) Financial Statements of foreign subsidiary company which is considered as integral operation are translated as if the transactions of foreign subsidiaries have been those of company itself. (v) Minority Interest in the net assets of consolidated subsidiaries is identified and brsented in the consolidated Balance Sheet separately from liabilities and equity of the Company’s shareholders. Minority interest in the net assets of consolidated subsidiaries of: (i) The amount of equity attributable to minority at the date on which investment in a subsidiary is made; and (ii) The minority share of movements in equity since the date parent subsidiary relationship came into existence. (iii) Minority interest’s share of Net Profit/(Loss) for the year of consolidated subsidiaries is identified and adjusted against the profit after tax of the group. (b) Use of Estimates The brsentation of financial statements requires certain estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized. (c) Fixed Assets and Debrciation (i) Tangible Fixed Assets are stated at cost of acquisition or construction less accumulated debrciation and impairment losses, if any. Cost comprises of the purchase price and any other attributable cost of bringing the assets to its working condition for its intended use. (ii) Intangible assets are recognised at the consideration paid for acquisition of such assets are carried at cost less accumulated amortisation and impairment (iii) Debrciation on Tangible Fixed Assets is provided on straight line method over the useful lives of assets specified in Part C of Schedule II to the Companies Act 2013 read with the relevant notifications issued by the Department of Company affairs is provided on straight line method. Intangible assets are amortised over their respective individual estimated useful lives on a straight line basis, commencing from the date the assets is available to the company for its use. The management estimates useful life for intangible asset comprising of computer software as follows: Computer Software : Over a period of three years (iv) Goodwill on merger / amalgamation is charged to statement of profit and loss in the year in which the same is generated. (v) Debrciation on assets acquired / disposed off during the year is provided on pro-rata basis with reference to the date of addition/disposal. (vi) An assessment is done to determine whether there is any indication of impairment. An asset is treated as impaired when its carrying cost 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 recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. The company has adopted the policy of carrying out impairment test once in the span of every three financial years. (d) Borrowing Cost Borrowing cost including interest, guarantee fees commitment charges etc., that is directly attributable to the acquisition, construction or production of a qualifying asset is capitalized as part of the cost of that asset up to period the project is commissioned or asset is put to use. The borrowing cost incurred on common funds borrowed generally and used for the purpose of obtaining a qualifying asset, is apportioned on rational basis, the remaining borrowing cost is charged to revenue. (e) Investment Investments are classified into current and long term investments. Current investments are stated at the lower of cost and fair value. Long term investments are stated at cost price. Provision for diminution in the value of Long Term Investment is made only if; such decline is not temporary in nature in the opinion of the management. (f) Inventories (i) The inventories of all medicines, Medicare items traded and dealt with by the Company are valued at cost or net realizable value whichever is lower. Cost is after adjusting Value Added Tax wherever applicable applying the FIFO Method. (ii) Stock of materials, consumables and general stores are stated at cost. Materials and consumables and general stores are charged to Profit and Loss Account as and when they are procured and stock of such items as at the end of the year is accounted at cost. (g) Revenue Recognition (i) Income from Healthcare Services is recognised based on completed service method. Income from Healthcare Services in respect of Indoor/ Outdoor patients as at Balance Sheet date is recognised on proportionate basis to the extent of services rendered. (ii) Pharmacy Sales are stated net