(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 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.
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.
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.
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.
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.
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.