Jupiter Life Line Hospitals Ltd.
 
CORPORATE INFORMATION.

Jupiter Life Line Hospitals Ltd.is a Company running multi-specialty Hospital of 350 beds in Thane near Mumbai and 220 beds in Baner, Pune. Its name is well received in the medical field and is one of the better known addresses for medical treatment in and around Mumbai / Thane / Pune. It has also set up Fortune Park Lake City Hotel in collaboration with ITC group of hotels for promoting medical tourism.
 
Jupiter Life Line Hospitals Ltd. has invested in Jupiter Hospital Projects Pvt. Ltd. holding 76% stake as on 31/03/2021. The total paid up capital of the JHPPL consists of Rs. 50 Crores Equity Shares capital and Rs. 20 Crores Optionally Convertible Redeemable Preference Shares Capital out of which JLHL is holding Rs. 38 Crores Equity share capital and Rs. 20 Crores OCRPS Capital respectively.
 
JHPPL is a company running multi-speciality Hospital acquired from Vishesh Diagnostics Private Limited Ring Road unit, Near Teen Imli Square, through slump sale on 16.11.2020 by exceuting a Business Transfer Agreement; wherein all the assets and liabilities of Vishesh Diagnostics Private Limited as on 15.11.2020 have been transferred to JHPPL.
 
24. SIGNIFICANT ACCOUNTING POLICIES
 
Basis of Accounting

The financial Statements are brpared on accrual basis under the Historical Cost Convention and to comply with the generally accepted accounting principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The accounting policies have been consistently applied unless otherwise stated.
 
Use of Estimates

The brparation of financial statements is in conformity with generally accepted accounting principles which require the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon the management’s best knowledge of current events and actions, actual results could differ from those estimates and are recognized in the period in which results are known/ materialized.

Inventories

In Hospital division inventories consist of medicine, surgical items etc and Hotel division consist of consumable items. All items of inventories are valued at cost or net realizable value, whichever is lower.
 
Revenue Recognition
 
In Hospital revenue comprises of income from services rendered to the out-patients and in-patients. Revenue is recognized at the time of collection of charges in case of individual paying patients and on accrual basis in case of TPAs and corporates. In Hotel Division revenue is recognized on accrual basis.
 
Fixed Assets
 
Fixed Assets are stated at cost net of recoverable taxes, trade discounts, and rebates, if any, less accumulated debrciation. The cost includes purchase price and any cost directly attributable to bring the Asset to its working condition for its intended use.
 
Loss arised due to replacement of Pune Project ECB EURO Loan with INR Term Loan is apportioned to respective fixed assets in proportion to balance as on 31/03/2021.

Projects under which assets are not ready for intended use are disclosed under Capital Work-in-Progress.
Capital Work-in-Progress includes the additional department being set up at Pune and Thane & in Indore
Details of Capital WIP is as under:
 
                        As at 31st March, 2021    As at 31st March, 2020
                            Rs in lakhs               Rs in lakhs
Capital WIP (JLHL)              1333.45                1050.13                 
Capital WIP (JHPPL) 1257.89 NIL
Lease Assets

Lease is considered as financial lease when lessor transfers substantially all the risk & rewards incidental to ownership of an asset i.e. when lessee has an option to purchase the asset at a price which is insufficiently lower than the fair market value and/or term of lease is for substantial part of economic life of the asset. Otherwise lease is considered as operating lease. Rentals under operating lease are expensed on a straight line basis with reference to the lease terms and other considerations.
 
Debrciation
 
Debrciation on Tangible Fixed Assets is provided on Straight Line Method (SLM) based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. Intangible Fixed Assets are amortized over a period of 5 years. In Fortune Park Hotel division included stock in circulation like crockery, cutlery, linen, uniform or glass wares which have been charged off to Profit & Loss A/c based on estimates made by Management.
 
Employee benefits: -
 
Regular contributions are made to the State administered Provident Fund which is charged against revenue.
 
Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard 15 Employee Benefits “AS 15”.
 
Provident fund

The Company contributes to the statutory provident fund of the Regional Provident Fund Commissioner, in accordance with Employees provident fund and Miscellaneous Provision Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which the employee renders services.

Gratuity
 
Gratuity Fund is maintained with the Life Insurance Corporation (LIC) of India on the basis of valuation done by LIC to discharge the gratuity liability to the employee.
 
Other short-term benefit

Expense in respect of other short-term benefits including performance bonus is recognized on the basis of amount paid or payable for the period during which the employees render services.
 
Foreign Currency Transactions:-
 
Transactions denominated in foreign currency are generally recorded at the exchange rate brvailing on the date of the transaction.
 
Exchange difference if any arising on the settlement of monetary dues or on reporting the company’s monetary items at rates different from those at which they were initially recorded during the year or, reported in brvious financial statements are recognized as respective assets and / or income or expense in the year in which they arise.
 
Earnings per Share:-

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average number of equity shares outstanding during the period.
 
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all potential equity shares.
 
Dues to Micro and Small Enterprises:-
 
This information is required to be disclosed under the Micro, Small and Medium enterprises Development Act 2006. It has to be determined to the extent such parties have been identified on the basis of information available with the Company. In the absence of intimation/Information from the concerned parties the required information could not be extracted.

Taxes on Income:-
 
Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the income tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier periods. Deferred tax assets & liabilities are measured using the tax rates and tax law that have been enacted by the balance sheet date. Provision for Deferred Tax Liability is made to take care of timing difference in tax treatment of various expenses but mainly of debrciation.
Contingent Liability: -
 
Contingent Liabilities are possible but not probable obligations as on Balance Sheet date, based on the available evidence. There are no such contingent liabilities which require disclosure.
 
Segment Reporting: -

The Company is not required to disclose separately segment reporting as regards Hotel division in financial statement as per AS 17 because it’s Revenue, Profit & Loss and Assets are not exceeding 10% of Total Revenue, Profit & Loss and Assets of Company.
 
Cash Flow Statement: -

Cash flows are reported using the indirect method, whereby 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 expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the company are segregated.
 
Other significant matters:-
 
As against practice followed of crediting brvious year’s MAT in current year, MAT credit of brvious year as well as MAT credit entitled for current year is taken in current year itself.