of returns, discounts and adjusted for Value Added Tax wherever applicable. (h) Retirement Benefits (i) Defined Contribution Plan The Company has Defined Contribution Plan for its employees’ retirement benefit comprising of provident fund and Employees Death Linked Insurance. The company and eligible employees make monthly contributions to such schemes equal to specified percentage of the covered employees’ salary. The company has no further obligations to the above referred plans beyond its monthly contributions. (ii) Defined Benefit Plan For Defined Benefit Plan the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial Gains or Losses are recognised in full in the Profit and Loss Account for the period in which they occur. § Gratuity The Company makes annual contribution to the Employees’ Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service, or part thereof in excess of six months. Vesting occurs upon completion of five years of service. § Leave Encashment Benefit Leave encashment are accounted for based on actuarial valuation by the actuaries. (i) Transactions in Foreign Currency (i) Transactions denominated in foreign currencies are normally recorded at the monthly average exchange rate brvailing at the time of the transaction. (ii) Monetary items denominated in foreign currencies at the year end are restated at the year end rates. (iii) Any income or expense on account of exchange difference either on settlement or on transaction is recognised in the profit and loss account. (j) Taxation (i) Current year tax is provided based on taxable income computed in accordance with the provisions of the Income-tax Act, 1961. (ii) The Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period using the tax rates and laws that have been enacted or substantively enacted as at the balance sheet date. Deferred tax assets are recognised on unabsorbed debrciation and carry forward of losses based on virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax on timing differences other than those referred above is recognised and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such assets can be realised. (k) Earnings Per Share In determining the earnings per share, the Company considers the net profit after tax and extraordinary items and includes post-tax effect of any extraordinary items. The number of shares used in computing the earnings per share is the weighted average number of shares outstanding during the period. For computing diluted earnings per share, potential equity is added to the above weighted average number of shares. (l) Prior Period Items and Extra - Ordinary Items Adjustments arising due to errors or omission in the financial statements of earlier years are accounted under “Prior Period”. Items of Income & Expenditure, which are not of recurring nature viz., damages due to floods, earth quakes etc. are disclosed as extra ordinary items. (m) Provision, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements. (n) Goodwill Goodwill arising out of consolidation of financial statements of Subsidiaries is not amortised. However the same is tested for impairment at each Balance Sheet date. Disclosure of employee benefits explanatoryEmployee Benefits (a) Defined contribution to provident fund and Employees Death Linked Insurance The company makes contribution towards Employees’ Provident Fund and Employees Death Linked Insurance. In accordance with the provisions of these schemes, the Company is required to contribute a specified percentage of payroll costs. The Company has, during the year, recognized the sum of Rs 1 05 14 244 (P.Y. Rs 36 05 210) as expense towards contributions to these plans. (b) Defined Benefit Plan The following table sets out the status of the defined benefit plans as at 31st March, 2016. [Amount in Rs] | 2015-2016 | | 2014-2015 | | Particulars | Gratuity | Leave Encashment | Gratuity | Leave Encashment | | (Funded) | (Unfunded) | (Funded) | (Unfunded) | | | | | | Changes in the brsent value of obligation | | | | | | | | | | 1. Present value of obligation (Opening) | 68 88 667 | 40 00 209 | 56 26 051 | 26 16 711 | | | | | | 2. Interest cost | 5 16 686 | 2 98 824 | 4 81 720 | 2 27 904 | | | | | | 3. Past service cost adjustments/Prior year Charges | -- | 3 56 628 | -- | -- | | | | | | 4. Current service cost | 29 79 512 | 32 58 871 | 18 49 126 | 13 16 269 | | | | | | 5. Curtailment Cost / (Gain) | -- | -- | -- | -- | | | | | | 6. Settlement Cost / (Gain) | -- | -- | -- | -- | | | | | | 7. Benefits paid | (3 09 077) | (8 29 942) | (7 15 803) | (6 41 038) | | | | | | 8. Actuarial (Gain) / Loss | (8 80 855) | 9 72 071 | (3 52 426) | 4 80 363 | | | | | | 9. Present value of obligation (Closing) | 91 94 933 | 80 56 661 | 68 88 667 | 40 00 209 | | | | | |
… Continued.. (b) Defined Benefit Plan ... Continued.. [Amount in Rs] | 2015-2016 | | 2014-2015 | | Particulars | Gratuity | Leave Encashment | Gratuity | Leave Encashment | | (Funded) | (Unfunded) | (Funded) | (Unfunded) | | | | | | Changes in the fair value of plan assets | | | | | | | | | | 1. Present value of plan assets (Opening) | 70 09 071 | -- | 68 82 508 | -- | | | | | | 2 Past contribution / Prior year adjustment | -- | -- | -- | -- | | | | | | 2. Expected return on plan assets | 6 84 432 | -- | 6 93 921 | -- | | | | | | 3. Actuarial Gain / (Loss) | (6 84 432) | -- | (1 31 692) | -- | | | | | | 4. Employers Contributions | 1 50 000 | -- | -- | -- | | | | | | 5. Employees Contributions | -- | -- | -- | -- | | | | | | 6. Benefits paid | -- | -- | (4 35 666) | -- | | | | | | 7. Fair Value of Plan Assets (Closing) | 71 59 071 | -- | 70 09 071 | -- | | | | | | Percentage of each category of plan assets to total fair value of plan assets at the year end | | | | | | | | | | 1. Bank Deposits | -- | -- | -- | -- | | | | | | 2. Debt Instruments | -- | -- | -- | -- | | | | | | 3. Administered by Life Insurance Corporation of India | 71 59 071 | -- | 70 09 071 | -- | | | | | | 4. Others | -- | -- | -- | -- | | | | | | Reconciliation of the brsent value of defined benefit obligation and the fair value of assets | | | | | | | | | | 1. Present value of funded obligation as at the year end | 82 11 472 | -- | 54 35 206 | -- | | | | | | 2. Fair value of plan assets as at year end | 71 59 071 | -- | 70 09 071 | -- | | | | | | 3. Funded (Asset)/ Liability recognised in the balance sheet | 10 52 401 | -- | (15 73 865) | -- | | | | | | 4. Present value of unfunded obligation as at the year end | 9 83 461 | 80 56 661 | 14 53 461 | 40 00 210 | | | | | | 5. Unrecognised past service cost | -- | -- | -- | -- | | | | | | 6. Unrecognised Actuarial (Gains) / Losses | -- | -- | -- | -- | | | | | | 7. Unfunded net liability recognised in the balance sheet | 9 83 461 | 80 56 661 | 14 53 461 | 40 00 210 | | | | | |
… Continued.. (b) Defined Benefit Plan ... Continued.. [Amount in Rs] | 2015-2016 | | 2014-2015 | | Particulars | Gratuity | Leave Encashment | Gratuity | Leave Encashment | | (Funded) | (Unfunded) | (Funded) | (Unfunded) | | | | | | Amount recognised in the balance sheet | | | | | | | | | | 1. Present value of obligation as at the year end | 91 94 933 | 80 56 661 | 68 88 667 | 40 00 210 | | | | | | 2. Fair value of plan assets as at the year end | 71 59 071 | -- | 70 09 071 | -- | | | | | | 3. (Asset) / Liability recognized in the balance sheet | 20 35 862 | 80 56 661 | (1 20 404) | 40 00 210 | | | | | | Expenses recognised in the profit & loss account | | | | | 1. Current service cost | 29 79 512 | 32 58 871 | 18 49 126 | 13 16 269 | | | | | | 2. Past service cost | -- | 3 56 628 | -- | -- | | | | | | 3. Interest cost | 5 16 686 | 2 98 824 | 4 81 720 | 2 27 904 | | | | | | 4. Expected return on plan assets | (6 84 432) | -- | (12 70 005) | -- | | | | | | 5. Curtailment Cost / (Credit) | -- | -- | -- | -- | | | | | | 6. Settlement Cost / (Credit) | -- | -- | -- | -- | | | | | | 7. Net Actuarial (Gain) / Loss | (1 96 423) | 9 72 071 | 3 55 349 | 4 80 363 | | | | | | 8. Employee’s Contribution | -- | -- | -- | -- | | | | | | 9. Total expenses recognised in the profit and loss account | 26 15 343 | 48 86 394 | 10 24 417 | 20 24 536 | | | | | | Principal actuarial assumption | | | | | | | | | | 1. Rate of discounting | 7.70 | 7.80 | 7.70 | 7.70 | 2. Expected return on plan assets | 8.70 | -- | 8.70 | -- | 3. Rate of increase in salaries | 6.00 | 6.00 | 6.00 | 6.00 | | | | | |
Disclosure of enterprise's reportable segments explanatorySegment Reporting The company’s primary business segment is Health Care Services. Based on the guiding principles given in Accounting Standard 17 on “Segment Reporting” issued by the Institute of Chartered Accountants of India, this activity falls within a single primary business segment and accordingly the disclosure requirements of Accounting Standard 17 in this regard are not applicable. |